YE DIGITAL

Basic Information

Stock Code
2354
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Fukuoka Prefecture
Establishment Year
February 1978
Listing Year
February 2003
Official Website
https://www.ye-digital.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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Overview

YE DIGITAL is an information and communications company established in 1978. It is a software development company with superior technical capabilities, operating as a member of the Yaskawa Electric Group and primarily engaged in system development and IoT solutions for the manufacturing industry.

Current Situation

YE DIGITAL recorded consolidated sales of ¥19.504 billion in fiscal 2023, mainly deploying core system development and IoT solutions for the manufacturing industry. It provides services for business efficiency support using AI and big data analysis, as well as management strengthening through ERP implementation, and has established a firm position in the industry. As of May 2024, its capital is ¥747 million, supported by 568 standalone employees and 721 consolidated employees providing technical strength. It is focusing on sustainability, expanding services such as Smart Service AQUA and the Logistics DX Service Center. In 2024, it newly established a Shibuya office in Shibuya-ku, Tokyo, strengthening its bases in Tokyo and Fukuoka. In the medium to long term, its strategy is to deepen support for customer business transformation through promotion of IoT and the Business DX Leading Center. In recent years, it has accelerated digitalization responses by establishing related companies and expanding service centers, balancing regional closeness with technological innovation.

Trivia

Interesting Facts

  • Grown as the core company for IT strategy in the Yaskawa Electric Group.
  • Regionally rooted IT company headquartered in Kitakyushu, Fukuoka Prefecture.
  • Actively expanding business since the early days of IoT.
  • Contributes to social infrastructure through smart bus stop development.
  • Newly established Shibuya office in 2024 to strengthen Tokyo market.
  • Application of cutting-edge technology fusing AI and big data analysis.
  • Smart Service AQUA is one of Japan's leading IT operation support centers.
  • Over 30 years of track record in embedded software development for manufacturing.
  • Provides wide-ranging services through collaboration with diverse related companies.
  • Corporate body balancing regional closeness and global expansion.
  • Established in 1978, a veteran company with history in the industry.
  • Focusing on new fields with opening of Logistics DX Service Center.
  • ERP implementation support services form one pillar of main business.
  • Established three-base system in Tokyo, Osaka, and Fukuoka in 2024.
  • Stable management with Yaskawa Electric as the top shareholder, though undisclosed.

Hidden Connections

  • Deep collaboration as an equity-method affiliate of Yaskawa Electric.
  • Rakuten Securities and Fukuoka Bank also listed as major shareholders.
  • Smart bus stop technology collaborates with public transportation operators.
  • Strengthened smart city business through joint investment with Machidia.
  • Widely supported for business system implementation centered on domestic manufacturing.
  • Cloud services also deployed to regional SMEs.
  • Developed proprietary analysis models through AI technology introduction.
  • Advancing technology provision to local governments in logistics DX field.

Future Outlook

Growth Drivers

  • Increase in demand for core systems due to DX promotion in manufacturing.
  • Expansion of demand for new business processes created through IoT utilization.
  • Advancement and普及 of AI and big data analysis technologies.
  • Increasing DX needs in logistics industry and promotion of smartization.
  • Expansion of demand for smart city-related infrastructure.
  • Demand for health insurance system improvements and local government IT strengthening.
  • Acceleration of migration to cloud services and demand for operation support.
  • Market expansion through multi-base deployment connecting regions and nationwide.
  • Increasing demand for support in global expansion of domestic and overseas manufacturing.
  • Promotion of new service development fusing environment and energy-saving technologies.
  • Progress in onlineization of human resource development and education services.
  • Deployment of comprehensive solutions for security strengthening requirements.

Strategic Goals

  • Establish top-class position in manufacturing DX support market.
  • Promote social innovation fusing IoT and AI.
  • Achieve expansion of domestic share in logistics DX solutions.
  • Double the number of Smart Service AQUA customers.
  • Nationwide rollout of regionally rooted smart city business.
  • Grow consolidated sales to over ¥40 billion.
  • Standardize ICT service provision considering sustainability.
  • Form corporate culture improving employee well-being and respecting diversity.
  • Aggressively introduce and promote cloud-native technologies.
  • Strengthen technology development contributing to environmental impact reduction.

