System Support Holdings

Basic Information

Stock Code
4396
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Ishikawa Prefecture
Establishment Year
January 1980
Listing Year
August 2018
Official Website
https://sts-hd.co.jp/
TSE Information
TSE Information
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Other Companies
Nippon Steel Solutions, TIS, System Lisa, Aire, Nomura Research Institute, Simplex Holdings, OBIC, Otsuka Corporation, Dentsu Soken, B Engine, BIPROGY, NTT DATA Group, SCSK

Overview

System Support Holdings is a system integrator established in 1980 and headquartered in Ishikawa Prefecture, specializing in nationwide software development and implementation support as its core business, achieving steady growth in the industry.

Current Situation

As of the end of June 2023, System Support Holdings employs approximately 1,137 people and maintains consolidated sales of around 10 billion yen. Its core system integration business has sales bases nationwide, providing a wide range of software development and business support services. In recent years, it has focused on developing solutions utilizing the latest technologies such as generative AI to support customer companies' DX initiatives. It is proactive in sustainability, with ISO27001 certification and strengthened information security management. In the BtoB sector, it is expanding into medical systems and e-commerce solutions for diversification. Looking ahead, it aims for medium- to long-term growth through transition to a holding company structure and business expansion. While competition is intense, its solid financial foundation and close regional customer relationships are strengths. It continues to invest in cutting-edge areas such as the latest personnel information and generative AI features to enhance competitive advantage.

Trivia

Interesting Facts

  • Headquarters located in central Kanazawa City, Ishikawa Prefecture
  • Established Tokyo sales office in 1987 to enter the capital region
  • Thorough information management as an ISO27001 certified company
  • Group company STS Medic specializes in medical IT
  • Focus on talent development through diverse IT education programs
  • In-house development and promotion of generative AI technology for business efficiency
  • Planning transition to holding company structure for management efficiency
  • Nationwide network centered in Hokuriku region
  • Multiple past awards from Oracle Japan
  • Group companies deployed in the US and Canada
  • Possesses unique services specialized in medical and EC fields
  • Over 1,000 employees, one of the largest IT companies in the prefecture
  • Strengths in both cloud and security
  • Active in regional contributions and IT education
  • Led by President Yoshiji Kokoshimizu

Hidden Connections

  • Selected as one of Oracle Japan's 20 New Technology Integrators, demonstrating high technical reliability
  • Promotes collection and adoption of latest overseas technologies through US subsidiary STS Innovation, Inc.
  • Strong collaboration with STS Medic Co., Ltd. in medical IT field, sharing specialized know-how
  • Deeply involved in IT advancement for regional economy as a company along the Hokuriku Shinkansen line
  • Generative AI-related technologies actively developed and deployed as new business pillar
  • Meets security requirements of manufacturing and medical industries through ISMS certification
  • Aiming to maximize group synergies through holding company structure transition
  • Enhanced credibility as listed company through transition from Tokyo Mothers to Prime Market

Future Outlook

Growth Drivers

  • Rising demand for new solutions utilizing generative AI
  • Increasing demand for system integration due to DX promotion
  • Expansion of needs for advanced medical IT and information management strengthening
  • Related demand from increase in cloud service adopting companies
  • Expansion of trust and customer base in regionally close services
  • Deepening needs for solving diverse corporate IT challenges
  • Strengthened group collaboration and business expansion via holding company structure
  • Improved technical capabilities and retention through IT talent development programs
  • Demand for environmentally responsive products due to rising sustainability awareness
  • Growing market needs for advanced security measures
  • Active expansion of IT support for SMEs
  • Rapid implementation capabilities for emerging technologies

Strategic Goals

  • Promotion of group-optimal management leveraging holding company structure
  • Achieve 30% sales ratio for generative AI and DX-related businesses
  • Strengthen nationwide rollout of regionally close services
  • Secure top-class domestic share in medical IT field
  • Advanced information security management
  • Expand revenue base through cloud services
  • Resolve talent shortages and skill-up via engineer education
  • Practice sustainable social contributions and environmentally considerate management
  • Enhance service quality for improved customer satisfaction
  • Explore new market development and overseas expansion

