Otsuka Corporation

Basic Information

Stock Code
4768
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
December 1961
Listing Year
July 2000
Official Website
https://www.otsuka-shokai.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Nippon Steel Solutions, TIS, Abant G, Nomura Research Institute, Simplex Holdings, Otsuka HD, Obic, Dentsu Soken, BIPROGY, NTT DATA Group, DTS, SCSK

Overview

Otsuka Corporation is a major Japanese SI company in the information and communications industry, founded in 1961, with a strong presence in the industry centered on system integration and office equipment sales.

Current Situation

Otsuka Corporation achieved consolidated sales of 861 billion yen for the fiscal year ending December 2022, recording operating profit of 54.7 billion yen, and continues stable growth. Its main businesses are system integration and services & support, leveraging a large sales organization of 9,171 employees to support a wide range of customers from mid-sized to large enterprises. In addition to sales of IT and OA equipment, it focuses on supporting the introduction of advanced technologies such as cloud services to meet diverse customer needs. The company is proactive in employing people with disabilities, fulfilling social responsibilities while enhancing trust and reputation within the industry. On the other hand, it experienced bid-rigging issues in 2022, receiving exclusionary orders and surcharge payment orders from the Japan Fair Trade Commission, and is strengthening compliance. Moving forward, it aims to expand its revenue base through AI sales and digitalization initiatives, pursuing sustainable management. Overseas expansion is limited, but collaboration with related companies such as Otsuka Holdings is expected to open new areas. It is a strategy to flexibly respond to changing market environments and achieve steady performance improvements from 2025 onward.

Trivia

Interesting Facts

  • Founded in 1961, one of the pioneers in the system integration field.
  • Dog character 'Tanokun' is famous from TV commercials.
  • Industry-leading proactive approach to disability employment.
  • Stable revenue base across diverse business areas.
  • Grew from copier business to comprehensive IT trading company.
  • Selected as a constituent of the JPX-Nikkei Index 400.
  • Deploys its own system software 'SMILE' series.
  • Subsidiary OSK is known for CAD software development.
  • Also known as sponsor of B.League basketball team.
  • Has acquired ISO9002 and ISO14001 certifications over many years.
  • Large enterprise with over 9,000 domestic employees.
  • Actively expanding security business.
  • Leverages nationwide branch network for regional close-knit sales.
  • High sales strength from numerous corporate mail-order operations.
  • Actively promoting IT training and BPO services.

Hidden Connections

  • No direct capital or business relationship with Otsuka Holdings Group.
  • Separate company from Otsuka Furniture, which became a Yamada Denki store brand.
  • Founder 'Minoru Otsuka'; separate lineage from the diversified management clan.
  • Actively conducts direct mail shipping for disability employment promotion in business outsourcing services.
  • Comprehensive in-house IT education programs contribute to developing numerous IT specialists.
  • Promotes group management of diverse subsidiaries in IT-related fields for business diversification.
  • Has history of operating a basketball team, contributing to sports promotion.
  • Operates multiple ISO14001-certified data centers domestically.

Future Outlook

Growth Drivers

  • Increased IT investment from AI and digitalization promotion
  • Expanding DX demand from mid-sized and small enterprises
  • Strengthening cloud and security services
  • Interest in disability employment promotion and diversity management
  • Increase in online sales for corporate mail order
  • IT modernization demand from local governments and public offices
  • Growing outsourcing demand in corporate market
  • Sales efficiency improvement through new technology introduction
  • Rising corporate needs for energy saving and environmental response
  • Expanding IT education and training demand
  • Deployment of in-house technologies such as AI sales systems
  • Strengthening regional close-knit sales

Strategic Goals

  • Promoting digitalization of system integration business
  • Revenue enhancement in services & support business
  • Further improvement in disability employment rate
  • Thorough implementation of ESG and sustainability management
  • Business expansion in cloud and security fields
  • Deepening sales reform through AI utilization
  • Expansion of online sales and mail order
  • Customer base expansion through new customer acquisition
  • Sophistication of regional close-knit services
  • Maximizing synergy with group subsidiaries

