1. Management Features

Two Pillars

     The company's management has two pillars. One is the development of pharmaceutical information systems commissioned by a pharmaceutical company, to perform data management, data aggregation and statistical analysis on drug efficacy and safety on collected data related to clinical trials for new drug development and post-marketing surveys (surveys on effects and side effects that were not known at the clinical trial stage). Among pharmaceuticals, the company specializes in orphan drugs. Orphan drugs (OD) are pharmaceuticals for diseases that are said to be intractable, for which there are few patients and for which no treatment has been established, and it is difficult to make a profit even if they are developed. However, considering the importance of individual lives, development must be carried out, and the government supports OD development through subsidies and approval reviews that take precedence over other drugs. The company is part of this important drug development. Data collection for the development of mass-produced drugs is massive and there is an aspect that small and medium-sized companies like the company cannot handle, however, there is also the merit that the burden is waved by the development assistance of the government, and they take pride in being an important business that someone must do.

     Another pillar is the development of electric power information systems, and the company is commissioned by an electric power company to develop the program for power flow calculations used for power system stabilization and for failure calculation. They also handle a wide range of tasks such as creating user interfaces and building databases that accompany them. (Power system is a system that integrates power generation, transformation, transmission, and distribution to supply power to power receiving facilities of consumers. Power flow calculation is to calculate the power flow flowing through the transmission line, etc., the voltage and phase of each part, when the power output of a generator in a power system and the power consumption of a load are given. Failure calculations include calculation of failure rates and intervals between failures.）Both the medical information system and the electric power information system have one customer. This is because drug manufacturers and electric power companies are wary of technology leaks and do not want to outsource development to system development companies that do business with multiple companies. In addition, there is a human resource limit at the company to deal with multiple companies.  

     The customer presents an annual consignment plan, based on which the company decides on a monthly staffing plan and estimates monthly costs. Pricing is determined by the customer, but the company does not engage in stiff price competition because it does not make bids. Orders and earnings are stable, but if the company is dependent only on a specific company, its development as a company will be limited. Therefore, the company embarked on the development of new fields

New field development

      The Covid-19 crisis has created new business possibilities. One of them is in the field of sensing technology, where programs are put into small computers and connected to sensors to realize various functions. For example, as a countermeasure against Covid-19, a system that measures the distance to people, detects their temperature (body temperature), compares it with a registered face image, and if it is OK, activates a motor to automatically open the door. Another example is a system that detects noise and carbon dioxide gas with a sensor and activates a motor so that a restaurant can automatically ventilate when a certain number of people enter. As it is a small device, it can be installed in various places. Sales staff ask customers about their problems, and the company develops according to customers' needs.

      Also, in the electric power information field, the company advanced into the development of supply and demand management systems for PPS (Power Producer and Supplier), which was born from the liberalization of the electric power retail market. Demand and supply of electricity must always match (“same amount at the same time”), and any imbalance between supply and demand will lead to power outages. Electricity demand is affected by the weather and changes from moment to moment. The amount of power generation and power purchases must be adjusted accordingly. It is the supply and demand management system that achieves the " same amount at the same time" of electric power in this way. The company has only one RPS client, but they believe that work for PPS, which supports the liberalization of the electricity retail market, is unavoidable.

      About 50% of the company's sales are from electric power information system development, 40% from medical information system, and 10% from the sensing technology field. With the traditional electric power and pharmaceutical fields as a stable foundation for management, the company takes a policy to develop new customers with sensing technology and PPS business, and aims for development with a high degree of independence.

      Sales in the fiscal year ending February 2021 during the Covid-19 pandemic were just over 100 million yen. Sales in the pharmaceutical sector declined, as sales officers were banned from entering the market. However, in 2022, it reached 120 million yen, and in 2023, it reached 140 million yen. Behind such achievements are management principles that the company advocates, the philosophy-based management that values independence and growth of employees.

2. Management of Labor

Creation of Management Philosophy

      Mr. Suzuki Katsuhiko (hereafter Mr. Suzuki) was in charge of developing power flow analysis programs for power companies at Toshiba (Fuchu Factory), but he was interested in corporate management. So, he asked the former president of the company, who also serving for Toshiba, to join the company at the age of 30, and became President at the age of 40 (2007). There is no blood relationship with the first president. Then he studied management at a private business school and created a management philosophy. However, at some point, sales started to slump, and three employees fell ill with depression. He was overwhelmed with fear that the company would go bankrupt. In 2021, he joined the Kanagawa Prefecture SME Association, and in 2014, he joined the Management Guidelines Creation Committee. He had already created a management philosophy, so he thought it would be good to learn how to put it into practice. But when asked what he was in business for, he couldn't answer. It was because the concept of "people" as an employee was missing. Therefore, as a "corporate purpose", he created a management philosophy where he pledged not only to contribute to customers by "illuminating all life with hope and contributing to the creation of bonds of trust" but also to pursue the joy of employees by "sharing moments of happiness and joy in pursuit of our radiant selves."

