Nextgen

Basic Information

Stock Code
3842
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
November 2001
Listing Year
March 2007
Official Website
https://www.nextgen.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Keyware, IVC, Ecomot, Geoloc, Tsuzuki Electric, Area Quest, Asahi Information Service

Overview

Nextgen is a systems and software company established in 2001 in the information and communications industry, specializing in the construction of IP phone systems and maintenance of communication networks.

Current Situation

Nextgen's main businesses are the construction of IP phone systems and the maintenance and support of communication networks, with its head office located in Tokyo. Since its founding, the company has achieved steady growth through orders for network-related systems and software development. Estimated sales for fiscal 2023 are around 4 billion yen, positioning it as a mid-sized firm with a stable customer base. Competitors include Tsuzuki Electric and Asahi Information Service, and it maintains competitiveness within the industry. In technology development, it focuses on enhancing IP phone technology and strengthening communication network security, contributing to the maintenance of customers' communication infrastructure. From a sustainability perspective, it promotes energy efficiency and the use of cloud services to reduce environmental impact. In terms of human resources, it has recently emphasized talent acquisition and development, implementing training programs to enhance engineers' expertise. Looking ahead, with the expansion of the 5G and IoT markets, it positions the advancement of communication systems and the rollout of new services as the core of its growth strategy, targeting sales expansion and new customer acquisition by 2030.

Trivia

Interesting Facts

  • IP phone product lineup has over 15 years of history.
  • Focused on improving call quality since founding.
  • High market share among SMEs in Tokyo's 23 wards.
  • Proven track record in communication systems for many government agencies.
  • Located in central Tokyo with highly responsive maintenance system.
  • Over 50 communication engineers on staff.
  • Started as a network maintenance specialist firm.
  • One of the few domestic companies that responded early to cloud migration.
  • Internally developed proprietary communication fault analysis technology.
  • Member of multiple industry associations involved in standards development.

Hidden Connections

  • Ongoing technical collaborations and joint developments with Keyware Solutions and Area Quest.
  • Collaboration with Tsuzuki Electric on large-scale communication projects.
  • Held joint seminars on cloud services with Sonocom.
  • Maintains strong partnerships with security firms through government projects.
  • Actively participates in Tokyo's IT promotion policies, contributing to regional revitalization.
  • Conducting industry-academia collaboration projects with multiple domestic universities.
  • Established joint procurement system for communication equipment with Landix.
  • Business alliance with Livin Technologies to strengthen smart home communications.

Future Outlook

Growth Drivers

  • Expansion and普及 of 5G and next-generation communications technologies
  • Increasing demand for cloud communications among SMEs
  • Demand for communication services due to the establishment of telework
  • Increased investments in IT infrastructure strengthening by government agencies
  • Growing demand for security products
  • Communication support needs accompanying IoT market growth
  • Expansion of SaaS usage due to needs for communication cost reduction
  • Digitalization initiatives in regional cities
  • Acceleration of technological innovation through industry-academia collaborations
  • Increasing demand for environmentally considerate products and services
  • Diverse needs for cloud services
  • New market development through promotion of remote work

Strategic Goals

  • Achieve sales of over 5 billion yen
  • Cloud services to account for over 60% of sales
  • Gain leadership in the communication security market
  • Establish sales bases in major cities nationwide
  • Full rollout of low-environmental-impact communication products
  • Promote service automation using AI
  • Maintain technological strength through enhanced talent development
  • Maintain customer satisfaction above 90%
  • Expand industry-academia collaboration projects
  • Strengthen brand through co-creation with local communities

Business Segments

IP Phone System Construction

Overview
Provides design and construction services for optimized IP phone systems tailored to various industries.
Competitiveness
Industry-specific customization capabilities and communication quality guarantees
Customers
  • Government Agencies
  • Financial Institutions
  • Medical Institutions
  • Manufacturing
  • Educational Institutions
  • Distribution
  • IT Companies
  • Telecommunications Carriers
  • Service Industry
  • Transportation
Products
  • IP Phone System Design
  • Network Construction
  • Voice Data Management Software
  • Security Enhancement Tools
  • Call Center Systems

Communication Network Maintenance and Support

Overview
Provides maintenance and support services to maintain and improve the operation of communication infrastructure.
Competitiveness
Rapid response capabilities and advanced fault analysis skills
Customers
  • Telecommunications Carriers
  • Large Enterprises
  • Small and Medium Enterprises
  • ISP Providers
  • Maintenance Providers
Products
  • Communication Equipment Maintenance
  • Fault Monitoring Systems
  • Network Diagnostic Services
  • Fault Recovery Response
  • Remote Management Tools

Network Software Development

Overview
Develops various software for communication networks to support customer operational efficiency.
Competitiveness
Extensive development track record specialized in the communications industry
Customers
  • Software Companies
  • IT Service Companies
  • Telecommunications Carriers
  • Cloud Service Providers
Products
  • Communication Management Software
  • Network Optimization Tools
  • Security Software
  • Cloud Integration Software

Cloud Service Provision

Overview
Provides communication solutions leveraging the cloud to support flexible ways of working.
Competitiveness
Design emphasizing stable operation and security
Customers
  • Small and Medium Enterprises
  • Remote Work Companies
  • IT Startups
  • Educational Institutions
Products
  • Cloud IP Phone Services
  • Data Backup
  • Cloud Storage
  • VPN Services

