IR NEWS
Business Description
Core Concept Technologies (CCT) is working on two businesses: support for DX and support for staffing of IT personnel.
Support for DX: We provide consulting, technical verification, system development, maintenance and operation, and in-house DX support to operating companies.
Support for staffing of IT personnel: We supply the necessary number of IT human resources when needed to major system integrators and IT companies.
Both businesses charge outsourcing fees on a person-month basis.
Business Objectives
Recognition of Issues in the Domestic System Integration Field
It is difficult for business companies to conduct DX by themselves.
The involvement of many intermediary agencies makes each project uneconomical.
Features of Support for DX
- Work mainly for the manufacturing and construction industries
- Utilize our proprietary “Orizuru” module group for realizing automation of order receipt and placement and smart factories
- Exert technical capabilities centered on shape recognition, 3D graphics and AI
- Provide consulting fitted for manufacturing sites based on our knowledge of not only IT but also manufacturing
- Support all processes up to in-house DX by clients (in contrast to Japanese system integrators that are reluctant to support clients’ in-house DX because maintenance and operation are sources of their revenue)
(Example of Support for DX) meviy by MISUMI
Development of a platform for receiving and placing orders for components
We supported MISUMI in developing a smooth transaction from enabling their clients to upload design data, automatic estimate prices and immediate product shipment.
We will utilize the shape data processing technology nurtured through the development of “Orizuru” for AI-based automatic price estimation and digital technology-based manufacturing.
Features of Support for Staffing of IT Personnel
- Have a business partner network of small and medium IT companies.
- Immediately search appropriate personnel by using the “Ohgi” database of our business partners’ engineers (approximately 100,000 people), and quickly make proposals to client companies.
Business Model
“Customer satisfaction” and “Continuing transactions,” as show in the bottom central part of the chart, are where our operations start as well as end, and are the driving forces of our business growth. As we expand transactions with existing clients and acquire new clients, the number of clients and projects increase. This facilitates an increase in the number of partner companies and their engineers to which we outsource, allowing us to build a scalable operation system. As such, a virtuous circle is created.
Meanwhile, profits generated by business growth should enable us to expand the functionality of the two products – “Orizuru” and “Ohgi” – leading to greater customer satisfaction.
These two loops, which promote customer satisfaction, are geared to drive the growth of the Company.
Our Strengths
- In support for DX, we can receive orders at a high unit price as a prime contractor from the manufacturing and construction industries by appealing our technical capabilities. In support for staffing of IT personnel, we can receive large orders for projects stably in various industries as a secondary contractor from major system integrators by highlighting our IT personnel staffing capabilities.
- Both businesses can be scaled by staffing personnel from our business partners through “Ohgi.”
- The above strengths allow us to demonstrate both high growth potential and management stability through diversification of our client portfolio by industry and staff outsourcing (so as to turn fixed costs of personnel expenses into variable costs).
Main Business Partners
(Support for DX) Focused on manufacturing and construction industries
EARTHBRAIN Ltd., AGC Inc., Obayashi Corporation, Takenaka Corporation, TORAY ENGINEERING Co., Ltd., TOBISHIMA CORPORATION, Fine Sinter Co., Ltd., MISUMI Group Inc.
(Support for staffing of IT personnel) Focused on major system integrators
IIJ Engineering Inc., SCSK Corporation, SMS Co., Ltd., Simplex Co., Ltd., Information Services International-Dentsu, Ltd., NS Solutions Corporation, Nomura Research Institute, Ltd., WingArc1st Inc., Yayoi Co., Ltd.
Growth Strategy
We will sustain high growth at a rate of 30% or more through the following three endeavors.
Support for DX
We will work to expand our sales for manufacturing and construction industries, as well as expand our client portfolio by industry through additionally developing “Orizuru” for wider application (with the next targets set at logistics and warehousing industry).
Support for staffing of IT personnel
We will work to expand transactions with major system integrators, while at the same time extending our business partner network to areas beyond Tokyo to expand the “Ohgi” database.
M&A
There are two targets for M&A. The first is small and medium IT companies for the purpose of obtaining human resources and the second is IT companies with expertise and skills required for the expansion of the client portfolio by industry in support for DX.
IR Inquiries
Please contact ir★cct-inc.co.jp for IR inquiries. (Replace the ★ with @)
