Taking on New Growth Areas such as IoT and Cloud

「TSUZUKI DENKI CO.,LTD. (Representative Director and President: Yoshida Katsuyuki (吉田 克之); head office: Minato-ku, Tokyo; "the Company") has begun offering the "D-VUE® AI-OCR Service," which uses generative AI.」

「当社はこの課題の解決に向け、生成 AI を組み合わせることで「フォーマットに依存しない読み取り」と「基幹システムでそのまま用いることができるデータへの加工」を両立する OCR サービスを開発しました。」

「We considered and researched new development and deployment processes using generative AI, cloud technologies and other technologies.」

「During the fiscal year, we acquired technologies related to AI and cloud computing, developed new DX services for specific markets, or industry-specific software, and researched businesses using generative AI.」

「During the fiscal year, we worked to develop proprietary services using AI and IoT and acquire technologies related to improving the productivity of system development. Specifically, we strengthened services using generative AI, researched new AI businesses, and conducted demonstrations of services using IoT.」

「Orders declined slightly due to the expiration of some customers' operation services in the first quarter. Revenue, however, increased as cloud services overall and operation services remained solid, resulting in orders of ¥31,931 million, down 2.0% year on year, and revenue of ¥31,156 million, up 1.3%.」

「Orders declined due to the continued impact of reduced contract sizes for large-scale operations services and other factors, but sales increased as cloud services including TCV grew and the company won maintenance service contracts associated with increases in equipment such as PCs and network equipment and in applications. As a result, orders were ¥21,792 million, down 2.7% year on year, and sales were ¥21,201 million, up 7.0%.」

「Maintenance services contributed to sales as the number of devices, including applications and PCs, increased, while cloud-based PBX services such as TCV also grew. As a result, orders were ¥11,896 million, down 1.7% year on year, and sales were ¥10,584 million, up 8.7%.」

「Despite the impact of the expiry of a large-scale service contract for certain customers in the first quarter, equipment maintenance services grew as equipment installation projects increased, while cloud services overall performed well. As a result, orders were ¥32,578 million, up 4.4% year on year, and sales were ¥30,750 million, also up 4.4%, exceeding the previous year.」

「Cloud services, including cloud-based contact centre services, grew significantly for the second consecutive period, but the expiry of a large-scale LCM service contract for certain customers had an impact. As a result, orders were ¥12,108 million, down 0.1% year on year, and sales were ¥9,734 million, down 1.5%, broadly flat compared with the previous fiscal year.」

「During the fourth quarter, initiatives to help customers achieve DX progressed steadily, including the launch of the D-VUE DX Implementation Support Service and the D-VUE Cloud Data Lake Platform, which use data to advance customers' DX, and certification as a DX Certified Business Operator under the standards established by the Ministry of Economy, Trade and Industry.」

「The company announced a new service framework, Total SolutionService Framework (TSF), to enable customers to achieve DX rapidly, and released 3 new services under the framework, including DagreeX, a centralised management service for electronic contracts and supporting documents.」

「Services: Growth in the LCM services accumulated since orders were won in the first quarter and in cloud-based contact centre services contributed to orders of ¥21,672 million, up 12.1% year on year, and sales of ¥19,908 million, up 11.7%, both substantially above the previous year.」

「In addition to growth in LCM and cloud services, the inclusion of 株式会社コムデザイン in the scope of consolidation contributed to orders of ¥12,119 million, up 18.2% year on year, and sales of ¥9,879 million, up 17.1%, both substantially above the previous year.」

「Specifically, the company focused on developing data utilisation services to support customers' DX, which is accelerating in the new-normal era, and electronic contract services that fully digitise contract operations.」

「As a key measure of the medium-term management plan, namely transforming the business structure through the shift to services, the company made 株式会社コムデザイン a subsidiary on 30 September 2020. It will seek to enhance the group's presence in the contact centre market and develop new markets through AI-enabled services.」

「Despite restrictions on sales activities due to voluntary restrictions on going out and other measures, sales in the information network solution services business increased due to projects ordered before the spread of COVID-19, projects whose sales were carried forward to the current fiscal year, and strong demand for remote work.」

「The company is actively pursuing AI initiatives, including establishing an AI lab centre and increasing the number of AI engineers.」

「The introduction of an RFID-based tag management system and negotiations for large-scale IT infrastructure construction projects also remained active.」

「The company also focused on technologies and products in new areas expected to grow, including an AI-enabled cloud-based contact centre (CT-e1/SaaS), the Smart FA monitoring system using IoT technology, the RPA business (OCR integration services), electronic pictograms for medical sites (ユカリアタッチ), and a secure file-sharing system (Box). In particular, it pursued AI initiatives actively by establishing an AI lab centre and increasing the number of AI engineers.」

「Under the initiative to pursue new growth areas, the company gave concrete form to synergies from its capital and business alliance with 株式会社Will Smart of the Zenrin Group, while advancing the development of human resources in advanced technologies represented by AI and IoT.」

「As new initiatives, the company focused on growth areas including the next-generation cloud-based contact centre CT-e1/SaaS, the Smart FA monitoring system using IoT technology, the RPA business, electronic pictograms for medical sites (ユカリアタッチ), and a secure file-sharing system (Box).」

「As new initiatives, the company focused on growth areas including the next-generation cloud-based contact centre CT-e1/SaaS, the business chat service TCloud for BizChat, the Smart FA monitoring system using IoT technology, health management solutions, the RPA business, and digital signage for the retail industry.」

「To create new business models using next-generation ICT technologies such as AI and Robotics, the company will invest in acquiring technologies underlying AI, including big data analysis, and in training data scientists. In the contact centre business, it will promote business alliances and co-creation with vendors possessing highly specialised new technologies, and pursue new growth areas involving cloud services and AI.」

「As new initiatives, the company also pursued IoT, RPA and RFID businesses (*).」

「As new initiatives, the company also pursued IoT, RPA and RFID businesses (*).」

「In this environment, the group continued to actively invest for the future, including in research and development aimed at improving the quality of system development, while providing a range of solution services that leverage the strengths of each company to address these needs.」

「In this environment, the group actively promoted a range of solution services that leverage the strengths of each group company, while also actively investing in initiatives to improve the quality of system development, as well as research and development and training for new services using IoT, AI and other technologies expected to see increased demand.」

「In the services business, sales and profits both increased as the company expanded its business areas through system operations services, LCM services, and work-style transformation solutions using cloud services.」

「In the systems support business, sales and profits both increased as the company expanded its business areas through contact centre system development, LCM services for the services sector, and work-style transformation solutions using cloud services.」

「To establish a competitive advantage, the company will invest resources in IoT and cloud business initiatives.」