Business Segments

System Integration

Overview
Provides one-stop service from corporate IT system planning and development to operation and maintenance.
Competitiveness
Nationwide deployment with regional closeness, supporting diverse industries with high technical capabilities.
Customers
  • Manufacturing
  • Distribution
  • Financial institutions
  • Government agencies
  • Service industry
  • Medical institutions
  • Educational institutions
  • Public interest corporations
  • SMEs
  • Large enterprises
Products
  • Custom business systems
  • ERP implementation support
  • Cloud infrastructure construction
  • Network design
  • Maintenance and operation support
  • Business process improvement
  • Security measures
  • Data analysis support
  • IoT solutions
  • Program development
  • Consulting
  • Business automation systems
  • Digital transformation
  • System integration
  • Mobile app development

IT Outsourcing Services

Overview
Service to efficiently handle customers' information processing and IT support operations on their behalf.
Competitiveness
Reliable operational quality and flexible responsiveness.
Customers
  • SMEs
  • Large enterprises
  • Medical institutions
  • Manufacturing
  • Service industry
  • Distribution
  • Government offices
  • Educational institutions
  • Public interest corporations
  • Financial institutions
Products
  • Data entry
  • Information processing consignment
  • Help desk
  • IT support
  • Business agency
  • Cloud operation management
  • Security operations
  • Backup management
  • System monitoring
  • Network operations
  • User support
  • Form processing
  • Multi-vendor support
  • On-site support
  • Remote support

Medical Information Systems

Overview
Specialized system provision and support to advance IT in medical institutions.
Competitiveness
Proven track record and expertise closely tied to medical sites.
Customers
  • Hospitals
  • Clinics
  • Medical testing institutions
  • Pharmaceutical companies
  • Nursing homes
  • Medical support organizations
  • Health insurance associations
  • Welfare facilities
  • Public medical institutions
  • Medical research institutions
Products
  • Electronic medical records systems
  • Medical data management
  • Patient information management
  • Medical reporting systems
  • Rehabilitation management software
  • Medical equipment linkage software
  • Nursing support systems
  • Medical imaging management
  • Appointment scheduling systems
  • Telemedicine support
  • Medical statistical analysis
  • Drug management systems
  • Medical billing claims
  • Health management apps
  • Medical training support

E-commerce Support

Overview
Comprehensive provision of systems and operational support related to online sales.
Competitiveness
Compatibility with diverse EC platforms.
Customers
  • EC operators
  • Retail
  • Logistics companies
  • Manufacturing
  • Service industry
  • Marketing companies
  • Distribution
  • Wholesale
  • Food and beverage
  • Mail order companies
Products
  • EC site construction
  • Logistics management systems
  • Payment systems
  • Customer management systems
  • Marketing tools
  • Net shop support
  • Promotion support systems
  • Mobile compatibility
  • Inventory management systems
  • Sales analysis
  • Data integration
  • Content management
  • Order processing
  • Reporting
  • Customer support systems

IT Education and Training Services

Overview
Provides diverse education and training programs to support IT talent development.
Competitiveness
Practical curriculum tailored to the industry.
Customers
  • Corporate training departments
  • Educational institutions
  • Local governments
  • IT companies
  • SMEs
  • Large enterprises
  • Vocational schools
  • Universities
  • Engineer communities
  • Job seeker support organizations
Products
  • New hire training programs
  • Technical training courses
  • Management training
  • Certification support
  • e-Learning
  • Practical training
  • On-site education
  • Online courses
  • IT skills assessment
  • Specialized technical seminars
  • Custom training design
  • Global talent development
  • Leadership development
  • Technical seminars
  • Regular skill-ups

