■ Future prospects
2. About the medium-term plan
Cyber Com <3852> launched the three-year medium-term plan “Cyber Com Vision 2023-Continue to increase sales and profits-” in FY12/2021. Sustainable by working on three basic policies: 1) pursuit of satisfaction, 2) conversion into a service business and 3) expansion through strategic investments (investment in business expansion, investment in human resources, investment in the system). In addition, this time we have newly formulated an environmental management policy. Amid demand for SDGs and work style reforms, the company has a policy of contributing to solving various social issues through its business activities under the theme of “supporting the environment” and “living” with it. ICT.
Regarding the external environment, as working styles change due to the spread of telework due to the corona disaster and the importance of information security measures increases, the commercialization of 5G , AI, RPA (Robotic Process Automation), AR / Various markets have been launched by the practical application of VR technology. As companies’ efforts towards DX (digital transformation) become more active and the demand for software development supporting these technologies is expected to increase, it can be said that the company has great opportunities for growth.
It recently announced that it is targeting sales of 17,200 million yen and operating profit of 1,060 million yen for the fiscal year ending December 2023. The plan is making steady progress even in the Corona disaster, and sales are up by 5.5% and operating income is up by 6.0% compared to forecasts for the 2012/2022 financial year. We consider it an achievable level.
As a future growth strategy and priority actions, it is our policy to promote the following initiatives.
(1) Software development activity
With the theme of “change and creation” as the software development business growth strategy, we will aim for continued sales growth by strengthening DX responsiveness, expanding hotspot, and expanding direct orders.
a) Development of communication software
In the development of communication software, future strategies include strengthening and training engineers to meet the growing demand for local 5G / 5G, super-broadband mobile IP control, virtualization of communication infrastructure and the expansion of IoT technology fields. This will be the theme. Especially for local 5G/5G, strong sales are expected at the moment, as development projects for functional improvement will continue as the service area expands, and development projects for new services using local 5G should increase. It’s possible the company will enter a transition period by 2030 when 6G is expected to be commercialized, but the company has plenty of room to play an active role in 6G development projects. In 6G, NTT and NEC Group plan to promote the joint development of base stations, etc. with the aim of expanding globally, and the scale of the development project is expected to be greater than 5G.
b) Control software development
In the development of control software, we will focus on the challenge of controlling robots using AI technology and expanding into the field of mobility, which requires advanced technologies such as CASE and MaaS, which should develop in the future among embedded systems. .. In addition, in the automotive field, high-speed wireless communication technology is necessary to realize the autonomous driving technology, so we see it as an opportunity to increase the orders of the company, which has capabilities of technological development in this field.
c) Enterprise software development
In enterprise software development, in addition to increasing command capacity by increasing cloud engineers (AWS, Microsoft Azure, GCP) and AI engineers (image recognition, prediction) / RPA, advanced DX-enabled technology based on IoT technology Aim for further growth by working on digital transformation and building capacity to respond to smart devices. In particular, recruiting and training engineers to respond to cloud and IoT-related solutions, where demand is high, is expected to hold the key to growth. It also positions the public sector, which is not easily affected by economic fluctuations, as a priority area.
(2) Service company
With the theme of “establishing new services” as the growth strategy for the service industry, we will develop comprehensive ICT solution services in “Cyber Solution Plus” series. In addition, the policy is to establish one-stop service for IS services and provide internal products from an in-depth customer point of view.
a) IS Service
In the area of building IS service servers/networks, we will strengthen our ability to respond to the diversification of cloud infrastructures (AWS, Microsoft Azure, virtualization, etc.). In addition, in order to meet the various needs of customers, we will strive to advance cybersecurity technology and network virtualization technology, and increase the number of construction engineers to increase sales.
In the area of operation and maintenance, we will increase the number of operations design engineers and promote efficiency by using RPA. In the area of assessment and verification services, we will strive to support next-generation communication standards, including protocols (5G, IOWN*) and improve efficiency by using supporting tools test automation.
* IOWN (Innovative Optical and Wireless Network) is a next-generation information and communication network advocated by NTT in 2019. It is an “all-photonic network” that not only sheds light on networks but also data processing. terminals. It consists of three parts: “Digital Twin Computing” which enables advanced and real-time interaction between humans, and “Cognitive Foundation” which effectively deploys various ICT resources, including these. The specifications will be finalized around 2024, with the aim of putting it into practice around 2030.
b) Homemade product
As for its own products, we will focus on expanding the sales of “Cyber Smart series”, “Raku Raku Secure Connect”, “Cyber Position Navi” and “Cyber Position Navi Plus”. As a sales strategy, in addition to strengthening online sales, it plans to strengthen solution proposals by expanding the “Cyber Solution Plus” series menu and actively promote alliances. On the other hand, on the development side, the policy is to carry out development from the customer’s point of view, such as flexible customization according to customer needs, expansion of functions and improvement of convenience, and product cooperation.
(3) Priority measures (use of diversified human resources)
Based on the belief that human resources are important to achieve sustainable growth, the policy is to promote various initiatives regarding investment in human resources. As mentioned above, we expect to hire 130 new graduates and 65 mid-career hires in the fiscal year ending December 2022, which is the highest on record, and we will continue to hire at the same rate. from the fiscal year ending in December 2023. It is planned. We are also working to expand our ability to receive orders by strengthening relationships with outsourced partners and developing new partners, and we are making steady progress.
We will also focus on training specialists to respond to cloud migration projects where demand is high. The “Future Group” was launched in January 2022 as a specialized organization, aiming to increase the number of certified people such as AWS and Microsoft Azure. In addition, we plan to strengthen education and training by rank to train leaders and young employees in basic skills for working adults.
In addition, on improving work-life balance by promoting work style reforms, we are working on reducing overtime, promoting the acquisition of paid leave, strengthening measures support for children’s education and improvement of the fixed-year re-employment system. In addition, as measures to improve employee engagement, the policy is to activate communication through online conferences and roundtables, use career counselors to support the career development of young employees and strengthen follow-up training.
(Written by Yuzuru Sato, FISCO Guest Analyst)
Provided by: FISCO