Strengthening Technological and Development Capabilities through the Technology Innovation Center

「We will further strengthen our products and services by addressing AI on three levels: providing services and solutions to customers, using AI to enhance our own products, and transforming our internal operations. We will also gain exposure to cutting-edge technologies through investments in venture capital funds based in Silicon Valley.」

「During the interim consolidated accounting period, we successively began providing the “AI Preprocessing Template Series,” which preprocesses internal data to be ingested by generative AI as retrieval-augmented generation (RAG). Through use of these templates, we aim to improve the accuracy of generative AI responses and reduce the work involved in data processing.」

「Human capital is particularly important as we promote sustainability management. We have actively advanced the development of top engineers and the dissemination of information by engineers through external media. As a result, we have also begun to see the benefits of improved technical capabilities, including recognition by Amazon Web Services (AWS) under the “AWS 200 APN Certification Distinction” as a company with more than 200 AWS-certified credentials.」

「Since June 2024, we have invested in the fourth U.S. fund operated by DNX Ventures, a venture capital firm that invests in B2B startups mainly in North America and Japan. Through this activity, we will collaborate with startups in North America and Europe in areas including AI and SaaS, actively incorporate cutting-edge technologies into our products and services, and support their success by providing expertise in data integration. We also intend to apply the experience gained through engagement and collaboration with startups to the development of next-generation talent.」

「As one initiative under the “technology shift,” we are actively providing training in cloud and data engineering, which form the foundation for promoting our data integration business. In addition to standard technical training, we are also advancing the development of selected top engineers. This has also advanced the “talent shift,” including the development of engineers recognized by major public cloud providers.」

「The Group has begun providing the “Generative AI Implementation Support Service for Enterprises,” which addresses these challenges and enables the use of generative AI through messaging applications.」

「The Group has launched “LLM Mavericks,” a company-wide research group on large language models, to help realize a future in which anyone can use data easily and securely in plain language. Through the group, we aim to accelerate the accumulation and advancement of knowledge about cutting-edge technologies and their early adoption in our operations and products and services for customers.」

「Our group is promoting the creation of new products and services for new technologies and markets, centred on our strength in connectivity technology, and is working to build new services, including the iPaaS HULFT Square, by utilising the data platform business, HULFT products and cloud technologies. The total amount of R&D expenditure by our group during the current consolidated fiscal year was ¥1,157 million.」

「The total amount spent by our group on R&D activities during the third quarter of the current consolidated cumulative period was ¥935 million, mainly for R&D on HULFT Square, a next-generation cloud-based data integration platform.」

「The total amount spent by our group on R&D activities during the second quarter of the current consolidated cumulative period was ¥694 million, mainly for R&D on HULFT Square, a next-generation cloud-based data integration platform.」

「The total amount spent by our group on R&D activities during the first quarter of the current consolidated cumulative period was ¥385 million, mainly for R&D on HULFT Square, a next-generation cloud-based data integration platform.」

「The total amount of R&D expenditure by our group during the current consolidated fiscal year was ¥1,743 million.」

「We continue to pursue R&D under the leadership of the Technovation Center and the Business Innovation Center. Through support from the SPPC (Service & Product Planning Committee) for cross-business service and product planning and development, we are working to improve the quality of services and products and promote the development of new services using HULFT Square.」

「We are pursuing advanced R&D under the leadership of the Technovation Center and the Business Innovation Center. In addition, through support from the SPPC (Service&Product Planning Committee) for cross-business service and product planning and development, we are working to improve the quality of services and products and promote their commercialisation.」

「Our group has identified the creation of New Business as one of the priority initiatives in its medium-term management plan. We are promoting the creation of new products and services for new technologies and markets, centred on our strength in connectivity technology. We are working to build new services, including a next-generation linkage services platform, by utilising our linkage business, HULFT products and cloud technologies. From the first quarter of the current consolidated accounting period, we have been conducting R&D centred on the newly established Business Innovation Center, which is responsible for operations related to new businesses. The total amount spent by our group on R&D activities during the third quarter of the current consolidated cumulative period was ¥850 million.」

「Our group has identified the creation of New Business as one of the priority initiatives in its medium-term management plan. We are promoting the creation of new products and services for new technologies and markets, centred on our strength in connectivity technology. We are working to build new services, including a next-generation linkage services platform, by utilising our linkage business, HULFT products and cloud technologies. From the first quarter of the current consolidated accounting period, we have been conducting R&D centred on the newly established Business Innovation Center, which is responsible for operations related to new businesses. R&D expenditure by our group during the second quarter of the current consolidated cumulative period was ¥324 million.」

「Our group has identified the creation of New Business as one of the priority initiatives in its medium-term management plan. We are promoting the creation of new products and services for new technologies and markets, centred on our strength in connectivity technology. We are working to build new services, including iPaaS (integration Platform as a Service), by utilising our linkage business, HULFT products and cloud technologies. From the first quarter of the current consolidated cumulative period, we have been conducting R&D centred on the newly established Business Innovation Center, which is responsible for operations related to new businesses. The total amount spent by our group on R&D activities during the first quarter of the current consolidated cumulative period was ¥154 million.」

「In addition to pursuing advanced R&D and development standardisation through the Technovation Center, we will work to create actual projects in priority fields, invigorate proposals for service models based on new ideas, and develop processes for commercialisation. We will also focus on improving quality and security, strengthen and streamline the framework for visualising each project, and again implement initiatives to strengthen project management capabilities.」

