Shift from Bespoke Contract Development to a Solution- and Service-Based Business
First written in FY2017. 10 of 26 entries say "Restated". Latest entry: 2026-07-31.
The whole theme swung hardest in 2020: 1 of 9 companies on the "Worse" side.
10 other companies' latest entry also says "Advanced".
- 2026-07-31AdvancedInvestor presentation
「Solutions business: active investment and resource shift」
Explicitly stated active investment in and a shift of resources toward the solutions business as the Company moves from individual contract development to solutions and service delivery. - FY2026RaisedAnnual report
「Specifically, using steady growth in the business for the SMBC Group as a foundation, we will actively invest in and shift resources toward the solution business and security and digital infrastructure business, where high profitability is expected.」
The policy of shifting from individually contracted development to a solution- and service-based model was expanded into a portfolio transformation involving a shift of resources toward solutions, security and digital infrastructure. - FY2026-H1AdvancedAnnual report
「System construction and system equipment sales both increased due to ERP solution projects, resulting in revenue of ¥4,683 million, up ¥442 million, or 10.4%, year on year, and segment profit of ¥932 million, up ¥169 million, or 22.2%, year on year.」
ERP solution projects contributed to the increase in system construction, with revenue in the industrial-related segment up 10.4% and segment profit up 22.2%. - FY2025AdvancedAnnual report
「In addition, we will actively allocate resources to the SAP business, which is expected to grow in the near term, and work to improve our earnings power.」
The company explicitly stated that it would allocate resources to the growth-oriented SAP business, moving away from its traditional ERP solutions and outsourcing operations. In the industrial-related segment, it has also partially withdrawn from low-profit ERP projects. - FY2025-H1Decline in ERP and completion of outsourcing operationsAnnual report
「All revenue categories declined due to a decrease in ERP solution projects, the absence of the invoice projects and large-scale equipment renewal projects recorded in the previous year, and the end of outsourcing operations. As a result, revenue decreased by ¥862 million, or 18.3%, year on year to ¥3,842 million, and segment profit decreased by ¥250 million, or 27.4%, to ¥663 million.」
In the industrial-related segment, all revenue categories declined because ERP solution projects, which had supported the solution and service-based business, declined and outsourcing operations also ended. - FY2024-Q3RestatedAnnual report
「Although systems integration declined due to a decrease in ERP solutions and other factors, systems operations and management increased as outsourcing-related projects remained firm. Sales of systems equipment also increased, resulting in revenue of ¥7,104 million, up ¥69 million, or 1.0%, year on year.」
In the solution and service-based business, ERP solutions declined, while system operations and management increased as outsourcing-related projects remained firm. - FY2024-Q2Decline in ERP and increase in invoice-related and outsourcing businessAnnual report
「While ERP solutions declined, system construction increased due to invoice-related work and other factors. System operations and management also increased as outsourcing-related projects remained firm, resulting in revenue of ¥4,704 million, up ¥58 million, or 1.3%, year on year.」
While ERP solutions, which had supported the solution-based business, declined, invoice-related and outsourcing projects contributed to increases in system construction and operations and management. - FY2024-Q1Decline in ERP solutionsAnnual report
「Although system operations and management for general corporate clients increased, system construction declined, primarily due to a decline in ERP solutions, and other information services also declined. As a result, revenue was ¥2,270 million, down ¥13 million, or 0.6%, year on year.」
ERP solutions, which have supported the service-based business, declined during the quarter, primarily resulting in a decline in system construction. System operations and management for general corporate clients increased. - FY2023-Q3Reactionary decline from large ERP projects and decline in projects for major vendorsAnnual report
「System construction declined due to a decline in digital infrastructure projects for major vendors, as well as the reactionary decline from multiple large ERP solution projects recorded in the same quarter of the previous year. System equipment sales also declined, primarily due to the reactionary decline from multiple large system equipment installation projects recorded in the same quarter of the previous year, resulting in revenue of ¥7,123 million, down ¥936 million, or 11.6%, year on year.」
For solution-based ERP projects, system construction declined due to the reactionary decline from multiple large projects in the same period of the previous year. Digital infrastructure projects for major vendors also declined. - FY2023-Q2Decline in system construction following the completion of multiple large ERP projectsAnnual report
