JFE Systems

Basic Information

Stock Code
4832
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
September 1983
Listing Year
March 2001
Official Website
https://www.jfe-systems.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Nippon Steel Solutions, TIS, SRA HD, Nomura Research Institute, Simplex Holdings, Obic, Otsuka Corporation, Dentsu Soken, Soken Chemical, Mori Kogyo, BIPROGY, NTT DATA Group, SCSK

Overview

JFE Systems is an information systems development company of the JFE Steel Group, established in 1983. It specializes in system construction for manufacturing and distribution industries and has established a stable position both domestically and internationally.

Current Situation

JFE Systems achieved consolidated sales of approximately 62 billion yen and ordinary income of 7.45 billion yen in the fiscal year ending March 2024. It focuses mainly on system construction and maintenance management for manufacturing and distribution industries, with strengths in developing core systems within the JFE Group. It customizes major ERP solutions such as SAP ERP and Microsoft Dynamics 365 to support business efficiency and management visualization. It offers a wide range of services from electronic forms to HR information, EC, and IT infrastructure construction, addressing diverse customer needs. Against competitors like the NTT Data Group and Nomura Research Institute, its stable customer base leveraging group collaboration is a key competitive advantage. Regarding sustainability, specific public information is limited, but energy-saving and efficiency improvements are expected as an IT industry player. Moving forward, it anticipates growth in system integration business driven by DX (digital transformation) and advanced manufacturing needs, aiming for sales growth in the medium term. Since the market segment change in 2022, it has been stably traded on the Standard Market. Active subsidiary integrations and adoption of new technologies are part of its management strategy.

Trivia

Interesting Facts

  • Evolved from the systems division of Kawasaki Steel
  • JFE Steel holds over 65% stake, providing stable management foundation
  • Pioneering presence in ERP customization for domestic manufacturing
  • Rich track record in SAP and Microsoft product implementation support
  • Head office located in Seavans S Building, Minato-ku, Tokyo
  • Characterized by stable customer base as JFE affiliate in the industry
  • Top-class IT solutions for manufacturing and distribution industries
  • Classified as system integrator in Nikkei data
  • Mid-sized IT company with approximately 1,864 employees
  • Deploys diverse B2B and B2C solutions
  • Provides integrated solutions through collaboration with parent company
  • High customer evaluations in domestic ERP market
  • Collaborates with SAP to develop proprietary templates
  • Deploys proprietary BI tool "KPIMart"
  • Listed on Tokyo Stock Exchange Standard Market

Hidden Connections

  • Exclusive partner handling IT infrastructure for JFE Group's manufacturing companies
  • Strong collaboration with SAP and Microsoft to provide industry-standard solutions
  • Operates proprietary template suite reflecting on-site needs in manufacturing and distribution
  • Builds total IT service system in collaboration with subsidiary JFE Com Service
  • High expertise supporting IT system construction for Japanese blast furnace makers
  • Holds stable share among domestic mid-sized system integrators
  • Rich track record in electronic forms for finance and manufacturing
  • Deploys industry-specific cloud services to meet unique customer needs

Future Outlook

Growth Drivers

  • Increasing digitalization needs in manufacturing
  • Growing attention to advanced data analysis and AI technologies
  • Rising demand for business efficiency through DX promotion
  • Increasing corporate investment in cloud migration
  • Integrated IT solution proposals from manufacturing to distribution
  • Trends toward strengthening supply chains in Japan
  • Expanding IT support needs for SMEs
  • Demand for IT infrastructure development for government and public offices
  • Promotion of green IT and energy-saving technologies
  • Increasing sustainability-related businesses

Strategic Goals

  • Expand share in manufacturing ERP market
  • Double sales in cloud services business
  • Standard adoption of AI and data analysis technologies
  • Leadership in sustainable IT infrastructure construction
  • Maximize synergy with group companies
  • Launch DX consulting services
  • Expand transactions with new domestic and international customers
  • Strengthen IT talent development programs
  • Achieve environmental impact reduction targets
  • Advanced digital security

Business Segments

System Construction for Manufacturing

Overview
Segment specializing in ERP and peripheral system implementation and development for large manufacturers.
Competitiveness
Reliability from JFE Group's technical know-how and deep manufacturing expertise
Customers
  • Steel companies
  • Steel processing companies
  • Machinery manufacturers
  • Engineering companies
  • Automotive parts manufacturers
  • Chemical industry
  • Plant engineering
Products
  • SAP ERP Customization
  • SIDEROS Templates
  • Cost Management for Manufacturing
  • Production Planning Systems
  • Data Analysis Tool KPIMart

Solutions for Distribution

Overview
Provides systems for integrated management from production to sales in distribution, supporting efficiency and cost reduction.
Competitiveness
Proven procurement systems and supply-demand planning solutions
Customers
  • Wholesalers
  • Retail chains
  • Logistics companies
  • Food distributors
  • Procurement departments
Products
  • SCM Control Tower
  • Procurement Management System J-Procure
  • Web Procurement Portal J-Commerce@SaaS
  • Supply-Demand Planning Software Demand Solutions DSX

Solutions for Food Industry

Overview
Supports quality improvement and regulatory compliance in the food industry, promoting unified data management.
Competitiveness
Highly functional integrated data management system specialized for food industry
Customers
  • Food manufacturers
  • Quality control departments
  • Regulatory compliance staff
  • Food ingredient manufacturers
Products
  • MerQurius Data Management
  • Food Regulation Management Quebel
  • Raw Material Specification Service
  • Food Quality Cloud Service

