Encourage Technology

Basic Information

Stock Code
3682
Industry
Information and Communications Industry
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
November 2002
Listing Year
December 2013
Official Website
https://www.et-x.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Primex, Celsys, Broadleaf, Systems D, Technomasema, Plus Alpha Consulting, Appier Group, Finatext Holdings, SmaReji, WingArc1st, Kaonavi, Sansan, Cybozu

Overview

Encourage Technology is a specialist company in the information and communications industry, founded in 2002 and headquartered in Tokyo. It is a leading company with strengths in developing security and internal control software for system administrators.

Current Situation

Encourage Technology has achieved steady growth in recent years, with estimated sales of around 5 billion yen. Its main business is the development and sales of system management and security software for enterprises, gaining expertise and trust within the industry. Competitors include Sansan and Cybozu, differentiated through proprietary technology and customer-centric services. It is advancing cloud security and internal control enhancement tools as the latest technologies to support digital transformation. In terms of sustainability, it promotes initiatives to fulfill corporate social responsibility through strengthened information security. In the medium to long term, it aims to enhance product competitiveness through business collaborations and AI technology introduction, targeting further sales expansion by 2025. It also advances talent development and work-style reforms, with its management adapting to market needs receiving high evaluation. Global expansion is limited, but it is steadily expanding its business in the domestic market.

Trivia

Interesting Facts

  • Specialized in security field since founding, achieving stable growth
  • Company name derives from 'Encourage (to motivate)', symbolizing customer support
  • Headquartered in Tokyo with numerous excellent IT talents on staff
  • Specialized in development of business package software
  • Actively pursuing AI technology development and introduction in recent years
  • Supported by wide range of customers from SMEs to large enterprises
  • Certain recognition as domestic IT security vendor
  • Secures solid customer base despite not being in top rankings
  • Also provides security training services
  • Corresponds to diverse industries without specialization in specific ones
  • Leads AI-based incident prediction technology
  • Achieves differentiation through advanced customization functions
  • Strengthening digital transformation support
  • Increasing proportion of cloud-compatible products year by year
  • Hosts numerous seminars on information security

Hidden Connections

  • Potential indirect technological collaborations with competitors Sansan and Cybozu
  • Strengthening business partnerships with related companies like Systems D for joint development
  • Partners with local IT vendors to provide region-specific services
  • Deploys security support services for government offices
  • Focuses on audit software development for financial institutions, highly evaluated in the industry
  • Advancing development of IT training programs for education sector
  • Exploring technological collaborations with cloud platform companies
  • Management serves as directors in multiple IT security organizations

Future Outlook

Growth Drivers

  • Expansion of IT security demand due to accelerating corporate DX
  • Rising monitoring needs accompanying increased cloud service usage
  • Deployment of advanced analysis services through AI application
  • Strengthened legal regulations demanding internal control enhancements
  • Increased product demand corresponding to sophisticated cyberattacks
  • Enhanced対応 to diverse customer industries
  • Strengthened security measures due to remote work proliferation
  • Promotion of IT security adoption in SME market
  • Government information security policy support
  • Expansion of talent development and education services
  • Promotion of cloud-native product introduction
  • Increased demand for operation automation and efficiency services

Strategic Goals

  • Secure sales over 10 billion yen
  • Expand domestic market share and strengthen customer base
  • Expand AI-utilizing product lineup
  • Establish leadership in cloud security field
  • Strengthen sustainability and social contribution activities
  • Continuous investment in technology development and innovation promotion
  • Secure diverse talent and improve work environment
  • Expand education and training business
  • Consider overseas expansion and market diversification
  • Provide advanced operation support services

Business Segments

Enterprise System Management

Overview
Business segment centered on enterprise system management and information security enhancement services.
Competitiveness
High customization capability based on expertise
Customers
  • Information systems departments of large enterprises
  • IT management departments of mid-sized companies
  • Information management departments of public institutions
  • Network management of telecommunications carriers
  • Risk management departments of financial institutions
  • Information security departments of manufacturing companies
  • IT management departments of educational institutions
  • IT departments of medical corporations
  • System management staff in service industries
  • Information management departments of logistics companies
Products
  • In-house security management tools
  • Access rights management systems
  • Internal control support software
  • Log audit and analysis tools
  • Network monitoring software
  • Risk assessment tools
  • Incident response support systems
  • Cloud security management
  • Operation automation tools
  • Data access monitoring software
  • Compliance management systems
  • Alert management platforms
  • Business integration management tools
  • Device management software
  • User behavior monitoring systems

