Tokyo — SAP Japan Co. Ltd. (“SAP Japan”) today announced that Dai-Ichi Mutual Life Insurance Company (“Dai-Ichi Life”) has deployed mySAP ERP, SAP Japan’s ERP package as its financial accounting system infrastructure.
Anticipating trends in accounting rules, such as the requirement for quarterly financial statements under the Financial Products Trading Act, Dai-Ichi Life has been pursuing the re-engineering of the system infrastructure for accounting operations such as financial accounting and budgeting. Dai-Ichi Life decided to deploy SAP products as one means of addressing this challenge, and it migrated the task of closing its books for the year to the new system in fiscal 2005. At this time, it has finished addressing the changes in financial statements required to comply with Corporation Law.
The financial services industry has been working urgently to address the changes in the items for disclosure in financial statements and the new statement of changes in shareholders’ equity required by revisions to the Corporation Law. Likewise, the industry has been gearing up for the commencement of a quarterly reporting scheme under the Financial Products Trading Act. As additions and changes to the various types of accounting methods become even more frequent in the future, the industry will demand even greater flexibility and scalability from its financial accounting systems.
In this environment, Dai-Ichi Life has for some time been examining the re-engineering of its accounting systems and evaluating SAP products, with the objective of ensuring flexibility in complying with accounting method changes, efficiency in closing its books, and efficiency in budget control. Dai-Ichi Life decided to adopt SAP products because of their strong operating record and their extensive capabilities. It also based its decision on the special support provided by SAP Japan, and the fact that SAP partners Dai-Ichi Life Information Systems Co. Ltd. and Mizuho Information & Research Institute Inc. possess both expertise in insurance and banking operations and the capability to deploy and operate SAP products.
The new system takes advantage of an existing accounting system that connects accounting forms and records from 1,800 locations nationwide with various business systems such as the insurance policy system, and links this to the financial accounting component of mySAP ERP in order to build a framework for rapidly creating financial statements such as balance sheets and income statements. In addition, a budget management (cost management) operations system was built on top of this financial accounting component that is integrated with this system infrastructure. Accounting data is stored using SAP NetWeaver Business Intelligence, creating a framework that allows data to be readily analyzed from various dimensions.
Benefits of new system deployment at Dai-Ichi Life
There are three main benefits to Dai-Ichi Life from re-engineering its accounting systems:
- Ensuring accounting system flexibility: Dai-Ichi Life has been able to ensure that its business system infrastructure has the flexibility and scalability needed to rapidly address the various accounting changes that may happen in the future, such as the obligation to provide quarterly disclosures.
- Faster and more efficient creation of financial statements: The work involved in creating financial statements has been made substantially more efficient and rapid by taking advantage of a database structure that allows for monthly reporting and ample reporting capabilities, both of which are standard features of SAP products.
- Promotes visualization of business data: The new system has brought about the “unified management” of accounting data, including data from prior years as well as the “encouragement of data utilization,” thanks to its ample reporting capabilities. In doing so, it has become possible to grasp actual results more quickly and enhance the utility of accounting information. This promises to aid in the internal control of financial reporting.
This fiscal year SAP Japan intends to focus much effort on the financial services industry, beginning with insurance services. The Company will strive to enhance the products and services that it provides to industry, and in doing so it aims to help Japanese companies reinforce their competitiveness.