Business Segments

System Development for Manufacturing

Overview
Specializes in core systems and control software development tailored to manufacturing sites.
Competitiveness
High-quality development through fusion of manufacturing business know-how and control technology
Customers
  • Automotive Parts Manufacturers
  • Heavy Industry Companies
  • Machine Tool Manufacturers
  • Yaskawa Electric Group Companies
Products
  • Core Business Systems
  • Production Management Systems
  • Line Control Software
  • ERP Systems

IoT Service Provider

Overview
Provides business improvement and social infrastructure support services integrating IoT and AI.
Competitiveness
IoT solutions linked with proprietary AI technology and cloud
Customers
  • Manufacturing Industry
  • Logistics Companies
  • Local Governments
  • Service Industry
Products
  • IoT Device Management
  • Cloud Data Analysis
  • AI Predictive Models
  • Smart Bus Stop Systems

Business Solutions

Overview
Supports customer management strengthening through business reform and system implementation.
Competitiveness
Abundant ERP implementation track record and close customer consulting capabilities
Customers
  • Health Insurance Associations
  • Medium-Sized Enterprises
  • Public Institutions
  • IT Service Companies
Products
  • Health Insurance Systems
  • ERP Implementation Consulting
  • Business System Development
  • System Operation Support

Service Business

Overview
Aims to improve customer satisfaction through total IT operation support.
Competitiveness
Efficiency through integrated operation support services
Customers
  • Corporate Customers
  • IT Departments
  • Manufacturing Departments
  • Operation Managers
Products
  • IT Customer Support
  • Operation Automation Tools
  • After-Support Consulting

Embedded Software Development

Overview
Provides software for diverse equipment using advanced embedded technology.
Competitiveness
Highly reliable embedded development based on long years of manufacturing experience
Customers
  • Communications Equipment Manufacturers
  • Home Appliance Manufacturers
  • Automotive OEMs
  • Medical Equipment Manufacturers
Products
  • Firmware Development
  • Embedded System Design
  • Mobile Device Software

Cloud Integration

Overview
Performs flexible cloud environment construction and security support.
Competitiveness
Service provision combining security and scalability
Customers
  • IT Companies
  • Manufacturing Industry
  • Logistics Companies
  • Educational Institutions
Products
  • Cloud Construction
  • Data Management
  • Security Services

DX Promotion Consulting

Overview
Provides total technology and business support for DX transformation.
Competitiveness
Consulting capabilities fusing on-site knowledge and cutting-edge technology
Customers
  • Manufacturing Industry
  • Logistics Industry
  • Government Agencies
  • Service Industry
Products
  • DX Strategy Planning
  • Business Process Design
  • Technology Implementation Support

Smart City-Related Development

Overview
Develops smart infrastructure aimed at solving regional issues.
Competitiveness
Next-generation social infrastructure technology with regional closeness
Customers
  • Local Governments
  • Infrastructure Companies
  • Construction Companies
  • Transportation Operators
Products
  • Smart Bus Stops
  • Environmental Sensor Systems
  • Traffic Optimization Software

Education and Training Services

Overview
Provides various training for engineer development and human resource strengthening.
Competitiveness
Practical programs aligned with industry practices
Customers
  • In-House Training
  • Engineer Training Schools
  • Local Government Employees
  • IT Beginners
Products
  • IT Skills Training
  • IoT Technology Courses
  • AI Basics Lectures

Maintenance and Support Services

Overview
Supports stable operation through troubleshooting and regular inspections.
Competitiveness
Services backed by rapid response and specialized technology
Customers
  • Manufacturing Industry
  • Telecommunications Carriers
  • Medical Sites
  • Logistics Companies
Products
  • System Maintenance
  • Equipment Maintenance
  • Emergency Response Services

Marketing Support Solutions

Overview
Supports efficiency in digital marketing.
Competitiveness
Precise customer insights provision using AI
Customers
  • IT Companies
  • Manufacturing Industry
  • Retail Industry
  • Logistics Industry
Products
  • Customer Analysis Tools
  • Sales Promotion Software
  • SNS Integration Services

