Japan Process

Basic Information

Stock Code
9651
Industry
Information and Communications Industry
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
June 1967
Listing Year
June 1992
Official Website
https://www.jpd.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
T Alpha, Claudia, Fixstars, Japan System Techniques, Base, Cresco, TDC Soft, Alpha Systems, Tokei Densan, F Force G, CEC, NSW, NSD

Overview

Japan Process is an independent software development company founded in 1967. It engages in a wide range of system development centered on the information and communications industry, with strong technical capabilities primarily for finance and logistics.

Current Situation

Japan Process recorded consolidated net sales of 7.9 billion yen, operating income of 700 million yen, and net income of 500 million yen for the fiscal year ended May 2022, maintaining a stable business foundation. Its mainstays are system development and operation services for various industries, with extensive track record in transactions with Hitachi, Ltd. and Toshiba. It is strengthening development of AI and embedded software, focusing on enhancing technical capabilities. It has a local subsidiary in Dalian, China, and is advancing international expansion. In terms of sustainability, it is working on building energy-efficient development environments and reforming work styles for employees. In the medium to long term, it aims for sustainable growth by developing cutting-edge technologies and responding to diverse industries to strengthen competitiveness. In recent years, it has improved management efficiency through absorption mergers and is promoting development of new business areas.

Trivia

Interesting Facts

  • Founded against the backdrop of improving industrial processes in Japan
  • Long-term primary systems partner for Hitachi, Ltd. and Toshiba
  • Early entry into domestic embedded software development
  • Dalian, China subsidiary serves as the group's overseas engineering base
  • High stable operation record in financial systems
  • Rare broad industry adaptability for an independent firm
  • Many engineers hold public qualifications proving technical prowess
  • Has established a unique position in Japan's IT industry
  • Maintains in-house developed education programs
  • Known as one of the long-lived companies in the IT field
  • Listed company with over 40 years of history
  • Numerous patents and technology development achievements
  • Actively participates in regional IT fairs and tech exhibitions
  • Efforts to increase the proportion of female engineers
  • Specializes mainly in B2B markets but researches consumer applications

Hidden Connections

  • Despite being independent, has built long-term joint development relationships with Hitachi, Ltd. and Toshiba
  • Promotes technical and human resource exchange between Japan and China via Dalian subsidiary
  • Involved in IT infrastructure construction for multiple major companies in finance and logistics
  • Close partnership with specific industrial equipment manufacturers in embedded software
  • Human resource development activities in collaboration with influential IT engineer groups
  • Track record of participation in local government IT projects on a small scale
  • Experience with smooth integration of domestic and international operations through group reorganization
  • Not selected for Nikkei 225 but highly regarded as a mid-tier software developer

Future Outlook

Growth Drivers

  • Expansion of digitalization needs in finance and logistics
  • Provision of new solutions utilizing AI and IoT technologies
  • Increasing demand for embedded software development domestically and internationally
  • Strengthening operation services due to expanded cloud system adoption
  • Increase in mid-sized company IT investments through DX promotion
  • Growing demand for system development outsourcing in global markets
  • Service demand accompanying advanced cyber security measures
  • Promotion of government IT investments related to smart cities
  • New market development through integration of environmental/energy-saving tech and IT
  • Rising efficiency needs due to declining working population
  • Demand for business optimization services using data analysis and AI
  • Continued growth in cloud service demand

Strategic Goals

  • Strengthen product lineup in domestic system development
  • Achieve over 20% revenue ratio from overseas expansion (especially China)
  • Realize over 2.5 billion yen in sales from AI/IoT-related businesses
  • Continue reducing environmental impact based on sustainability metrics
  • Strengthen human resource base through engineer development and diversity promotion
  • Maintain and expand top share in finance and logistics industries
  • Achieve high-reliability software with 99.9%+ non-stop operation rate
  • Increase cloud services sales to over 30% of total
  • Service improvements targeting 90%+ customer satisfaction
  • Expand social contribution programs in collaboration with local communities

Business Segments

IT Services for Finance

Overview
Provides IT solutions aimed at improving security and efficiency in the financial industry.
Competitiveness
Advanced financial industry knowledge and proven stable operation record
Customers
  • Banks
  • Securities companies
  • Insurance companies
  • Financial institution IT departments
  • Payment processing providers
  • Fintech companies
Products
  • Payment processing systems
  • Transaction management
  • Risk management systems
  • Compliance tools
  • Financial data analysis tools

System Development for Logistics

Overview
Builds systems to improve efficiency and visibility in logistics operations.
Competitiveness
Real-time management technology through IoT integration
Customers
  • Logistics companies
  • Delivery providers
  • Warehouse management companies
  • Manufacturing logistics departments
Products
  • Warehouse Management System (WMS)
  • Shipping and delivery management apps
  • Inventory optimization systems
  • IoT logistics monitoring

Software for Telecom Carriers

Overview
Develops and provides advanced and stable software in the communications field.
Competitiveness
Long track record of development for the communications industry
Customers
  • Telecommunications providers
  • Network equipment manufacturers
Products
  • Communications control software
  • Network management tools
  • Security monitoring systems

Space and Defense System Development

Overview
Develops space and defense software requiring high reliability.
Competitiveness
High-reliability technology and certification achievements
Customers
  • Space development agencies
  • Defense-related companies
Products
  • Space control embedded software
  • Mission system management
  • Safety evaluation tools

