Software Service

Basic Information

Stock Code: 3733
Industry: Information and Communications Industry
Category Detail: Systems & Software
Prefecture: Osaka Prefecture
Establishment Year: April 1969
Listing Year: February 2004
Official Website: https://www.softs.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Image One, Azeas, Data Horizon, Finex, Softmax, Encourage Technology, Yamato Computer, Ail, Medical Data Vision, MK System, Canamic Network, CE Holdings, Welby, JMDC, Tokei Densan, EM Systems, Mori Kogyo, OB System, Fujimac, KSK

Overview

Software Service is an information and communications industry company founded in 1969 and headquartered in Osaka, with medical information system development as its main business, possessing top-class technical capabilities in the industry as an electronic medical records specialist.

Current Situation

Software Service recorded consolidated net sales of approximately ¥27.6 billion, operating profit of approximately ¥4.9 billion, and net profit of approximately ¥3.4 billion for the fiscal year ended October 2022. In its core medical information systems business, it provides advanced IT solutions centered on electronic medical records to medical institutions, establishing a solid position in the industry. On the technical side, in addition to system development compatible with UNIX and Windows, it is also promoting the introduction of the latest cloud services. In terms of sustainability, it focuses on social contributions through the promotion of regional medical support and the integration of medical IT. Moving forward, in response to DX promotion and the expansion of demand for advanced medical IT, it will actively pursue new customer acquisition and product development, aiming for further expansion of medical information services toward 2030. Recently, it has strengthened system implementations in domestic medical institutions and is expanding its role as a supporter of social medical ICT infrastructure.

Trivia

Interesting Facts

Developed Japan's first mini-computer medical information system in 1970
Provided electronic medical records systems for many years, supporting the dawn of medical IT
Long-established company based in Osaka Prefecture, building foundation in medical IT field
Wide-ranging products capable of addressing complex needs of medical institutions
Founder Katsushi Miyazaki, from Japan IBM, is a pioneer in medical IT
Maintains stable customer base as a mid-tier player in medical information systems market
Maintains strict internal governance for legal compliance and safety
Contributes to standardization through strengthened ties with industry associations
With 1,640 employees, classified as a large company in the medical IT industry
Emphasizes engineer development with proprietary training system
Long-term maintenance of proven systems in numerous medical institutions
Headquartered in Yodogawa-ku, Osaka City, strong in Kansai region medical institutions
Listed on JASDAQ Standard market with stable stock liquidity
Public Interest Incorporated Foundation Miyazaki Memorial Fund supports as major shareholder
Actively participates in regional medical informatization initiatives

Hidden Connections

Founder from Japan IBM leads the industry as pioneer in medical IT
Public Interest Incorporated Foundation Dream & Environment Support Miyazaki Memorial Fund is major shareholder closely linked to regional social support
Built robust network in medical IT industry based in Osaka
Specialized in medical institutions, pioneering niche markets distinct from major competitors
Collaborates with peers under Nikkei industry code 146 to promote information sharing
Numerous medical institutions with long-term maintenance contracts, contributing to stable revenue
Strengthens B2B customer relations based on proprietary medical field technologies
Innovating maintenance and service models through cloud promotion and IT integration

Future Outlook

Growth Drivers

Increased demand from accelerated ICT adoption in domestic medical institutions
Expansion of cloud-based medical information system proliferation
Growing application of AI and data analysis for diagnosis support
Diversification of medical IT needs due to aging society
Expansion of system integration demand from strengthened medical collaborations
Rising security compliance needs from stricter regulations
Increased local government collaborations in regional medical informatization
IT investment expansion from medical DX promotion
Spread of remote diagnosis and telemedicine services
Demand for new services utilizing medical data

Strategic Goals

Achieve top 3 share in domestic medical IT market for electronic medical records
Reach ¥10 billion scale for AI-utilizing diagnosis support system business
Secure over 500 medical institutions for cloud medical information systems
Realize nationwide rollout of regional medical collaboration platform
Build sustainable IT service model and reduce environmental burden

Business Segments

Medical Information System Development

Overview

Develops specialized systems for medical institutions and provides introduction support in BtoB operations.

