ORO

Basic Information

Stock Code
3983
Industry
Information and Communications
Category Detail
Advertising
Prefecture
Tokyo
Establishment Year
January 1999
Listing Year
March 2017
Official Website
https://www.oro.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Members, CARTA HOLDINGS, DIT, NeoJapan, UserLocal, Giftee, Speee, AnyMind Group, Convam, Ginee, Macbee Planet, Uremaru Net Advertisement Company Group, AViC

Overview

ORO is a growing company in the information and communications industry, founded in 1999, specializing in cloud services and DX support.

Current Situation

ORO posted net sales of approximately 5.24 billion yen and operating profit of approximately 1.7 billion yen in fiscal 2020, maintaining a solid management foundation. It provides cloud ERP and marketing support services for small and medium-sized enterprises, serving as a pioneer in digital transformation promotion. Headquartered in Meguro-ku, Tokyo, it has subsidiaries in several Asian countries and is accelerating international expansion. Proprietary cloud products such as ZAC Enterprise deliver high customer satisfaction and retention rates. It also promotes sustainability activities and focuses on strengthening corporate governance. Since 2022, it aims for further growth by capturing rising DX demand, developing new services, and enhancing overseas expansion. The capital structure, with founders and major shareholders holding the majority, contributes to management stability.

Trivia

Interesting Facts

  • Founder initially started with software contract development
  • Global expansion with numerous domestic and overseas subsidiaries
  • Holds one of Japan's top shares in cloud ERP for SMEs
  • TSE Prime listing with high financial soundness ratings
  • Representative presence among IT-listed companies headquartered in Meguro-ku
  • Maintained stable profit margins since founding
  • Internet advertising support contributes to SMEs' DX advancement
  • Founder holds majority stake, contributing to management stability
  • Contracted with Azusa Audit Corporation as auditing firm
  • Rapid growth in digital marketing field
  • One of few companies offering corporate cloud services
  • Strong transaction record with domestic SME manufacturers
  • Achieves advanced business efficiency through AI adoption
  • Overseas subsidiaries concentrated in Southeast Asia
  • Experience upgrading from TSE Mothers to Prime Market

Hidden Connections

  • Singapore local subsidiary serves as key hub in Southeast Asian IT market
  • Major customers of cloud ERP are manufacturing and distribution sectors, with cross-industry collaboration advancing
  • Founder Atsushi Kawada has supported numerous IT startups before launching this business
  • Achieves robust corporate governance as a TSE company with board of auditors
  • Subsidiaries in multiple countries handle local marketing service deployment
  • Possesses unique know-how specialized for SMEs in internet advertising
  • Partnership with Azusa Audit Corporation contributes to strengthened internal controls
  • Market change to TSE Prime enhances corporate creditworthiness

Future Outlook

Growth Drivers

  • Growing DX adoption needs among SMEs
  • Continued expansion of cloud service usage
  • Accelerated IT infrastructure development in Asian markets
  • Expanded application of AI and machine learning in operations
  • Market growth from post-COVID remote work normalization
  • Strengthened digital marketing support services
  • New service development opportunities from regulatory easing
  • Rising demand for sustainability-compliant IT solutions
  • Increasing economic pressures for business efficiency
  • Enhanced and expanded diverse sales channels

Strategic Goals

  • Maintain annual sales growth over 10%
  • Enter top 5 share in cloud ERP market
  • Expand overseas sales ratio to over 30%
  • Advance business automation via AI utilization
  • Strengthen sustainable management and governance
  • Expand IT solutions addressing social challenges
  • Promote employee diversity and build supportive work environment
  • Create social value through community collaboration
  • Achieve green IT promotion and environmental load reduction
  • Develop innovative services in digital marketing

Business Segments

Cloud ERP Solutions

Overview
Suite of cloud ERP products supporting business efficiency for small and medium-sized enterprises.
Competitiveness
High customizability specialized for SMEs
Customers
  • Small and Medium-sized Manufacturers
  • Wholesale and Retail
  • Service Industry
  • IT Companies
Products
  • ZAC Enterprise
  • ZAC Future
  • ZAC CRM

