Ryoyu Systems

Basic Information

Stock Code
4685
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
July 1968
Listing Year
October 1997
Official Website
http://www.ryoyu.co.jp/
TSE Information
TSE Information
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Other Companies
Sumitomo Densetsu, NSSOL, TIS, Nomura Research Institute, Simplex Holdings, Obic, Otsuka Shokai, Dentsu Research Institute, Osaka Tekko, BIPROGY, NTT Data Group, SCSK

Overview

Ryoyu Systems is a company established in 1968 that specializes in system and software services in the information and communications industry, having built a solid position through business targeted at the Mitsubishi Heavy Industries Group.

Current Situation

Ryoyu Systems achieved steady sales growth in fiscal 2023, with a stable revenue base centered on the Mitsubishi Heavy Industries Group. Its core system integration services have earned high customer satisfaction, with strengths in customization capabilities compared to competitors. It also engages in multifaceted operations including information processing outsourcing services and wholesale sales of network equipment, contributing to revenue stability. In recent years, it has focused on renewing core systems and strengthening the ICT Creation Center to promote digital transformation. It is also advancing environmentally considerate system development with sustainability in mind, actively responding to customers' decarbonization needs. Moving forward, after resolving the parent-subsidiary listing, it aims to strengthen its management foundation, expand into new markets, invest in human resource development, and target growth from 2025 onward. It is also advancing technology investments and personnel system reviews to enhance DX response capabilities.

Trivia

Interesting Facts

  • Ryoyu Systems is a pioneer in IT services for the Mitsubishi Heavy Industries Group.
  • Established in 1968, it is a long-established company with over 50 years of system construction experience.
  • Parent-subsidiary listing cancellation has improved management transparency and agility.
  • The ICT Creation Center functions as an internal hub for technological innovation.
  • Maintains stable revenue while expanding diverse ICT-related businesses.
  • Leverages strengths as a systems integrator to handle projects from small to large scale.
  • Multifaceted operations with customers across a wide range of industries beyond Mitsubishi Heavy Industries.
  • Latest board includes a system development executive in a concurrent role.
  • Diversified operations including wholesale of a wide range of information and communications equipment.
  • Differentiates by specializing in specific fields within system orders.
  • Comprehensive in-house training system focused on maintaining and enhancing technological capabilities.
  • Actively promotes new ICT businesses as growth drivers.
  • Enables comprehensive solutions through close group collaboration.
  • Flexible framework combining in-house development and partner collaborations.
  • Engages in localized information support activities.

Hidden Connections

  • Built a stable order environment through deep collaboration with Mitsubishi Heavy Industries.
  • Conducts technology exchanges through business collaborations with Sumitomo Densetsu and Nippon Steel Solutions.
  • Maintains competitive and cooperative relationships with Otsuka Shokai and SCSK.
  • ICT Creation Center General Manager appointed as director to strengthen technology strategy.
  • Parent-subsidiary listing cancellation is a key initiative aimed at enhancing market independence.
  • Has partnership relationships with diverse vendors through information and communications equipment wholesale business.
  • Pursues cross-industry synergies through diversified business expansion.
  • Business development based on long-term trust relationships with regions and customers.

Future Outlook

Growth Drivers

  • Expansion of digital transformation (DX) demand
  • Stable order base centered on Mitsubishi Heavy Industries Group
  • Advancement in utilizing cloud, IoT, and AI technologies
  • Improved management agility from parent-subsidiary listing cancellation
  • Increasing demand for IT solutions addressing social and environmental challenges
  • Demand for system reconstruction accompanying industrial structure changes
  • Technological capability enhancement through human resource development
  • Active entry into sustainability markets
  • Growing information security needs
  • Strengthened response capabilities for diverse customer segments

Strategic Goals

  • Achieve over 30% sales ratio from non-group customers
  • Expand cloud and DX-related sales ratio to over 50%
  • Standardize sustainability-compliant systems
  • Achieve 30% improvement in operational efficiency through company-wide DX promotion
  • Strengthen technological innovation through workforce diversification
  • Improve service quality to enhance customer satisfaction
  • Provide IT solutions contributing to environmental load reduction
  • Complete clarification of capital policies following parent-subsidiary listing cancellation
  • Create growth opportunities through business expansion into new fields
  • Establish robust governance framework