「System construction declined due to the completion of multiple large ERP solution projects recorded in the same quarter of the previous year. System equipment sales also declined, primarily due to the reactionary decline from large system equipment installation projects recorded in the same quarter of the previous year, resulting in revenue of ¥4,737 million, down ¥470 million, or 9.0%, year on year.」
For solution-based ERP projects, multiple large projects from the same period of the previous year were completed, resulting in a decline in system construction. - FY2023-Q1Decline following large ERP projects in the previous periodAnnual report
「System construction declined, primarily due to the reactionary decline from the large ERP solution projects recorded in the same quarter of the previous year. System equipment sales also declined, mainly due to the reactionary decline from large projects, resulting in revenue of ¥2,318 million, down ¥265 million, or 10.3%, year on year.」
For solution-based ERP projects, system construction declined due to the reactionary decline from large projects in the same period of the previous year. - FY2022-Q3RestatedAnnual report
「Although system equipment sales declined following the large-scale projects in the previous year, system integration projects related to ERP solutions increased, and system operations and maintenance increased as operations began for a large-scale BPO project. As a result, revenue was ¥8,060 million, compared with ¥7,692 million in the same quarter of the previous year.」
System operations and management continues to increase as ERP solution projects expand and large BPO projects enter operation, providing a continued track record supporting the shift to a service-based business. - FY2022-Q2AdvancedAnnual report
「Although system equipment sales declined because of the post-demand decline from a large project in the previous year, system development projects through major vendors and related to ERP solutions increased, as did systems operations and management following the start of operations for a large BPO project. Net sales were therefore ¥5,207 million, compared with ¥4,960 million in the same quarter of the previous fiscal year.」
The Company reported an increase in ERP solution projects and higher systems operations and management following the start of operations for a large BPO project, demonstrating progress in the shift to a services business model in terms of results. - FY2022-Q1RestatedAnnual report
「System development projects through major vendors and related to ERP solutions increased, while systems operations and management remained firm as cloud and BPO projects increased. Net sales were therefore ¥2,583 million, compared with ¥2,274 million in the same quarter of the previous fiscal year.」
In the industrial-related division, system development projects through major vendors and ERP solution projects, as well as cloud and BPO projects, continued to increase. The Company continues to report results supporting the shift to a solution and services business model. - FY2021-Q3RestatedAnnual report
「Although system integration declined following the large-scale project in the same quarter of the previous year, projects through major vendors and ERP solution projects remained firm. In addition, system operations and maintenance increased as cloud and BPO projects grew, and system equipment sales increased following the acquisition of large-scale projects. As a result, revenue increased by ¥21 million, or 0.3%, year on year to ¥7,692 million.」
ERP solution projects remained firm, while cloud and BPO projects also increased. The Company continues to report results supporting the shift to a solution and services business model. - FY2021-Q2RestatedAnnual report
「Although ERP solution projects continued to increase steadily, system development and system equipment sales declined because of the post-demand decline following the reduced-rate response and rush demand associated with the consumption tax rate increase in the same quarter of the previous fiscal year. Net sales therefore decreased by ¥325 million, or 6.2%, year on year to ¥4,960 million.」
ERP solution projects continued to increase, but the industrial-related division as a whole recorded lower revenue because of the post-demand decline following the previous year's special demand. - FY2021-Q1RestatedAnnual report
「In addition to increased system equipment sales from winning large-scale projects, system development increased through higher orders for ERP solution projects and direct sales projects. Net sales therefore increased by ¥352 million, or 18.4%, year on year to ¥2,274 million.」
ERP solution projects and direct sales projects increased, and net sales in the industrial-related division rose 18.4% year on year. Results demonstrating continued progress in the shift to a solution and services business model were evident. - FY2020AdvancedAnnual report
「As customers' information technology investment in the general private-sector market remained generally firm, ERP solutions, system development projects through major vendors and BPO projects increased steadily, among other factors.」
