INES

Basic Information

Stock Code
9742
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
July 1964
Listing Year
February 1987
Official Website
https://www.ines.co.jp/
TSE Information
TSE Information
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Fixstars, System Lisa, MK System, Japan System Technology, Base, Cresco, TDC Soft, Alpha Systems, Tokei Densan, Kokoro Net, CEC, NSW, NSD

Overview

INES is an independent systems integrator founded in 1964 and a leading company in the information and communications industry with strengths in business systems for local governments.

Current Situation

INES achieved consolidated sales of approximately 38.1 billion yen and operating profit of approximately 2.2 billion yen in 2019, maintaining a solid financial base. Its main business is comprehensive administrative information systems and outsourcing services for local public entities, establishing a strong market position. The WebRings series has been adopted by 181 local public entities. In recent years, it has promoted new business development and technological innovation through business and capital alliances with Mitsubishi Research Institute. It has obtained multiple international certifications such as ISO27001, ISO20000, and ISO14001, thoroughly managing quality, information security, and the environment. Focusing on sustainable management and DX support, it is strengthening the IT services industry. In the future, it plans to accelerate strategies such as strengthening package software for local governments, expanding overseas local subsidiaries, and business development in China and Asia.

Trivia

Interesting Facts

  • Established in 1964, it is a long-standing systems integrator.
  • Announced Japan's first WEB-based comprehensive administrative information system in 2000.
  • Boasts over 180 installations nationwide for local government systems.
  • Strengthening technological collaboration as an equity-method affiliate of Mitsubishi Research Institute.
  • Acquired ISO27001, ISO20000, and ISO14001 certifications at numerous business sites.
  • Listed on the Tokyo Stock Exchange Prime Market since 1987.
  • Maintained long-term business alliance with the Hitachi Group.
  • Provides LGWAN-ASP facility services from two data centers.
  • Rich track record in developing automation tools for local government system operations.
  • Past incidents with personal information management issues, but information management system has been strengthened.

Hidden Connections

  • Capital and business alliance with Mitsubishi Research Institute forms the core of collaboration.
  • Formerly part of the Hitachi Group, maintains deep ties through ongoing seconded personnel.
  • Joint development of management systems for local governments in partnership with SAP Japan.
  • Involved in Japanese internet infrastructure research through collaboration with JUNET.
  • Major provider of services related to the Local Government Information Systems Organization (J-LIS).
  • Ongoing business collaboration with Hitachi Solutions to expand scope of operations.
  • Member of domestic and international IT service management forums, striving for quality improvement.
  • Prominent specialized strengths in the local government system market.

Future Outlook

Growth Drivers

  • Acceleration of digital transformation deployment in local areas.
  • Increase in IT budgets for local governments and expansion of outsourced services.
  • Expansion of cloud service demand and introduction of new technologies.
  • Growing needs for practical application of automation tools like AI and RPA.
  • Government policies promoting regional revitalization and smart cities.
  • Ongoing demand for strengthened security measures.
  • New businesses through enhanced technological collaboration with Mitsubishi Research Institute.
  • Demand for standardized local government operations and efficient services.
  • Implementation of Asian market expansion plans for overseas subsidiaries.
  • Building efficient development systems to address IT talent shortages.

Strategic Goals

  • Achieve top market share in cloud services for local governments.
  • Double the scale of IT outsourcing business domestically and internationally.
  • Enhance corporate value through maintaining ISO certifications and promoting ESG management.
  • Promote CSR activities strengthening coexistence with local communities.
  • Develop business efficiency support services utilizing cutting-edge technologies.
  • Strengthen earnings base by maximizing group synergies.
  • Foster young IT talent and realize diverse work styles.
  • Expand sales from Asian local subsidiaries to 15% of total sales.
  • Sell smart administrative solutions utilizing IoT and AI.
  • Improve customer satisfaction and secure long-term contracts through DX promotion support.