Security Services

Overview
Comprehensive services to strengthen corporate information security.
Competitiveness
Reliability backed by ISO27001 certification.
Customers
  • Financial institutions
  • Manufacturing
  • Service industry
  • Medical institutions
  • Public institutions
  • Information and communications
  • Educational institutions
  • Retail
  • Logistics
  • Public interest corporations
Products
  • ISMS construction support
  • Intrusion detection system implementation
  • Vulnerability assessment
  • Security audits
  • Education and awareness training
  • Log management
  • Access control systems
  • Internal control support
  • Risk assessment
  • Encryption services
  • Incident response
  • Information leakage countermeasures
  • Cloud security
  • Multi-factor authentication implementation
  • Security policy formulation

Cloud Services

Overview
Integrated deployment from diverse cloud environment construction and operations to consulting.
Competitiveness
Stable operations achieved through regionally close support.
Customers
  • SMEs
  • Large enterprises
  • Educational institutions
  • Medical institutions
  • Manufacturing
  • Distribution
  • Financial institutions
  • Public interest corporations
  • Service industry
  • Government agencies
Products
  • Cloud infrastructure construction
  • SaaS provision
  • PaaS and IaaS services
  • Operation and monitoring services
  • Data backup
  • DR countermeasure services
  • Cloud migration support
  • Security management
  • API management
  • Performance optimization
  • Virtual desktops
  • Cloud consulting
  • Hybrid environment construction
  • Multi-cloud operations
  • Container services

Business Process Consulting

Overview
Comprehensive consulting for customer business efficiency and DX promotion.
Competitiveness
Abundant industry knowledge and on-site expertise.
Customers
  • Manufacturing
  • Distribution
  • Financial institutions
  • Service industry
  • Medical institutions
  • Government agencies
  • SMEs
  • Large enterprises
  • Educational institutions
  • Public interest corporations
Products
  • Business flow improvement proposals
  • Business automation support
  • System integration planning
  • Business efficiency consulting
  • RPA implementation support
  • Project management
  • Quality management support
  • Organizational reform support
  • Digitalization promotion planning
  • KPI design
  • IT implementation planning
  • Process standardization
  • Customer touchpoint reform
  • On-site operation analysis
  • Business education support

System Maintenance and Operation Services

Overview
Ongoing support for stable operation and efficient management of customer systems.
Competitiveness
Rapid response capabilities from nationwide bases.
Customers
  • Financial institutions
  • Manufacturing
  • Distribution companies
  • Public institutions
  • Service industry
  • Medical institutions
  • Educational institutions
  • SMEs
  • Large enterprises
  • Public interest corporations
Products
  • System monitoring services
  • Troubleshooting
  • Periodic maintenance
  • Failure management
  • Backup operations
  • Version upgrade support
  • Performance tuning
  • User support
  • Continuous improvement proposals
  • Infrastructure monitoring
  • Log analysis
  • Security response
  • On-site support
  • Remote support
  • Operation documentation management

Software Development Support

Overview
Software development support and consulting for diverse industries.
Competitiveness
Proven engineer team and adoption of latest technologies.
Customers
  • IT companies
  • Manufacturing
  • Distribution
  • Service industry
  • Medical institutions
  • Financial institutions
  • Educational institutions
  • Local governments
  • Research institutions
  • SMEs
Products
  • Consigned development
  • Technical consulting
  • Quality assurance support
  • Agile development support
  • Test automation
  • CI/CD construction
  • Software design
  • Requirements definition support
  • Development project management
  • Refactoring
  • UI/UX design
  • Open source utilization
  • Technical training
  • Tool implementation support
  • Prototype development