Control Systems for Manufacturing

Overview
Develops control systems aimed at improving production efficiency.
Competitiveness
Customization capabilities and delivery adherence
Customers
  • Manufacturing plants
  • Production management departments
Products
  • Equipment control software
  • Production line monitoring tools

Information System Operation and Maintenance

Overview
Supports stable system operation and rapid fault response.
Competitiveness
24-hour operation support
Customers
  • General corporate IT departments
  • Public institutions
Products
  • Operation monitoring services
  • System maintenance and troubleshooting

IT Consulting

Overview
Supports strategy formulation for business efficiency and IT innovation.
Competitiveness
Team of consultants with extensive expertise
Customers
  • Mid-sized companies
  • Large companies
Products
  • Business analysis
  • System design support
  • IT strategy planning

Cloud Construction and Operation

Overview
Supports construction of secure and scalable cloud environments.
Competitiveness
Rapid response to the latest cloud technologies
Customers
  • IT departments
  • Startups
Products
  • Cloud infrastructure design
  • Security construction services

IoT Development Support

Overview
Total support for development and operation associated with IoT adoption.
Competitiveness
Proven IoT implementations across multiple fields
Customers
  • Manufacturing
  • Agricultural corporations
  • Energy providers
Products
  • Sensor management software
  • Data analysis tools

Security Measures Services

Overview
Provides services to enhance the security of IT assets.
Competitiveness
Technological capabilities responding to the latest threats
Customers
  • Corporate IT departments
  • Public institutions
Products
  • Vulnerability assessments
  • Regulatory compliance support

Education and Training Services

Overview
Education services for improving internal technical capabilities.
Competitiveness
Practical and highly rated training content
Customers
  • Corporate employees
  • New hires
Products
  • Technical training programs
  • Skill-up courses

Overseas Business Expansion Support

Overview
Supports efficient overseas business operations from an IT perspective.
Competitiveness
Local response utilizing Dalian, China subsidiary
Customers
  • Local subsidiaries
  • Overseas subsidiaries
Products
  • System development support
  • Local support

Competitive Advantage

Strengths

  • High technical capabilities adaptable to diverse industries
  • Strong transaction relationships with Hitachi, Ltd. and Toshiba
  • International expansion with local subsidiary in Dalian, China
  • Flexible customer response as an independent firm
  • Comprehensive system integration framework
  • Expertise in embedded software development
  • Strengths in services specialized for finance and logistics
  • Stable business foundation and consistent profitability
  • Robust operation and maintenance framework
  • Maintaining employee skill levels through technical training
  • Active adoption of cutting-edge technologies
  • Extensive software development track record
  • Excellent customization capabilities
  • Collaborative development structure within the organization
  • Large number of engineers with extensive practical experience

Competitive Advantages

  • Strength in extensive system development experience across multiple industries
  • Builds long-term trust relationships with major corporations
  • Flexible response to new customer acquisition as an independent firm
  • Maintains cost competitiveness with local subsidiary in China
  • Covers wide technical domains from embedded to business systems
  • Abundant know-how in advanced financial system development
  • Continuous technological innovation through engineer education
  • High custom development capabilities tailored to customer needs
  • Reliability-focused development processes and quality management
  • Improved customer satisfaction through diverse support services
  • Capable of stable supply as a long-term IT partner
  • Cross-organizational innovation promotion framework
  • Flexible project management and rapid response capabilities
  • Transparent management as a listed company
  • Technical team with strong problem-solving abilities

Threats

  • Delays in responding to rapid technological changes in the information and communications industry
  • Intensifying competition from major IT companies and overseas firms
  • Decline in technical capabilities due to difficulties in securing and developing talent
  • Increasing cyber security risks
  • Reduction in IT investments due to economic fluctuations
  • Impact from market contraction or industry restructuring in customer sectors
  • Cost increases from strengthened regulations
  • Profit pressure on overseas operations from exchange rate fluctuations
  • Quality risks from external contractors
  • Sudden changes in technical standards or platforms
  • Loss of competitiveness due to emerging technologies
  • Operational disruptions from pandemics like COVID-19

Innovations

2020: Enhancement of Financial Systems Using AI Technology

Overview
Introduced AI-utilizing risk management and transaction analysis systems.
Impact
Contributes to efficiency and accuracy improvements in financial operations.

2021: Strengthening Development Framework with Chinese Local Subsidiary

Overview
Accelerated overseas expansion by expanding development scale at Dalian subsidiary.
Impact
Achieved improved cost competitiveness and shorter delivery times.

2022: Introduction of Security Assessment Services

Overview
Launched new vulnerability assessment and regulatory compliance support services.
Impact
Contributes to strengthening customer security.

2023: Expansion of Cloud-Based System Development

Overview
Strengthened enterprise cloud environment design and operation support.
Impact
Supports customer IT efficiency and security improvements.

2024: Deployment of IoT Logistics Systems

Overview
Provides IoT solutions for visibility and efficiency in logistics operations.
Impact
Successfully expanded customer base in the logistics industry.

Sustainability

  • Energy-efficient data center operations
  • Resource reduction through paperless initiatives
  • Work style reform and health management for employees
  • Environmental load reduction measures at regional bases
  • Environmental conservation activities in collaboration with local communities
  • Consideration of renewable energy adoption
  • Environmental risk management in the supply chain
  • Promotion of IT asset reuse and recycling
  • Programs to promote environmentally friendly transportation
  • Promotion of diversity and inclusion