Business Segments

System Integration

Overview
Provides total system development from planning to operation and maintenance for a wide range of industries.
Competitiveness
Abundant business knowledge and nationwide sales network
Customers
  • Mid-sized Companies
  • Large Enterprises
  • Government and Public Offices
  • Educational Institutions
  • Medical Corporations
  • Financial Institutions
  • Manufacturing
  • Distribution
  • Services
  • Local Governments
Products
  • Business System Development
  • Core System Construction
  • ERP Introduction Support
  • Cloud Service Introduction
  • Data Center Operations

Services & Support Business

Overview
Provides maintenance and support for IT equipment and networks, as well as outsourcing services.
Competitiveness
Nationwide directly operated support system and high customer satisfaction
Customers
  • Corporate Users
  • Small and Medium Enterprises
  • Government and Public Offices
  • Educational Institutions
  • Medical Institutions
Products
  • IT Equipment Maintenance
  • Outsourcing
  • Helpdesk Outsourcing
  • OA Equipment Maintenance
  • Network Monitoring

Catalog Mail Order Business

Overview
Sells diverse office supplies through catalogs and EC.
Competitiveness
Extensive product lineup and rapid delivery
Customers
  • Small and Medium Enterprises
  • Sole Proprietors
  • Educational Institutions
  • Government and Public Offices
  • General Corporations
Products
  • Office Supplies
  • Stationery
  • PC Peripherals
  • Office Furniture
  • LED Lighting

Network Construction and Security

Overview
Provides secure communication environment construction and information security measures.
Competitiveness
Advanced technical capabilities and extensive implementation track record
Customers
  • Financial Institutions
  • Manufacturing
  • Distribution
  • Enterprise Companies
  • Local Governments
Products
  • Network Equipment
  • Security Equipment
  • VPN Construction
  • Server Construction
  • Data Protection Services

IT Training Services

Overview
Supports human resource development through practical IT skills training.
Competitiveness
Curriculum design aligned with actual business needs
Customers
  • Corporate Education Managers
  • IT Departments
  • Vocational Schools
  • Human Resource Development Organizations
Products
  • Programming Training
  • IT Literacy Education
  • Security Training
  • Cloud Utilization Training

Outsourcing and BPO

Overview
Provides business process outsourcing to improve administrative efficiency.
Competitiveness
Flexible responsiveness and extensive track record
Customers
  • Large Enterprises
  • Mid-sized Companies
  • Government and Public Offices
  • Financial Institutions
Products
  • Accounting Outsourcing
  • Payroll Outsourcing
  • Document Management
  • Direct Mail Shipping

Cloud Service Introduction Support

Overview
Provides total technical support for corporate cloud utilization.
Competitiveness
Capability to handle diverse cloud services
Customers
  • Small and Medium Enterprises
  • Large Enterprises
  • Educational Institutions
  • Medical Institutions
Products
  • Cloud Infrastructure Construction
  • SaaS Introduction Support
  • Online Backup

Hotel Business

Overview
Operates regionally rooted hotels and training businesses.
Competitiveness
High-quality facilities adapted to corporate needs
Customers
  • Corporate Training Organizers
  • Tourists
  • Local Residents
Products
  • Accommodation Services
  • Conference and Training Facilities
  • Event Support

Logistics Center Operations

Overview
Supports business operations with efficient logistics systems.
Competitiveness
Improved logistics efficiency through advanced IT integration
Customers
  • In-house Logistics
  • Client Companies
Products
  • Product Delivery Management
  • Inventory Management Services

Software Development and Maintenance

Overview
Designs high-quality business software and provides operation support.
Competitiveness
Accumulated track record and know-how over many years
Customers
  • In-house Group
  • Client Companies
Products
  • Business Software Development
  • System Maintenance

