Obic

Basic Information

Stock Code
4684
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
April 1968
Listing Year
December 1998
Official Website
https://www.obic.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
NS Solutions, TIS, Nomura Research Institute, Simplex Holdings, OBC, Otsuka Corporation, Dentsu Research Institute, BIProGY, NTT DATA Group, DTS, SCSK

Overview

Obic is an independent system integrator founded in 1968 and a major player in the information and communications industry, boasting high profitability centered on the ERP integrated business software OBIC7 series in the Japanese market.

Current Situation

Obic recorded consolidated sales of 83.8 billion yen, operating income of 48 billion yen, and net income of 38 billion yen for the fiscal year ended March 2021, maintaining high profitability within the industry. Its flagship ERP OBIC7 series has held the No. 1 position in number of implementations for 18 consecutive years, with a customer base exceeding 20,000 companies. It operates debt-free with an equity ratio over 90%, resulting in extremely sound financial health. In recent years, it has focused on cloud business utilizing its own cloud centers, achieving short-term implementations and stable operations. Certified as a Health Management Excellence Corporation, it has strengthened employee welfare and training programs. In the medium to long term, it aims to maintain its position and expand the market in the fiercely competitive information and communications industry through software development and service enhancements in response to advancing digitalization. It is deepening collaboration with equity-method affiliates to pursue sustainable growth via diversified business development.

Trivia

Interesting Facts

  • OBIC7 series has held No. 1 cumulative ERP implementations in Japan for 18 consecutive years.
  • Continuously certified as Health Management Excellence Corporation by Ministry of Economy, Trade and Industry since 2021.
  • Business started with sales of used accounting machines and computers at founding.
  • Receives high evaluations for short-term implementations via self-operated cloud centers.
  • Maintains debt-free operations with equity ratio over 90%, featuring excellent finances.
  • Sponsor of the American football team Obic Seagulls.
  • One of the few companies maintaining high operating profit margins over long term in ERP sector.
  • Founder and Chairman Junko Noda continues involvement in management.
  • Previously known as 'Obic of Computers'.
  • Provides solutions across wide industries using equity-method affiliates.
  • Adopts dual headquarters system in Tokyo and Osaka for rapid nationwide customer support.
  • Offers comprehensive industry-specific ERP solutions.
  • Representative example of Health Management Excellence Corporation certified by Ministry of Economy, Trade and Industry.
  • Pioneer in Japan's ERP systems market.
  • Cloud business sales have expanded rapidly in recent years.

Hidden Connections

  • Obic Business Consultants is an equity-method affiliate with close collaboration.
  • Founder Junko Noda is also known as a horse owner, balancing corporate management and cultural activities.
  • Headquartered in Osaka but listed on Tokyo Stock Exchange Prime Market.
  • Contributes to sports promotion as sponsor of American football team.
  • Maintains unique path while competing fiercely with major rivals in domestic ERP market.
  • Health Management Excellence Corporation certification contributes to employee satisfaction.
  • Provides wide range of peripheral software services through group companies.
  • Self-operated cloud centers serve as key differentiation from competitors.

Future Outlook

Growth Drivers

  • Rapid growth in domestic cloud ERP market
  • Expansion of corporate system demand due to DX promotion
  • Ongoing increase in legal amendment response needs
  • Expansion of health management and work style reform-related services
  • New function development opportunities from advanced digital technologies
  • Promotion of ERP adoption centered on SMEs
  • Strengthening of AI and big data utilization services
  • Expansion of strategic synergies with affiliates
  • Response capabilities to diversifying industry-specific needs
  • Provision of secure and reliable cloud environments
  • Demand for IT services for local governments
  • Expansion of remote operation and remote work markets

Strategic Goals

  • Increase cloud service sales to over 50% of total sales
  • Expand market share with industry-specific ERP solutions
  • Improve employee satisfaction through sustainable health management
  • Promote business efficiency using AI and automation technologies
  • Prepare and evaluate full-scale overseas market expansion
  • Maintain debt-free operations and build solid financial base
  • Diversify business areas through strengthened affiliate collaboration
  • Promote green IT to reduce environmental impact
  • Maintain and improve customer satisfaction over 90%
  • Continuous investment in innovative technology development