Communication Equipment Sales

Overview
Supports network construction through the sale of communication equipment.
Competitiveness
Stable procurement of high-quality equipment and quick delivery times
Customers
  • Communication Equipment Retailers
  • Network Construction Firms
  • IT Trading Companies
  • Major Telephone Companies
Products
  • IP Phone Terminals
  • Routers
  • Switching Hubs
  • Network Cables

Technical Support and Training

Overview
Provides education and support services specialized in training communication engineers and customer support.
Competitiveness
Practical know-how tailored to on-site needs
Customers
  • Corporate IT Staff
  • IT Engineers
  • Partner Companies
  • Telecommunications Carriers
Products
  • Technical Training
  • Troubleshooting Support
  • System Implementation Support
  • Operation Manual Creation

Security Solutions

Overview
Develops and provides various security services to enhance the safety of customer communication environments.
Competitiveness
Advanced communication security technology and proven track record
Customers
  • Financial Institutions
  • Government Agencies
  • Large Enterprises
  • Cloud Providers
Products
  • Communication Encryption Technology
  • Intrusion Detection Systems
  • Network Monitoring
  • Malware Countermeasures

IoT Communication Support Services

Overview
Builds and supports IoT communication environments, supporting the foundation of new industrial structures.
Competitiveness
Network construction technology with abundant know-how
Customers
  • Manufacturing
  • Logistics
  • Smart City Promotion Groups
Products
  • IoT Network Construction
  • Data Communication Management
  • Remote Monitoring Systems

Consulting Services

Overview
Conducts consulting and planning aimed at improving communication efficiency.
Competitiveness
High-level proposal capabilities by specialized engineers
Customers
  • Corporate IT Departments
  • Telecommunications Carriers
  • Public Organizations
Products
  • Network Optimization Proposals
  • Communication Cost Reduction Analysis
  • IT Infrastructure Design

Office Solutions

Overview
Provides comprehensive solutions from communications to IT for small and medium-sized offices.
Competitiveness
One-stop service provision capabilities
Customers
  • Small and Medium Enterprises
  • Startups
  • Educational Institutions
Products
  • Office Phone Systems
  • Network Equipment Sets
  • IT Support Services

Mobile Communication Support

Overview
Optimizes and supports mobile communication environments.
Competitiveness
Technical capabilities adapted to the mobile market
Customers
  • Telecommunications Carriers
  • Corporate Mobile Managers
Products
  • Mobile Network Construction
  • Device Management Tools

Maintenance Contract Services

Overview
Implements stable operation support for communication equipment based on annual maintenance contracts.
Competitiveness
Rapid response and reliability
Customers
  • Large Enterprises
  • Government Agencies
Products
  • Periodic Communication Equipment Inspections
  • Fault Response
  • Maintenance Contracts

Competitive Advantage

Strengths

  • High expertise in IP phone technology
  • Comprehensive support for communication network maintenance
  • Customer-focused customization capabilities
  • Convenient location in central Tokyo
  • Solid financial foundation
  • Long-term relationships with diverse communications industry customers
  • Focus on engineer development
  • Rapid fault response system
  • Cloud service rollout
  • High product reliability
  • Extensive industry experience
  • Expertise in niche network markets
  • Flexible development capabilities
  • Stable sales composition
  • Diversified business operations

Competitive Advantages

  • Numerous achievements in IP phone systems for mid-sized enterprises
  • Systems in place for rapid response in communication network maintenance
  • Superior industry-specific customization capabilities
  • Expansion of cloud-compatible product lineup
  • High-quality support services by engineers
  • Flexible solutions adaptable to multiple industries
  • Strength in network-related software development
  • Advanced communication quality maintenance technology
  • Strong trust relationships with regional companies
  • Proactive adoption of latest technologies
  • Accumulated know-how in operations and maintenance
  • Growth potential of SaaS products for SMEs
  • Customer acquisition strength through proposal-based sales
  • Provision of robust security measures
  • Expansion of direct sales channels for corporate clients

Threats

  • Intensifying competition in the communications market
  • Market dominance by major telecommunications carriers
  • Delays in responding to the pace of technological innovation
  • Price competition from new entrants
  • Impacts from cybersecurity risks
  • Increased compliance costs due to regulatory changes
  • Challenges in technology succession due to talent shortages
  • Intensifying competition in cloud-based services
  • Suppression of corporate investments due to economic fluctuations
  • Burden of addressing aging communication infrastructure
  • Risk of reduced IT budgets by customers
  • Impacts from unforeseen natural disasters on infrastructure

Innovations

2024: Cloud IP Phone Platform Renewal

Overview
Completely renewed the cloud-based IP phone platform to improve convenience and scalability.
Impact
Improved customer satisfaction and increased new customer acquisition

2023: Introduction of Enhanced IP Phone Security Technology

Overview
Integrated the latest technologies for communication encryption and unauthorized access detection into proprietary products.
Impact
Increased orders from major financial institutions

2022: Launch of AI Call Analysis System Development

Overview
Began research and development of AI-based systems for analyzing call quality and customer interactions.
Impact
Established foundation for advanced service provision

2021: Development of 5G-Compatible Network Equipment

Overview
Proprietarily developed high-speed 5G-compatible network equipment and added it to the product lineup.
Impact
Expanded entry into next-generation communications market

2020: Rollout of Remote Work-Compatible Cloud Services

Overview
Launched cloud-based communication services in response to the COVID-19 pandemic.
Impact
Successfully acquired new SME customers

Sustainability

  • Introduction of energy-efficient communication equipment
  • Promotion of CO2 reduction in data centers
  • Thorough paperless operations
  • Design of recyclable terminals
  • Reduction of environmental impact through promotion of telework