「The total amount spent by our group on R&D activities during the third quarter of the current consolidated cumulative period was ¥387 million. In the FinTech platform business, we are conducting technical verification of DMP (Data Management Platform) and other activities, with the aim of creating a private DMP service and expanding into new fields. In the distribution IT services business, we are conducting R&D into AI-based store operations support systems and proof-of-concept experiments for delivery box services using blockchain, with the aim of providing various linkage services that support customers' DX initiatives. In the HULFT business, while making safety and security core product attributes, we are conducting technical research on new products, with global product development in mind, to provide data management solutions ranging from the digitisation of analogue data to data analysis.」

「The total amount spent by our group on R&D activities during the second quarter of the current consolidated cumulative period was ¥221 million. In the FinTech platform business, we are conducting technical verification of DMP (Data Management Platform) and other activities, with the aim of creating a private DMP service and expanding into new fields. In the distribution IT services business, we are conducting R&D into AI-based store operations support systems and proof-of-concept experiments for delivery box services using blockchain, with the aim of providing various linkage services that support customers' DX initiatives.」

「The total amount spent by our group on R&D activities during the first quarter of the current consolidated cumulative period was ¥126 million. In the HULFT business, while making safety and security core product attributes, we are conducting technical research on new products with global product development in mind, in order to expand the track record of use in DX fields, led by IoT. In the FinTech platform business, we are conducting technical verification of DMP (Data Management Platform) and other activities, with the aim of creating a private DMP service and expanding into new fields. In the distribution IT services business, we are conducting R&D into AI-based store operations support systems and proof-of-concept experiments for delivery box services using blockchain, with the aim of providing various linkage services that support customers' DX initiatives. The Technovation Center, which is not included in any reportable segment, is also advancing various services, system construction and applied proof-of-concept experiments using technologies such as blockchain, RPA and cloud computing.」

「The total amount spent by our group on R&D activities during the third quarter of the current consolidated cumulative period was ¥434 million.」

「The total amount spent by our group on R&D activities during the second quarter of the current consolidated cumulative period was ¥294 million. In the HULFT business, while making safety and security core product attributes, we are conducting technical research on new products with global product development in mind, in order to expand the track record of use in DX fields, led by IoT. In the distribution IT services business, we are conducting proof-of-concept experiments toward the commercialisation of delivery boxes using blockchain, with the aim of providing various linkage services that support customers' DX initiatives.」

「The total amount spent by our group on R&D activities during the first quarter of the current consolidated cumulative period was ¥128 million. In the HULFT business, while making safety and security core product attributes, we are conducting technical research on new products with global product development in mind, in order to expand the track record of use in DX fields, led by IoT. In the distribution IT services business, we are conducting proof-of-concept experiments for delivery boxes using blockchain and other activities, with the aim of providing various linkage services that support customers' DX initiatives.」

「In addition to pursuing advanced R&D and development standardisation through the Technovation Center, we will work to create actual projects in priority fields. To respond to new technologies, we will promote research and development in advanced technologies, standardise modern development infrastructure as the company-wide development platform to strengthen development capabilities, and introduce processes such as project formation meetings.」

「The Technovation Center, which is not included in any reportable segment, established the Blockchain Lab to promote research and development of solutions applying blockchain technology, and is advancing various services, system construction and applied proof-of-concept experiments.」

「The Technovation Center, which is not included in any reportable segment, established the Blockchain Lab to promote research and development of solutions applying blockchain technology, and is advancing various services, system construction and applied proof-of-concept experiments.」

「We are also actively pursuing the further global rollout of packaged products, the research, development and utilisation of the latest technologies such as IoT and blockchain, and the development of personnel capable of promoting company-wide technology strategies, with the aim of expanding our business foundation.」

「In addition, as issues that our company needs to address, we believe that the main causes of the development delays and other problems in large-scale system development projects that arose by the end of the previous consolidated fiscal year were our insufficient recognition that the technical difficulty of the development work in question had increased and our lack of technical capabilities at the level required to respond to it, our lack of project management capabilities to handle various specification changes, and insufficient communication within the company and with customers. As measures to prevent recurrence, we have established the following initiatives: improving technical capabilities, improving and strengthening project management, and reforming the organisational culture, including building an open corporate culture and renewing employees' mindsets. We are undertaking fundamental measures to ensure that similar problems do not occur.」

「In addition, as issues that our company needs to address, we believe that the main causes of the development delays and other problems in large-scale system development projects that arose by the end of the previous consolidated fiscal year were our insufficient recognition that the technical difficulty of the development work in question had increased and our lack of technical capabilities at the level required to respond to it, our lack of project management capabilities to handle various specification changes, and insufficient communication within the company and with customers. As measures to prevent recurrence, we have established the following initiatives: improving technical capabilities, improving and strengthening project management, and reforming the organisational culture, including building an open corporate culture and renewing employees' mindsets. We are undertaking fundamental measures to ensure that similar problems do not occur.」

「We are actively pursuing the research, development and utilisation of the latest technologies, including IoT and FinTech, and the development of personnel capable of promoting company-wide technology strategies, with the aim of expanding our business foundation.」

「We newly established the Technovation Center, an organisation under the direct supervision of the CTO (Chief Technology Officer) responsible for company-wide technology management and quality control. In addition to promoting the penetration of our technology strategy, improving development and technology capabilities, and enhancing the quality of products and services, we will promote the research, development and utilisation of advanced technologies such as IoT and FinTech.」