CASE STUDY

Global IT Transformation

Mitsui and Verizon: Consolidating IT for a Diversified Global Business

A business built on growth builds a global IT strategy to match.
Mitsui & Co., Ltd., one of the worlds largest global trading conglomerates, has always embraced challenge and innovation. This corporate culture was recently demonstrated when the company undertook a complete transformation of its global computing, networking and communications infrastructure. This transformation was a strategic decision to better enable the company to meet its growth objectives in markets around the world. Since it was founded in Japan 134 years ago, Mitsui has grown and evolved by meeting its clients needs wherever they are. The company opened new markets, acquired new businesses and expanded to over 60 countries. In the process Mitsui was continuously building and acquiring systems and networks to support its global reach. The result was a patchwork of systems, each with its own capabilities and service levels. As long as the businesses operated autonomously and within their own geographical regions, that approach worked. Mitsui however saw a future in which the world was becoming smaller, more connected, and the rate of change moving at an ever faster pace. The company saw a future where technology, financial markets, and business practices are driving a more comprehensive global approach to service delivery and support. Seiichi Tanaka, Executive Vice President and CIO, Mitsui, says he sees significant change occurring on a global scale. Consider the thriving Asian markets, including China, India, and Indonesia, says Mr. Tanaka. When you visit these markets, you feel first-hand that the speed and scale of change and growth is accelerating faster than ever before. The same can be said for some of the South American markets, and we can expect to see similar changes in Africa in the near future. These are going to be our core competitive markets. So we have reached a point where we have no choice but to truly become global, both in our operation and our approach. The key to supporting Mitsuis future global business, says Mr. Tanaka, is introducing a truly global IT infrastructure. To realize that objective, Mitsui needed a strategic global partner to design, implement and manage this new environment, while managing an entire eco-system of best-in-class equipment and service providers, essential to delivering the complete platform.

About Mitsui
Mitsui & Co., Ltd., is one of the worlds most diversified and comprehensive trading, investment, and service enterprises. Headquartered in Tokyo, Mitsui & Co. maintains a global network of 151 offices in 65 countries, and has 461 subsidiaries and associated companies worldwide. The parent company, Mitsui Group, was originally founded in 1876; today, it incorporates more than 1,000 subsidiaries and associated companies in various industry sectors, including iron and steel products, mineral and metal resources, infrastructure projects, motor vehicles, marine and aerospace, chemicals, energy, foods and retail, consumer services, information, electronics and telecommunications, financial markets, and transportation logistics.

From Fragmented and Costly to Streamlined and Efficient

As Mitsui has grown over time, its hired local IT vendors to meet needs in each new locale. Inevitably, this approach resulted in a duplication of platforms, processes, security policies, and costs.

Mitsui and Verizon: Consolidating IT for a Diversified Global Business

Today, Mitsui operates a global enterprise of 151 offices in 65 countries, with 533 subsidiaries and associated companies worldwide. When the company recently took stock of its overall IT infrastructure, executives realized it was like a house that had been added onto over the years, using different builders, different materials, and no centralized blueprint. The result was unwieldy and inefficient, providing little opportunity for business agility and no single standard for governance or security. The IT infrastructure was fragmented, costly, and difficult to manage. To be well positioned for future opportunities and improve its ability to operate on a global scale, Mitsui needed a different approach -- a platform that would help improve its business efficiency and profitability. The company also wanted to consolidate internal information, logistics, and knowledge bases scattered around the world. So Mitsui set out to build a comprehensive platform, managed globally in a centralized manner, which led to a search for a global partner capable of meeting such diverse and changing needs.

Whats in a Global IT Infrastructure?

Mitsui turned to Verizon to help build a global IT platform capable of meeting the companys strategic objectives. From desktops to datacenters, across Mitsuis entire infrastructure around the world, Verizon is helping to establish an everything-as-a-service (EaaS) environment that eliminates the complexity of disparate hardware, software, security, and communications components. Verizon created a comprehensive managed solution, tailored to meet Mitsuis specific needs. The backbone of Mitsuis new IT infrastructure is Verizons managed Private IP network. Mitsuis computational layer includes rationalized data centers around the globe which are integrated with Verizons data centers and cloud services for operational efficiencies, redundancy and data security. The telephony layer includes a new VoIP platform and conferencing services for improved collaboration amongst Mitsuis many locations. The email and messaging systems were also completely integrated. Verizons security services are deployed to help protect Mitsuis data infrastructure from cyber attacks from the outside, and internal and partner breaches from within. The whole system includes a comprehensive support structure that provides both in-country, local language support and a global account team to provide comprehensive oversight and coordination of service delivery.
Security Solutions

We expect that our global relationship with Verizon will elevate our presence as an all-around global company capable of providing solutions for clients the world over.
Seiichi Tanaka, Executive Vice President and Chief Information Officer, Mitsui & Co.

