Techfirm Holdings

Basic Information

Stock Code: 3625
Industry: Information and Communications Industry
Category Detail: Systems & Software
Prefecture: Tokyo
Establishment Year: August 1991
Listing Year: March 2008
Official Website: https://www.techfirm-hd.com/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: L is B, Quantum Solutions, NID, Core, SecureVeil, Softmax, Hotlink, OPTIM, CRI Middleware, SEEC, Flight Solutions, THE WHY HOW DO COMPANY, GreenBee, PCI Holdings, BeeBreak Systems, eSOL, ACCESS, POPER, Trace on Product, ISB

Overview

Techfirm Holdings is a holding company in the information and communications industry founded in 1991, primarily an IT services company specializing in business support systems and marketing solutions.

Current Situation

Techfirm Holdings recorded consolidated net sales of approximately 5 billion yen, operating income of approximately 239 million yen, and net income of approximately 155 million yen for the fiscal year ending June 2024. It has multiple subsidiaries led by its main subsidiary Techfirm Co., Ltd., with strengths in business support system solutions and mobile marketing. Focusing on electronic money compatible services and smart device system development, it has built a structure to meet diversifying customer needs. In recent years, it has pursued overseas expansion, including establishing a U.S. subsidiary and forming a business alliance with an Indian company. For sustainable growth, it prioritizes IT technological innovation and SDGs initiatives, strengthening network integration and in-house product development. Moving forward, supported by growing digital transformation demand, it plans to expand one-stop services from system development to operation and maintenance. It is also accelerating efforts to boost competitiveness through deeper collaboration with capital partners. As of June 2024, it has approximately 291 employees and aims to enhance technological capabilities through talent development.

Trivia

Interesting Facts

Founded in 1991 as an event planning company before transitioning to IT
Played a pioneering role in electronic money compatible solutions
100% subsidiary Techfirm handles core business operations
Early acquisition of ISO27001 (ISMS) certification to strengthen information security
Overseas bases in the U.S. and India
Leads technology development in mobile advertising
Implemented clear business segmentation upon transition to holding company structure
Actively forms alliances with regional IT companies
Company-developed systems adopted in many electronic money services
Promotes new business development through inter-company collaboration
President Hideaki Nagamori emphasizes aggressive technology investments
Capital alliances include TOKAI Communications
Head office located in Tokyo Opera City Tower, Shinjuku-ku, Tokyo
Listed on JASDAQ market (now Tokyo Stock Exchange Growth)
Strengthens competitiveness through multiple capital and business alliances

Hidden Connections

Strong ties with the telecommunications industry through capital and business alliance with TOKAI Communications Co., Ltd.
Deep involvement in electronic money field via long-term partnership with FeliCa Networks
Expanded digital marketing domain through business alliance with Transcosmos
Established U.S. subsidiary Techfirm USA Inc. to develop overseas markets
Achieved global talent acquisition and development enhancement through business alliance with Inventus India
Shares security-related technologies through business collaboration with U.S. subsidiary of Japan Cash Machine Co., Ltd.
Acquired Japan Aggregate (now We Agri) as subsidiary to enter agricultural IT field
Realizes diversified business development and technology exchange through multiple capital and business alliances

Future Outlook

Growth Drivers

Rapid progress in digital transformation
Expansion of mobile marketing market
Increasing demand for business efficiency improvement
Growth in cloud service adoption
対応 to expanding overseas IT markets
Rising demand for security measures
Spread of next-generation communication technologies like 5G
Advancement and diversification of in-house products
Talent development and technological strengthening
Business expansion through alliances
Increasing demand for environmentally considerate IT solutions
Tailwinds from government DX promotion policies

Strategic Goals

Achieve consolidated net sales exceeding 10 billion yen
Expand overseas sales ratio to over 20%
Advance sustainability management
Thorough utilization of cloud and AI technologies
Organizational strengthening through diverse talent utilization
Expansion of marketing solutions business
Establishment of robust security technologies
Support for independence and profitability of new businesses
Realization of efficient resource allocation
Maintain customer satisfaction above 90%

Business Segments

Business Support System Development

Overview

Services for designing, developing, and operating business support systems across various industries.

Competitiveness

Rapid response through one-stop service provision

Customers

SMEs
Large corporations
Government agencies
Medical institutions
Telecommunications carriers
Financial institutions
Manufacturing
Distribution
Educational institutions
Service industry

Products

Business management systems
Project management tools
Form creation software
Workflow systems
Document management systems
Cloud integration solutions
Business efficiency tools

Network and Server Integration

Overview

Construction and operation support for corporate networks and servers.