ERP solutions, system development projects through major vendors and BPO projects increased on a full-year basis, demonstrating progress in the shift to a solution and services business model in terms of results. - FY2020-Q3RestatedAnnual report
「ERP solutions, system development projects through major vendors and BPO projects increased steadily. In addition, direct sales projects in the Kansai region increased because of temporary factors, including rush demand for system equipment associated with the consumption tax rate increase and an increase in system projects responding to the reduced consumption tax rate regime. As a result, revenue increased across all product categories, and net sales rose substantially by ¥1,434 million, or 22.2%, year on year to ¥7,899 million.」
The increase in ERP solutions and BPO projects continued. Although results supporting the shift to a solution and services business model were demonstrated, no new stage of progress from the previous quarter was disclosed. - FY2020-Q2AdvancedAnnual report
「ERP solutions, system development projects through major vendors and BPO projects all increased steadily. In addition, direct sales projects in the Kansai region increased because of temporary factors, including rush demand for system equipment ahead of the consumption tax rate increase and an increase in system projects responding to the reduced consumption tax rate regime. As a result, revenue increased across all product categories, and net sales rose substantially by ¥1,147 million, or 26.7%, year on year to ¥5,441 million.」
ERP solutions and BPO projects increased steadily, demonstrating progress in the shift to a solution and services business model in terms of results. - FY2020-Q1RestatedAnnual report
「System integration increased as projects through major vendors and ERP solution projects remained firm, while system operations and maintenance increased with the growth in cloud and BPO projects. As a result, revenue increased by ¥221 million, or 12.5%, year on year to ¥1,999 million.」
ERP solution projects remained firm, while cloud and BPO projects also increased. The shift to a solution and services business model is continuing, but no new stage of progress was disclosed. - FY2019-Q3AdvancedAnnual report
「Revenue increased by ¥481 million, or 8.0%, year on year to ¥6,465 million, mainly because ERP solution projects increased substantially, direct-sales projects for systems integration and systems equipment in the Kansai region remained firm, and systems operations and management also remained firm as the benefits of the review of the sales structure for outsourcing projects implemented in April 2018 took effect.」
ERP solution projects increased substantially, and net sales in the industrial-related division increased 8.0% year on year. Progress in the shift to a solution-based business model was demonstrated in terms of results. - FY2019-Q2RestatedAnnual report
「In addition to strong system development and system equipment sales in the Kansai region, ERP solution projects remained firm, while orders for systems operations and management progressed steadily, mainly because of the benefits of reviewing the sales structure for an outsourcing project implemented in April 2018. Net sales therefore increased by ¥243 million, or 6.0%, year on year to ¥4,294 million.」
The Company reported steady progress in ERP solution projects and orders for outsourcing projects after reviewing the sales structure. No further stage of the shift to a solution and services business model, previously indicated through the preceding quarter, was disclosed. - FY2019-Q1AdvancedAnnual report
「Although the industrial-related division increased on higher orders for ERP solution projects and other factors, the financial-related division declined substantially because financial institutions continued to restrain information technology investment, and the public-sector division also declined. As a result, net sales decreased by ¥182 million, or 4.4%, year on year to ¥3,927 million.」
The increase in orders for solution-based ERP projects was cited as a factor behind revenue growth in the industrial-related division, demonstrating the performance of the solution-based business model. - FY2018RestatedAnnual report
「We will strengthen the product offerings and expand the service menus of proprietary solutions and services, including the payment-related Sakura UTOPIA Gateway series and the Sossian Cloud series of peripheral business packages for local governments, and promote a shift from the conventional bespoke contract development business to a solution and services business model.」
The shift to a services business model through stronger product offerings and expanded service menus for proprietary solutions is continuing. - FY2017First statedAnnual report
「We will promote a shift from the conventional bespoke contract development business to a solution and services business model.」
This was disclosed for the first time as one of the main business strategies in the new medium-term management plan. It also outlined measures to strengthen the product offerings and service menus of proprietary solutions such as the Sakura UTOPIA Gateway and Sossian Cloud.