Human-Centered IT Solutions by Japan System Techniques

We’d like to begin by discussing Japan’s demographic shift and population crisis. Among the many statistics available, one of the most pressing is the projected 11 million worker deficit by 2040. This crisis presents a dual challenge—increasing hiring difficulties while also shrinking the domestic market. As a company at the forefront of technological and business solutions, how has this demographic shift impacted your operations? Additionally, which economic sectors do you believe are most in need of solutions to mitigate labor shortages and adapt to a changing market?

I am 87 years old, and over the course of my life, I have witnessed many societal changes. While change is a constant, what makes this moment unique is the rapid pace of transformation.

However, change brings opportunity. The key difference lies in how you perceive it—whether as a challenge or an opportunity for growth. Your mindset plays a crucial role in determining success or failure. If you embrace change with optimism, you can adapt, innovate, and grow. Conversely, a pessimistic outlook can hinder progress. Ultimately, it is our perspective that shapes our ability to navigate and thrive in an evolving world.

One way Japan is addressing its demographic challenges is through the integration of AI, IoT, and robotics, driving transformation across sectors such as healthcare, education, and financial services. As a company that aligns with this vision, what role do you see Japan System Techniques (JAST) playing in the development of Society 5.0? How is your company contributing to the creation of a more technologically advanced, data-driven, and human-centric society?

I believe that nothing in the world is truly perfect. What we often perceive as gaps—whether in equality, resources, or satisfaction—actually represent the greatest opportunities for progress. The most successful businesses are built by identifying areas of need and developing solutions that enhance society.

To be a successful entrepreneur, one must think beyond personal gain and profit and focus on how their business can contribute to others. In Japan, we have a saying: everything we do should be for the sake of others—whether for the people, for society, or for the world. This philosophy underpins our approach to innovation and development.

In the IT industry, the Japanese are known for their meticulous attention to detail, often striving for perfection. This mindset led to the development of the waterfall system, where solutions are tailor-made for each client. However, as technology evolved, we recognized the need for a more universal, standardized approach that could adapt to industry-wide needs while still offering uniqueness and flexibility.

We took on the challenge of creating such a system, and to our surprise and success, it not only met the evolving demands of our clients but also positioned us to compete more effectively in the modern digital landscape.

You mentioned that your company has always focused on keeping pace with technological advancements. However, Japan currently ranks low in the IMD Digital Competitiveness Index, highlighting challenges in IT adoption and digital transformation (DX). In your view, what factors have contributed to Japan’s lower ranking? What do you believe Japan lacks in terms of IT and DX, and what steps should be taken to enhance the country’s digital competitiveness on a global scale?

I first visited the United States 40 years ago, traveling to New York and Washington, D.C. to meet with entrepreneurs and company presidents. One of the presidents I spoke with ran a small company with just 10 or 20 employees, yet he had an extraordinary vision. He told me his ambition was to expand into Toronto and London, and I was amazed by his global mindset, especially given the size of his company.

This encounter highlighted what I see as the biggest difference between U.S. and Japanese entrepreneurs at the time. While Japanese business leaders tended to focus solely on domestic growth, their American counterparts were already thinking internationally, incorporating global expansion into their long-term vision.

In today’s era of globalization, focusing only on the domestic market is no longer sufficient. I consider myself a pioneer in this regard, as I led our company into the Singaporean market when we had just 15 employees—a rare move for a Japanese entrepreneur at the time. Over the years, I have seen more Japanese companies recognize the importance of expanding overseas, and I was fortunate to grow alongside those forward-thinking businesses that understood the value of our work.

That was just the beginning. From that initial step into Singapore, I made a deliberate effort to proactively expand overseas, shaping our company’s global footprint.

Can you share your company philosophy and how it has shaped your core strengths, driving the growth and success of Japan System Techniques over the years?

When I first started the company, I was deeply curious about what determines the success or failure of a business. Many people pursue fame or profit, but I came to realize that the most important factor is whether a company has a strong philosophical foundation. It is my firm conviction that long-term success cannot be built on short-term goals alone—without a solid foundation, a company is like a structure built on sand, vulnerable to collapse at any moment.

