■Company Overview

2. Company Features

Under the vision of “to the Unilita Group that shapes empathy and creates uniqueness,” Unilita ＜3800＞ has set “Create Your Business Value -Creating a Future One Step Ahead with the Power of IT-” as its mission, and has “uniqueness and altruism,” which is also the origin of the company name, as common values.

The following 3 points can be cited as features of the company.

(1) Independent in-house developed package software manufacturers

The company's products, which have been its main business since its establishment (for system operation and mainframes), have an advantage in that they enable smooth operation of systems without being restricted by the scale or manufacturer of computers. In manufacturer products that compete with the company's products, only the hardware part cannot be switched to another manufacturer, so it is a factor that hinders flexible system construction for customers, but the company's products stand apart from that. Furthermore, the value provided in the company's main business is aggregated to how much it can contribute to the automation and efficiency of IT system operations, but recently it has also played an important role in improving the quality of customer service provided by each company, and the results and know-how accumulated specifically in that field are reflected in the detail and high performance of the company's products and services, and the accuracy of proposals. Even when introducing the system, there are many trends of leaving it up to agents, and the company's products have been offered through direct sales, mainly by financial institutions and major companies. The fact that there are many cases where it is adopted as a replacement when the system is updated can be said to be proof of this. In addition, the “System Administrators Association” (Japan's largest network of system administrators), to which the company is outsourced, has over 19,000 individual members (number of supporting companies is over 400 companies), indicating that the company is leading this field. Going forward, in line with changes in customer needs, the policy is to make relationships with customers even closer by shifting from delivery methods through product sales until now to a service model (continuous billing type profit model) that combines cloud utilization and system operation.

(2) Invest stable revenue streams for mainframes into the next growth area

Most of the company's revenue is earned through “product services,” and among them, the profit margin of the “mainframe business” is at a level of over 50%, which has supported the company's performance as a stable source of revenue. This is possible because there is trust in the company's products and services, but it is thought that it is also due to high customer switching costs (costs generated by replacing systems). Although the “mainframe business” continues to shrink due to the influence of the external environment (progress in opening-up, etc.) *, it is expected that it will play the role of cash cow (funding source) for a while due to positioning that enjoys survivors' profits and continued solid demand. Therefore, being able to allocate the funds to investment in the next growth field (cloud services, etc.) is considered a major advantage for the company.

* Furthermore, Fujitsu (6702) announced a policy to withdraw from manufacturing and selling mainframes in 2030. User companies will be required to migrate to the cloud or the like by the end of the maintenance period.

(3) Strengths in total proposals utilizing service and data management

Through business structural changes up until now, service provision has been expanded from conventional information systems divisions to business divisions and management divisions, and in addition to contributing to automation and efficiency improvement of IT system operations, we have been working to expand business areas to fields that create corporate value. As consumption trends change from goods to things, the flow of corporate service provision models from sales type to service type (fixed usage fee format) has accelerated, and since the importance of data utilization has further increased, the fact that DX services for business model transformation can be proposed in total due to a system that can support both “attack” and “defense” of customer business also forms the company's advantage. The company has redefined “service management” and “data management,” which have been cultivated in the area of system operation and data utilization, as core competencies, and has set a direction to support business transformation and IT issue resolution of companies that make use of them. In the fiscal year ending 2022/3, group functions were reorganized into 3 segments: “product services,” “cloud services,” and “professional services,” and a cross-cutting group ecosystem was built in “professional services.” Starting from consulting, it is a system that provides one-stop solutions from introduction support for products and various services in the cloud segment, system integration, and outsourcing.

(Written by FISCO Visiting Analyst Ikuo Shibata)