MK System

Basic Information

Stock Code
3910
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Osaka Prefecture
Establishment Year
February 1989
Listing Year
March 2015
Official Website
https://www.mks.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Celsys, Broadleaf, Plus Alpha Consulting, Appier Group, Finatext Holdings, SmaRegi, WingArc1st, Kaonavi, Sansan, Cybozu, Wise HD, TB Group, AKIBA

Overview

MK System is a growing information and communications company founded in 1989, specializing in the development of social insurance and labor insurance application support systems.

Current Situation

MK System had consolidated net sales of approximately 2.7 billion yen and net assets of approximately 1.4 billion yen in the fiscal year ended March 2022, building a solid financial foundation. Its mainstay is a cloud service supporting electronic application procedures for social insurance labor consultant offices, and it is expanding its fan base within the industry. In recent years, it has strengthened HR and labor management systems for general companies to expand its customer base. In 2023, a system outage occurred due to a ransomware attack, but it responded swiftly to restore trust. It is focusing on sustainability and information security, emphasizing business continuity. In the medium to long term, it positions the deepening of cloud services and new customer development as strategic pillars, aiming for growth from 2025 onward. It maintains competitiveness through technological innovation while emphasizing operational safety.

Trivia

Interesting Facts

  • Initially developed accounting systems for commercial and industrial users
  • Victim of ransomware in 2023 but swiftly responded and recovered
  • Saroyume is a highly recognized cloud service brand in the industry
  • Head office located on the 30th floor of Umeda Center Building in Kita-ku, Osaka City
  • Approximately 80% of employees are IT and labor-related specialists
  • Focused on supporting social insurance labor consultants since 1989
  • Cloud service customers include numerous social insurance labor consultant offices nationwide
  • Listed on JASDAQ Standard Market in 2015
  • Mid-sized company with capital of approximately 220 million yen
  • Stable organization with approximately 140 consolidated employees
  • Many products operated on ASP model
  • Also offers electronic payslip distribution service for customers
  • Official website at https://www.mks.jp/ disseminating information
  • Focus on cloud and data backup services
  • Maintains industry competitiveness through labor consultant business efficiency

Hidden Connections

  • Built close collaborative relationships with major customer social insurance labor consultant offices
  • Promoting joint development projects with multiple small and medium enterprise owner associations
  • Contributing to technology development and talent cultivation through collaboration with local IT companies
  • Systems specialized for labor insurance administrative unions are rare in the industry
  • Ensures service reliability through collaboration with major cloud infrastructure providers
  • Business model promoting nationwide expansion while based in Osaka
  • Cybersecurity measures in collaboration with related vendors
  • Rapid update system responding to customers' legal amendment needs

Future Outlook

Growth Drivers

  • Increasing demand for cloud-based business support services
  • Strengthening of legislation for social insurance electronic applications
  • Market expansion from IT adoption by small and medium enterprises
  • Demand for advanced functions due to heightened security awareness
  • Demand for payroll and labor management systems from remote work prevalence
  • Development of digital government対応 services
  • Market share expansion through partnerships
  • Customer retention through improved user interfaces
  • Business diversification through new customer segment development
  • Support for business efficiency via AI and RPA adoption

Strategic Goals

  • Continuous market share expansion for social insurance labor consultants
  • Rapid response to legal changes and high-quality service provision
  • Introduction of cutting-edge security technologies
  • New business development supporting DX initiatives
  • Maintaining customer satisfaction above 90%
  • Enhanced functionality and stable operation of cloud platforms
  • Expansion into new customer segments
  • Strengthened educational programs contributing to industry talent development
  • Achieving regional social contributions and sustainability goals
  • Establishment of a sustainable growth model

Business Segments

Social Insurance Labor Consultant Office Support

Overview
Provides systems supporting application procedures and business efficiency for social insurance labor consultant offices.
Competitiveness
Cloud-based application support services specialized for professional tasks
Customers
  • Social Insurance Labor Consultant Offices
  • Labor Consultants
  • Administrative Scriveners
Products
  • Net de Saroyume SE
  • Saroyume House
  • Saroyume Lite

Systems for Labor Insurance Administrative Unions

Overview
Cloud systems that streamline application and accounting tasks for labor insurance administrative unions.
Competitiveness
Dedicated systems adapted to industry-specific operations
Customers
  • Labor Insurance Administrative Unions
  • Labor Management Organizations
Products
  • Net de Jimukumiai

Corporate HR and Labor Solutions

Overview
Company systems supporting payroll calculation, attendance management, and payslip distribution.
Competitiveness
Flexibility to accommodate various business scales
Customers
  • Small and Medium Enterprises
  • Large Enterprises
  • HR Departments
Products
  • Saroyume Company Edition
  • Saroyume Company Edition Lite
  • Net de Komon

Cloud Service Infrastructure Provision

Overview
Provides highly reliable cloud infrastructure services.
Competitiveness
Infrastructure operations emphasizing security and reliability
Customers
  • Companies in General
  • ASP Providers
Products
  • Data Backup
  • Filing System

Competitive Advantage

Strengths

  • Expertise specialized in social insurance operations
  • Ease of implementation through cloud services
  • Solid financial base and stable management
  • Reliable customer support system
  • Rapid feature additions and updates
  • Regionally focused service deployment
  • Diverse service lineup
  • Focus on information security
  • Long track record and trust in the market
  • Industry-specific expertise
  • Support for a wide range of customer segments

Competitive Advantages

  • High market share in systems for social insurance labor consultant offices
  • Proprietary cloud technology strong in electronic application procedures
  • Product portfolio responding to diverse customer needs
  • Reduced customer burden through ASP service model
  • Swift incident response and recovery system
  • Regional service enhancement leveraging Osaka base
  • Product development reflecting customer feedback
  • Contract stability from long-term customer relationships
  • User-friendly systems with flexible customization
  • Rapid response capability to legal amendments
  • Potential expansion to broad industry customer segments

Threats

  • Risks from ransomware and other cyberattacks
  • Increasing market entry by major IT companies
  • Impacts from legal amendments and regulatory changes
  • Intensifying competition in the cloud market
  • Rapid changes in customer needs
  • Risk of trust decline due to information leaks
  • Delays in responding to technological innovations
  • Reduced IT investments due to economic fluctuations
  • Challenges in securing talent
  • Price competition from competitors

Innovations

2023: System enhancements for payroll support 'Saroyume'

Overview
Upgraded and stabilized functions of payroll and labor management systems.
Impact
Contributes to improved customer satisfaction and market share retention

2023: Ransomware response enhancement project

Overview
Established monitoring systems and recovery infrastructure for cyberattack countermeasures.
Impact
Strengthened information security and ensured business continuity

2022: Cloud service feature addition development

Overview
Added new electronic application procedure functions and external integration capabilities.
Impact
Enhanced service value and contributed to customer acquisition

2021: UI refresh utilizing customer feedback

Overview
Improved user interface to enhance operability.
Impact
Reduced user operation time and improved satisfaction

2020: Mobile compatibility enhancement

Overview
Expanded services compatible with smartphones and tablets.
Impact
Expanded sales through increased mobile users

Sustainability

  • Strengthened information security management
  • Data center operations considering reduced environmental impact
  • CO2 reduction through promotion of telework
  • Information provision and educational support for local communities
  • Paper reduction promotion through business efficiency
  • Development of sustainable IT services