NSW

Basic Information

Stock Code
9739
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
August 1966
Listing Year
April 1996
Official Website
https://www.nsw.co.jp/
TSE Information
TSE Information
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Fixstars, DIT, Nihon System Technology, Base, Focus, Cresco, TDC Soft, Alpha, Tokei Densan, CEC, NSD

Overview

NSW Corporation, founded in 1966, is an information and communications company operating as an independent system integrator. It leverages strengths in IoT and AI applications to provide IT solutions to various industries.

Current Situation

NSW recorded consolidated sales of approximately 38.2 billion yen and capital of 5.5 billion yen in the fiscal year ended March 2020, maintaining a solid foundation. Headquartered in Shibuya-ku, Tokyo, it operates business bases nationwide. Its core businesses include system development for manufacturing and distribution sectors, cloud services, and embedded system development, with a focus on LSI design for automotive and communications fields. In recent years, it has actively developed next-generation services by integrating its proprietary IoT platform 'Toami' with AI technologies. Major customers include the NEC Group, accounting for about 20% of sales and forming strong trading relationships. On the sustainability front, it has obtained certification from the Ministry of Economy, Trade and Industry, enhancing social trust. In the medium to long term, it positions digital transformation support leveraging IoT and AI as the core of its growth strategy, aiming for business expansion domestically and internationally. Furthermore, it promotes diversification and internationalization through new ventures and overseas base establishments, continuing investments for sustainable growth.

Trivia

Interesting Facts

  • Acquired its own building in 1975 as Japan System Ware.
  • Cloud services business started in 2009, pioneering the industry.
  • IoT platform 'Toami' has numerous implementations across multiple industries.
  • NSW is a Ministry of Economy, Trade and Industry certified SI/SO company.
  • Founder Shuujin Osada is a renowned industry entrepreneur.
  • International expansion company with numerous regional bases and Taiwan office.
  • Specializes in low-power design for embedded systems.
  • Actively introduces technologies via in-house YouTube channel.
  • Ongoing transactions with NEC Group account for about 20% of sales.
  • Expanded scale in 2018 by absorbing and merging Japan Software Engineering.
  • Maintains strong ties with major groups while remaining independent.
  • Introduced remote monitoring systems to multiple manufacturing companies.
  • Rich track record in diverse in-vehicle embedded software development.
  • Strength in public sector projects through Ministry of Economy, Trade and Industry IT certifications.
  • Brand name 'NSW Toami' is a unique domestic IoT platform.

Hidden Connections

  • Strong capital ties with NEC Group, implementing numerous technology collaborations.
  • Taiwan office expands technology development and sales networks in Asia.
  • Collaborates on enhancing IT infrastructure resilience during disasters via regional data centers.
  • Embedded system technology collaborates with major domestic automotive parts manufacturers.
  • Stable management by founder family as major shareholders.
  • Rebranded after Tokyo Stock Exchange First Section listing.
  • Nationwide coverage with business bases from Hokkaido to Okinawa.
  • IoT platform technology holds patents domestically and internationally.

Future Outlook

Growth Drivers

  • Increasing platform demand with IoT market expansion
  • Rising needs for business efficiency via AI utilization
  • Increased system development from manufacturing digitalization
  • Accelerated migration to cloud services
  • Sustained growth in embedded software demand for communications and automotive
  • Government digital transformation initiatives
  • Expanding IT infrastructure demand in overseas markets
  • Growing demand for automation technologies amid labor shortages
  • Growth in environmentally responsive IT solutions market
  • Increasing importance of network security enhancements
  • Demand for strengthened local services
  • Technology enhancement through IT talent development

