Japan’s Future Enterprises Are Digital

By Daniel de Bomford

Business software is the engine propelling industries into the future, and digital transformation is the fuel driving this vehicle. As companies navigate the road ahead, those embracing advanced technologies will accelerate toward unprecedented growth, leaving competitors stalled in the past.

Business Engineering Corporation is leading the way in industrial digital transformation in Japan. Company President Masakazu Haneda says the pandemic helped break through Japan’s usual reluctance to change. “With face-to-face interactions severely limited during the pandemic, companies realized the need for digital tools and processes,” he explains. Mr. Haneda points to the manufacturing industry, which is digitalizing rapidly at a pace that is difficult to grasp unless witnessed first-hand. With decades of experience working with Japanese companies, Business Engineering Corporation is leveraging its expertise to penetrate both domestic and global markets. "While Japan is home to many globally recognized robotics and machine tool companies, its software industry has yet to promote a widely competitive product on the international stage," he says.

Mr. Haneda recognizes the challenges of serving such a diverse array of companies, even manufacturing companies can vary wildly between verticals. “It is challenging to create a one-size-fits-all software solution,” he says. While Business Engineering Corporation has experience with international ERP implementations, they developed mcframe to cater to the specific needs of midsized companies. “Our goal was to create a more flexible solution, so we designed mcframe as an open-source platform that allows companies to customize it according to their specific needs,” he explains.

Business Engineering Corporation's biggest strength is supply chain management, which it leverages over 25 years of accumulated experience to overcome diverse and unique challenges across the industry. Mr. Haneda says the advantage of mcframe is its holistic approach to manufacturing optimization, drawing on seamless IoT integration, real-time onsite data collection and product lifecycle management. Mcframe is evenly distributed across sectors, demonstrating the software's versatile nature.

Another key offering that addresses the challenges of an increasingly globalized world is GLASIAOUS, a cloud-based international accounting and ERP service. It is designed to facilitate seamless cross-border operations for global businesses by supporting multiple languages, currencies and international accounting standards. With Japanese software typically only servicing Japanese and English, Mr. Haneda says that GLASIAOUS is a truly global solution. “The key differentiator of GLASIAOUS is its support for multiple languages and multiple currencies,” he explains. Furthermore, its comprehensive accounting system and support stays abreast of local accounting regulations that vary from country to country. “We ensure this by gathering data locally, allowing companies to remain compliant across different jurisdictions,” he says. In the United States and Europe, established solutions dominate the market. But Asia is yet to adopt a de facto solution. Mr. Haneda explains, “Our goal is to expand GLASIAOUS adoption in Southeast Asia and India, where there is a strong need for a solution that can adapt to local tax rules and customs, and business environments.”

With most enterprise software primarily focusing on white-collar and business operations software, Business Engineering Corporation has found an opportunity with onsite manufacturing software. “Our business strategy focuses on identifying and integrating niche manufacturing software that other IT vendors do not target,” Mr. Haneda explains. With its longstanding partnership and equity investments into Cimtops, a digitalization solutions provider, Business Engineering Corporation has been developing an OEM version of mcframe. “Our next target, following the digitalization of business operations, is onsite digitalization, and Cimtops offers a straightforward solution for converting paper-based processes into digital formats,” he says.

Mr. Haneda says that Business Engineering Corporation has two key strategic directions. Licensing and importing overseas software into Japan and exporting its software into the global market through five subsidiaries and strong partnerships with local distributors. He describes its import strategy: "Our approach involves partnering with specialized software providers, localizing their products, and introducing them to the Japanese market.” Business Engineering Corporation’s international penetration is treading new ground for Japanese companies; no Japanese software has achieved widespread adoption in the global market. It is currently investing in local partnerships in Vietnam and the Philippines while actively seeking distribution partners in India to strengthen its market presence.

While the U.S. market shows advancements in digitalization, actual site visits reveal gaps in manufacturing optimization. Many countries have progressed in business operations, yet digital transformation of the supply chain is an emerging area. Business Engineering Corporation sees a significant opportunity to address these gaps, focusing on digitalizing onsite manufacturing processes. By driving innovation in these areas, the company aims to lead the global market, particularly in Southeast Asia and India, where local financial regulations and business environments demand adaptable solutions. This strategic direction promises to strengthen Business Engineering Corporation’s international market presence and expand its influence in key regions.

To hear more from President Masakazu Haneda of Business Engineering Corporation (B-En-G), check out this interview with him