New Entrants, Imitation and Service Obsolescence
First written in FY2016. 2 of 8 entries say "Restated". Latest entry: 2026-08-06.
Digital Hearts Holdings moved to the "Worse" side of this theme in 2025, the same year as the typical company in this theme.
The whole theme swung hardest in 2026: 28 of 57 companies on the "Worse" side.
8 other companies' latest entry also says "Materialised".
- 2026-08-06MaterialisedEarnings presentation
「Revenue declined due to the contraction of contract development caused by the end of a large ERP project and changes in the business environment resulting from AI.」
Changes in the business environment resulting from AI and the contraction of contract development were reflected in lower revenue. - FY2026WorsenedAnnual report
「Advances in AI technology are significantly changing the Group's business environment and could affect its existing businesses.」
The existing risks of technological innovation and service obsolescence have been made more specific as the possibility that AI could substitute for production and testing operations, reducing demand and competitiveness through the emergence of competitors using AI. - 2026-05-13MitigatedEarnings presentation
「Promoting responses to the latest technologies, including test automation and AI adoption」
While identifying the risk that technological innovation, including AI, could make existing services obsolete, the company presented test automation and AI adoption as countermeasures. - FY2025WorsenedAnnual report
「In digital-related markets, the expertise required for testing operations is becoming more sophisticated and diverse, while technological innovation, including generative AI, is advancing rapidly. If the Group is slow to respond to these continually advancing technologies and other developments, its services could become obsolete, resulting in a loss of competitiveness.」
The existing risks related to technological innovation and increasing specialization have been expanded to explicitly include rapid technological innovation, including generative AI. - FY2022RestatedAnnual report
「Technological innovation is also advancing rapidly in digital-related markets, while the knowledge required for testing operations is becoming more diverse and specialized. If the Group is slow to respond to these continually advancing technologies and other developments, its services could become obsolete, resulting in a loss of competitiveness.」
The disclosure reconfirms the risk of obsolescence resulting from delays in responding to technological innovation and the increasing sophistication of testing expertise, in addition to new entrants and imitation. - FY2019ReframedAnnual report
「Technological innovation is also advancing rapidly in digital-related markets, while the knowledge required for testing operations is becoming more diverse and specialized. If the Group is slow to respond to these continually advancing technologies and other developments, its services could become obsolete, resulting in a loss of competitiveness.」
In addition to new entrants and imitation, the disclosure explicitly identifies service obsolescence resulting from delays in responding to technological innovation and the increasing sophistication of testing expertise. - FY2017RestatedAnnual report
「As the outsourcing of debugging operations progresses, the industry's market is expected to expand and the likelihood of an increase in new entrants will grow. This could lead to the outflow of the Group's expertise and other know-how due to employee departures, among other factors, and outside third parties could imitate the Group's technologies and know-how and provide services similar to those offered by the Group.」
The disclosure reiterates the competitive risks of new entrants, the outflow of know-how due to employee departures, imitation and service obsolescence. - FY2016First statedAnnual report
「As the industry's market expands and the likelihood of an increase in new entrants grows, the outflow of the Group's expertise and other know-how due to employee departures, among other factors, could enable outside third parties to imitate the Group's technologies and know-how and provide services similar to those offered by the Group.」
The disclosure identifies the outflow of know-how due to employee departures, new entrants and delays in responding to technological advances as competitive risks.