Competitiveness

Advanced security design technology

Customers

Telecom carriers
Financial institutions
IT companies
Manufacturing
Retail
Educational institutions
Logistics companies
Government agencies
Service industry
Medical institutions

Products

Network design
Server construction
Security solutions
Cloud integration
Infrastructure construction

Marketing Solutions

Overview

Planning and implementation support for mobile-based marketing initiatives.

Competitiveness

Extensive know-how in smartphone advertising

Customers

Advertising agencies
Retail
Telecommunications carriers
Manufacturers
Media companies
E-commerce operators
Financial institutions
Service industry
Entertainment companies
Food and beverage

Products

Mobile marketing tools
Smartphone ad delivery platforms
Data analysis services
Campaign management systems

In-House Product Services

Overview

Deployment of in-house developed IT products to various markets.

Competitiveness

User-centric product design

Customers

IT companies
SMEs
Security-related companies
Educational institutions
Medical institutions
Financial institutions
Service industry
Distribution
Manufacturing
Government agencies

Products

Business support platforms
Cloud services
Security tools
Mobile solutions

Systems Consulting

Overview

Comprehensive support from pre-IT implementation planning to operational improvements.

Competitiveness

Proposal capabilities of experienced consultants

Customers

Large corporations
Government agencies
Financial institutions
Manufacturing
Service industry
Telecommunications
Distribution
IT companies
Medical institutions
Educational institutions

Products

IT strategy formulation
Business process improvement support
Cloud migration support
System optimization proposals

Ad Delivery Services

Overview

Ad delivery and marketing support for smart devices.

Competitiveness

Precise targeting technology

Customers

Advertisers
Advertising agencies
Media
E-commerce operators
App developers
Retail
Service industry
Entertainment companies
Telecommunications carriers
Financial institutions

Products

Smartphone ad delivery
Digital marketing
Campaign design
Effectiveness analysis tools

Competitive Advantage

Strengths

Abundant track record in business support system development
Specialized technology in electronic money compatibility
Comprehensive IT solution provision capabilities
Solid financial base and stable revenue
Adaptability to diverse industries
High customer service quality
Know-how in in-house product development
Network integration technology
Excellent marketing solutions
Robust security design
Management efficiency improvement as a holding company
Domestic and international business collaboration structure
Flexible development structure and technical responsiveness
Fusion of veteran and young talent
Utilization of diverse sales channels

Competitive Advantages

Strengths in embedded software for electronic money and mobile phones
One-stop service from system design to maintenance
Unique know-how in marketing leveraging smart devices
Clear business segmentation through 100% owned subsidiaries
Broad network and track record across multiple industries
Reliability from security management certification
Stability from capital alliances with major shareholders
Convenience from cloud integration services
Active investment in medium- to long-term IT innovation
Accumulated know-how in integrated network construction
Strengthened customer relationships through localized services
Flexible development approach to new technologies
International expansion base via U.S. and Indian subsidiaries and alliances
Technological enhancement policy through internal talent education
Superiority in ad delivery targeting technology

Threats

Obsolescence risk from rapid technological innovation
Low-price competition from rivals
Challenges in IT talent recruitment and development
Intensifying competition with overseas IT firms
Sudden changes and diversification in customer needs
Potential business restrictions from regulatory tightening
Infrastructure risks from natural disasters
Sophistication of cyber attacks
Impact of exchange rate fluctuations on overseas operations
Decrease in IT investments during economic downturns
Credit issues with major customers
Difficulties in new market development

Innovations

2024: Development of AI Optimization Platform for Mobile Ad Delivery

Overview: Introduced a system that improves ad delivery targeting accuracy using artificial intelligence.
Impact: 20% improvement in ad effectiveness, enhanced customer satisfaction

2023: Enhancement of Cloud Integration Services

Overview: Expanded network and server construction services for cloud environments to support customer DX initiatives.
Impact: 30% increase in orders received

2022: Introduction of Security Management Enhancement Program

Overview: Achieved ISMS certification and systematized internal security training to reduce risks.
Impact: 25% reduction in information leakage risks

2021: Strengthened RPA Integration in Business Support Systems

Overview: Incorporated robotic process automation technology to promote business efficiency.
Impact: 15% reduction in workload

2020: Refresh of Marketing Solutions for Smart Devices

Overview: Utilized data analysis technology to optimize ad delivery effectiveness.
Impact: 10% increase in ad revenue

Sustainability

Paper resource reduction through paperless promotion
Operation of energy-efficient data centers
CO2 reduction through remote work encouragement
Promotion of diversity and creation of comfortable work environments
Cooperation with local communities on environmental conservation activities
Introduction of environmental standards in supply chains
Thorough security and information ethics
Internal education programs to raise environmental awareness