Expansion into Big Data, AI and IoT

「Under the theme “Creating the Future through AI and Digital,” the Group will make further strides toward becoming a company with ¥100 billion in revenue and aims to prosper together with its stakeholders. It will address the following key priorities: 1. Growing into an AI-native company」

「In the Digital Solutions Business, revenue and gross profit both increased despite delays in monetization associated with strengthening the training of new employees and increases in sales and administrative workload. The increases were driven by expansion in data analysis businesses, winning large prime contracts in data management businesses, including the development of environments for storing large volumes of data, and an increase in cloud infrastructure development projects related to generative AI.」

「In collaboration with Microsoft Japan, the company has been providing training services for Microsoft Copilot, the company’s generative AI offering, and attracted approximately 6,000 participants during the current consolidated fiscal year.」

「In collaboration with Microsoft Japan, the company launched training services for Microsoft Copilot, the company’s generative AI offering, and plans to have 6,000 participants during the current consolidated fiscal year. Through the training, it will help companies reform their awareness and learn how to use the technology, after which its system engineers will support the integration and adoption of generative AI in business operations.」

「As part of its efforts in new business areas, the company is also actively pursuing initiatives involving generative AI. It is developing its business by leveraging the strengths of Group companies, including considering generative AI service offerings in the cloud business, validating its use in the system development process, and launching training courses for companies considering the use of generative AI.」

「In the Digital Solutions Business, revenue and gross profit both increased due to expansion in data analysis businesses, including the development of anti-money laundering systems for the financial sector using SAS and data analysis businesses using Databricks, as well as expansion in data management businesses, including the development of environments on Google Cloud Platform for storing large volumes of data.」

「In the Digital Solutions Business, revenue increased due to expansion in data analysis businesses, including anti-money laundering for the financial sector using software such as SAS and Databricks, as well as expansion in data management businesses, including the development and preparation of environments on Google Cloud Platform for storing large volumes of data.」

「In the Digital Solutions Business, revenue increased due to expansion in data analysis businesses, including anti-money laundering for the financial sector, as well as expansion in data management businesses, including the development and preparation of environments on SAS and Google Cloud Platform for storing large volumes of data.」

「In the Digital Solutions Business, revenue increased due to expansion in data analysis businesses, including anti-money laundering for the financial sector, as well as expansion in data management businesses, including the development and preparation of environments on Google Cloud Platform for storing large volumes of data.」

「In the Digital Solutions Business, revenue and gross profit both increased due to expansion in data analysis businesses, including anti-money laundering for the financial sector, as well as expansion in data management businesses, including the development and preparation of environments on Google Cloud Platform for storing large volumes of data.」

「In the Digital Solutions Business, revenue and gross profit both increased due to expansion in data analysis businesses, including anti-money laundering for the financial sector, as well as expansion in data management businesses, including the development and preparation of environments for storing large volumes of data for retailers.」

「In the Digital Solutions Business, revenue and gross profit both increased due to expansion in data analysis businesses, including demand forecasting for electric power companies and anti-money laundering for the financial sector, as well as expansion in data management businesses, including the development and preparation of environments for storing large volumes of data for retailers.」

「In the Digital Solutions Business, revenue and gross profit both increased due to expansion in data analysis businesses, including demand forecasting for retailers and risk management for the financial sector, as well as expansion in data management businesses, including the development and preparation of environments for storing large volumes of data for retailers.」

「In the Digital Solutions Business, revenue and gross profit both increased due to expansion in data analysis businesses, including demand forecasting for retailers and risk management for the financial sector, as well as expansion in data management businesses, including the development and preparation of environments for storing large volumes of data for retailers.」

「In the Digital Solutions Business, revenue and gross profit both increased due to expansion in data analysis businesses, including demand forecasting for electric power and gas companies and risk management for the financial sector, as well as expansion in data management businesses, including the development and preparation of environments for storing data.」

「In the Digital Solutions Business, data analysis and data management for information systems, primarily for the financial sector, performed steadily. However, gross profit declined due to reduced demand for data analysis in production systems in the manufacturing sector and a decline in business automation projects using RPA in the aviation-related sector.」

「In March and June 2020, the company entered into capital and business alliances with AI and robotics venture companies and plans to develop new solutions and create new businesses.」

「Acquiring and applying new technologies in the DX fields, including cloud, big data/AI, RPA and blockchain」

「Against this business backdrop, the Group viewed the DX trend as a long-term growth opportunity and pursued it proactively, expanding upstream businesses such as consulting and strengthening proposals for analyzing and utilizing big data. In this segment, increased demand for the Group’s core cloud business and its big data, AI and RPA businesses, together with increased new ERP implementation and upgrade projects, resulted in revenue of ¥10,060 million for the cumulative third-quarter period, up 18.2% year on year. However, operating income declined 1.1% to ¥1,341 million due to increased upfront investment, including higher hiring and the expansion of office space.」

「In this segment, substantial growth in the cloud, big data and AI businesses against a backdrop of growth in the DX-related market, together with growth in ERP implementation and upgrade projects, resulted in revenue of ¥6,465 million for the cumulative second-quarter period, up 17.8% year on year, and operating income of ¥895 million, up 7.2%.」