One of my core beliefs is that human resource development is crucial. I have always placed great emphasis on educating and training our employees, helping them grow into well-rounded individuals. I continuously encouraged them to reflect on fundamental questions: What does it mean to be human? What is the purpose of life? What does it truly mean to build and sustain a company? Understanding the deeper meaning and significance of work was a central part of this. Many people see work as exhausting or unimportant, but in reality, work has the power to enrich a person’s life. I wanted to ensure that this intrinsic value of work was deeply ingrained in the hearts and minds of our employees.

Our philosophy extends beyond business. For example, in response to the war in Ukraine, despite having no direct business ties to the country, we launched a donation initiative. We challenged our employees to raise JPY 3 million, and in return, the company would match their contribution, donating a total of JPY 6 million to support humanitarian efforts. We had a similar initiative during the Great East Japan Earthquake in 2011, reaffirming our commitment to social responsibility.

When I reflect on human history, one constant remains—conflict has never ceased. Whether among individuals, companies, or nations, greed has been at the root of most disputes. While religion is one of humankind’s greatest creations, even religion has not been immune to greed and self-interest.

Of course, profit is essential for a company’s survival. However, clients are equally important, and genuine success is built on trust and sincere relationships. Financial performance, numbers, and outward appearances are visible measures of success, but the intangibles—character, sincerity, and the trust we build—are perhaps even more valuable.

Economic cycles fluctuate, but within our client network, not a single company has ever discontinued its relationship with us. This reflects the deep bonds of trust we have built. When working with clients, it is critical not to focus solely on immediate gain. Trust and sincerity must be organic, and when those values are upheld, business naturally follows. That is the best outcome.

Building trust requires not only strong relationships but also delivering high-quality services and products. Could you provide an overview of your business divisions and explain what makes each of them unique and valuable in today’s market?

When I founded this company, I envisioned our services as universally beneficial—applicable across a wide range of industries. From the very beginning, I sought to develop solutions that address complex societal challenges, both in Japan and globally. After careful consideration, I identified education as the number-one priority.

Education is the foundation of society. Japan has maintained a high-quality education system dating back to the Edo Period. However, I believe Japan is now facing an education crisis—one where knowledge acquisition has been prioritized over character development. In many cases, the pursuit of knowledge has become synonymous with a good education, but I do not believe grades alone define how educated someone truly is.

That said, I still see great strengths in Japan’s education system. When visitors come to Japan, they frequently highlight the sincerity, honesty, and discipline of the Japanese people, as well as the safety, hospitality, and rich cultural traditions that define the country. These are qualities worth preserving and strengthening through education. If we can further cultivate these values, we have an opportunity to renew and revitalize Japan’s education system for future generations.

At our company, we apply the same philosophy of education internally. While we are a corporate entity, we also function as an educational institution, dedicated to training and developing capable individuals. Many companies display their corporate philosophy on the walls of their offices, but what truly matters is whether every employee genuinely believes in those principles and applies them in their daily work.

Knowledge alone is not enough—it is how you apply it that makes the difference. Our employees internalize our philosophy, allowing it to guide their actions, decisions, and interactions with clients. This ensures that our values are not just words, but a lived experience. In the end, taking action—both as individuals and as a company—is what separates success from failure.

You highlighted the importance of trust and education, both of which are deeply embedded in your company’s mission. Japan System Techniques (JAST) is a trusted partner for over 450 universities, providing the GAKUEN Series, a comprehensive university management platform that integrates academic affairs, student management, e-learning, and many other essential functions. What sets the GAKUEN Series apart, making it the preferred choice for so many universities? What unique advantages does it offer in enhancing efficiency and innovation in higher education management?

We place great emphasis on branding our products. While having a great idea is essential, the ability to effectively market and communicate that idea is even more critical. Early on, we struggled with branding and positioning, but we learned that strong branding is key to success.

In the United States, when someone has a groundbreaking idea, they often receive encouragement and investment, allowing them to bring that idea to market. In Japan, however, simply having a great idea is not enough—you first need to establish credibility and a recognized name before you can effectively implement it.