Digital Marketing Support

Overview
Marketing support leveraging online advertising and analysis tools.
Competitiveness
Abundant track record and strong collaboration in the internet advertising field
Customers
  • Advertising Agencies
  • Retail Companies
  • Service Providers
  • IT Consulting Firms
Products
  • orocal Advertising Support Service
  • SEO and SNS Marketing
  • Data Analysis Tools

System Contract Development

Overview
Contract division handling custom-made system development.
Competitiveness
Advanced technical expertise and development know-how
Customers
  • Local Governments
  • Mid-sized Companies
  • Educational Institutions
  • Financial Institutions
Products
  • Web System Design and Construction
  • ASP Service Development
  • Custom CRM Systems

Overseas Business Expansion Support

Overview
Handles DX support and IT infrastructure building in the Asian market.
Competitiveness
Proven multinational expansion and locally focused services
Customers
  • Asian Local Subsidiaries
  • Global Companies
  • Japanese Multinationals
Products
  • Local Cloud Service Provision
  • Multilingual System Construction

Competitive Advantage

Strengths

  • Long-standing know-how in the cloud ERP field
  • Product lineup specialized for SMEs
  • Global network spanning Asian countries
  • High customer satisfaction and support system
  • Solid financial foundation
  • Founder-led management stability
  • Rapid adaptability to technological innovations
  • Service diversity aligned with industry trends
  • Powerful marketing support technologies
  • Proven track record in digital transformation
  • High customization capabilities in development
  • Strong collaboration with multiple domestic and overseas subsidiaries
  • Well-established corporate customer base
  • Seamless cloud service rollout
  • Robust governance structure with board of auditors

Competitive Advantages

  • Differentiation and market superiority through SME-focused ERP products
  • Customer retention via combined digital marketing support services
  • Expansion strategy and local responsiveness via Southeast Asian subsidiaries
  • Reliability from extensive cloud track record and high technical prowess
  • Agility in responding to market changes and proactive new service development
  • Integrated and flexible operations under representative-led management
  • Unique value from combining integrated ERP and marketing support
  • High ongoing usage rates due to quality customer support
  • Balancing local needs response and global strategy in multinational operations
  • Enhanced safety through sustainable management and strengthened governance
  • Differentiation via optimized system design for mid-sized enterprises
  • Marketing effectiveness maximization leveraging rich data analysis
  • Customer touchpoint expansion through diverse sales channels
  • Easy new customer acquisition from high industry recognition and brand trust
  • Strong internal controls via board of auditors

Threats

  • Increasing market pressure from major cloud vendors' entry
  • Risk of product obsolescence due to rapid technological advancements
  • Decline in demand from SMEs' restrained IT investments or economic fluctuations
  • Political and economic instability in overseas expansion areas
  • Escalating cyber security risks
  • Rise of innovative services from emerging venture companies
  • Increased burdens from regulatory changes or strengthened personal data protection
  • Intensified competition for talent leading to engineer shortages
  • Revenue uncertainty from exchange rate fluctuations
  • Risk of social credibility loss from data leaks or poor information management
  • Risk of over-concentration of management resources from excessive focused investments
  • Intensified price competition due to market information asymmetry

Innovations

2022: ZAC Future New Version Release

Overview
Added AI-powered automation functions to cloud ERP "ZAC Future".
Impact
Achieved business efficiency improvements and higher customer satisfaction

2023: Global DX Support Framework Established

Overview
Launched DX support services for overseas customers via collaboration with subsidiaries across Asia.
Impact
Overseas sales ratio increased by 10%

2020: Marketing Support Platform Enhanced

Overview
Revamped integrated platform for SEO and SNS analysis tools.
Impact
Significantly improved customer analysis accuracy

2021: Security Enhancement Program Introduced

Overview
Adopted latest security standards company-wide to strengthen information management.
Impact
Improved customer trust

Sustainability

  • Promotion of energy-efficient data centers
  • CO2 reduction through expanded remote work framework
  • Waste reduction via optimization of internal IT resources
  • Diversity and inclusion programs for employees
  • Participation in environmental conservation activities through collaboration with local communities