Copyright© NIHONHOUSING

H o u- N e t P r o j e c t P r e s e n t’ s

Development of Main administrative system using GeneXus

Hou-Net Project■Company profile

NIHON HOUSING CO, LTD. established in 1958

Capital(Japanese Yen) 2,492,000,000

Branches/Offices 46

Employees 5,098

Service offered Condominium

management

Building Management

Real estate management

Building and repairs, construction

Customers375,000

Head office（ Shinjuku,

Tokyo ）

2

Hou-Net Project■ Structure of real estate business

Management = preservation of value and function of buildings Plan

Business area of NIHON HOUSING

Condominium management

Building management

Real estate management

Building and repairs,

construction

Construction

sale

Management

Brokerage

3

Hou-Net Project■ what is condominium management

HardHard

SoftSoft

『 Protection of the building』『 Protection of the building』

『 Proposal to create the livable environment 』『 Proposal to create the livable environment 』

Opinions /requests of residents『Wan to have dog. .』『 Crows scatter the garbage..』『 Cannot use wheelchairs due to the gaps』『 It would be dangerous if kids play here. .』『 I am worried about the security. .』『Want occasions for residents gathering』『Want to plan events of residents』

Building

maintenance

repairs

cleaning

4

Hou-Net Project

FeeFee

Stock Business

Service offeredService offered

■ Business model

Management fee○○yen / month

Management fee○○yen / month

Building maintenance and cleaningAccounting managementConsultation for condominium corporationSupport for community activitiesIndividual service for each units

Building maintenance and cleaningAccounting managementConsultation for condominium corporationSupport for community activitiesIndividual service for each units

5

Hou-Net Project■ Characteristic of condominium management business

Stability

Stability

Growth

Growth

●Stable marketStable market consists of existing residential condominiums

●Stable business model

Business model with stable income, resilient to economic fluctuation

= stock business

●Stable marketStable market consists of existing residential condominiums

●Stable business model

Business model with stable income, resilient to economic fluctuation

= stock business

●Growing marketIncreasing number of newly built residential condominiums each year. The market is expanding.

●Rising need for condo managementNeed for condominium management is rising due to the increase of more than 20 years old condominiums .

●Growing marketIncreasing number of newly built residential condominiums each year. The market is expanding.

●Rising need for condo managementNeed for condominium management is rising due to the increase of more than 20 years old condominiums .

6

Hou-Net Project■ Clients number chart （ March 2002 – March 2012 ）

Replace

210,000

230,000

250,000

270,000

290,000

310,000

330,000

350,000

370,000

221,597

247,247

266,755

284,786

297,736

312,261

328,411

340,467

353,171

364,364

375,412

Average number of clients increase per year

15,451units

（ Average of top 10 companies of the industry: 5,863 units ）

Average number of clients increase per year

15,451units

（ Average of top 10 companies of the industry: 5,863 units ）

87.3 ％

7

Hou-Net Project

■ Objectives of NIHON HOUSING and engagement

We have already catering for maintenance of vacant residences during absence, interior reform works, events planning, the information magazine “Housing News”, “Housing News Online”, “ECO condo club”project, and have been hosting seminars about condominiums.

【　 Objectives 　】Establishment as the top company in the condominium management industry ・ Aggressive research and development of new services and products・ Simplification of business process by introduction of new administration system・ Response to need of customers by trained staff with expertise・ Reinforcement of compliance, transparent and solid management by through internal control

駆け付け無料

【 Engagement 】

We have been providing the individual service for each units, which consists of more than 4,000 choices since April 2007, as the first company to provide this kind of service in the industry.

The first “programmed emission reduction project”in the country , by introducing LED lights to condominiums

8

Hou-Net Project■ Newly developed administrative system

Name Hou-Net

ObjectiveSolve problems of current administrative system and build the new system which is efficient and easy to use for the increasing volume of business

Problems of current system1. Data of each system is not efficiently utilized.2. We have separate systems according to the business segments, and

the business process is not standardized.3. Increasing risk of disorder upon interaction between separate systems4. Cannot get supports from manufacturers for outdated hardware and

software 5. Accumulated volume of data is pressuring the system due to the

unclear filing term.6. Fragile security7. Not complying with the internal control

Number of functions around 1,100

9

Hou-Net Project

■Project History

Feb – Nov.2009 Requirements definition, Basic planning

⇒ Low reliability of the product

Dec.2009 Reconsider the vendor Decided to IT Frontier⇒Feb.2010 Resumption of basic planning lack of time⇒Aug.2010 Recovery plan ⇒ 　 consider about GeneXus

Oct.2010 Change the system development model from water fall to

agile

Adoption of GeneXus as work frame

Nov.2010 Commencement of iteration

Mar.2011 Great East Japan Earthquake

April.2011 Foregoing release of front affairs function

Nov.2011 Judgment about the parallel operation Go⇒Dec.2011 Commencement of parallel operation as trial

Apr.2012 Single operation (Sunset of previous system)

※System development using GeneXus is on going for additional functions and amendments.

10

Hou-Net Project■Challenge to the system integration of our peculiar complicated business model

Our business model has both B to B side and B to C side. It has been managed by segments(condominium, building, real estate, repair works).

Different terms are used and it’s not easy to integrate the business system.

We have become the company of top share in domestic market through continuous quest for new projects and harsh competitions. During that course, we have carefully met the requests of each customers. ⇒ 　 We have numerous individual procedures.

In order to stay as the company of top share in the intensifying competition, we have to realize both the two contradictory target.

One is the expansion of individual services and the other is enhancement of efficiency and productivity.

How can we contribute using IT ?

11

Hou-Net Project

■Difficulty to grasp the business requirements

Individual response or Standardization ?

Requirements from members, departments or whole company. Cannot decide just

By one superior. Different priorities of each

departments.

Cannot grasp all requirements or they change frequently.

Even we take long time for discussion, it is hard to grasp all the necessary requirements at the stage of planning.

12

Hou-Net Project

■Encounter with GeneXusThe project was suffering.

Increased volume of requirements than expected

⇒Impact to project schedule

⇒Impact to cost

Proposal from IT Frontier Corp.

①Change of work frame 　 ⇒　 GeneXus

②Change of water fall model ⇒ 　 Agile

model

After adoption

⇒We could forward the project admitting some changes.

⇒We could concentrate only on the functions presently

needed.

⇒We controlled the process by setting rules about additional

functions.

Enhanced working efficiency by automatic development process

　 ⇒ We could define the requirements by the trial of

working prototypes.

⇒It was easy to have image about the outcome.

⇒It smoothed the communication between end-users and

project team.13

It created extra time for us to work on requirements definition.

We could accomplish the huge project of around 1,100 functions with cooperation of vendor.

Hou-Net ProjectService in on March 31, 2012

14

Hou-Net Project

■Issues on development of main administrative systemTendency to define the requirements by sub-system basis(Our

case also) ⇒Consistency check and total optimization comes end of

the process. ⇒It impacts the project schedule to back to the start of

process.

Handling of huge amount of transaction dataTransaction data 　⇒　 around 90 million （ Response is

important ） Although GeneXus automatically creates codes ,

performance is notconsidered.

Data transferChange of table structure due to spec changes by

GeneXusNeed to consider these points upon processing the projects.

15

With GeneXus, we could remake the program of whole optimization in only two months just before the service-in.

Necessity of unexpected tuning

Takes more labor than expected to

transfer the data from previous system .

Thank you very much for your kind attention.

16