Strategic Goals

  • Expand IoT and AI business sales ratio to over 50%
  • Achieve energy savings and reduced environmental impact at all domestic bases
  • Realize 99.999% cloud service uptime
  • Grow overseas sales to over 20% of total
  • Achieve 30% female manager ratio through diversity and inclusion
  • Target over 5 billion yen in sales from new businesses
  • Become market leader in advanced security services
  • Maintain and strengthen Ministry of Economy, Trade and Industry SI/SO certification
  • Improve employee work-life balance and maintain turnover below 10%
  • Continuous investment toward sustainable IT society

Business Segments

System Integration

Overview
Provides comprehensive IT system construction and operation support based on customer requirements.
Competitiveness
Broad industry coverage and cloud utilization technology as strengths
Customers
  • Manufacturing
  • Distribution
  • Financial institutions
  • Government agencies
  • Telecommunications carriers
  • Logistics companies
  • Medical institutions
  • Educational institutions
Products
  • System planning and design
  • Software development
  • System operation and maintenance
  • Cloud services
  • IoT platforms
  • AI solutions

Embedded System Development

Overview
Specializes in embedded software and LSI design for in-vehicle and communications equipment.
Competitiveness
Technical expertise in high-reliability and low-power design
Customers
  • Automotive manufacturers
  • Communications equipment manufacturers
  • Industrial machinery manufacturers
  • Home appliance manufacturers
  • IoT device developers
Products
  • Embedded software development
  • LSI design and development
  • Firmware development
  • Sensor network products

Cloud and Data Center Services

Overview
Provides stable cloud environment construction and data center operations.
Competitiveness
High availability through multiple proprietary data centers
Customers
  • IT companies
  • Financial institutions
  • Retail
  • Medical institutions
  • Public institutions
Products
  • Cloud hosting
  • Data center operations
  • Disaster recovery services
  • Network construction

IoT Platform Business

Overview
Supports business efficiency and visualization using IoT technology.
Competitiveness
Proprietary IoT infrastructure and extensive industry track record
Customers
  • Manufacturing
  • Distribution
  • Construction
  • Energy companies
  • Transportation
Products
  • Toami IoT Platform
  • Remote monitoring systems
  • Equipment management software
  • Data analysis services

AI Solution Provision

Overview
Proposes and implements AI technologies tailored to customer operations.
Competitiveness
Diverse AI technologies and industry-specific know-how
Customers
  • Manufacturing
  • Services
  • Finance
  • Logistics companies
  • Government agencies
Products
  • Business optimization AI tools
  • Image recognition systems
  • Voice recognition systems
  • Predictive maintenance AI

Network Security

Overview
Handles corporate network protection and risk management.
Competitiveness
Reliable operations framework and technical capabilities
Customers
  • Financial institutions
  • Manufacturing
  • Government agencies
  • Telecommunications carriers
  • Retail companies
Products
  • Firewalls
  • VPN construction
  • Security assessments
  • Monitoring services

IT Equipment Sales and Maintenance

Overview
Provides sales and maintenance services for high-quality IT equipment.
Competitiveness
Rapid support system and wide product range
Customers
  • Small and medium enterprises
  • Large enterprises
  • Educational institutions
  • Local governments
  • Medical institutions
Products
  • Server equipment
  • Network equipment
  • PCs
  • Maintenance support

System Operation Outsourcing

Overview
Deploys 24/7 system operation services.
Competitiveness
Extensive operation experience and automation technology
Customers
  • Financial institutions
  • Manufacturing
  • Telecom companies
  • Public institutions
  • Distribution
Products
  • System monitoring
  • Incident response
  • Operation automation support

Overseas Business Support

Overview
Supports overseas expansion of Japanese companies from an IT perspective.
Competitiveness
Strengthened overseas bases and local responsiveness
Customers
  • Overseas bases of Japanese companies
  • Global companies
  • Local partners
Products
  • Local IT support
  • Global network construction
  • System development for local subsidiaries

Education and Training Services

Overview
Provides training services specialized in engineer development.
Competitiveness
Practical curriculum and instructor lineup
Customers
  • Corporate training departments
  • IT engineer training institutions
  • Universities
  • Vocational schools
Products
  • IT technology training
  • IoT utilization courses
  • AI development talent development

