Evolution into Next-Generation Systems Integration Services

「The Group formulated the new medium-term management plan “Be a Visionary System Integrator,” which begins in fiscal 2025. As social issues become increasingly complex, the Group will hone its foresight toward the future, provide outstanding development technologies and services, become a unique presence for its customers, and work to achieve long-term growth.」

「Against this backdrop, the Group formulated its medium-term management plan, “Shift to the Smart SI Plus,” covering the period through March 2025. Based on the basic concept of providing high-value-added IT services that capture latent needs in the market and society, the plan sets out a vision of evolving into a next-generation systems integration business, referred to below as SI, and the Group is pursuing its business activities accordingly.」

「In particular, businesses related to agile development and cloud computing, which have been designated as priority strategic areas since the fiscal year ended March 2020, expanded steadily. In the fiscal year ended March 2024, revenue from these businesses rose 17.5% year on year to ¥10,137 million, while their share of consolidated revenue increased by 1.0 percentage point from the previous fiscal year to 25.5%.」

「Against this backdrop, the Group formulated its medium-term management plan, “Shift to the Smart SI Plus,” covering the period through March 2025. Based on the basic concept of providing high-value-added IT services that capture latent needs in the market and society, the plan sets out a vision of evolving into a next-generation systems integration business, referred to below as SI, and the Group is pursuing its business activities accordingly.」

「The medium-term management plan sets out a vision of evolving into a next-generation systems integration business, referred to below as SI, that responds to new trends in digital technology, based on the concept of providing high-value-added IT services that capture latent needs in the market and society.」

「The first strategy, “Pursuit of High-Value-Added SI Services,” promotes service businesses that use the latest elemental technologies to meet customers’ needs for value creation as they advance their digital transformation.」

「Against this backdrop, the Group formulated its medium-term management plan, “Shift to the Smart SI Plus,” covering the period from April 2022 to March 2025. The plan continues the basic concept of the previous medium-term management plan, namely, providing high-value-added IT services that capture latent needs in the market and society, and sets out a vision of evolving into a next-generation systems integration business that responds to new trends in digital technology.」

「Against this backdrop, the Group formulated its medium-term management plan, “Shift to the Smart SI Plus,” covering the period from April 2022 to March 2025. The plan continues the basic concept of the previous medium-term management plan, namely, providing high-value-added IT services that capture latent needs in the market and society, and sets out a vision of evolving into a next-generation systems integration business that responds to new trends in digital technology.」

「Specifically, we are actively investing in the agile-related and security-related businesses, which continue to be designated as priority strategic fields, as well as in the underlying technologies that support them, with the aim of expanding our next-generation SI business, while also expanding business areas such as managed services.」

「In particular, businesses related to agile development and security, which have been designated as priority strategic areas since the fiscal year ended March 2020, expanded steadily. In the fiscal year ended March 2022, revenue from these businesses reached the initial medium-term management plan target of ¥5,000 million, rising 60.3% year on year to ¥5,390 million. Their share of consolidated revenue also increased by 5.1 percentage points from the previous fiscal year to 17.4%.」

「To realise this vision, the Group has established two basic strategies. The first, “Pursuit of High-Value-Added SI Services,” promotes service businesses that use the latest elemental technologies to meet customers’ needs for value creation as they advance their digital transformation. The second, “Promotion of SI Model Transformation,” promotes initiatives to differentiate the Group from other companies by taking an innovative approach to building the foundations needed to deliver high-value-added SI services and establishing SI processes that combine high productivity with high quality.」

「On the profit front, in addition to the benefit of higher revenue, we secured higher profits as high-value-added SI services at the Group progressed ahead of plan amid rising demand for digitalisation, supported by the effects of restraining selling, general and administrative expenses. We are preparing to make proactive investments aimed at further expanding the business in the future. As a result, for the first half of the fiscal year, cumulative consolidated results were revenue of ¥14,661 million, up 11.2% year on year, and operating profit of ¥1,588 million, up 47.5%.」

「On the profit front, in addition to the benefit of higher revenue, we secured higher profits through progress in upgrading the value-added nature of our businesses under the medium-term management plan and the effects of controlling selling, general and administrative expenses. As a result, for the first quarter of the fiscal year, cumulative consolidated results were revenue of ¥7,079 million, up 14.6% year on year; operating profit of ¥826 million, up 88.2%; ordinary profit of ¥847 million, up 84.4%; and quarterly net profit attributable to owners of the parent of ¥579 million, up 85.4%.」

