With the current improvement of business confidence, there is increased momentum for a resumption of IT investment in the IT solutions market. In addition, IT investment is encouraged by institutional reforming and enterprise streamlining, combined with new solutions of system architecture that was created through technological innovation.

The ISID Group and IBM Japan, which have been working together in the Web service solution business, have now decided to take advantage of this prime opportunity to expand their partnership further through personnel exchanges for developing IT solutions utilizing the leading-edge technology and business alliance in creating new markets. Moreover, in existing financial markets that is expected to expand in the future, the two companies plan to  introducing their powerful product lines for further business growth. They will strengthen their relations by aggressively creating markets, which the two companies can operate synergistically.

Background of the Alliance

ISID has extensive business knowledge in the financial industry, manufacturing industry, and distribution and service industries. ISID has been offering solutions for the customer's issues by applying its business know-how in the form of application software products. Nowadays, ISID has been focusing to offer solutions based on the know-how to build large-scale mission-critical systems utilizing JAVA technology. 

IBM Japan has been offering IT infrastructure to business enterprises, on the basis of its global marketing capability and powerful R&D performance.

The two companies started to work together in Web service solutions in December 2001 centering on IBM's Web application infrastructure product, WebSphere Application Server. Through this collaboration, exchanges between the two companies became lively. This leaded the two companies to mutually acknowledge the JAVA system development skills of ISID and the product development capability of IBM Japan. 

In addition, the activated exchange of technical experts in specific technology field and interaction between the sales divisions for certain customers of the two companies, prepared the way for this agreement.

The terms of the agreement concluded under the partnership are summarized as follows. ISID and IBM Japan are expecting to work out the details of the agreement from now on.

Creating New Markets
1. Solutions for standardizing manufacturing industry software development(development process innovation)

In manufacturing industries, software development management, such as version management and components orientation, has become complex by the necessity of reducing time of product development and globalization of manufacturing which turned out to be significant issues in many manufacturing company.

Through software development process innovation of their customers, ISID and IBM Japan are planning to cooperate in Software Process Innovation (SPI) business which aims to improve productivity, improve quality and shorten the development period of software development.

The ISID Group has been focusing on SPI for the past several years, offering solutions for embedded software to its customers in manufacturing industry by its application know-how and system integration skills, based on Capability Maturity Model Integration (CMMI) of its group company iTiD Consulting (consulting firm specialized in design and development process innovation).

Under this partnership agreement, IBM Japan's software development management tools "Rational" product family is to be centralized in the solution. ISID will be provided technical assistance of "Rational" from IBM Japan to offer customers the best practices in software development.

They are aiming that software development process reform will be offered not only in the manufacturing industries, but also in the other industries in the future.

2. Solutions for the financial settlement systems to deal with the institutional reforms

Reform in financial settlement systems for cash, foreign exchange, and securities has been made possible in the past through infrastructure services, such as Bank of Japan RTGS and CLS.

This area of settlement requires development of new infrastructure for T+1, transition into a new settlement framework complied with global standards, and other new solutions. In response to these market requirements, ISID and IBM Japan will develop new solutions by planning together. ISID builds the application systems based on system infrastructure offered by IBM Japan, and work together with the marketing activities.

3. Multichannel integration solution for financial institutions

ISID has extensive expertise in multichannel integration solutions for financial institutions, including Internet Banking and Mobile Banking for major city banks. This is one of the ISID's strengths in the financial industry.

ISID is to develop application modules as components that run on IBM Japan's Multi-Channel Transformation (MCT), a system infrastructure that realizes on-demand financial services through a variety of channels, including the Internet, mobile telecommunications, call centers, ATMs and branch offices. As the first step, e-MARKETBRAIN, a multichannel integrated CRM system developed by ISID's group company Brainyworks,Ltd., is scheduled to be integrated with MCT as a call-center service module.

4. Next-generation mission-critical business solution for banks

ISID will develop mission-critical business applications for funds, securities, derivatives, foreign exchange, etc., based on the "Next-Generation Financial Services System" that was announced by IBM Japan on October8, 2003, and joint sales activities will be conducted by the two companies.

Current Financial market expected to expand
1. Financial market operation solutions

ISID and IBM Japan have started studies regarding the concrete details of the partnership in the financial industry business  solutions for front office operation, risk management, and back office operation  where ISID has extensive know-how.

As a first step, they are planning to build systems of comprehensive back office operation for securities processing. This is expected to be jointly marketed and introduced to IBM Japan customers. The companies are also engaged in an on-going consideration of possible partnerships in the areas of middle-office system for advanced risk management and front office systems that support transactions across various financial product categories.

2. Solutions for human resources and consolidated accounting management

ISID and IBM Japan will combine the consulting done by IBM Business Consulting Services K.K. (IBCS; wholly-owned subsidiary of IBM Corporation in Japan), IBM's consulting division, with solution packages of the ISID Group to create a scheme of providing integrated service totally from the consideration stage up to the implementation.

Specifically, IBCS and ISID will jointly offer solutions to customers by introducing ISID's consolidated accounting management software "STRAVIS" and HRM solution "POSITVE" developed by ISID's group company Brainyworks.

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