Daiwa Securities Group Annual Report 2012 28 The IT systems support business has adopted cost-value optimiza- tion methods such as building cutting-edge offshore development  structures and one of the most advanced cloud computing environ- ments in Japan, to help make the Daiwa Securities Group more  competitive. The group will improve systems development efficiency  through its Chinese systems development subsidiary, SinoCom DIR  Business Innovation Technology (Beijing) Co., Ltd., with the aim of  establishing a cutting-edge offshore development structure. Efforts  to develop the domestic cloud computing environment include not  only the expanded use of cloud computing at the Daiwa Securities  Group companies, but efforts to promote the standardization of  cloud-computing platforms for operating core systems through the  “Global Alliance for User-driven Cloud Computing” which the Group  launched in collaboration with other IT companies. In step with the Group’s overall global strategy, IT governance  for global systems is being upgraded to provide fuller IT support to  the Daiwa Securities Group’s business activities. The Daiwa Institute of Research Group has over 40 years of experi- ence in conducting macroeconomic research, financial and capital  markets research both in Japan and overseas, and environment- related research. The group is working to enhance the knowledge  and expertise it possesses, and its capacity to make proposals and  recommendations based on such research. Furthermore, it is  developing its ability to disseminate this information, in order to  serve as a think tank and an opinion leader in Japan and overseas. As business adopts an increasingly global focus, the consulting  needs of corporations are growing more sophisticated and diverse.  To meet these needs, the Daiwa Institute of Research Group offers  a broad assortment of different consulting services, from manage- ment consulting to business strategy, corporate financing strategy,  and human resource and organizational consulting. The group also  assists Japanese companies with their efforts to expand into Asian  markets, with research on local business and investment conditions  and consulting support for new business expansion plans. Using its  accumulated consulting experience, the group can help customers  make decisions and enhance corporate value. The Daiwa Institute of Research Group encompasses a number of companies involved in research, information services and  other support functions. The group includes Daiwa Institute of Research Holdings Ltd., the administrative parent of the  group; Daiwa Institute of Research Ltd., which offers research and consulting services as well as providing systems support to  companies in the Daiwa Securities Group; and Daiwa Institute of Research Business Innovation Ltd., which provides systems  support to companies outside the Daiwa Securities Group. The synergy between these companies has made the group one of  Japan’s leading think tanks, addressing sectors ranging from economics and social issues to corporate business strategy and IT  solutions. In FY2011, the three main group companies generated a combined ordinary income of ¥6.4 billion, down 23.7%  from the previous year. Daiwa Institute of Research Group Action Plan for FY2012 Optimizing the Cost-Effectiveness of IT Systems to  Make the Daiwa Securities Group More Competitive Enhanced Skills in Disseminating Information are  Making the Group an “Opinion Leader” in Japan Consulting Services Help Clients Enhance Their  Corporate Value 1. Enhance the Group’s presence by further increasing values  as a think tank 2. Create business opportunities by enhancing consulting  services in Asia including Japan 3. Decrease system-related administration and development  costs by introducing in-house IT development and the  Group’s internal-cloud system IT/Think Tank Division One of Japan’s Leading Think Tanks Corporate Summary Executive Messages Financial Section Other Information Management Systems & CSR Business Strategy