Cloud Solutions

Overview
Segment providing monitoring and security management specialized for cloud environments.
Competitiveness
High-reliability monitoring technology in cloud environments
Customers
  • Cloud service providers
  • Cloud management departments of general companies
  • IT service providers
  • SaaS platform operators
  • Data center operators
  • Telecommunications carriers
  • Security vendors
  • Government-related organizations
  • Educational institutions
  • Medical institutions
Products
  • Cloud monitoring tools
  • Security incident management
  • Cloud asset management
  • Access rights management
  • Internal control audit platforms
  • Operation automation services
  • Data encryption solutions
  • Log management services
  • Risk prediction AI tools
  • API security audits
  • Cloud backup management
  • Cyberattack defense systems
  • Compliance check tools
  • Multi-factor authentication implementation support
  • Unauthorized detection systems

Internal Control and Compliance Support

Overview
Provides support solutions for corporate internal controls and legal compliance promotion.
Competitiveness
Advanced audit response capability based on specialized knowledge
Customers
  • Accounting audit firms
  • Legal departments of listed companies
  • Financial supervisory authorities
  • Industrial audit departments
  • Large manufacturing companies
  • Logistics industry
  • Retail industry
  • Medical corporations
  • Service industries
  • IT-related companies
Products
  • Audit support software
  • Risk management platforms
  • Document management and evidence tracking tools
  • Unauthorized detection systems
  • Operation review tools
  • Workflow management
  • Compliance reporting support
  • Regulatory response management systems
  • Education and training support tools
  • Internal control evaluation tools
  • Document audit systems
  • Report auto-generation tools
  • Incident management tools
  • Audit log analysis
  • Risk evaluation AI

Network Monitoring Services

Overview
Deploys monitoring services to support stable operation of communication networks.
Competitiveness
Equipped with advanced anomaly detection algorithms
Customers
  • Telecommunications carriers
  • Large enterprise network administrators
  • Cloud vendors
  • Data center operators
  • Government offices
  • Financial institutions
  • Educational institutions
  • Medical facilities
  • Manufacturing industry
  • Service industry
Products
  • Real-time network monitoring
  • Traffic analysis tools
  • Anomaly detection systems
  • Failure prediction services
  • Asset management tools
  • Bandwidth control systems
  • Security event management
  • Log collection software
  • Incident alerts
  • System operation status monitoring
  • Network diagnostic tools
  • Performance management tools
  • Reporting tools
  • Configuration management tools
  • Service level monitoring

AI and Analysis Solutions

Overview
Analysis solutions for security and business efficiency utilizing AI.
Competitiveness
Fusion of advanced AI technology and specialized knowledge
Customers
  • IT companies
  • Financial institutions
  • Marketing companies
  • Manufacturing industry
  • Telecommunications operators
  • Healthcare companies
  • Logistics companies
  • Government offices
  • Retail companies
  • Service providers
Products
  • Risk factor analysis AI
  • Unauthorized detection AI systems
  • Business efficiency tools
  • Security event analysis
  • Log data mining
  • User behavior analysis
  • Precursor detection AI
  • Text mining tools
  • Cloud analysis solutions
  • Dashboard construction services
  • AI report auto-generation
  • Advanced predictive modeling
  • Anomaly detection models
  • Decision support tools
  • Statistical analysis tools

Cloud Operation Management

Overview
Services supporting efficient operation and management of diverse cloud environments.
Competitiveness
Advanced operation know-how for multi-cloud compatibility
Customers
  • Cloud service user companies
  • System operation companies
  • IT infrastructure companies
  • SaaS providers
  • Financial industry
  • Manufacturing industry
  • Public institutions
  • Medical corporations
  • Educational institutions
  • Logistics companies
Products
  • Cloud asset management tools
  • Automation operation services
  • Billing management systems
  • Security policy implementation
  • Audit log management
  • Multi-cloud compatible tools
  • Failure response support systems
  • Resource optimization tools
  • Operation dashboards
  • Configuration automation tools
  • API management tools
  • Monitoring alert systems
  • Access management tools
  • Data backup
  • Performance analysis

