Company Overview

2. Company Features

Unirita <3800> operates under the vision of "Shaping Empathy and Creating Uniqueness" with the mission "Create Your Business Value – Creating the Future a Step Ahead with the Power of IT." The company shares the common values of "Uniqueness and Altruism," which are also the origin of its name.

The following three points can be cited as the company's features.

(1) An independent self-developed package Software manufacturer.

The company’s products, which are a core business since its establishment (system operation and mainframe support), excel in enabling smooth operation of systems regardless of constraints such as the scale or manufacturer of Computers. Competing products from manufacturers cannot switch hardware to other manufacturers, thus inhibiting flexible system construction for customers. In contrast, the company's products stand apart from this issue. The value provided in the company's core business is concentrated on how much it can contribute to automating and increasing the efficiency of IT system operations. Recently, it has also begun to play an important role in improving the quality of customer services provided by various companies. The accumulated achievements and know-how it has specialized in this area are reflected in the precision, performance, and detail of the company's products and services. Even during system implementation, where there is often a tendency to rely on agencies, the company’s products have been sold directly, primarily to financial institutions and large enterprises. The frequent adoption of the products during system updates as replacements can be considered evidence of this. Additionally, the "System Administrator's Association" that the company is entrusted with, which is the largest network of system administrators in Japan, shows that the number of individual memberships exceeds 19,000 (with more than 400 supporting companies), indicating that the company is a leading entity in this field. In the future, the company plans to transition from its existing product sales to a service model that combines the use of cloud and system operations (subscription-based Revenue Model) in order to deepen relationships with customers in accordance with changing customer needs.

(2) Invest stable revenue sources from mainframe areas into next growth fields.

A large portion of the company's revenue is generated from "Product Services," where the profit margin of the "Mainframe Business" exceeds 50%, thus supporting the company's performance as a stable revenue source. This is made possible not only by the trust in the company's products and services but also due to the high switching costs for customers (costs incurred when replacing systems). Although the "Mainframe Business" continues to trend downwards due to external environmental influences (such as the progress of open systems), it is expected to maintain its role as a cash cow (source of funds) for some time due to its positioning in benefiting from residual profits and the continuation of solid demand. Thus, redirecting those funds towards investments in the next growth areas (such as cloud play) is considered a significant advantage for the company.

Fujitsu <6702> has expressed its policy to withdraw from the manufacturing and sales of mainframes by 2030. User companies will be required to transition to cloud services or similar options before the maintenance period ends.

(3) Strong in total proposals utilizing services & data management.

Through the transformation of its business structure so far, the company has expanded service provision from the traditional information systems department to business and management departments, contributing not only to the automation and efficiency of IT system operations but also to the expansion of its business area to create corporate value. As the consumption trend shifts from products to experiences, the company's service provision model is also accelerating from a sales-oriented to a service-oriented model (subscription-based) and further emphasizing the importance of data utilization. This has allowed the company to support both 'offensive' and 'defensive' aspects of customer businesses, forming a foundation for proposing DX services aimed at transforming business models. The company has redefined the 'service management' and 'data management' developed in the fields of system operations and data utilization as its core competencies and aims to support corporate business transformation and IT issue resolution leveraging these strengths. In the fiscal year ending March 2022, it reorganized group functions into three segments: 'Product Services,' 'cloud play,' and 'Professional Services,' while building a cross-sectional group ecosystem in 'Professional Services.' Starting with consulting, it has established a one-stop solution that supports the introduction of various services in the product and cloud segments, system integration, and outsourcing.

(Written by Fisco Guest Analyst Ikuo Shibata)