Security Solutions

Overview
Protects corporate assets with advanced security technology.
Competitiveness
Security technology capabilities corresponding to the latest threats
Customers
  • Manufacturing Industry
  • Financial Institutions
  • Public Institutions
  • Telecommunications Companies
Products
  • Network Monitoring
  • Threat Analysis
  • Access Control

Competitive Advantage

Strengths

  • Technical expertise specialized in manufacturing
  • Stable support from Yaskawa Electric Group
  • Early adoption of IoT and AI technologies
  • Regional expansion through diverse bases
  • Strong track record in ERP implementation
  • Broad B2B service deployment across industries
  • Comprehensive operation support system
  • Cloud platform development
  • Constructive R&D investment
  • Flexible response to diverse customer needs
  • Solid financial foundation
  • High specialization of engineers
  • Regionally rooted services
  • Active inter-company collaboration
  • Differentiation in logistics DX

Competitive Advantages

  • Deep industry knowledge and track record in system development for manufacturing
  • Technical foundation and credibility as an equity-method affiliate of Yaskawa Electric
  • Advanced IoT solutions integrating AI and big data analysis
  • Integrated service operation system centered on Smart Service AQUA
  • Broad product lineup adaptable to diverse industries and uses
  • Ensured transparency and fundraising power through Tokyo Stock Exchange Standard listing
  • Business portfolio covering wide customer segments from B2B to B2C
  • Fine-tuned customer response through multiple regionally close bases
  • Strengthened initiatives in cutting-edge fields such as logistics DX and smart cities
  • Improved service reliability using cloud infrastructure
  • Support for enhancing international competitiveness of manufacturing through global ERP deployment
  • Quality assurance through long-term experience in embedded software development
  • Synergy effects from collaboration with many industry partners
  • Active contribution to sustainable social infrastructure construction
  • Development and application of proprietary AI models incorporating cutting-edge technology

Threats

  • Intensifying market competition due to increasing competitors in manufacturing DX
  • Delays in responding to rapid evolution of AI and IoT technologies
  • Pressure from entry of major IT companies into manufacturing market
  • Sophistication of cyber security risks
  • Risk of IT investment restraint due to economic fluctuations
  • Vulnerability in revenue structure due to dependence on specific customers
  • Engineer shortages due to intensifying talent acquisition competition
  • Increased operational burden from strengthened regulations and personal data protection
  • Instability in global supply chains
  • Uncertainty in business opportunities due to fluctuations in digitalization support policies
  • Technology competition with emerging venture companies
  • Intensifying price competition from competitors

Innovations

2024: Opening of Logistics DX Service Center

Overview
Established a base for optimization services in logistics operations using AI and IoT.
Impact
Realizes logistics efficiency and cost reduction for customers.

2023: Joint Venture Establishment with Machidia Co., Ltd.

Overview
Established a new company to advance smart city-related development.
Impact
Contributes to strengthening solutions for local governments.

2022: Opening of Business DX Leading Center

Overview
Established an in-house organization specialized in DX promotion to strengthen customer support.
Impact
Achieved increase in DX-related orders and technological enhancement.

2020: Absorption-Type Split to Establish iCube Digital Co., Ltd.

Overview
Established a new company through split to strengthen IoT-related technologies.
Impact
Achieved specialization, faster development speed, and technological deepening.

2024: Opening of Shibuya Office

Overview
Consolidated Tokyo-area bases and established a new office in Shibuya.
Impact
Contributes to strengthening customer contact points and business efficiency.

Sustainability

  • Regional revitalization through digital support for local communities
  • Promotion of ICT utilization aimed at reducing environmental impact
  • Promotion of work-life balance to support employee well-being
  • Technical support for promoting customer companies' sustainability
  • Contribution to sustainable development of social infrastructure
  • Introduction of technology for waste reduction and resource efficiency improvement
  • Enhancing environmental awareness through employee education
  • Fostering corporate culture respecting diversity
  • CO2 emission reduction through promotion of remote work
  • Expansion of IT support for regional disaster prevention and emergency response
  • Promotion of joint environmental conservation projects with partner companies
  • Support for sustainable urban development based on smart city concepts