EM Systems

Basic Information

Stock Code
4820
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Osaka Prefecture
Establishment Year
January 1980
Listing Year
December 2000
Official Website
https://emsystems.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Image One, Data Horizon, Fine Index, Softmax, Software Service, Medical Data Vision, Kanamic Network, CE Holdings, Welby, JMDC, IDHD, JSP, Kato Sangyo

Overview

EM Systems, founded in 1980, is a leading developer of systems for medical institutions and dispensing pharmacies, holding approximately 30% of the domestic market share.

Current Situation

EM Systems recorded standalone sales of approximately ¥13.6 billion in the fiscal year ended December 2021, holding a top-tier market share in Japan's medical and dispensing pharmacy systems sector. Since its founding, it succeeded the medical systems business from the Seiko Epson Group, achieving significant nationwide penetration with dispensing pharmacy software. Since 2019, it has introduced the cloud-based 'MAPs series' to align with the latest medical IT trends. Employing around 413 people, the company maintains solid management while expanding into medical systems and nursing care/welfare systems. Its Tokyo head office is located in Minato-ku, Tokyo, with numerous bases nationwide. In 2022, it aired its first national TV commercial to boost brand recognition. Looking ahead, it plans to focus on promoting electronic medical records adoption, advancing IT in regional healthcare, and expanding cloud services to drive growth from 2025 onward. Despite intensifying industry competition, it expects sustainable growth leveraging its robust support infrastructure and customer base.

Trivia

Interesting Facts

  • The company name EM derives from Epson Medical.
  • Top company holding 30% domestic share in dispensing pharmacy systems.
  • Founder has unique background transitioning from auto sales to medical IT.
  • Aired first national TV CM in 2022 to expand recognition.
  • Started by succeeding Seiko Epson's medical business.
  • Medical IT company with numerous sales and support bases nationwide.
  • Early entrant into medical electronic medical record system development.
  • Customer対応 characterized by direct sales and leasing model.
  • Contributing to IT adoption in medical and nursing care fields.
  • High evaluation for data linkage technology with medical devices.
  • Expanding subsidiaries in China and beyond for overseas business.
  • TV CM features famous actor Tatsuya Fujiwara.
  • Business base in IT adoption for over 50,000 pharmacies nationwide.
  • Specialized in medical field for over 40 years since founding.
  • One of the leading companies in medical information security measures.

Hidden Connections

  • Succeeded major business from Seiko Epson's medical division withdrawal and established independent path.
  • Major shareholder Kokko Co., Ltd. collaborates with medical logistics and service providers.
  • Expanding into China's medical IT market through related subsidiaries.
  • Goldman Sachs as major shareholder provides global fundraising capabilities.
  • Secured high market share in domestic dispensing pharmacy systems.
  • Realized industry-first direct IT services via cloud technology.
  • Founder Kunimitsu Kozo applies successful IT introduction experience to management strategy.
  • TV CM theme song performed by popular band WANDS, generating buzz.

Future Outlook

Growth Drivers

  • Ongoing expansion of IT needs in medical and dispensing pharmacies
  • Increase in cloud service contracts due to widespread adoption
  • Legal framework development and promotion of electronic medical records
  • Acceleration of IT adoption in nursing care and welfare
  • Growing demand for regional healthcare collaboration systems
  • Alignment with government medical DX promotion policies
  • Demand for business efficiency via AI utilization
  • Nationwide demand for medical institution maintenance and support
  • Preparation of remote healthcare and telework environments
  • Increasing demand for medical information security
  • Proactive investment in new business areas
  • Accelerated expansion into China overseas market

Strategic Goals

  • Maintain and expand dispensing pharmacy system market share to over 40%
  • Achieve 10,000 annual cloud service contracts
  • Establish competitive edge against major national electronic medical record systems
  • Exceed 20% sales ratio from nursing care/welfare systems business
  • Build foundational position and leadership in regional medical DX
  • Strengthen sustainable management base and achieve decarbonized operations
  • Improve employee satisfaction to boost labor productivity by 20%
  • Obtain international certification for medical information security standards
  • Achieve 10% sales ratio from overseas expansion
  • Aggressively introduce new technologies in digital health field