Business Segments

Systems for Local Public Entities

Overview
Provides administrative systems to support business efficiency and informatization for local governments.
Competitiveness
Extensive track record tailored to local government needs
Customers
  • Local governments
  • Administrative agencies
  • Public organizations
Products
  • WebRings series
  • LGWAN-ASP Facility Service
  • Comprehensive Administrative Package

System Integration

Overview
Provides development and construction services for IT systems across diverse industries.
Competitiveness
High-quality software development capabilities and operational expertise
Customers
  • Financial institutions
  • Corporations
  • Government agencies
Products
  • System development
  • Network construction
  • Security solutions

IT Outsourcing

Overview
Provides operation outsourcing services to ensure stable operation.
Competitiveness
High-reliability services from two domestic data centers
Customers
  • Financial industry
  • Local governments
  • Large corporations
Products
  • System operation management
  • Data center services
  • Monitoring and maintenance

IT Consulting

Overview
Specialized consulting for corporate transformation support and system optimization.
Competitiveness
Integrated support combining extensive industry knowledge and technical expertise
Customers
  • Local governments
  • Corporations
  • Financial institutions
Products
  • IT strategy formulation support
  • Business improvement consulting
  • System design

Competitive Advantage

Strengths

  • Strong customer base for local governments
  • Extensive track record in system construction and operations
  • Acquisition of numerous international standard certifications
  • Capital and business alliance with Mitsubishi Research Institute
  • High-reliability data center operations
  • Comprehensive outsourcing services
  • Software development expertise specialized in core fields
  • Solid financial base and stable earnings
  • Advanced information security management system
  • Strong trusted relationships with local public entities
  • Ability to meet diverse industry needs
  • Accumulated know-how from long years of market experience
  • Robust customer support
  • Utilization of ISO9001, ISO27001, and other certifications
  • Secured communications network

Competitive Advantages

  • Market superiority with package systems specialized for local public entities
  • Deployment of numerous in-house developed WEB systems for administration
  • Comprehensive service provision including outsourcing
  • Stability from regionally rooted data center operations
  • Enhanced reliability through international certifications in IT security and quality management
  • Strengthened technology development through collaboration with Mitsubishi Research Institute
  • Proposal capabilities backed by extensive transactions with local public entities
  • Track record in developing system operation automation tools
  • Support capabilities integrating IT consulting and implementation
  • Expertise in handling complex systems unique to local governments
  • Efficient sales network centered on Tokyo and Yokohama
  • Business support system with experienced personnel
  • Service diversification through cross-group collaboration
  • High customization capabilities and flexible delivery formats
  • Establishment of sustainable management foundation

Threats

  • Need to keep pace with advancing IT industry and rapid technological innovation
  • Risks from changes in national IT policies and subsidy systems
  • Impact from local government budget cuts and business reviews
  • Decline in demand for existing systems due to cloud migration
  • Intensified competition from major IT companies entering the local government market
  • Sophistication of cyber security threats
  • Challenges in talent acquisition and development affecting technology succession
  • Risk of system failures due to natural disasters
  • Increasing burden of legal compliance for personal information management
  • Need for rapid response to global IT trends
  • Changes in business environment due to novel infectious diseases and social fluctuations
  • Dependency risk from concentrated customer base

Innovations

2024: Promotion of Cloud Migration for Local Governments

Overview
Strengthening cloud service transformation of administrative systems for local governments.
Impact
Achieves cost reduction in system introduction and improved operational efficiency.

2023: Development of AI-Powered Administrative Procedure Automation Technology

Overview
Developed support tools for efficient administrative tasks using machine learning.
Impact
Significantly reduces man-hours and improves services.

2022: Enhancement of Next-Generation Network Security

Overview
Successfully introduced multi-layered defense security systems.
Impact
Reduces information leakage risks and improves reliability.

2021: Construction of DX Promotion Support Platform

Overview
Strengthened support for digital transformation of local governments.
Impact
Supports improvement in quality and efficiency of administrative services.

2020: Opening of Environmentally Friendly Data Center

Overview
Newly established data center applying energy-saving technologies.
Impact
Successfully reduced CO2 emissions and controlled operational costs.

Sustainability

  • Promotion of environmental management through ISO14001 certification
  • Thorough personal information protection through strengthened information security
  • Operation of energy-efficient data centers
  • Implementation of corporate social responsibility (CSR) activities
  • Business development aiming for coexistence with local communities
  • Promotion of employee health and creation of comfortable workplaces
  • Waste reduction and recycling promotion activities
  • Sustainable business improvements through introduction of latest technologies
  • Improvement in IT service quality and customer satisfaction
  • Optimal resource utilization through business efficiency