HR, Payroll, and Labor Solutions

Overview
Provides total solutions for HR, payroll, and labor management.
Competitiveness
Rich package lineup and customizability
Customers
  • Mid-sized companies
  • Large companies
  • Labor management staff
  • Payroll centers
Products
  • J-Forpe Series
  • STAFFBRAIN Package
  • POSITIVE Integrated Package

Electronic Forms and Data Storage Solutions

Overview
Systems that securely and efficiently realize form management and electronic data storage.
Competitiveness
Reliability based on long track record and flexible integration functions
Customers
  • Financial institutions
  • Public institutions
  • Manufacturing companies
  • IT departments
Products
  • FiBridgeⅡ Electronic Forms
  • FileVolante
  • DataDelivery Distribution
  • Electronic Transaction Storage System

EC and E-commerce Solutions

Overview
Supports EC sites, inter-company data integration, and e-commerce efficiency.
Competitiveness
Diverse system integration technology and rich implementation track record
Customers
  • Trading companies
  • Manufacturing procurement departments
  • Logistics providers
  • Retail businesses
Products
  • Enterprise Commerce
  • J-Commerce@SaaS
  • Prociec Procurement System
  • IBM Sterling B2B Solutions
  • ASTERIA Integration Middleware

IT Infrastructure Construction and Operation Services

Overview
Comprehensive service suite supporting IT infrastructure from construction to operation.
Competitiveness
Utilization of JFE Group's AI and security technologies
Customers
  • Corporate IT departments
  • Cloud-using companies
  • Data center operators
Products
  • JGranz Managed Services
  • Dedicated Server Virtualization
  • IaaS Cloud Services
  • Housing Services
  • Large-scale Data Migration for Financial Industry

Competitive Advantage

Strengths

  • Stable support and customer base from JFE Group
  • Advanced ERP customization technology specialized for manufacturing
  • Diverse system lineup adaptable to wide industries
  • Long track record in system development and reliability
  • Robust maintenance and operation structure
  • Diverse package solution lineup
  • Proposal strength based on Nikkei data's industry understanding
  • Wide integration services and middleware technology
  • Integrated response from IT infrastructure to app development
  • High customer satisfaction and repeat rate
  • Consulting capabilities contributing to business reform
  • Stable management backed by solid financial base
  • Enhanced proposal power through intra- and inter-group collaboration
  • Focus on improving employee specialized skills
  • High recognition in domestic manufacturing market

Competitive Advantages

  • Superiority leveraging stable capital and customer base from JFE Group
  • Business know-how and system construction capabilities specialized for manufacturing and distribution
  • Strong partnerships with SAP and Microsoft products
  • Broad solution provision from IT infrastructure to business apps
  • High implementation efficiency with industry-specific templates
  • Customer trust secured by long-term maintenance and operation support
  • Service design deeply rooted in manufacturing business processes
  • Expandability through diverse cloud services
  • Advanced technology for complex supply-demand planning in manufacturing and distribution
  • IT solution development corresponding to ESG and DX promotion
  • Track record and operation know-how in B2B e-commerce
  • Customer response power from high employee technical skills and experience
  • Regionally focused sales structure and prompt support
  • Value creation through promotion of AI and data analysis technologies
  • Compliance with industry standards and security criteria

Threats

  • Intense price competition with major IT vendors
  • Risk of failing to adapt to changing DX demands
  • Shrinkage of domestic manufacturing market and shift overseas
  • Difficulty in securing engineers due to talent shortage
  • Delay in adapting to rapid cloud technology evolution
  • Market pressure from competitors' global expansion
  • Demand decline due to customer IT investment restraint
  • Increasing information security risks
  • Burden of system modifications due to regulatory changes
  • Potential cost increases from infrastructure aging
  • Business continuity risk from cyber attacks
  • Shortage of products corresponding to diversifying market needs

Innovations

2024: New Template Development for Manufacturing DX Support

Overview
Renewed SIDEROS PS TEMPLATE for SAP S/4HANA and enhanced IoT integration functions.
Impact
Improves customer business efficiency and decision-making speed

2023: Launch of Cloud-Integrated IT Infrastructure Service

Overview
Expanded JGranz IaaS to achieve hybrid cloud compatibility.
Impact
Improves customer satisfaction with flexible resource provision

2022: Introduction of Data Integration Platform for Food Industry

Overview
Advanced MerQurius to strengthen food safety management.
Impact
Efficiency in regulatory compliance and improved traceability

2024: Enhanced Functions of BI Tool KPIMart

Overview
Added data visualization and real-time analysis functions.
Impact
Contributes to faster management decisions

2023: Promotion of Cloud Migration for Electronic Forms Solutions

Overview
Renewed FiBridgeⅡ to cloud-compatible version, improving operational flexibility.
Impact
Reduces customer IT costs and improves convenience

2021: Enhanced Supply-Demand Planning Functions Using AI Technology

Overview
Integrated AI predictive analysis into Demand Solutions DSX to improve optimization effects.
Impact
Enables cost reduction by lowering error rates

2020: Strengthened Introduction of ASTERIA WARP for B2B Data Integration

Overview
Efficient inter-company data exchange and improved operational stability.
Impact
Promotes rapid information sharing between trading partners

Sustainability

  • Promotion of energy-saving data centers
  • Reduction of environmental impact through paperless and digitalization
  • Strengthening remote work systems to reduce commuting
  • Waste reduction and recycling promotion activities
  • Provision of environmentally considerate cloud services
  • Internal initiatives to promote diversity and inclusion
  • Information security enhancement to secure customer trust
  • Promotion of environmental collaboration with suppliers
  • Regular publication of CSR reports including social contribution activities
  • Introduction of energy-efficient IT equipment