About the Simplex GroupGrowth StrategyMateriality Issues and Major RisksESGDataSimplex Integrated Report 202421working on?It is fair to say that there is virtually no Strategy/DX Consulting service off ered by Xspear that does not involve technology at all. That is why Xspear's great advantage lies - the ability to develop all areas from strategy planning to implementation support after thoroughly considering specifi c use cases for cutting-edge technologies such as AI, UI/UX, cloud, and web3.The establishment of Xspear has allowed us to directly communicate with our clients’ management teams. One symbolic deal we secured as a result was the capital and business alliance with SBI Holdings and SBI SECURITIES. With the ambition to design the future of the securities industry in Japan, we have gone beyond a mere client-vendor relationship and brought together the resources and expertise of both parties to implement system development projects and establish a framework for these. This is exactly the kind of DX that we aspire to. (▶Page 22 Case Study)In addition, Xspear, together with Simplex, is constantly exploring use cases for cutting-edge technologies and their application to monetization opportunities for client businesses, leading to the development of a variety of initiatives. A key example is the AI-based attendance forecasting system for Sanrio Puroland, a theme park dedicated to Hello Kitty, the details of which were announced in a press release. By improving the accuracy of forecasts for visitors to the theme park, the system helps optimize staff allocation, schedule shows, and order food for the restaurants. This supports effi cient operations while enhancing value provided to guests. In this case, Xspear's consultants and Simplex's data scientists worked together to implement all tasks from the POC to post-implementation refi nement. It would have been diffi cult for other consulting fi rms to achieve such full-cycle coverage.As a result, we have been selected as a business partner by companies seeking to achieve fundamental DX through undertaking new challenges using cutting-edge technology. We are confi dent that this contributes to the creation of social value.– What is it that attracts experienced consultants to Xspear?The most attractive point is that we can consistently provide them with opportunities to get involved in DX-specifi c strategic planning and implementation support based on cutting-edge technology. Many consulting fi rms leave post-strategy formulation to other vendors. As a result, consultants have limited opportunities to see how the strategies they have drawn up actually contribute to the success of their clients' businesses. Xspear, on the other hand, is able to leverage the technological capabilities of Simplex to the full in translating cutting-edge technologies into concrete use cases and assisting in the design of monetization strategies and commercialization of initiatives. Another noteworthy point is that a POC can be used to confi rm the eff ectiveness of strategies at an early stage and ensure a smooth transition through to the implementation phase.We are also able to respond quickly and with high quality to projects that require building a platform from scratch for a completely new business model. In addition, we can provide ongoing support to our clients' businesses while adapting to changes in the market and competitive dynamics. In this way, Xspear goes beyond the scope of support provided by a typical consulting fi rm. The sense of satisfaction and accomplishment gained in the process of optimizing a client's business is a major attraction for our consultants.Another appealing aspect is the large degree of autonomy. In large consulting fi rms, functions and roles are often limited by your title or team to which you belong. Even if there are opportunities to stretch yourself, the organizational structure often makes it diffi cult to take on diff erent challenges. Xspear, in contrast, provides an environment where you are given a large amount of discretion and therefore have ample opportunity to try new things. In addition, the culture fostered by the leadership, who themselves have honed their skills at international consulting fi rms, combined with a compensation structure that off ers signifi cant upside potential, has enabled Xspear to successfully attract consultants capable of leading domain expansion.– Finally, what is your outlook for the future?For a latecomer like us to succeed in the consulting industry, it is important to have a strong commitment to the success of our clients' businesses. While there are many consulting fi rms that claim to support DX, it will take many years and a proven track record for other fi rms to catch up with the inherent strengths in technology that the Simplex Group has built up.In order to facilitate domain expansion to achieve Vision1000, the Simplex Group has positioned Strategy/DX Consulting as its largest area of focus in MTBP2027. Xspear will continue to increase the number of consultants through recruitment of mid-career employees and intra-Group secondments. In addition, the acquisition of boutique consulting fi rms that off er advanced expertise and services will also be a priority.We believe that a true business partner is one that responds fl exibly to changes in the times and environment, supporting clients on their path to success while staying close to their challenges. Xspear will continue to work hand-in-hand with our clients to help bring about their business success.Business ModelDeveloping DX-specifi c strategic planning and implementation support– Can you tell us more about some of the specifi c DX projects Xspear is Responsibility as a true business partner
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