Business Segments

Dispensing Pharmacy System Implementation Support

Overview
Provides IT systems for dispensing pharmacies, supporting operational efficiency and regulatory compliance.
Competitiveness
Free maintenance service and nationwide direct sales network
Customers
  • Nationwide dispensing pharmacy chains
  • Independent pharmacy owners
  • Medical corporations
  • Regional pharmacists' associations
Products
  • EM Sakusaku Pharmacy System
  • Dispensing Meister
  • Cloud Dispensing Desk
  • Medication History Management System

Medical Institution Electronic Medical Record Systems

Overview
Promotes IT adoption in medical institutions centered on medical billing and electronic medical records.
Competitiveness
Nationwide cloud services and high reliability
Customers
  • Clinic operating corporations
  • Clinics
  • Hospital information systems departments
  • Medical associations
Products
  • MRN Chart Style
  • Medical Recepty NEXT
  • Receipt system
  • Clinical management system

Nursing Care and Welfare IT Solutions

Overview
Supports business efficiency and service quality improvement in nursing care and welfare sites.
Competitiveness
Reliability of industry-specific cloud services
Customers
  • Nursing care facility operators
  • Disability welfare service providers
  • Municipal welfare departments
  • Welfare organizations
Products
  • Welfare Care MAPs
  • Nursing care record system
  • Care plan management
  • Welfare business support tools

Network Systems Business

Overview
Provides network environment construction and operational support for the medical industry.
Competitiveness
Expertise in high-security, stable operation construction
Customers
  • Medical institutions
  • Pharmacies
  • Municipalities
  • Medical-related organizations
Products
  • ASP network service
  • Remote clinical support system
  • Secure VPN solution

Medical Devices and PC Sales

Overview
Sales and maintenance of equipment for medical environments.
Competitiveness
Strength in integration with medical systems
Customers
  • Hospitals
  • Dispensing pharmacies
  • Medical device retailers
  • IT equipment sales agents
Products
  • PC equipment
  • Barcode readers
  • Medical printers
  • OA and supplies

Software Development and Maintenance Services

Overview
Services supporting long-term stable operation of medical and welfare systems.
Competitiveness
Customer-focused support system
Customers
  • Medical corporations
  • Pharmacy operators
  • Welfare-related organizations
  • Municipalities
Products
  • System customization
  • Maintenance and operation services
  • Version upgrade support
  • Technical support

Electronic Medical Record Linkage and Data Management

Overview
Integrated management and analysis support for electronic medical records and medical data.
Competitiveness
Advanced data linkage technology
Customers
  • Medical institutions
  • Medical information centers
  • IT solution companies
  • Research institutions
Products
  • Data linkage platform
  • Analysis tools
  • Reporting system

Regional Healthcare Collaboration Systems

Overview
Promotes efficiency in regional healthcare and patient support via IT.
Competitiveness
Region-specific operational expertise
Customers
  • Medical collaboration organizations
  • Municipal medical departments
  • Regional medical support organizations
  • Hospital collaboration groups
Products
  • Community comprehensive care platform
  • Information sharing system
  • Patient support tools

Remote Healthcare and Telework Support

Overview
Supports remote healthcare and remote work for medical staff.
Competitiveness
Medical-specific high-security technology
Customers
  • Medical corporations
  • Clinics
  • Nursing care facilities
  • IT companies
Products
  • Remote clinical system
  • Telework support tools
  • Secure communication environment

Training and Education Services

Overview
Maximizes system implementation effectiveness through user education.
Competitiveness
Experienced specialist instructors
Customers
  • Medical institutions
  • Pharmacy owners
  • Medical staff
  • Educational institutions
Products
  • System operation training
  • Medical IT seminars
  • Online courses