      However, the idea did not spread immediately. According to Mr. Suzuki, in March 2015 he held a Management Guidelines presentation meeting, including the Management Guidelines, but there was no sense of unity with the employees, and the atmosphere was heavy because the unnecessary work of the Guideline presentation would continue every year from now on. For three years, he dutifully practiced what he wrote in his Management Guidelines, however, nothing had changed in the company, and he continued to practice the Management Guidelines by himself, in a state of "whistling, but not dancing." However, through the actions of the president, the philosophy gradually permeated. Mr. Suzuki points, as proof, to the resignation of three employees saying "we can't make a living with our philosophy alone!" The employees were divided into those who accepted the penetration of the philosophy and those who did not. This was something he had been told by a senior member of the Doyukai, so he was ready for it. Not everything goes smoothly. However, the division of employees was repaired by the increase in new graduates.

Recruitment of New Graduates

      Following the management philosophy, he created a “10-year vision,” but the number of human resources did not increase according to the vision. The company only recruited mid-career personnel, but due to the shortage of IT personnel, mid-career recruitment made it difficult to acquire talented personnel. For this reason, some employees said that they should hire new graduates and train them from scratch, and that the president would not have to work, so go ahead and recruit new graduates. Therefore, the company participated in the joint recruitment of the Doyukai. While rehearsing his 1-minute PR at a company information session with employees, he was criticized, corrected his behavior, and told how to make a smile, but it was a lot of fun for him to do it with employees. As the recruitment process continued, the employees began to think hard about how to attract job-hunting students to the company, which was not well known. They added Youtube videos to the HP product page, launched SNS, created a mentor system in preparation for joining the company, and thought about the recruitment flow when applying. And by holding a company information session based on Management Guidelines, they mastered the technique of grabbing the hearts of job hunters at once, as a result, in 2017, the first year of participation, two new graduates were recruited.

      They said "technique", but what did they do? First, he explains what he is looking for: people who love people, people who don't want their dreams to end with dreams, and people who want to learn and grow on their own. Next, he asks the students what they think the phrase "pursuing a shining self" written in the philosophy means. The students cannot answer, but as the discussion progresses, they realize that it is referring to employees. Employees explain that they can't make customers happy unless they themselves are happy, which is why we have this philosophy. They explain that it is the customer who "lights up all life with hope". The development of medical information system is targeting orphan drugs that major pharmaceutical companies do not want to do as it is not profitable, however, "Is there weight or size in life? That's not true, is it? That's why, we're doing it.”

      They also emphasize that the company does not focus solely on profit, but on how to use profit to benefit society. It is not just the "technique" of the story, but the attitude of pursuing sociality in this business must have captured the hearts of students. 

In order to eliminate worries after joining the company, they clearly explain that the employee education system is complete and that human resource development is the most important thing for them. 

      New graduates have joined the company every year since 2017, and no one has quit. The people who quit were former employees, so people were replaced, and now about 70% of the employees are new graduates, and the average age of employees has rejuvenated to 33 years old. Most new graduates are liberal arts graduates, but this was the result of looking at the above three requirements for human resources they are looking for. All of the new graduates who joined the company were "captured" by Mr. Suzuki's explanation of the company's purpose at the company information session, and as the number of new graduates increased, the philosophy spread throughout the company.

      Regarding hiring new graduates, Mr. Suzuki also said: Small and medium-sized enterprises should work together with the local community, but hiring and training local new graduates will also contribute to the local community. He thinks that mid-career recruitment is a free ride because it is the utilization of trained people.

Creation of Management Guidelines with the Participation of All Employees

      As the Management Guidelines spread throughout the company, the initial situation with Mr. Suzuki alone practicing the Management Guidelines has changed, and when the time for the presentation of Management Guidelines in March approaches, an annual Management Guidelines Creation subcommittee is formed with the participation of all employees, and the creation work can now proceed at a pace of about twice a week

      The 2023 Guideline first describes operational changes, for example, the results of deliberations on proposals such as organizational reform, revision of employee education programs, and changes to social labor consultants, projects (to be described later), what were done and issues by each committee in the previous term, policies and annual business plans for the next term, achievement goals such as sales and achievement methods. Furthermore, there is a list, carrying the management philosophy at the top, for the items of "company purpose" "management policy" "employee development" "long-term plan" "short-term plan", to clarify which of the things written there corresponds to the "humanity", "sociality" and "science" that the company emphasizes. We can see that the "philosophy-based management" is thorough.

      In addition, as part of the creation of the Guidelines, they review the Employment Regulations, Wage Rules, etc., select the work style for their needs, and introduce the system by themselves.

      This point was evaluated, and it was selected as a “Tokyo Life-Work Balance Certified Company” in 2022 by the Tokyo Metropolitan Government.

      The joint creation of Guidelines by the employees promoted them to "integrate" the company's philosophy and plans as their own.  The following employee's remarks (Facebook) show a part of it.