Business Segments

System Integration

Overview
System development and integration services that achieve customer business efficiency.
Competitiveness
Advanced technological capabilities honed with the Mitsubishi Heavy Industries Group
Customers
  • Mitsubishi Heavy Industries Group
  • Manufacturing
  • Public Institutions
  • Financial Sector
  • Distribution
  • Power and Energy
  • Information and Communications
  • Transportation
Products
  • Core System Development
  • Business Process Improvement SI
  • Cloud System Construction
  • ERP Implementation Support
  • DX Promotion Consulting

Information Processing Outsourcing Services

Overview
Provides outsourcing of information processing tasks for business efficiency.
Competitiveness
High-accuracy and reliable operations framework
Customers
  • Logistics Companies
  • Financial Institutions
  • Telecommunications Carriers
  • Manufacturing
  • Government Agencies
  • Medical Institutions
Products
  • Data Entry
  • Business Process Outsourcing
  • Back-Office Support
  • Call Center Operations
  • System Monitoring and Operations

Information and Communications Equipment Wholesale

Overview
Wholesale services for network and OA equipment targeted at corporations.
Competitiveness
Wide product lineup and stable supply capabilities
Customers
  • IT Equipment Retailers
  • Systems Integrators
  • Manufacturing IT Departments
  • Public Facilities
  • Educational Institutions
Products
  • Servers
  • Storage
  • Network Equipment
  • OA Equipment
  • Peripherals

Core Software Development

Overview
Develops various core software to support business efficiency.
Competitiveness
Flexible customization to meet customer needs
Customers
  • Distribution
  • Manufacturing
  • Services
  • Retail
  • Financial Institutions
Products
  • Sales Management System
  • Production Management System
  • HR and Payroll System
  • Customer Management System
  • Accounting System

Cloud Services Business

Overview
Provides highly reliable cloud solutions.
Competitiveness
Robust security and high availability
Customers
  • Small and Medium Enterprises
  • Large Enterprises
  • Government Agencies
  • Information Services Companies
Products
  • Cloud Infrastructure Services
  • Storage Services
  • Security Solutions
  • Business Applications

Competitive Advantage

Strengths

  • Strong relationships with group-related customers
  • Broad system construction service provision capabilities
  • High customization response capabilities
  • Stable performance foundation
  • Diverse information and communications equipment distribution network
  • Reliability based on long track record
  • Technological innovation through ICT Creation Center
  • Established information processing outsourcing services
  • Flexible service deployment aligned with customer needs
  • Integrated operations and maintenance framework

Competitive Advantages

  • Differentiation from competitors through specialized services for Mitsubishi Heavy Industries Group
  • Broad technological capabilities applicable to diverse industries
  • Improved reliability through governance enhancement from parent-subsidiary listing cancellation
  • Ability to serve from small to large enterprises
  • One-stop service provision from system development to operations
  • Advanced initiatives in environmentally considerate system development
  • Total support through extensive network equipment wholesale handling
  • Technological development capabilities leveraging ICT Creation Center
  • Rapid customer response and flexible development framework
  • Strong management foundation backed by stable order base

Threats

  • Need to keep pace with rapid technological changes in the IT industry
  • Intensifying competition with major IT companies
  • Challenges in securing and developing talent
  • Orders and revenue influenced by customers' DX investment trends
  • Impact of capital relationship review following parent-subsidiary listing cancellation
  • Intensifying price competition due to market digitalization
  • Emergence of new cloud service providers
  • Increasing cybersecurity risks
  • Risk of IT investment restraint during economic downturns
  • Impact of regulations and legal amendments on business operations

Innovations

2023: Advancement of New Core System Development

Overview
Progressing planning and development of next-generation core systems at the ICT Creation Center.
Impact
Contributes to business efficiency and improved development speed

2022: Strengthening of DX Support Services

Overview
Expanded solutions to support DX promotion for customer companies.
Impact
Expanded orders and improved customer satisfaction

2021: Promotion of Environmentally Considerate System Design

Overview
Introduced system construction technologies considering energy efficiency and sustainability.
Impact
Contributes to strengthening customers' CSR responses

2020: Launch of Cloud Infrastructure Services

Overview
Launched proprietary cloud service platform.
Impact
Achieved new customer acquisition and revenue diversification

Sustainability

  • Strengthened proposals for energy-efficient system designs
  • Promotion of electronic documents to reduce waste
  • Human resource policies promoting women's empowerment and diversity
  • Participation in environmental conservation activities through collaboration with local communities
  • Thorough management of environmental risks in supply chains
  • CO2 reduction through cloud resource optimization
  • Reduction in commuting emissions through remote work promotion
  • Promotion of IT asset longevity and reuse
  • Formulation of environmentally considerate procurement policies
  • SDGs awareness activities in training programs