In order for Japanese companies to grow beyond the declining birthrate, aging population, and the Corona disaster, it is no longer enough to simply aim to improve business efficiency through IT investments. This is requiring companies to make decisive business decisions, including the realization of diverse ways of working and the creation of new business models. At the same time, in order to continue sustainable development while addressing global issues such as global warming and economic disparity, corporate managers must communicate closely not only with shareholders but also with customers, employees, and local communities, and must give due consideration to the balance among economy, society, and environment. As a result, the ability to organize and analyze information is being tested more than ever before, and there is an urgent need to strengthen compliance and risk management systems and improve management transparency. These changes in the environment have made the role of the Avant Group's business, which contributes to the resolution of client companies' issues through "visualization," "usability," and "delegation" of management information, even more important. For the time being, while pursuing growth opportunities in Japan, the Avant Group needs to grow both in terms of business expansion and improvement of capital efficiency to establish a position as a company that can compete in the global market, which is the goal of the medium- to long-term management strategy, and to maximize the Group's corporate value. Under BE GLOBAL 2023, our mid-term management plan announced in September 2018, we aim to "maximize corporate value" throughout the five-year period from the fiscal year ending June 30, 2019 to the fiscal year ending June 30, 2023.
- Strategies for the 10-year vision of BE GLOBAL based on the management philosophy "Creation of a 100-year company".
- The three axes of business growth, employee growth, and enhancement of corporate value are the foundation of our challenge.
- Aiming to create de facto beyond the expansion of the environment to make the issue a personal matter and the establishment of a software transcription process.
To BE a Sustainable GLOBAL Software Company
Under our medium-term management plan "BE GLOBAL 2023," we will strive to maximize our corporate value through three axes
| Business Results Pursuit of sales growth and high profitability |
We will seize market opportunities to expand the number of customers by cultivating new customers in each business segment, develop and sell new products, and, if necessary, propose and sell products using the combined strengths of the Avant Group to solve client companies' issues, transcending the boundaries of individual operating companies in pursuit of further sales growth. At the same time, we will strive for higher profitability by improving product quality, productivity, and efficiency. In addition, since it is extremely important for the medium- to long-term growth of our group to strengthen the system for product development that accurately reflects the needs of client companies and changes in the surrounding environment, we will continue to make the necessary development investments from a medium- to long-term perspective, rather than focusing solely on short-term improvements in profitability.
| Investment Effects Growth through M&A |
The main focus of this plan is to maximize the value of existing businesses. In addition to growth through value creation in existing businesses, we aim to further accelerate this growth through M&A with companies that match the growth areas of our group. We view this M&A not only as a means to achieve our sales scale goals, but also as a means to facilitate a shift in our business model. Whenever an M&A opportunity arises, we will carefully assess whether or not it will contribute to the enhancement of our group's corporate value and actively pursue it, while taking care not to make it our objective to carry out M&A.
| Market Assessment Business Model Transformation |
In order to increase its corporate value, the Avant Group is focusing on stable and continuous earnings, and has set a goal in its medium-term management plan to increase the ratio of stock sales (the percentage of ongoing sales, such as maintenance fees, to total sales). To achieve this, we will promote the transformation of our business model. The stock sales ratio is mainly composed of maintenance services after the introduction of package software in the Group Governance business and outsourcing services such as consolidated closing of accounts and consolidated tax payment in the Outsourcing business. For other services, the business model is centered on contracts in which the client is billed on a "man-hours x unit price" basis, which requires an increase in personnel in order to expand the scale of sales. By shifting this to value-added based contracts provided to customers, we believe we can increase profitability and efficiency while expanding the scale of sales. In the future, in addition to sales of conventional products, we will develop and sell cloud products for which customers pay a fee for the right to use the product for a certain period of time. In the outsourcing business, we will develop to expand the scale of sales, as the ratio of stock sales is already high. We are aware of the difficulties involved in achieving this goal, including the development of new products and services, but we will take on the challenge as a united front.