ERP Package Sales and Consulting

Overview
Provision of ERP packages and services to support core business efficiency in companies.
Competitiveness
Flexible customization tailored to industry needs.
Customers
  • Manufacturing
  • Distribution
  • Service industry
  • SMEs
  • Large enterprises
  • Medical institutions
  • Educational institutions
  • Wholesale
  • Retail
  • IT companies
Products
  • ERP package sales
  • Implementation
  • Business process optimization
  • User support
  • Customization development
  • System maintenance
  • Training services
  • Implementation consulting
  • Function extension support
  • Operational support
  • Linkage system development
  • Cloud ERP implementation
  • Data migration support
  • Reporting support
  • Performance improvement

Competitive Advantage

Strengths

  • Nationwide deployment with regional closeness
  • Advanced system integration technology
  • Solutions provided to diverse industries
  • Reliability from ISO27001 certification
  • Over 1,370 technical personnel
  • Stable financial base
  • Long-term customer relationship building
  • Improved management efficiency via holding company structure
  • Utilization of cutting-edge technologies (generative AI)
  • Specialized services in medical and EC fields
  • Comprehensive education and training programs
  • Flexible customization capabilities
  • Cloud service provision
  • Broad BtoB business expansion
  • Robust security framework

Competitive Advantages

  • Fine-tuned service provision with sales bases nationwide and regional closeness
  • One-stop support from system development to operation and maintenance
  • Differentiation through high-specialty solutions in medical and EC areas
  • Strong information security management backed by ISO27001 certification
  • Enhanced competitiveness through active adoption of advanced technologies like generative AI
  • Abundant track record and know-how corresponding to diverse industries and business types
  • High-quality outsourcing in BtoB services
  • Improved group-wide management efficiency via holding company transition
  • Focus on engineer education for talent development and retention
  • Support for stable operations via cloud infrastructure and data center services
  • Custom development capabilities flexible to customer needs
  • Strong customer base and high repeat order rate
  • Accelerated customer DX support through introduction of advanced IT technologies
  • Established expertise in specialized fields like medical and logistics
  • Trust gained through multifaceted information security measures

Threats

  • Intensifying price competition from competitors
  • Risk of lagging behind rapid evolution of AI and cloud technologies
  • Challenges in talent acquisition and development leading to engineer shortages
  • Burden of compliance with strengthened regulations like Personal Information Protection Act
  • Risk of reduced projects due to IT budget cuts by customer companies
  • Increased competitive pressure from entry of major IT companies into the market
  • Uncertainties in global markets and exchange rate fluctuations
  • Rising costs for new technology adoption
  • Business continuity risks from natural disasters
  • Growing threats from information leaks and cyberattacks
  • IT investment fluctuations due to economic conditions
  • Possibility of failing to meet diversifying customer needs

Innovations

2024: Generative AI Tool Adds New Features in June

Overview
Added new functions to proprietary generative AI tool to improve customer business efficiency.
Impact
Contributes to customer productivity improvement and competitiveness enhancement

2024: Transition to Holding Company Structure

Overview
Shifted to holding company structure to streamline group management and refresh governance.
Impact
Accelerates promotion of group-wide growth strategies

2023: Strengthened Development of Generative AI-Related Solutions

Overview
Focused on system development utilizing generative AI technology and launched new services.
Impact
Improved market competitiveness and acquired new customers

2022: Expanded Scope of ISO/IEC 27001 Certification

Overview
Expanded information security management system certification to company-wide.
Impact
Enhanced customer trust and risk management

2021: Strengthened Medical Systems and New Service Provision

Overview
Expanded IT solutions for medical industry and broadened service lines.
Impact
Increased orders from medical institutions and business diversification

2020: Launched Cloud Infrastructure Construction Services

Overview
Launched corporate cloud infrastructure construction and operational support as new business.
Impact
Promotes digital transformation for customer companies

Sustainability

  • Information security enhancement through ISO27001 acquisition
  • Energy-saving measures for IT resources to reduce environmental impact
  • Promotion of local employment creation and talent development
  • Flexible work arrangements to support work-style reforms
  • Active participation in social contribution activities
  • Continuous skill enhancement through education and training
  • CSR promotion guidance to partner companies
  • Advancement of privacy protection and transparency