We specialize in business domains with high entry barriers that require extensive business know-how and advanced technology. For us to have a competitive advantage in such an environment, our unique business model, the Simplex Way, which we have nurtured since our founding, plays an important role.The basic concept of the Simplex Way is that we adopt a Full Cycle Coverage model in which a project team comprised of hybrid talent with expertise in both business and technology are responsible for every step of the process to provide a total solution.In the domestic IT industry, a multi-layered vendor hierarchy is the norm, in which tasks are outsourced in stages from the prime contractor to subcontractors. However, we maintain a Direct Client Engagement model in which we deal directly with our clients and do not outsource development work to subcontractors.FeatureWe organize project teams of hybrid talent with expertise in both business and technology to look at issues faced by clients in various industries, and take responsibility for all processes from consulting to system development, operations and maintenance.AdvantagesThe Full Cycle Coverage model allows the project team that handled the consulting work to continue to identify the client’s improvement needs even after the system is implemented, resulting in a steady stream of repeat orders.FeatureIn contrast to the Japanese IT industry practice of multi-layered vendor hierarchy, in which tasks are outsourced in stages from the prime contractor to subcontractors, we have maintained a system in which we deal directly with clients to secure prime vendors and does not outsource development work to subcontractors.AdvantagesThe Direct Client Engagement model eliminates intermediary margins and ensures efficient project execution, resulting in achieving the highest gross profit margin in the industry.Makes it difficult to identify who is responsible for qualityGenerates structural marginsMakes it difficult to develop outstanding talent due to fragmentation of workFeatureThe management capital essential to the realization of our unique business model is our people. Our most important strategy is to develop and retain talent who are well versed in both business and technology in order to meet client demands.AdvantagesThrough consulting inclusive of know-how provision and system development by hybrid talent, we retain IP rights for substantially all systems, even though we are a contracted developer.Creates disparity in the working environment and profitability between prime contractors and subcontractorsCreates security risks associated with multi-layered subcontracting agreement16A major system integrator acts as a prime contractor and outsources fragmented tasks to a multi-layered chain of subcontractors.Project teams comprised of hybrid talent provide total solutions through full cycle coverage and direct client engagement.Alternative to multi-layered vendor hierarchy a source of our competitive advantageFull Cycle CoverageSee Revenue Model (▶Page 18)Direct Client EngagementFull Cycle CoverageSee Most Important KPI (▶Page 15)IT Industry Structure in Japan and its ProblemsOur Business ModelDirect Client EngagementSee Acquisition of IP Rights (▶Page 17)Hybrid Talent DevelopmentHybrid TalentsSimplex WayPyramid-shaped multi-layered vendor hierarchySimplex Way
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