「In particular, agile-related and security-related businesses, designated as priority strategic areas from the fiscal year ending March 2020, expanded steadily. In the fiscal year ending March 2021, sales from these businesses reached ¥3,362 million, or 112.1% of the plan, accounting for 12.3% of consolidated net sales.」

「During the fiscal year, we pursued initiatives based on the medium-term management plan “Shift to the Smart SI,” with a policy of responding flexibly to changes in the external environment and reliably addressing and improving various challenges in implementation. Specifically, we continued to focus on the agile-related and security-related businesses, which have been designated as priority strategic fields since the previous fiscal year. In the agile-related business, based on the strengthened alliance under the gold partner agreement entered into last fiscal year with US-based Scaled Agile, Inc., we provided consulting and training services that support companies’ rapid management decision-making and systems development. In the security-related business, in addition to developing SI solutions using local 5G with LTE-X, we launched sales of the cloud-based secure access service “Tegata,” which can also support the growing number of remote-work users, and focused on expanding high-value-added SI services. As a result, during the cumulative third-quarter consolidated period, revenue was ¥19,633 million, down 1.0% year on year, due to the postponement or temporary suspension of some projects as a result of the COVID-19 pandemic and restrictions on face-to-face sales activities. Meanwhile, profitability improved as the shift toward higher value-added businesses under the medium-term management plan progressed steadily. Operating profit was ¥1,686 million, up 7.1% year on year, ordinary profit was ¥1,845 million, up 13.5%, and profit attributable to owners of the parent was ¥1,240 million, up 15.2%.」

「Specifically, we continue to focus on the agile-related and security-related businesses, which have been designated as priority strategic fields since the previous fiscal year. In the agile-related business, based on the strengthened alliance under the gold partner agreement entered into last fiscal year with US-based Scaled Agile, Inc., we provide consulting and training services that support companies’ rapid management decision-making and systems development. In the security-related business, in addition to developing SI solutions using local 5G with LTE-X, we are focusing on expanding high-value-added SI services, including the launch of sales of the cloud-based secure access service “Tegata,” which can also support the growing number of remote-work users.」

「Specifically, we continue to focus on the agile-related and security-related businesses, which have been designated as priority strategic fields since the previous fiscal year.」

「In response to the security market, which is expected to grow, we newly added security services designed to provide customers with “peace of mind and safety” to our service lineup, entered into a capital and business alliance agreement with LTE-X to provide services in the local 5G field, and began co-creating new solutions. As a result, the high-value-added SI services field is steadily expanding.」

「In particular, in the agile development field, to expand agile development services, we are working to increase the number of Scrum-certified professionals, the de facto standard, while also entering into a partnership agreement with US-based Scaled agile, Inc., which provides a large-scale agile framework, and promoting the provision of consulting and training services to support the introduction of agile practices into organizations. In addition, in response to the security market, which is expected to grow, we newly added security services designed to provide customers with “peace of mind and safety” to our service lineup, and entered into a capital and business alliance agreement with LTE-X to provide services in the local 5G field. As a result, the high-value-added SI services field is steadily expanding.」

「In particular, in the agile development field, to expand agile development services, we are working to increase the number of Scrum-certified professionals, the de facto standard, while also entering into a partnership agreement with US-based Scaled agile, Inc., which provides a large-scale agile framework, and promoting the provision of consulting and training services to support the introduction of agile practices into organizations. In addition, in response to the security market, which is expected to grow, we newly added security services designed to provide customers with “peace of mind and safety” to our service lineup, and are promoting alliances with companies that have strengths in network security. As a result, the high-value-added SI services field is steadily expanding.」

「Specifically, we established an organization to promote sales activities supporting customer business innovation and an organization that works with the Account Business Division to deliver fast and efficient solutions using advanced technologies to support customers' digital transformation. As a result of strengthening the recruitment and development of engineers, investment in research and development, and proposal activities for customers, the high-value-added systems integration services business has steadily expanded, particularly in cloud and agile development.」

「During the fiscal year under review, the company focused on expanding business in these fields, including customer PoCs, and on measures to secure and train engineers, in order to move from the research phase for elemental technologies, including industry-academia joint research in the AI and data science and agile and microservices fields launched last fiscal year, to the phase of promoting commercialization.」

「Based on this basic strategy, our Group has fully launched initiatives to evolve our core systems integration services into next-generation systems integration services that use the latest underlying technologies and combine the provision of high-value-added services supporting customers’ competitive advantage with reductions in user costs, including time and effort.」

「Based on this basic strategy, we have fully launched initiatives to evolve our core systems integration services into next-generation systems integration services that use the latest underlying technologies and combine the provision of high-value-added services supporting customers’ competitive advantage with reductions in user costs.」