Risk of Existing Services Becoming Obsolete Due to Technological Innovation and the Adoption of New Services
First written in FY2018. 3 of 9 entries say "Restated". Latest entry: FY2026.
I'Ll Inc moved to the "Worse" side of this theme in 2024, 2 years before the typical company in this theme (2026).
The whole theme swung hardest in 2026: 34 of 95 companies on the "Worse" side.
19 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「However, if new technologies and services become widespread as a result of innovation exceeding expectations, including AI technology, the software and services provided by our group may become obsolete, potentially affecting our group's performance and business development.」
AI technology continues to be identified explicitly as a factor in the risk of existing services becoming obsolete due to technological innovation. - 2026-09-07RestatedEarnings
「However, if new technologies and services become widespread as a result of innovation exceeding expectations, including advances in AI technology, the software and services provided by our group could become obsolete,」
Continues to identify the risk that existing services could become obsolete as a result of technological innovation, including AI, and the spread of new services. - FY2025WorsenedAnnual report
「However, if new technologies and services become widespread as a result of innovation exceeding expectations, including AI technology, the software and services provided by our group may become obsolete, potentially affecting our group's performance and business development.」
AI technology has been explicitly added to the previous risk of obsolescence due to technological innovation and the spread of new services. - FY2025-H1Continued transition to a microservices architectureAnnual report
「In addition, following the disposal of certain software related to cloud service development carried out in the previous consolidated fiscal year, we continue to transition to a technology architecture known as a microservices architecture in order to improve systems rapidly in response to constantly changing user needs and changes in the operating environment.」
Following the disposal of certain software in the previous consolidated fiscal year, the transition to a microservices architecture continues as a response to functional obsolescence caused by technological and environmental changes. - FY2024MaterialisedAnnual report
「In addition, during the current consolidated fiscal year, the Company recorded a loss on disposal of property, plant and equipment of ¥230,157 thousand as an extraordinary loss as a result of disposing of certain software related to cloud service development. This was prompted by the need to address functional obsolescence associated with the rapid expansion and evolution of the e-commerce market and related technologies, including the consolidation of e-commerce platforms and logistics providers.」
The disclosure states that the risk of functional obsolescence due to technological innovation and market changes actually materialized in the form of the disposal of certain software used in cloud service development and a ¥230,157 thousand loss on disposal of property, plant and equipment. - FY2023RestatedAnnual report
「However, if new technologies and services become widespread as a result of technological innovation exceeding expectations, the software and services provided by our group may become obsolete, potentially affecting our group's performance and business development. In addition, if intensified competition with our group's competitors leads to lower product prices or if the performance of competitors' products is enhanced, this may similarly affect our group's performance and business development.」
The risks of obsolescence due to technological innovation and the spread of new services, intensified competition, lower prices, and enhanced performance of competing products continue to be disclosed. - FY2022RestatedAnnual report
「However, if new technologies and services become widespread as a result of technological innovation exceeding expectations, the software and services provided by our group may become obsolete, potentially affecting our group's performance and business development. In addition, if intensified competition with our group's competitors leads to lower product prices or if the performance of competitors' products is enhanced, this may similarly affect our group's performance and business development.」
The risk of obsolescence due to technological innovation and the spread of new services, as well as risks arising from intensified competition, lower prices, and enhanced performance of competitors' products, continues to be disclosed. - FY2019ReframedAnnual report
「However, if new technologies and services become widespread as a result of technological innovation exceeding expectations, the software and services provided by our group may become obsolete, potentially affecting our group's performance and business development. In addition, if intensified competition with our group's competitors leads to lower product prices or if the performance of competitors' products is enhanced, this may similarly affect our group's performance and business development.」
The wording has been expanded from the previous risk of obsolescence due to technological innovation and the spread of new services to include intensified competition, lower product prices, and enhanced performance of competitors' products. - FY2018First statedAnnual report
「In the information services industry to which our group belongs, technological innovation is advancing rapidly, and our development division is working to improve existing products and conduct research and development in order to respond to these rapid changes. However, if new technologies and services become widespread as a result of technological innovation exceeding expectations, the software and services provided by our group may become obsolete, potentially affecting our group's performance and business development.」
The possibility that existing software and services may become obsolete due to technological innovation and the spread of new services has been identified for the first time as an independent business risk.