Delayed monetization of new products and business formats and inability to recover investments
First written in FY2018. 3 of 5 entries say "Materialised", first in FY2023-Q3. Latest entry: FY2026.
System Integrator Corp. moved to the "Worse" side of this theme in 2023, 2 years before the typical company in this theme (2025).
The whole theme swung hardest in 2019: 6 of 26 companies on the "Worse" side.
9 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Our group will increase the likelihood of success for new businesses by preventing mistaken assessments of market needs through an approach based on customers' operational challenges, and by making phased investment decisions under a stage-gate system and leveraging open innovation.」
Sets out a policy for addressing delays in monetising new products and the risk of failing to recover investment through a customer-problem-led approach, phased investment decisions and open innovation. - FY2024MaterialisedAnnual report
「IDEA GARDEN was released in November 2021 as an ideation platform designed to encourage the creation and development of ideas. However, after considering various indicators, including the prospects for monetisation, market potential and the difficulty of expanding the business, we decided to exit the business as of the end of February 2025.」
The uncertainty surrounding monetisation and market potential for the new product has materialised in the decision to exit the IDEA GARDEN business at the end of February 2025. - FY2023MaterialisedAnnual report
「For TOPSIC software in the Other business, the carrying amount of the asset was reduced to its recoverable amount and recorded as an impairment loss because the originally anticipated revenue could no longer be expected following a review of the business plan. The recoverable amount was measured based on value in use and was assessed at zero because future cash flows are expected to be negative.」
Regarding delays in monetising new products and the risk of failing to recover investment, an impairment loss of ¥148 thousand was recorded for TOPSIC following a review of its business plan. - FY2023-Q3MaterialisedAnnual report
「SI Object Browser Designer, an application design tool, had been sold as a cloud service since June 2019. However, after considering various indicators, including the prospects for monetisation, market potential and the difficulty of expanding the business, we decided to exit the business. The impact on business performance is expected to be minor. VOICE TICKETS was released in October 2021 as a customer success support service for accumulating and managing end-user feedback. However, after considering various indicators, including the prospects for monetisation, market potential and the difficulty of expanding the business, we decided to exit the business. The impact on business performance is expected to be minor.」
The risk of failing to recover investment when monetisation, market potential and business expansion for a new product prove difficult has materialised in the form of the withdrawal from the SI Object Browser Designer and VOICE TICKETS businesses. - FY2018First statedAnnual report
「However, it takes a certain amount of time for products introduced into new fields to generate sufficient revenue. Depending on the circumstances, sales may stagnate because of an incorrect assessment of the market, intensified competition from competing products, deficiencies in our internal structure or other factors. If this occurs, we may be unable to recover the investment made in development, and our business performance may be affected.」
Describes the risks that products in new fields may take time to generate revenue and that mistaken market assessments, intensified competition and deficiencies in the internal structure may lead to weak sales and an inability to recover investment.