Today, our GAKUEN Series brand is widely recognized, giving us a strong foundation for launching new innovations. If we introduce a new product or service, there is a high likelihood of success because our brand is already trusted.

Of course, a strong name alone is not enough—the product itself must be exceptional. That is why we continuously integrate the latest cutting-edge technologies into our solutions, ensuring we deliver the best possible services to our clients.

In addition to your expertise in education technology, your company is also a leader in the medical big data sector, offering two key platforms: JMICS and REZULT. JMICS primarily supports the insured, while REZULT is a real-world prescription database system that analyzes medical receipts and examination data. Could you explain to our readers what makes JMICS and REZULT unique? What are their key features, and do you see potential for these platforms to be expanded into overseas markets?

Many Japanese companies are often at the beck and call of stakeholders and investors, limiting their ability to pursue independent innovation. However, one of our greatest strengths is that we are self-reliant. Since our foundation, we have built our company by relying on our own vision and resources. We actively encourage our employees to explore new fields and support them financially to bring their ideas to life. When you have a pioneering vision and a strong passion, people will naturally want to support and invest in your ideas.

As Japan’s population ages, people are increasingly focused on living healthier, longer lives. The medical industry is more important than ever, yet medical costs continue to rise annually. Today, the focus is shifting from diagnostics to preventative healthcare, and our big data platforms play a critical role in advancing preventive care solutions.

Our key to success in the medical sector lies in our dual commitment—we seek solutions that are both beneficial to our company and contribute to society. The rising burden on the healthcare system is straining both private and public medical insurance providers. In the private sector, where companies manage their own medical insurance unions, we are seeing bankruptcies due to unsustainable costs. Similar challenges are emerging at the municipal level. As a result, strengthening the healthcare system has become a national priority, and our solutions are designed to support this transformation.

The rapid advancement of AI is powered by big data, and the lifeline of big data is its volume and quality. We entered the medical sector ten years ago, and over the past decade, we have successfully built a robust database, enhancing both data volume and accuracy. Today, we receive frequent requests from university researchers and professors seeking access to our medical datasets. We have accumulated a database of 10 million medical receipts, which we provide to universities and research institutions to analyze diagnoses, treatment trends, and emerging healthcare challenges.

Our medical big data solutions are not limited to B2B applications. As the healthcare industry expands and diversifies, patients are gaining more control over their own healthcare decisions. That is why we also offer B2C solutions, empowering individuals with data-driven insights to reduce medical costs and make informed healthcare choices.

For instance, in case of diabetes, early case detection can prevent a patient from undergoing dialysis treatment. By doing so, it can contribute to reduction of medical expenses and better health of the patient by providing health guidance.

Another example is dental treatment. Often, when visiting a dentist, patients may feel pressured into immediate tooth extractions, as such procedures are often more profitable for clinics. In some cases, over-treatment or unnecessary procedures occur. Our data-driven insights allow patients to evaluate whether a specific treatment is truly necessary, ensuring better decision-making and more balanced patient care.

Your BankNeo financial information system has played a key role in enhancing efficiency within the finance and banking sector. Could you explain how your solutions optimize financial operations and contribute to a more streamlined, secure, and data-driven banking industry?

We have been involved in the finance and banking industry for 35 years. While Japan’s banking system has traditionally been known for its stability and reliability, it lagged behind countries like the U.S. in terms of IT adoption and automation. The primary reason for this was manual data entry.

For years, bank employees in Japan would work long hours after closing time, often staying until 8 or 9 pm, manually inputting data and preparing reports by hand. Banks in Japan close at 3 pm sharp, but the administrative workload continued well into the evening. By integrating our system into the banking sector, we have significantly improved efficiency.

With our BankNeo solution, real-time data collection is possible while banking services are being conducted at the teller’s window. This means that while transactions take place, reports are automatically generated, eliminating the need for time-consuming manual entry.

Additionally, our system leverages AI-driven analytics to assess customer needs. Through conversations at the bank teller’s window, our solution can analyze customer profiles, determine the likelihood of them seeking a loan, and even predict the type of loan that would best suit their financial situation.

