■Business Overview
1. Service Overview
ODK Solutions ＜3839＞ is a single segment of information processing outsourcing services, so sales categories by business are system operation, system development and maintenance, and machine sales. The sales composition ratio for the fiscal year ending 2024/3 is 94.4% for system operation, 4.6% for system development and maintenance, and 1.0% for machine sales, and it is characterized by a long-term and stable business model centered on system operation.
The division by business (service) is education business (education-related services), securities/hospitality business (finance-related services), general business (medical-related services, customer support related services, human resource development support related services), and other businesses (subsidiaries, etc.). The sales composition ratio by business for the fiscal year ending 2024/3 is 62.5% for education business, 18.9% for securities business, 12.6% for general business, and 6.0% for other business.
2. Education business (education-related services)
As for educational work, all operations related to entrance examinations (support such as entrance examination public relations, web/mail application, examination ticket delivery, entrance examination implementation, grade processing, pass/fail judgment/presentation, pre-admission preparation, admission procedures, university life support after enrollment, preparation of entrance examination statistical materials, etc.) are collectively outsourced. Prospective students use the service by entrusting the work from a school corporation (4-year university, etc.). It has accumulated know-how by providing entrance examination-related systems as an entrance examination center for school corporations since the 1960s, and has the advantage of being consistently in charge of everything from entrance examination public relations support to admission procedure support.
The main service is Japan's first university entrance exam portal site “UCARO (R),” which started in 2016. By crossing barriers between universities and consolidating web system services related to entrance examinations, the business is being developed as a common platform for university entrance exams that connects universities and students. It is a service introduced to register at the time of application on the university's official website, etc., and there is no need for examinees to pay registration fees or usage fees when using it. By using this service, each process of entrance examinations can be standardized between universities, reducing the load on examinees and improving convenience, and improving university work efficiency and cost reduction. In the past, it was common to process work related to entrance examinations on campus, but the outsourcing movement is becoming active against the backdrop of DX.
The number of contract schools on the entrance exam portal site “UCARO (R)” (for 4-year universities) as of the end of the 2024/3 term decreased by 1 school compared to the end of the 2023/3 term to 110 schools. There was a decrease of 1 school due to the cancellation of unprofitable universities, but there are 807 Japanese universities (excluding junior colleges). Of these (as of 2022), more than 10%, mainly major universities with a large number of students, use the company's “UCARO (R).” Also, the number of processing cases (total number of applicant data processing cases) in university entrance examination outsourcing work for the 2024/3 fiscal year increased 6.5% from the 2023/3 fiscal year to 1,051 million people. It has generally remained at 1 million people, and it is at a level that exceeds the number of applicants for the Common Test for University Admissions (Center Examination for University Admissions before the 2020/3 term). Private companies are at the top of the market share in the number of processed cases.
Furthermore, development of new services is also being promoted, with “UCARO (R)” as the core.
In 2023/4, we began providing a beta version of the Web 3.0 service “Apdemy (R),” which “valorizes individual experiences.” Support personal growth by visualizing everyday experiences and learning with NFTs. In 2023/10, a demonstration experiment on career development support using experiential certification NFTs was carried out in a special program “Table Unstable - Ochiai Yoichi Summer School 2023 (Iwate Town Edition)” by media artist Ochiai Yoichi for social implementation of “Apdemy (R).” In 2023/12, a demonstration experiment (2023/12 to 2024/3) of an agent system utilizing experiential NFTs and generative AI began in collaboration with the Dentsu Group ＜4324＞, TOPPAN Holdings ＜7911＞, Sony Corporation, etc. for the development of new functions for “Apdemy (R).” Furthermore, in 2024/4, Table Unstable DAO LLC, which is Japan's first joint company type DAO, was established together with Mr. Ochiai Yoichi and his colleagues based on partial revisions to the Gold Commerce Law Ordinance (commonly known as the DAO Law).
As a service for universities, the provision of the evaluation input/management system “iISCORE-U (eScore U)” began in 2022/7. Since work related to scoring interviews, essays, group discussions, preliminary assignments, etc. in university entrance examinations can be centrally managed on the web, it is possible to reduce administrative man-hours for entrance examinations at universities. Also, the entrance examination solution service, which is jointly operated with Gakken Co., Ltd., provides entrance exam sample question preparation, entrance examination question review, supervision/copyright management agency, etc.
3. Securities and investment business (finance-related services)
Since its establishment, the securities and hofuri business utilizes know-how from securities back office operations and securities agency operations accumulated over about half a century by handling system development/operation of Osaka Securities Finance (currently Japan Securities Finance) and Daikou Securities Business, and provides services related to investor information management, order agreement management, transaction result management, and settlement operations for securities companies and financial institutions. The brand was revamped in 2023/3, and a new “SAKIX (Sakigake)” series was created.
The main services are the front-back system “WITH-X (R)” (with cross) for securities companies (former name: comprehensive securities system “SENS21”), the connection system “COMBI-X (R) (Combi-Cross)” between securities companies/financial institutions and securities depository and transfer organizations, and the automatic extraction and analysis system “FOR-X (R) (Forcross)” (Fork Cross)” (former name: Unfair Trade Monitoring System) “Watch 21”) is an investment trust web transaction/management system “KIZUNA-X (R) (Kizuna Cross)” for financial product intermediaries (IFA).
The My Number related service provides an Individual Number management system jointly developed with SBI Business Solutions, and the brand was revamped in 2022/11 to become “mynaone (R)” (Mynaone). It has high customizability according to user needs, and is characterized by a one-stop service that can be introduced at a reduced cost. In 2023/5, collaboration began with TRUSTDOCK Co., Ltd., which has introduced eKYC (an abbreviation of Electronic Know Your Customer, an identity verification method that can only be completed online) for 2 consecutive years. Also, in 2024/4, in response to the increase in the use of My Number, the “iTrust Identity Verification Service” of Cybertrust ＜4498＞ was adopted and the provision of “SAKIX public personal authentication services” began.
Note, as of the end of the 2024/3 fiscal year, there are 5 “WITH-X (R)” companies, 22 “COMBI-X (R)” companies, 1 “FOR-X (R)” company, 2 “KIZUNA-X (R)” companies, 30 “MYNAONE (R)” companies, and 11 peripheral system companies.
(Author: FISCO Visiting Analyst Masashi Mizuta Exhibition)