「During the cumulative first-quarter period, the era of digital transformation (DX) arrived in earnest, and IT investment by domestic companies in cloud, big data and AI was robust. Going forward, the new field comprising cloud services, the Third Platform, together with big data and AI, is expected to continue expanding steadily, with the market size projected to reach approximately ¥19 trillion in 2023.」

「In this segment, demand increased for the systemization of call centers and similar services in the Group’s core cloud business; for demand forecasting systems in the big data and AI businesses; for new ERP implementations and upgrade projects; and for systems that automate data entry in administrative departments in the RPA business. As a result, revenue for the cumulative second-quarter period was ¥11,913 million, up 11.2% year on year, and operating income was ¥1,894 million, up 57.9%.」

「The Group actively expanded its business, focusing on digital transformation, a growth area within corporate IT investment. As a result, in addition to substantial growth in the cloud, big data and AI, and ERP (core systems) businesses, increases in the new RPA business, which automates business processes using software robots, and IoT (the Internet of Things) business contributed to steady growth in the four businesses, namely the Groupware Solutions Business, ERP Solutions Business, Web Solutions Business and Network Services Business. Revenue reached a record high, marking the ninth consecutive year of revenue growth for the third quarter.」

「In this segment, demand increased for call centers and omnichannel systems in the Group’s core cloud business; for demand forecasting and social word-of-mouth analysis systems in the big data and AI businesses; for implementation and upgrade projects in the ERP business; and for the systemization of process improvements in administrative work in the newly launched RPA business. As a result, revenue for the cumulative second-quarter period was ¥5,488 million, up 7.4% year on year, and operating income was ¥835 million, up 76.8%.」

「In this segment, steady expansion of the cloud and big data businesses against a backdrop of growth in the cloud market, an increase in ERP implementation and upgrade projects, and rapid expansion of the newly launched AI and RPA businesses resulted in revenue of ¥2,685 million for the cumulative first-quarter period, up 9.1% year on year, and operating income of ¥332 million, up 116.5%.」

「In this segment, steady expansion of the cloud and big data businesses against a backdrop of growth in the cloud market, together with rapid expansion of the newly launched AI and RPA businesses, resulted in revenue of ¥10,714 million, up 13.3% year on year, and operating income of ¥1,200 million, up 19.1%.」

「The new market, which adds big data and IoT (the Internet of Things) to cloud services (the Third Platform market), is projected to expand substantially to approximately ¥14 trillion in 2020, according to IDC Japan Co., Ltd., an IT research firm, in its announcement titled “Forecast for Japan’s Third Platform Market by Industry and Company Size.” Against this backdrop, the Group actively expanded its cloud and big data businesses. As a result, its four businesses, namely the Groupware Solutions Business, ERP Solutions Business, Web Solutions Business and Network Services Business, performed steadily. In addition, proactive efforts in new technologies and fields, including AI, IoT and RPA (robotic process automation), became new growth engines and drove substantial growth.」

「The new IT services market, which adds big data and IoT to cloud services (the IT services market for the Third Platform), is projected to expand substantially to approximately ¥3.2 trillion in 2021. IT services for the cloud in particular are expected to continue achieving especially strong growth, with a projected compound annual growth rate of 41.1% from 2016 to 2021. In addition, proactive efforts in new technologies and fields, including AI, IoT and RPA (robotic process automation), became new growth engines and drove substantial growth.」

「Initiatives in new technologies and fields such as big data, AI, IoT and fintech became new growth engines and expanded substantially. In this segment, the expansion of the cloud business against a backdrop of cloud-market growth and rising customer needs for big data, AI and IoT resulted in first-quarter cumulative consolidated revenue of ¥2,461.752 million, up 17.0% year on year.」

「In this segment, the expansion of the cloud business against a backdrop of cloud-market growth, increased orders for financial-related projects such as big data and fintech, and an increase in consolidated subsidiaries resulted in third-quarter cumulative consolidated revenue of ¥6,854.5 million, up 24.6% year on year, and operating profit of ¥604.966 million, up 8.5%.」

「The new market combining cloud services with big data and IoT (the Internet of Things), known as the third-platform market, is forecast to expand substantially to approximately ¥14 trillion by 2020, according to IDC Japan, an IT research firm, in its report “Domestic Third Platform Market: Forecast by Industry and Company Size.” We have also promoted initiatives in new technologies and fields such as big data, AI (artificial intelligence), IoT and fintech.」

「In this segment, the expansion of the cloud business against a backdrop of cloud-market growth, increased orders for financial-related projects and the launch of new business areas such as big data resulted in first-quarter cumulative consolidated revenue of ¥2,104.941 million, up 19.5% year on year, and operating profit of ¥169.282 million, up 120.4%.」

「In April 2016, we brought ジェイモードエンタープライズ株式会社, which provides cloud systems and big data analytics services for the apparel industry, into the group. Centered on コムチュアデータサイエンス株式会社, which was established in April with a team of specialists, we will pursue the full-scale development of businesses across the group, including integration with the big data, artificial intelligence (AI) and IoT fields.」