Historically, legacy banking systems were inadequate for today’s level of digital connectivity, where customers interact with their banks via smartphones and online platforms. However, simply upgrading outdated systems is not enough. The most effective approach is to implement new systems that are seamlessly connected to society, allowing for faster, more integrated, and data-driven banking experiences.

Your company has engaged in notable collaborations, such as with Osaka University in public health and Seiko Solutions to advance digital transformation in education. Are you currently seeking international partners? If so, what qualities define an ideal partnership for JAST, and in which industries or technological areas do you see the most potential for global collaboration?

I believe we can continue growing the business over the next three to five years by building on our existing strengths. However, with the rapid acceleration of digitalization and the increasing shift toward virtual environments, it is difficult to predict what the business landscape will look like in ten or twenty years. Because of this uncertainty, I have been entrusting our younger employees to help shape and carry forward our long-term vision. Yet, even with their fresh perspectives, forecasting the future remains a challenge.

That is why we are actively seeking strategic partnerships with think tanks, universities, and individuals driving innovation. By engaging at the earliest stages of new ideas and technologies, we can identify promising opportunities, nurture innovation, and extend our business far into the future. We aim to establish these partnerships both domestically and internationally, particularly at the university level, where groundbreaking research and development are taking place.

Collaboration with highly ambitious, curious individuals is essential because growth happens where new ideas are explored. For example, consider the recent wildfires in Los Angeles—there was a cause behind them, and finding solutions to seemingly impossible challenges is where true innovation emerges. I firmly believe that we are living in an age where nothing is impossible. With the right technologies and solutions, we can address even the most complex global challenges. That is my conviction.

You just touched on the importance of internationalization, and your company has already established subsidiaries in Thailand, Singapore, India, and China, along with the acquisition of Virtual Calibre in Malaysia. More recently, you have expanded into Dubai and Abu Dhabi in the UAE. Looking ahead, which countries or regions have you earmarked for future expansion? Additionally, what strategies will you employ to ensure successful market entry and long-term growth in these new locations?

It may be my personal perspective, but I believe the greatest growth potential lies in emerging markets that have yet to be fully developed. For example, Southeast Asia still has significant room for expansion, presenting numerous opportunities for innovation and investment.

Rather than focusing on mature markets, where competition is intense and growth is often incremental, I prefer to channel our efforts into high-potential regions where we can drive meaningful development and create long-term value.

Your company has experienced remarkable growth over the past five years. In 2020, your stock was valued at around JPY 372, and today, it has surged to JPY 1,800, representing nearly fivefold growth. What were the key drivers behind this impressive expansion? Additionally, from an investor’s perspective, what makes your company a compelling investment opportunity moving forward?

I did not create the stock price, so it is difficult for me to explain its rise directly. However, I am very pleased that society has given us such a strong appraisal, recognizing the value of our work.

At its core, capitalism is driven by financial outcomes, and many—whether in Japan, the U.S., or elsewhere—are focused solely on results. While I acknowledge that money is important, I am not swayed by it. To me, money is simply the result of what we build.

What truly matters is the process—the steps, innovations, and decisions that lead to successful outcomes. In an outcome-driven world, I believe we must also treasure the journey, because it is through the process that true growth, learning, and long-term success are achieved.

We spoke in depth about your philosophy but what message would you like to send to the world? How would you like your company to be seen in the eyes of the global market?

Today, many people around the world are suffering due to poverty, war, and conflict. More than anything, my greatest wish is for our company to become a truly influential force for good.

I often think of the moon—it does not generate its own light but instead reflects the sunlight it receives. I want our company to be like the sun, a source of positive energy that contributes to society and brings happiness to people’s lives.

This vision begins with our own employees. Their happiness and fulfillment are fundamental to our mission. When our employees are engaged and motivated, they can drive meaningful change beyond the company. Additionally, we are committed to making a positive impact on the environment, ensuring that our growth is aligned with sustainability and social responsibility.

Regardless of our size or market position, our goal is to use our influence to contribute to a better society—one where business success is measured not just by profit, but by the happiness and well-being it creates.

For more information, please visit their website at: https://www.jast.jp/