FAQ (Search categories)
What is the purpose of the capital and business alliance with Bitkey Inc.?
With this capital and business alliance, SHIFT provides the “DAAE” service. Through our DAAE services, we will contribute to the establishment of a sound service development system that can also respond to rapid growth by providing excellent human resources, the source of SHIFT’s high growth, and knowledge on the “creating services that sell” that we have cultivated in the process of growth. This is precisely why we will support our rapid development system while ensuring the quality that we can provide because of our SHIFT, thereby contributing to the sophistication of the value that bitkey provides to our customers.
SHIFT will also work with bitkey, which is expected to grow significantly in the future, in order to acquire data, knowledge, and track records, and work to develop new customers, strengthen relationships with existing customers, and thereby expand transactions. We expect that our track record of providing DAAE to bitkey will also contribute to the promotion of DX for a wide range of customers in the future.
Please see the link for details.
What is the purpose of the capital and business alliancee that SHIFT has conducted recently?
Through the capital and business alliances through minority investments, we aim to enter markets that are generally large in size but are considered difficult to enter. Three companies that SHIFT have announced to form capital and business alliances in FY08/21 are developing their businesses in the retail, restaurant, and real estate industries, respectively.
Please see the link for details.
How much will the development project occupy the net sales in the future?
We do not expect the sales ratio of each services significantly in the near future.
However, if the development process is required for a project as a result of our commitment to “creating services that sell,” there is a possibility that the ratio of development projects will increase.
How does SHIFT wrap up the sales strategies in FY08/21?
In FY08/21, under the supervision of Mr. Sasaki, Director and Vice President, we have been able to improve the quality of sales and maximize productivity. Specifically, we have increased the number of sales member, hired personnel who had been serving as sales department managers at major domestic and foreign Sier/ consulting companies, and created an evaluation system that surpasses that of other companies.
In the evaluation system, we established the cleaer criteria that weigh more on developing new customers, deploying existing customers horizontally, and expanding existing customers, and succeeded in creating an environment that is more comfortable to work than major domestic Sier and foreign-affiliated companies.
How do you define strategy cost and operating cost and what kind of items are classified into each cost?
SHIFT defines expenses that are to be used for further sales growth as “strategic cost.” It includes hiring expenses and M&A-related expenses.
On the other hand, expensed to maintain business activities are called as “operation costs.” It includes personnel expenses for back-office personnel and facilities expenses to maintain security/infrastructure functions.
What is the guideline of FY08/22?
The guideline is prepared based on the policy as usual.
The breakdown is as follows.
Parent sales: ¥38 billion to ¥40 billion (FY08/21 results: ¥27.6 billion)
Group-company sales: ¥28 billion to ¥29 billion (FY08/21 results: ¥15.4 billion)
M&A: Not included in the guideline (FY08/21 results: ¥6.8 billion)
Consolidated offset:-¥3 billion to-¥6 billion (FY08/21 results:-¥3.8 billion)
How much will SHIFT increase the cost related to HR department and what are their roles?
Assuming that the forecast as of October 2021 will continue, we expect the number of personnel to grow around 200 when we will have achieved net sales of ¥100 billion.
Why do other existing System Integrators not develop engineer matching platform business?
First of all, as a precondition, the IT-market is overdemand, and there are some projects that cannot be implemented by the present supply ability of SHIFT. Such projects are ordered from user companies and prime vendors to subcontractor vendors in the so-called “third-tier” and “fourth-tier” under a “multi-subcontractor structure.” We believe that these subcontractor vendors are the real implementers of system development.
Existing prime vendors do not enter the engineer platform business because it is an innovation dilemma. Prime vendors tend to take large-scale deals, but not small-scale deals due to their low cost performance. In addition, since their business model generates sales through man-hours of engineers, they are aiming to increase the size of projects. Those large-scaled projects are ordered to subcontractor vendors in a “multi-subcontractor structure,” which leads to one of the factors behind the multiple subcontractor structure.
The engineer matching platform operated by SHIFT promotes the disrupting multiple subcontracting structures through its businesses. SHIFT has a mechanism and track record to flexibly assign engineers even for small-scale testing projects. This mechanism enabled us to receive orders regardless of project size, and we were able to enter the engineer matching platform by making use of this system. The engineer matching platform allows us to match projects with engineers with the skills required for each project, regardless of existing commercial distribution. This will facilitate the disruption of multiple subcontracting structures, making it difficult for existing prime vendors to participate in the engineer matching platform business.
How does SHIFT anticipate it will receive subsidy income in FY08/22?
It is expected to be less than the amount received in FY08/21.
Employment adjustment subsidies are provided for the number of man hours that the employees of SHIFT Group were not working.
As in FY08/22, we expects to maintain the same level of utilization ratio as pre-COVID-19, SHIFT estimates the amount of employment-adjusted subsidies will decline.