Education and Training Services

Overview
Provides a wide range of training and education services in security and internal control fields.
Competitiveness
Development capability for practical application-oriented education content
Customers
  • IT company employees
  • Information security personnel
  • Audit firms
  • Public institutions
  • Universities and vocational schools
  • Financial institutions
  • Manufacturing industry
  • Medical institutions
  • Retail industry
  • Service industry
Products
  • Security training programs
  • Internal control seminars
  • Compliance education
  • Online learning content
  • Qualification acquisition support courses
  • Risk management training
  • Information leakage prevention education
  • IT skill-up training
  • Incident response drills
  • Hands-on sessions
  • Training material sales
  • Learning management systems
  • e-Learning services
  • Instructor dispatch services
  • Continuing education programs

Operation Support Services

Overview
Deploys support and consulting services for operation management tasks.
Competitiveness
Rapid problem response and extensive operation know-how
Customers
  • IT system administrators
  • Small and medium enterprises
  • Public institutions
  • Manufacturing companies
  • Logistics companies
  • Financial institutions
  • Service industry
  • Medical institutions
  • Educational institutions
  • Retail industry
Products
  • System monitoring agency services
  • Response at problem occurrence
  • Log analysis support
  • Incident management support
  • Risk evaluation services
  • Failure prevention programs
  • Operation consulting
  • 24-hour monitoring services
  • Failure recovery support
  • Update management
  • Security patch application
  • Help desk operations
  • Operation efficiency improvement support
  • Troubleshooting
  • System audit support

System Integration Support

Overview
Support services to streamline integration and linkage of various systems.
Competitiveness
Technical expertise and experience applicable to a wide range of industries
Customers
  • IT vendors
  • System development companies
  • Large enterprises
  • Public institutions
  • Financial institutions
  • Manufacturing industry
  • Telecommunications companies
  • Service industry
  • Educational institutions
  • Logistics companies
Products
  • System integration platforms
  • API design and management tools
  • Data integration services
  • Custom software development
  • Business process integration support
  • System migration support
  • Test automation tools
  • Operation monitoring integration
  • Performance optimization
  • Project management
  • Requirements analysis services
  • Core system integration
  • Cloud connection management
  • Security integration
  • Report auto-generation

Cloud Security Consulting

Overview
Consulting to support risk assessment and security improvements in cloud environments.
Competitiveness
Extensive security specialized knowledge and practical experience
Customers
  • Cloud user companies
  • IT administrators
  • Government organizations
  • Financial institutions
  • Medical institutions
  • Educational institutions
  • Telecommunications operators
  • Manufacturing industry
  • Service industry
  • Logistics companies
Products
  • Risk analysis reports
  • Security measure proposals
  • Operation improvement plans
  • Threat detection system design
  • Vulnerability diagnosis services
  • Compliance response support
  • Penetration testing
  • Incident response planning
  • Education and training provision
  • Audit support services
  • Security evaluations
  • Guideline formulation support
  • Operation rule construction
  • Log analysis support
  • Security policy formulation

API Management Solutions

Overview
Provides solutions to achieve safe and efficient API management operations.
Competitiveness
Advanced access control and monitoring technology
Customers
  • System development companies
  • Cloud service providers
  • Telecommunications carriers
  • Major IT companies
  • Financial institutions
  • Manufacturing industry
  • Retail industry
  • Service industry
  • Public institutions
  • Educational institutions
Products
  • API gateway
  • Access control tools
  • API performance monitoring
  • Security enhancement modules
  • Rate control systems
  • Log collection and analysis
  • Documentation generation
  • API test automation
  • Version management tools
  • Authentication and authorization functions
  • Usage status reports
  • Failure detection systems
  • Traffic management
  • API operation support
  • Failure response support

Log Management Services

Overview
Supports security enhancement through efficient log data management and analysis.
Competitiveness
High-speed processing technology for large data volumes
Customers
  • Large enterprises
  • Mid-sized companies
  • Financial institutions
  • Government offices
  • Telecommunications operators
  • Educational institutions
  • Medical corporations
  • Manufacturing industry
  • Retail industry
  • Service providers
Products
  • Log collection platforms
  • Anomaly detection engines
  • Reporting tools
  • Storage and archive services
  • Real-time analysis
  • Dashboard construction
  • Incident notification systems
  • Access analysis
  • Audit response support
  • Data anonymization functions
  • Log integration management
  • Visualization tools
  • Cloud integration
  • Data recovery services
  • Legal compliance support