Business Segments

System Integration

Overview
Provides integrated system integration services from planning and design to development, implementation, and maintenance for corporations.
Competitiveness
Integrated system from high-quality customization to maintenance
Customers
  • Financial institutions
  • Manufacturing
  • Retail
  • Services
  • Real estate
  • Construction
Products
  • ERP package implementation
  • Custom software development
  • System design & construction
  • Cloud service implementation
  • Operation & maintenance services

Cloud Solutions

Overview
Provides cloud ERP and related services with high-speed and stable operation via its own cloud centers.
Competitiveness
Stability from self-operated cloud centers
Customers
  • Small and medium enterprises
  • Large corporations
  • Industry-specific customers
  • Local governments
Products
  • Cloud ERP OBIC7
  • Cloud hosting
  • Data management services

System Support Business

Overview
Provides post-implementation operation maintenance and user support, enhancing customer satisfaction.
Competitiveness
One-stop support service system
Customers
  • ERP users
  • Operation managers
  • IT departments
Products
  • System maintenance
  • Customer support
  • Troubleshooting
  • Training programs

Office Automation Business

Overview
Provides in-house brand OA products and linked systems for offices.
Competitiveness
Integrated services from in-house development
Customers
  • Corporate offices
  • Public institutions
Products
  • OA equipment sales
  • OA-related software

Competitive Advantage

Strengths

  • High profit margins and debt-free sound financial position
  • No. 1 ERP implementation track record for 18 consecutive years
  • Service stability from self-operated cloud centers
  • Provision of consistent one-stop solutions
  • Top-class customer satisfaction
  • Versatility across wide industries
  • Strong customer base and long-term contracts
  • Innovative technology development supporting growth
  • High-quality system design and support
  • Comprehensive training and education system
  • Strong brand power
  • Certified Health Management Excellence Corporation by Ministry of Economy, Trade and Industry
  • Strengthened collaboration with equity-method affiliates
  • Advanced legal amendment response capabilities
  • Established wide sales channels

Competitive Advantages

  • Overwhelming share and trust in domestic ERP market
  • High degree of customization and responsiveness unique to independent firm
  • High financial stability from debt-free operations backed by equity
  • Agile service provision enabled by self-operated cloud environment
  • Improved customer convenience through integrated support from implementation to maintenance
  • Able to meet diverse needs with industry-specific solutions
  • Speed in information provision and latest legal amendment reflection
  • Comprehensive sales network across wide regions
  • Ongoing investment in technological innovation and product improvement
  • Maintaining competitiveness with high operating profit margins
  • Business diversification through strong affiliate collaboration
  • Close relationship building via customer joint training and community formation
  • Enhanced corporate image from Health Management Excellence Corporation certification
  • Strengthened revenue base from stable demand and long-term contracts
  • Established strong brand and market recognition

Threats

  • Intensifying competition from rivals in ERP and cloud markets
  • Risk of lagging behind rapid technological progress
  • Potential decrease in information system investments due to market fluctuations
  • Increased burden from frequent legal regulatory changes
  • Intensified talent acquisition competition and rising personnel costs
  • Increasing cyber security threats
  • Ongoing challenges in ensuring cloud service reliability
  • Changes in new market entry barriers due to overseas IT advancements
  • Customer corporate IT investment cuts during economic downturns
  • Performance fluctuation risks from affiliate subsidiaries
  • Fluctuations in product demand due to customer business transformations
  • Decline in competitiveness from delayed global expansion

Innovations

2024: Enhanced Cloud ERP Functions and New Module Development

Overview
Added AI-powered analysis functions to OBIC7 cloud version to promote operational efficiency.
Impact
Improved customer business efficiency by 5-10%

2023: Renewal of Self-Operated Cloud Centers

Overview
Achieved further short-term implementations and high uptime with new cloud center operations.
Impact
Significant reduction in system downtime and improved customer satisfaction

2022: Expansion of One-Stop Solutions

Overview
Strengthened integrated service framework from system planning to operation support.
Impact
Improved customer retention rate by approx. 3%

2021: Major Expansion of Automatic Legal Amendment Reflection Functions

Overview
Updated automation functions for work style reforms and consumption tax amendments to support regulatory compliance.
Impact
Reduced compliance risks for customer companies

Sustainability

  • Employee health support through Health Management Excellence Corporation certification
  • Promotion of energy-saving cloud center operations
  • CO2 emissions reduction through remote work promotion
  • Participation in environmental protection activities via community collaboration
  • Building sustainable growth foundation through talent development and diversity promotion