System Research

Basic Information

Stock Code
3771
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Aichi Prefecture
Establishment Year
March 1981
Listing Year
June 2005
Official Website
https://www.sr-net.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
NS Solutions, CUBESYS, TIS, Proship, Nomura Research Institute, Simplex Holdings, Obic, Otsuka Corporation, Dentsu Soken, OB System, BIPROGY, NTT DATA Group, SCSK

Overview

System Research is an independent systems integrator established in 1981 with a strong base in the Chubu region, specializing in the information and communications industry with strengths in the automotive, machinery, and steel sectors.

Current Situation

System Research, for the fiscal year ending March 2024, has consolidated sales of approximately 16.2 billion yen and around 1,179 employees, conducting solid management rooted in the Chubu region. It targets the automotive, machinery, and steel industries as main customers, providing advanced systems integration services, with competitive strengths in its technology and customer base. It has obtained ISO 9001 and ISMS certifications, with established quality and information security management systems. It operates a group company as a specially designated subsidiary promoting employment for people with disabilities, focusing on social contributions. It plans to list dually on the Nagoya Stock Exchange Premier Market in March 2025, aiming to further enhance corporate value. In recent years, it has promoted capital investments such as constructing a new development building, and is actively working on technology development and service enhancement in the DX field. Moving forward, it will leverage the increasing demand for digitalization in the manufacturing industry as a growth driver, strengthening collaboration with regional companies to pursue further business expansion.

Trivia

Interesting Facts

  • Long trusted as a systems integrator specialized in manufacturing in the Chubu region.
  • Early acquisition of ISO 9001 and ISMS certifications, maintaining high standards in quality and information management.
  • Established subsidiary Soel specialized in promoting employment for people with disabilities, actively contributing to society.
  • History of acquiring shares from Panasonic Group (formerly Matsushita Electric Industrial) in 2006 and advancing corporate reorganization.
  • Plans for dual listing on the Nagoya Stock Exchange Premier Market in 2025.

Hidden Connections

  • Has a history of acquiring shares of Irie Co., Ltd. from Panasonic (formerly Matsushita Electric Industrial) and reorganizing group companies.
  • Maintains close ties with the manufacturing industry, known for providing IT solutions to automotive parts suppliers.
  • The area around its head office in Nakamura Ward, Nagoya City, is clustered with many manufacturing-related companies, contributing to the local economy.
  • Established a specially designated subsidiary, balancing job creation for people with disabilities and technical education support.

Future Outlook

Growth Drivers

  • Increasing demand for DX (Digital Transformation) in manufacturing
  • Activation of IT investments in Chubu manufacturing
  • Expansion of IoT and cloud technology adoption
  • Social recognition accompanying strengthened disability employment systems
  • Strengthening of regionally rooted customer service systems

Strategic Goals

  • Acquire over 30% market share in manufacturing DX solutions
  • Continuously improve disability employment rate and become a model company for diversity promotion
  • Significantly enhance corporate value on the Nagoya Stock Exchange Premier Market
  • Achieve 40% ratio of cloud and IoT service sales to total sales
  • Realize sustainable management through proliferation of low-environmental-impact IT services

Business Segments

Systems Integration for Manufacturing

Overview
Comprehensive contracting for planning, design, development, and operation of various IT solutions specialized for manufacturing.
Competitiveness
Strong customer base and deep industry knowledge in the Chubu region
Customers
  • Automobile Manufacturers
  • Machinery Manufacturers
  • Steel Industry
  • Parts Suppliers
  • Factory Managers
Products
  • Production Management System
  • Quality Management Software
  • Equipment Operation Monitoring Tool
  • Process Optimization Service
  • IoT Integration Solution

IT Consulting Services

Overview
Consulting business from strategy formulation to execution support to maximize IT implementation effectiveness.
Competitiveness
Proposal capabilities based on deep understanding of manufacturing and on-site perspectives
Customers
  • Manufacturing Executives
  • Information Systems Departments
  • IT Strategy Personnel
  • Medium and Small Enterprises
Products
  • IT Strategy Planning Support
  • Business Process Optimization
  • System Implementation Consulting
  • Security Audit Services

Cloud and IoT Infrastructure Construction

Overview
Provides infrastructure design and operation support services utilizing cloud and IoT.
Competitiveness
Introduction of latest technologies and establishment of operation systems
Customers
  • Manufacturing Site Managers
  • IT Departments
  • IoT Service Providers
Products
  • Cloud Infrastructure Construction
  • IoT Device Integration
  • Data Analysis Platform

Specially Designated Subsidiary Software Development

Overview
Promotion of employment for people with disabilities and software development operations by Soel Co., Ltd.
Competitiveness
Balancing social mission and business efficiency
Customers
  • Public Institutions
  • General Companies
Products
  • Business System Software
  • IT Tools for Disability Support

Competitive Advantage

Strengths

  • Abundant track record in the manufacturing industry centered in the Chubu region
  • Advanced systems integration technology
  • High-quality management with ISO 9001 and ISMS certifications
  • Social value through promotion of employment for people with disabilities
  • Stable financial base and asset scale

Competitive Advantages

  • High expertise in IT services specialized for automotive, machinery, and steel industries
  • Stable order base from close-knit regional customer relationships
  • Diverse talent strategy and social contributions through subsidiary Soel
  • Active investment in latest technologies and strengthening of development facilities
  • Enhanced brand recognition through dual listing on Nagoya Stock Exchange Premier Market

Threats

  • Intensifying competition with major IT vendors
  • Adaptation burden to rapid IT technology changes
  • Risk of reduced DX investments in manufacturing
  • Labor market talent shortage issues
  • Impact on customer industries from geopolitical risks

Innovations

2023: Construction and Operation Start of New Development Building

Overview
Completed a new development building equipped with the latest IT development environment, improving development efficiency.
Impact
15% improvement in project efficiency, acceleration of new service launches

2022: IoT System Monitoring Service Development

Overview
Launched a cloud service for real-time monitoring of manufacturing site equipment operation.
Impact
Contributes to improving customers' equipment utilization rates

2021: Promotion of Software Development for People with Disabilities

Overview
Through subsidiary Soel, established an IT development environment suitable for people with disabilities.
Impact
Improved employment rate and gained social recognition

2020: ISMS Certification Renewal and Information Security Enhancement

Overview
Introduced the latest information security measures to maintain customer trust.
Impact
Continued zero security incidents

Sustainability

  • Active promotion of employment for people with disabilities
  • Construction of energy-saving data centers
  • Reduction of environmental impact through paperless initiatives
  • Participation in IT education support projects for local communities
  • Maintaining customer trust through strengthened information security