Data Center Solutions E-Mail/Messaging Cloud Solutions (CaaS) IT Help Desk Solutions

Managed WAN Solutions Managed LAN Solutions VoIP/IP-PBX Solutions Conferencing Solutions

Professional Services

Global Project Management O ce (PMO)

Verizon also assigned a dedicated Project Management Office (PMO) for Mitsui, with a team responsible for managing the entire project life cyclefrom invoicing, contracts, and service-level agreements (SLAs), to migration and technology refresh. This team is also assisting in the implementation of Mitsuis new company-wide SAP strategy and platform. Mr. Tanaka observes, A standardized system is being constructed to streamline the entire company. This will enable stronger ties between segregated businesses and allow for a differentiating business model. I am confident that all of this will further build our competitive edge.

Mitsui and Verizon: Consolidating IT for a Diversified Global Business

Why Mitsui Chose Verizon

Mr. Tanaka explained Mitsuis rationale for selecting Verizon as its strategic partner, In order to improve our collective strength, it is essential that our company, subsidiaries, affiliated companies, and clients are able to work closely on a global scale. This is achieved through building a network based on our global IT strategy. Were not in the business of IT or networks. Therefore, it is essential that we have a global partner that understands our approach and strategy, and assists us in making it happen. Mitsui needed a partner with the global breadth and scale of services and support that Verizon delivers. Verizons network is one of the largest in the world, spanning more than 150 countries, and providing service to tens of thousands of corporations and government agencies worldwide, including 96 % the Fortune 1000. Mitsui noted that the reach of the Verizon Network, along with its related benefits of network stability and reliability, were key reasons for partnering with Verizon. We werent looking for a mere vendor or provider, says Mr. Tanaka, but a true partnership where the company embraces our strategy to generate business synergy and works with us to create new business. We expect that our global relationship with Verizon will elevate our presence as an all-round global company capable of providing solutions for clients the world over. Verizons ability to integrate and manage all of the components and suppliers of the IT infrastructure was key to Mitsuis decision. Completely replacing an existing system can be costly and disruptive. According to Toru Nakajima, General Manager and Deputy CIO, thats why Mitsui wanted to continue using existing equipment such as its PBX and servers, and merge them together to form a single network. We needed a partner that could round up existing IT systems and outsourced IT vendors in order to maximize the potential of each, Mr. Nakajima says.

About Verizon Business

Verizon Business, a unit of Verizon Communications (NYSE: VZ), is a global leader in communications and IT solutions. We combine professional expertise with one of the worlds most connected IP networks to deliver award-winning communications, IT, information security and network solutions. We securely connect todays extended enterprises of widespread and mobile customers, partners, suppliers, and employees enabling them to increase productivity and efficiency and help preserve the environment. Many of the worlds largest businesses and governments including 96 percent of the Fortune 1000 and thousands of government agencies and educational institutionsrely on our professional and managed services and network technologies to accelerate their business.

What a Global Platform Means to Mitsuis Future

The benefits of a global IT platform are many. The costs savings and operational efficiencies are obvious and immediate. Mitsui expects to save 20% a year on IT costs with the new platform, while spending less time and resources managing all the disparate parts of the network they had before. Other, less visible benefits provide significant advantages for a global business enterprise like Mitsui. A single platform reduces security risks arising from connections between multiple networks. Group companies operating within a global framework can use standardized guidelines in key business areas such as sales, logistics, and accounting. Other benefits include:

An integrated approach to IT governance, risk, and compliance (GRC), and policy Company-wide distribution and synchronization for back-up and modifications Centralized monitoring, control, and management Automated software upgrades Server redundancy to provide global business continuity

Reliable support on a global scale is essential for a globally integrated system infrastructure, Mr. Nakajima says. The probability of downtime must be reduced wherever possible, even during emergencies. I believe that Verizon excels in these areas. Together, Mitsui and Verizon are dedicated to an IT platform that maximizes Mitsuis potential, enabling greater business agility and supporting its future growth. By working in partnership, Verizon and Mitsui are realizing their long-term vision for an everything-as-a-service approach and a holistic approach to Mitsuis global IT needs.

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