Delayed Response to Technological Innovation and Inability to Recover R&D Investment
First written in FY2022. 1 of 3 entries say "Restated". Latest entry: FY2026.
Simplex Holdings moved to the "Worse" side of this theme in 2026, 1 year after the typical company in this theme (2025).
The whole theme swung hardest in 2026: 14 of 29 companies on the "Worse" side.
9 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In recent years, rapid advances in cutting-edge technologies, including generative AI, and increasingly sophisticated digitalization have changed the nature of customers' IT investments, their decision-making processes, and the trend toward in-house development. There is no guarantee that the Group will be able to respond to these changes promptly and adequately.」
In addition to the traditional risk of demand changes resulting from technological innovation, the company explicitly identifies generative AI, changes in customers' decision-making processes, and the progress of in-house development, thereby broadening the scope of external changes to which it must respond. - FY2023RestatedAnnual report
「There is no guarantee that the Group will be able to respond to the changing needs of customer companies resulting from technological innovation. Such innovation may also shift demand from existing solutions to new solutions.」
The company continues to identify changes in customer demand resulting from technological innovation, delays in adapting its end-to-end model, and the inability to recover R&D investment as risks. - FY2022First statedAnnual report
「There is no guarantee that the Group will be able to respond to the changing needs of customer companies resulting from technological innovation. Such innovation may also shift demand from existing solutions to new solutions.」
The company indicates the possibility that technological innovation could change customer demand and reduce the competitive advantage of its end-to-end model and existing solutions.