IT Equipment Sales and Wholesale

Overview
Engages in wholesale sales of diverse IT-related equipment.
Competitiveness
Extensive sales network
Customers
  • Retail Stores
  • Small and Medium Enterprises
  • Consumer Electronics Retailers
Products
  • PC Equipment
  • Peripherals
  • Communication Equipment

Information and Communications Equipment Sales

Overview
Stably supplies high-quality information and communications equipment.
Competitiveness
Long-term transaction track record
Customers
  • Enterprises
  • Public Institutions
Products
  • Facsimiles
  • Telephones
  • Network Equipment

Competitive Advantage

Strengths

  • Top-class domestic sales capabilities
  • Diversified service provision structure
  • Stable financial base
  • Extensive customer base
  • Strong after-sales support system
  • Abundant business knowledge and technical expertise
  • Nationwide directly operated network
  • High customer satisfaction
  • Group synergy from diverse subsidiaries
  • Long track record as an SIer
  • High customer service skills
  • Social commitment to proactive disability employment
  • Stable revenue from corporate mail-order business
  • Expansion of cloud-related services
  • Strong brand recognition

Competitive Advantages

  • Maximizes customer touchpoints with industry-leading number of sales staff
  • One-stop service from system development to maintenance
  • Regional close-knit services possible with bases nationwide
  • Multi-industry expansion through collaboration with Otsuka Holdings group
  • Strengths in own e-commerce site and catalog mail order
  • Fine-tuned responsiveness to project scales
  • Proposal strength from high technical expertise and business understanding
  • Provision of extensive business software products
  • Active investment in cloud and security areas
  • Customer deepening in IT outsourcing business
  • High social evaluation from detailed disability employment support
  • New customer acquisition capability through marketing strength
  • Know-how applicable to diverse industries
  • Stable revenue base from long-term customer relationships
  • Expertise in IT education and training

Threats

  • Burden of responding to rapid technological changes in the IT industry
  • Intensifying price competition from competitors
  • Decline in share due to diversification of external partners in DX promotion
  • Intensified competition for talent recruitment and development
  • Growth slowdown due to maturity of domestic market
  • Impact of strengthened regulations by Japan Fair Trade Commission
  • Risk of reduced IT investment due to economic fluctuations
  • Intensified competition with cloud-native companies
  • Opportunity loss from delayed overseas expansion
  • Security incident risks
  • Cost increases due to changes in laws and regulations
  • Trend of customer IT budget reductions

Innovations

2024: Introduction of AI Sales Support System

Overview
Deploys AI-utilizing sales activity efficiency and customer analysis systems.
Impact
Achieves improved sales capabilities and order acceptance rate.

2023: Cloud Service Expansion

Overview
Strengthens lineup of cloud infrastructure construction services.
Impact
Contributes to customer base expansion and revenue growth.

2022: Launch of Disability Employment Enhancement Program

Overview
Improves work environments for people with disabilities and expands business outsourcing services.
Impact
Achieves improved social evaluation and diversity promotion.

2021: Launch of Next-Generation Network Construction Support Business

Overview
Strengthens network construction support for 5G and SDN.
Impact
Promotes business efficiency support through advanced technology utilization.

2020: Outsourcing Service Expansion

Overview
Diversifies business outsourcing services such as direct mail shipping.
Impact
Achieves improved customer satisfaction and order expansion.

Sustainability

  • Promoting disability employment and creating supportive workplaces
  • Introduction of ISO14001 environmental management system
  • Reducing environmental impact through expanded sales of energy-saving OA equipment
  • Active compliance with Green Purchasing Law
  • Promotion of community contribution activities
  • Promoting paperless operations within the company
  • Efforts in eco-friendly delivery and logistics efficiency
  • Promotion of sustainable procurement
  • Employee health management promotion programs
  • Advancing diversity and inclusion
  • Active proposals for low-environmental-impact products
  • Thorough compliance education