■SIG Group ＜4386＞ Business Overview
3. Infrastructure and security service business
The infrastructure security service business centrally provides IT infrastructure solutions and security services. IT infrastructure solutions are not limited to equipment configurations such as various servers and storage that manage information, but also provide services that emphasize reliability and expandability based on many years of experience and know-how, from design/construction of networks, databases, backups, etc., to implementation support/operation management. Security services provide services ranging from sales, design, construction, maintenance, and operation of security products, such as US SecuGen products and vulnerability countermeasures tools used in security hole searches and penetration tests to test intrusion/attacks.
We provide solutions for a wide range of industries and business categories
4. Features and strengths
The company's customers are mainly major companies, and in system development, they have many track records of introducing core system systems to local governments, electric power companies, etc., and has accumulated diverse introduction know-how over 30 years since its establishment. Our strength is that we can provide solutions to a wide range of industries and business categories, including DX support, based on technology and achievements that meet customer system needs. Also, it has been certified as an “AWS Advanced Tier Service Partner” by the APN provided by AWS in December 2021. Currently, many AWS official certification holders are also enrolled, and their strength is that they can provide not only new AWS system construction, but also transition from on-premises to AWS, cost optimization and security enhancements of existing AWS systems in one stop. Furthermore, in addition to the public sector such as government offices, local governments, general incorporated associations, universities, etc., the main sales destinations include Hitachi, Ltd. ＜6501＞.
Thoroughly manage project progress and quality
5. Risk Factors and Profit Characteristics and Issues and Countermeasures
Common risk factors in the system development and information service industry include suppression of corporate IT/DX investment due to economic fluctuations, etc., intensification of market competition, occurrence of unprofitable projects and quality problems, delays in responding to technological innovation, securing and developing human resources, relationships with partner companies and sales partners, and legal regulations. Also, as a general seasonal factor relating to earnings, it is easy to concentrate on closing projects in March, which is the end of many fiscal years of government offices, local governments, and general companies that are customers, so there is a trend of high sales and operating income for the fiscal year ending January to 3 (fourth quarter in the case of a company) by quarter.
As for corporate IT/DX investment, even if temporary suppression or stagnation occurs, it is expected that it will remain at a high level over the medium to long term, and there is little concern about deterioration in the business environment for the company. Regarding unprofitable projects and the occurrence of quality defects, the company thoroughly analyzes customer requirements before receiving orders, and accepts orders after internal procedures using estimate settlement documents. After receiving an order, progress and quality control are thoroughly carried out for each development process to prevent individual projects from becoming unprofitable or causing problems.
Regarding response to technological innovation, while collaborating with venture companies and IT companies that have capital and business alliances, they are working on constructing cloud environments using IT technology, providing network security, and developing service applications. We are also focusing on the development of cooperative services using Individual Number Cards and DX support for local governments.
(Author: FISCO Visiting Analyst Masashi Mizuta Exhibition)
