(476A) Stock Price

Tsuji Hongo IT Consulting operates a platform business that supports corporate operational improvement and digital transformation (DX) initiatives using digital technology. Its core services provide one-stop solutions including business process visualization and improvement, system implementation support, accounting and inheritance-related software, and personal inheritance support tools.

Primary customers include corporations (particularly mid-sized and small businesses), accounting firms, and individual inheritance users. The company expands its customer base through networks with Tsuji Hongo Tax Accountant Corporation and Itochu Corporation. Revenue comes from consulting and implementation support project fees, monthly and usage-based outsourcing fees, and subscription and sales revenue from SaaS and software products.

The business is divided into three domains: Consulting, Technology, and Operations. The Consulting domain provides business process visualization and management accounting support. The Technology domain offers system implementation, e-commerce construction, accounting SaaS, and inheritance tools. The Operations domain provides a wide range of back-office services including bookkeeping, payroll processing, and staffing services.

The company prioritizes profitability, with revenue growth and operating profit expansion as core management objectives. Specifically, it aims to strengthen its revenue portfolio through an integrated business model spanning consulting, software and hardware sales, system development, and business process outsourcing. Beyond project-based income, the company seeks to build stable recurring revenue streams from monthly outsourcing services and cloud-based software subscriptions. Leveraging regulatory tailwinds—including the mandatory electronic record-keeping requirement under the revised Electronic Bookkeeping Law (deadline: December 31, 2023) and the invoice system implementation (October 2023)—the company plans to capture growing customer demand for digital transformation.

Priority investment focuses on expanding customer touchpoints and improving profitability. The company is strengthening partnerships with existing partners while pursuing new alliances and conducting seminars to reach potential customers. Its competitive differentiation lies in offering a one-stop solution: process visualization and improvement consulting, system implementation and operation with execution support, and accounting and inheritance planning tools. Through customer relationship management and thorough needs assessment, the company emphasizes cross-functional service delivery and cross-selling to increase customer lifetime value.

For market expansion and business growth, the company will extend existing services while scaling its digital transformation platform business. Targeting mid-market and small enterprises, accounting firms, and individual inheritance clients, it leverages networks including Tsuji Hongo Tax Accountants and Itochu Corporation to expand its customer base. The company is also expanding operations in outsourcing and staffing services, aiming to build stable monthly recurring revenue and gain market share through new business exploration.

On technology innovation, the company invests in system enhancements for AI and operational efficiency, alongside information management. It has strengthened information security protocols and enhanced confidential and personal data protection through internal training and system upgrades. Additionally, the company prioritizes talent acquisition for technology development and service creation, combining mid-career and new graduate hiring while leveraging business process outsourcing and digital transformation to build a structure capable of delivering high-value services.