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IT Case Studies

NIPPON STEEL & SUMIKIN CHEMICAL CO., LTD.

Promoting Business Process Re-engineering by
Rebuilding the Enterprise Systems with Cloud

Project Summary

Background

The enterprise systems worked on mainframe computers were to be rebuilt with cloud computing. Cost efficiency and speed of development were important for the general management systems, while availability was a key factor for the sales and production management systems.

Solution

The “absonne” platform from NS Solutions was selected as the cloud IT infrastructure. The absonne standard model was used to pursue cost efficiency and speed of development, while the enterprise model was selected to meet availability requirements.

Outlook

As planned, some new systems using the standard model started operation in April 2012. Configuration of the overall system including systems using the enterprise model is currently in progress. By April 2014, the entire new enterprise systems will be fully operative.

Considering the enterprise systems rebuild with cloud computing

NIPPON STEEL & SUMIKIN CHEMICAL is producing a wide range of revolutionary products including new materials for cellular phones and similar. The company has formulated a “grand design” of long-term goals to be attained by the year 2020 and is currently promoting business process re-engineering to achieve the goals.
As part of this drive, the company began to look into rebuilding its enterprise systems in the autumn of 2010. The systems were running on mainframe computers but were suffering from various drawbacks, such as lack of functions for multi-type small-lot production, and the difficulty of adapting to new or revised legal regulations. As a result, a plan was drawn up to rebuild new enterprise systems based on a cloud IT infrastructure.

Covering different requirements with two absonne models

The cloud IT infrastructure service to be used for the new enterprise systems had to meet two different types of requirements. For the sales and production management systems, high availability is a top priority. On the other hand, cost efficiency is paramount for the general management systems. NIPPON STEEL & SUMIKIN CHEMICAL selected the “absonne” platform of NS Solutions Corporation (NSSOL) as the cloud IT infrastructure.
The absonne standard model provides the IT infrastructure with menubased operation and fixed-fee billing. In addition, the absonne enterprise model provides the IT infrastructure with high availability. Consequently, the standard model was chosen for the general management systems and the enterprise model for the sales and production management systems.

IT infrastructure costs are expected to drop

The project for the new enterprise systems was launched in April 2011. Some of the general management systems went into operation in April 2012, as planned. As a result, performance increased significantly over the old methods.The remaining general management systems and the sales and production management systems are currently being rebuilt.
Because of the large number of systems to be developed, the project has been divided into two steps, with step 1 scheduled to be completed at the end of March 2013, and step 2 at the end of March 2014. With the eventual completion of the new enterprise systems, IT infrastructure costs are expected to drop by at least 20 percent, along with reduced inventory requirements and shorter lead times.

Core technologies
Cloud computing, absonne, virtualization, Windows
System outline
●Cloud service: absonne standard model, absonne enterprise model
●Applications: MCFrame, COMPANY
●Network: IP–VPN

NIPPON STEEL & SUMIKIN CHEMICAL CO., LTD.

NIPPON STEEL & SUMIKIN CHEMICAL CO., LTD.
NIPPON STEEL & SUMIKIN CHEMICAL CO., LTD.
Head Office: 4-14-1 Sotokanda, Chiyoda-ku, Tokyo
Established: 1956
Capital: 5 billion yen (as of March 31, 2012)
Net sales: 196.9 billion yen consolidated (fiscal year ended March 2012)
Number of employees: 801 (as of March 31, 2012)

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