Competitiveness

Technology specialized in the medical industry and extensive track record of implementations

Customers

Hospitals
Clinics
Nursing facilities
Medical institution network operators
Government agencies

Products

Electronic medical records system
Inspection linkage software
Patient management system
Image management system
Medical data analysis tool

Medical Information Cloud Services

Overview

Provides cloud systems to medical institutions along with operational support.

Competitiveness

Highly secure cloud environment and flexible customization

Customers

Small clinics
Regional medical collaboration centers
Remote medical service providers
Insurers

Products

Cloud electronic medical records
Medical information sharing platform
Remote diagnosis support service

Software Maintenance and Support

Overview

Provides maintenance and support framework to support stable operations.

Competitiveness

Rapid response combined with deep understanding of the medical industry

Customers

Medical system user companies
Medical institutions
Software implementation agents

Products

System maintenance
Troubleshooting services
Customer support

Medical Solution Consulting

Overview

Consulting services supporting IT strategies for medical institutions.

Competitiveness

Strong proposal capabilities based on medical practice experience

Customers

Large hospitals
Medical groups
Local governments

Products

IT implementation support
Business improvement proposals
Electronic medical records optimization

Competitive Advantage

Strengths

High technical expertise specialized in medical IT
Extensive track record as an electronic medical records specialist
Stable financial base and funding strength
Regional closeness sales power from Osaka headquarters
Flexibility in cloud system compatibility
Implementation experience across a wide range of medical institutions
Comprehensive customer support
Strength in maintaining long-term customer relationships
Recognition and brand power within the industry
Rapid system response and failure recovery
Product development aligned with industry needs
Contribution to sustainable medical informatization

Competitive Advantages

Specialized product lineup and technical foundation in electronic medical records
Customization and support tailored to medical institution needs
Flexibility with diverse OS (UNIX, Windows, cloud compatible)
Abundant implementation track record and know-how in medical systems
Deep understanding of medical industry-specific workflows
Continuous R&D investment enabled by stable management base
Balance of regional closeness centered on Osaka and nationwide expansion
Advanced provision of cloud services for medical institutions
Superior customer response and maintenance compared to competitors
IT consulting services specialized in the medical field

Threats

Intensifying competition from major IT companies entering the medical field
Increased burden of adapting to changes in legal regulations
Cybersecurity risks and their expanding impact
Risk of system obsolescence due to technological progress
Decline in demand due to restrained IT investments by medical institutions
Concerns over talent acquisition difficulties and rising costs
Growth slowdown due to maturation of the domestic market
Changes in medical site environment due to novel infectious diseases, etc.
Risks of external dependency on cloud services
Intensifying price competition with other companies' products
Increased response costs due to diversifying customer demands
Development delays due to lags in technology standardization

Innovations

2023: Strengthening of medical cloud services

Overview: Expanded highly secure cloud-based electronic medical records provision, increasing introduction facilities.
Impact: Achieved expansion of customer base among small and medium-sized medical institutions

2022: Development of diagnosis support system utilizing AI

Overview: Supports diagnosis data analysis with AI, contributing to efficiency in medical settings.
Impact: Contributes to reducing physicians' workload

2021: Innovation in medical image linkage technology

Overview: Developed technology for integrated management of diverse medical image formats.
Impact: Promotes information sharing between medical institutions

2020: Enhanced mobile device compatibility

Overview: Built mobile access environment for medical institution staff.
Impact: Realizes rapid information access at the site

Sustainability

Promotion of energy-saving IT equipment introduction in medical settings
Participation in regional medical informatization support activities
Waste reduction through development of long-term operable systems
In-house paperless promotion and CO2 emission reduction
Strengthened security for safe information protection