      “On 18 March, we held a presentation of our Management Guidelines. It was my first experience since joining the company. From November 2021 to early March 2022, we held meetings on the Management Guideline Creation Committee, created business strategies for the year and internal agendas, and discussed them with everyone. When I joined the company, I was given an explanation of Management Guidelines, Business Plans, Project Goals, etc., but I didn't understand what they meant.  Participating in the Management Guidelines Creation Committee, I was able to see the meaning of the Guidelines and the achievement of the Project goals from the actions of one person. From now on, I will act as much as possible for the Goals of the Project I am involved with along with the company's Guidelines. Let's do our best together for another year."

Human Resource Education

      The company puts priority on human resources education above all else, and sometimes takes time off from sales activities to conduct human resource education.　"Development of creative human resources is the lifeline for the development of the company, and we will definitely do training even if it is in the red. Our employees are also prepared to study," says Mr. Suzuki.

      Human resources education became important along with the recruitment of new graduates. When employees come to think about their own business plans, they realize the importance of people, and it was decided that an "Employee Education Support Program" would be created by the company's Board of Education. This program combines in-company training with training at the Kanagawa Doyukai of SMEs (making use of all employee training programs of Doyukai). The schedule for 2022 was as follows ("external training" means training at the Doyukai).

・External training for new employees (1 day)
・In-house training at the time of joining (1 month): Philosophy-based management, basic business knowledge, etc.
・SE programmer technical training (3 months): All new employees must attend, because sales representatives also have to do technical sales to engineers.
・2nd year 3rd year external training (1 day)
・4th year 5th year external training (1 day)
・External training for executives (6 months)
・Joint in-house training for all employees (1 day): Held once a year by stopping whole business activities.
・Self-development study session (monthly): Reading session using Steven R. Covey's "The 7 Habits".

      Regarding the joint in-house training for all employees, one employee commented as follows (Facebook). 

      "The other day, I participated in the company training that is held once a year! / This year, we created a plan for our vision 3 years from now. Based on the "humanity", "sociality" and "science" that our company values, we have spent one day analyzing the current situation in the company in detail and identifying necessary actions for 3 years from now. I think we were able to discuss the future of the company. /We were able to share our thoughts and ideas without hesitation and think about things from various perspectives, regardless of our company background. It was a very valuable experience because it was rare for all the employees to gather together and look back on the company's work. We put our brains to full use, and even though we were a little tired in the second half, it was a wonderful training that I thought!  as we could say, “It was fun! "It was a good experience!" / Thanks to our Board of Education for organizing a one-day in-house training program, it was a very smooth and learning day! ”

      All the participants submit a report at the book club by "7 Habits". Opinions are packed on one A4 sheet, and it is clear that they are participating seriously. An English version is also used for foreign employees. They read the same thing every year, but he says he feels growth in the way even the same person perceives it differently.

      In addition to the training mentioned above, the Board of Education publicizes the training of the Chamber of Commerce and Industry, and those who wish to participate can take leave. Those who have learned in the training will be on the teaching side next. They are responsible for explaining the project at company briefings.

      They stand on the side of teaching juniors in the mentor system and OJT system. Teaching also leads to new learning. A cycle of learning and education is formed within the company, and all employees grow together.

Strengthening Employees Autonomy and Project System

      From 2020, the organizational structure has changed. In the past they had two divisions, i.e., Electric Power Business Division and the Pharmaceutical Business Division, but they have integrated them into one "IT Service Division", and project teams, such as "Pharmaceutical CRO" (CRO: contract research organization for drug development) for pharmaceutical information system development, "JP Support" for electric power information system development (JP: customer's J-POWER), " Supply and Demand Management" for new electric power, etc. were organized. It might be quite unusual to run businesses under project system. Without fixing the business as a department, they basically aimed to commercialize what employees want to do and what they find fun. It is up to the employee to decide whether to participate in multiple projects or to limit themselves to one project. Employees independently decide whether to develop or participate in a project. In addition, by establishing and suspending projects according to needs, it is possible for a company to flexibly organize its business in response to changes in the environment. In FY2023 too, there are new projects and suspended projects. 

      The contract development of systems as the company's business field, cannot get out of a passive state by responding only to technology. By pioneering business fields that apply technology, the company can actively develop its business, and employees can enjoy the joy of autonomy by promoting it themselves.

      The project system can be thought as a reflection of employees who act autonomously with a sense of purpose, and have become entities with appropriate abilities, by participating in company building through dissemination of management philosophy, preparation of management guidelines by employees, and committee activities (the company is active in committee activities, and had an "Education Committee," "Public Relations Committee," and "Disaster Prevention Committee"), by improving skills through training. This means that the company has reached a new stage of growth. Mr. Suzuki has now handed over the post of president to Mr. Tsutsui Yuki in fiscal 2023, and it is believed that he is confidently watching such developments. He believes that the future task of "Applied Software Development" will be new business development, and it is expected that the project system will demonstrate its true value.