Competitive Advantage

Strengths

  • Specialized development capabilities in security and internal control software
  • Customization response capability through advanced technology
  • Broad customer base across diverse industries
  • Introduction of latest technologies specialized for cloud environments
  • Continuous service improvements and customer support
  • High brand recognition in the domestic market
  • Extensive operation and audit support know-how
  • Development and utilization of AI analysis tools
  • Specialization in compliance support
  • Provision of diverse B2B solutions
  • Comprehensive training and education services
  • Collaborations with numerous related companies
  • Strength in real-time monitoring technology
  • Building long-term customer relationships
  • Flexible system integration support capabilities

Competitive Advantages

  • Leads niche markets with high expertise and technical prowess
  • Deploys highly customizable product lineup
  • Robust security foundation in cloud services
  • Advanced risk analysis functions utilizing AI
  • Market expansion power through multi-industry compatibility
  • Strong customer support system ensures competitive edge
  • Sales strength leveraging diverse sales channels
  • Specializes in domestic market, accurately reflecting customer needs
  • Enhanced reliability through track record in education and training
  • Powerful network with related companies
  • Rapid technology innovation and product improvement cycles
  • Differentiation through comprehensive operation support services
  • High evaluation and track record in internal control domain
  • Diverse tool provision in cloud management
  • Proprietary technology in API management and network monitoring

Threats

  • Risk of delayed response to rapid technological evolution
  • Price competition from domestic and international competitors
  • Tendency for customers to restrain security investments
  • Differentiation challenges due to standardization of cloud platforms
  • Impacts from legal regulation and compliance changes
  • Increased service response burden from sophisticated cyberattacks
  • Intensified competition for talent acquisition
  • Reputation damage risk from system failures
  • Limitations on overseas business expansion
  • Stricter data privacy-related regulations
  • Pressure from technological innovations by new entrants
  • Potential market shrinkage for industry-specific products

Innovations

2023: Development of AI-Powered Risk Analysis Tool

Overview
Released an analysis tool that realizes risk prediction and anomaly detection using AI technology.
Impact
Improved customer risk management efficiency by 20%

2024: Enhanced Cloud Security Monitoring Platform

Overview
Significantly expanded real-time monitoring functions for cloud environments, improving security performance.
Impact
Cloud customer numbers increased 15% year-over-year

2022: Functional Expansion of Internal Control Support Software

Overview
Added audit support functions and auto-report generation compliant with legal revisions.
Impact
Contributed to audit workload reduction and improved customer satisfaction

2021: Introduction of AI Chatbot for Customer Support

Overview
Began operation of AI chatbot to strengthen customer inquiry responses.
Impact
Reduced inquiry response time by 30%

2020: Release of New Version of API Management Tool

Overview
Released API management tool with enhanced security functions and improved usability.
Impact
Contributed to maintaining and expanding customer base

2023: Standard Implementation of Enhanced Multi-Factor Authentication

Overview
Implemented multi-factor authentication functions in all products to improve security strength.
Impact
Unauthorized access incidents decreased 10% year-over-year

2024: New Introduction of Cyberattack Defense System

Overview
Began providing new product system to detect and defend against advanced cyberattacks.
Impact
Contributed to reducing customer information leakage risks

2022: Release of Operation Automation Tool

Overview
Developed and began providing new tool to promote system operation automation.
Impact
Reduced operation costs by 15%

2021: Renewal of Secure Log Analysis System

Overview
Introduced system with improved log analysis accuracy and processing speed.
Impact
Improved incident detection rate by 10%

2020: Market Introduction of Risk Watcher AI

Overview
Officially launched and introduced AI-powered risk analysis software to the market.
Impact
Improved new customer acquisition rate

Sustainability

  • Ensuring business continuity through security enhancements
  • Reducing environmental impact by promoting paperless operations
  • Energy-saving effects through cloud utilization promotion
  • Improving employee satisfaction with diverse work-style support
  • Enhancing information literacy through training programs
  • CO2 reduction through efficient IT infrastructure operations
  • Supporting construction of cyber threat-resilient social infrastructure
  • Product development considering accessibility
  • Workplace diversity promotion activities
  • Regional IT education support programs