Overseas Business Support

Overview
Supports deployment of medical systems in overseas markets.
Competitiveness
Collaboration with China subsidiary
Customers
  • Overseas medical institutions
  • Local subsidiaries
  • Medical device manufacturers
  • IT companies
Products
  • System implementation support
  • Operational consulting
  • Multilingual software

Consulting Services

Overview
Provides comprehensive support for ICT adoption in the medical industry.
Competitiveness
Years of industry expertise and technical capabilities
Customers
  • Medical corporations
  • Corporations
  • Municipalities
  • Industry associations
Products
  • Business improvement proposals
  • System optimization diagnostics
  • IT strategy formulation support

Competitive Advantage

Strengths

  • One of the largest domestic shares in dispensing pharmacy systems
  • Free maintenance and support system
  • Broad deployment capabilities in medical-related businesses
  • Sales and support bases nationwide
  • Expertise specialized in medical field since founding
  • High product reliability due to advanced technology
  • Advanced cloud service compatibility
  • Customer-oriented customer service
  • Collaboration with diverse medical-related subsidiaries
  • Stable management led by experienced founder
  • Product development responsive to market needs
  • Strength in regional healthcare collaboration systems
  • Ongoing investment in electronic medical records business
  • Multi-channel sales network
  • Trusted relationships with medical institutions

Competitive Advantages

  • High customer retention through direct sales and long-term free maintenance model for dispensing pharmacies
  • Able to respond to market changes via cloud-based medical IT products
  • Rapid response enabled by extensive nationwide service bases
  • Able to strengthen cross-selling by handling diverse medical IT businesses in-house
  • Strong alignment with government medical IT promotion policies
  • High reliability from accumulated practical know-how with medical institutions
  • Stable management foundation under founder Kunimitsu Kozo's leadership
  • Differentiation from competitors through integrated provision of electronic medical records and dispensing systems
  • Cost optimization in development and deployment via China bases
  • Broad sales channels in medical welfare sector
  • Enhanced marketing including TV CMs to improve brand recognition
  • Proactive investment in new medical IT areas
  • Low churn risk due to multi-faceted customer need fulfillment
  • Capability to provide next-generation medical systems leveraging technological advances
  • High industry expertise serving as barrier to competitor entry

Threats

  • Risk of system requirement changes due to healthcare system reforms
  • Intensifying market competition from emerging cloud-based competitors
  • Tendency for medical institutions to restrain IT investments
  • Threats to medical information security and increased compliance burdens
  • Risk of shrinking medical market size due to population decline
  • Risk of low-price solutions from overseas companies
  • Increased system update costs accompanying DX initiatives
  • Challenges in service maintenance due to labor shortages
  • Risk of lagging behind rapid technological innovations
  • Profit pressure from rising maintenance service costs

Innovations

2022: First national TV CM aired

Overview
Initiated brand recognition campaign featuring a celebrity.
Impact
Improved nationwide brand awareness

2021: MAPs series cloud system launched

Overview
Expanded lineup of cloud-based medical IT products to enhance flexibility.
Impact
Contributed to customer acquisition and market share expansion

2023: Enhanced electronic medical record functionality update

Overview
Improved operability for medical sites and expanded regulatory compliance features.
Impact
Boosted customer satisfaction and continued usage rate

2024: AI-powered medication history input support introduced

Overview
Developed AI-utilizing automated support for medication history recording.
Impact
Improved pharmacists' work efficiency

2022: Security enhancement project launched

Overview
Implemented strengthened measures to ensure medical information safety.
Impact
Established rigorous regulatory compliance framework

Sustainability

  • Promoting cloud systems to reduce environmental impact in the medical industry
  • Strengthening social contributions through IT support for regional healthcare
  • Workstyle reforms and diversity promotion for employees
  • Thorough security and personal information protection
  • Advancing energy-saving operations for sustainable management