Consulting Services

Overview
Accelerates customers' digital transformation through proposals.
Competitiveness
Multi-industry knowledge and practical expertise
Customers
  • Management
  • IT departments
  • Manufacturing
  • Distribution
Products
  • IT strategy formulation
  • Business improvement proposals
  • DX promotion support

Competitive Advantage

Strengths

  • Flexible business development as an independent firm
  • Stable services through proprietary data center operations
  • Advanced IoT platform development
  • Strong trading relationships with NEC Group
  • Proven system integration track record across diverse industries
  • Advanced embedded software development technology
  • Hardware expertise in in-vehicle LSI design, etc.
  • Nationwide service network through multiple bases
  • Long-term stable growth and solid financial foundation
  • High expertise of core engineers
  • Cutting-edge solutions combining cloud and AI
  • Trust earned through government certifications
  • Comprehensive capabilities across diverse IT fields
  • Extensive know-how in IoT and M2M technologies
  • International expansion via overseas bases

Competitive Advantages

  • Differentiation through proprietary IoT platform 'Toami'
  • High reliability of cloud services and data center operations
  • Strength in embedded systems and LSI design technologies
  • Ongoing trading relationships with major group companies
  • Broad industry coverage meeting diverse needs
  • Rapid response via nationwide bases close to local markets
  • Business efficiency solutions utilizing AI technology
  • Social trust as a Ministry of Economy, Trade and Industry certified company
  • Management policy of continuous technology investment
  • One-stop provision through diverse IT product sales and service integration
  • Proactive overseas market development and local base establishment
  • Know-how accumulation from extensive customer support experience
  • Customer response capabilities in advanced security measures
  • Improved market coverage through multiple product brands
  • Flexible contract development and customization capabilities

Threats

  • Intensifying competition with major IT companies
  • Challenges in keeping pace with rapid technological innovation
  • Concentration of competition in cloud services market
  • Difficulties in talent acquisition and retention risks
  • Potential stagnation in domestic IT investments
  • Regulatory changes in overseas operations
  • Increasing cyber security risks
  • Price competition from new entrants
  • Decline in orders due to customer in-house development trends
  • Burden of adapting to rapid changes in technical standards
  • Global economic uncertainties
  • Infrastructure impacts from natural disasters

Innovations

2024: Enhanced AI-Equipped IoT Remote Monitoring Services

Overview
Deployed IoT monitoring services with improved anomaly detection accuracy using AI.
Impact
30% increase in service contracts and improved customer satisfaction

2023: Introduction of Next-Generation In-Vehicle LSI Design Technology

Overview
Established in-vehicle LSI design technology balancing low power and high performance.
Impact
Expanded orders from automotive manufacturers

2022: Cloud Infrastructure Speed-Up and Security Enhancement

Overview
Upgraded IT infrastructure in proprietary data centers to improve processing capacity.
Impact
Achieved 99.99% cloud service uptime

2021: Multi-Function Upgrade of IoT Platform Toami

Overview
Significantly updated device management and data analysis functions.
Impact
Contributed to business efficiency in manufacturing

2020: Launch of AI Business Support Tools

Overview
Commercialized AI-equipped software for business optimization.
Impact
Exceeded 2 billion yen in first-year sales

Sustainability

  • Enhanced trust through Ministry of Economy, Trade and Industry SI/SO certification
  • Promotion of energy efficiency in data centers
  • Improved work-life balance for employees
  • Recycling promotion and waste reduction activities
  • Deployment of IT education support programs for local communities
  • Social contributions through safe and secure IT systems
  • Project to promote active roles for female engineers
  • Promotion of paperless operations within the company
  • Thorough procurement policy for low-environmental-impact equipment
  • Strengthened information security management system
  • Promotion of diverse talent employment
  • Establishment of regional disaster support framework