3. Value Creation Process

PurposeITFOR strives to evoke happiness and satisfaction
through empathy
With the diversification of business and personal consumer needs amid changes in the social
environment, ITFOR contributes to societal stability by invoking the power of empathy to evoke smiles
and satisfaction. ITFOR’s information technology (IT) systems and business process outsourcing(BPO) support businesses and individuals in the interest of establishing a sustainable society.
Human capital
Customer capital

Retail/department
store

Local government/
educational institute

Providecomprehensive
B2B2C services

Financial
institution

Payment
infrastructure

System (IT)/Service (BPO)Intellectual capital
Contactcenter

Financial capitalSocialinfrastructure
Expand services andenhance quality
Foster local employment
and human resources
Stimulate cashless purchasing
Enhance customer andsocial infrastructure

OutputInput

FOR A SUSTAINABLE FUTURE:

Toward a community full of excitement and happinessIndustry-specificexpertise

Solid customer
base
Niche businessstrategy

Quality human resources
to support society

12Abundant time

Safe andsecure society

Sound corporate activities
and sustained corporate value

IndependentcompanyOutcomes

Strengths

External environment

Reducedenvironmental impact

Regional
revitalization

In-house developmentwith advanced
technology

International situation

Declining birth rate and aging population

Insufficient personnel

Diversification of social systems

Technological innovation

DX advancement

133. Value Creation Process

Overview of business model

A business model of five strengths
In the rapidly changing and unpredictable world of IT, ITFOR’s steady development over 50years is supported by a business model that leverages five strengths. ITFOR continues its
growth through that business model, tapping those strengths to ensure solid relationships
with customers and the prospecting of new customers and business domains.

Expertise in specific industries and nichebusiness strategy
The starting point of ITFOR’s business model is toconcentrate on specific industries, such as regional
financial institutions, local governments, and department stores, to enhance its own expertise. The
concentration of our management resources gives
us a deep understanding of our customers and theirneeds and refines our expertise and specializationin providing optimal solutions tailored to niche areas
within industries. In this way, we create unique valuethat shows our distinctive abilities to the full.

ITFOR’s Business Model

Initiatives for human resource development

Industry-specificexpertise
Independentcompany

Niche businessstrategy

In-housedevelopmentwith advanced
technology

We aim to provide a working environment that is
tailored to the individual’s needs, where each of ouremployees can thrive and work enthusiastically andreach their full potential. It is our belief that every
initiative related to securing and nurturing humanresources contributes to our corporate growth. As
such, we promote the engagement and development of diverse talents, the provision of a fulfilling
workplace, and the necessity of occupational healthand safety. We, in turn, benefit from a wealth ofhighly skilled personnel who grant us an accumulated level of expertise and business knowledge insystem development that is unparalleled, qualitatively and quantitatively. This is the source of ourtechnological advancements and high degree ofspecialization.

Corporate independence
Our ability to harness advanced technical expertise
ensures deep engagement with the challenges
faced by our customers and their local communities. ITFOR’s approach is facilitated by its status as14

Optimal solutions

Unique process
B2B2C perspective
Provide comprehensive
services throughsystems and operations

Solidcustomer basean independent company. Being unaffiliated withany particular group frees us from technical constraints or obligations and enables us to unleash
the inherent power of empathy and deliver optimalsolutions.

ITFOR’s solutions are crafted to address customer
challenges and thus quickly become indispensable
to customers’ operations after their implementation. Many of our customers utilize our solutionslong term, availing themselves of the iterative improvements that we regularly provide.
ITFOR regularly hosts user meetings that transcend
the conventional lecture format. Each session is a
dynamic forum where clients discuss and exchange
opinions on shared business challenges.
Our user meetings thus elicit insights for businessenhancement by encouraging clients to propose
suggestions for refining the systems we offer. They
also broaden mutual understanding between us andcustomers, further customer trust in us, and cultivate
future business ventures for us with customers.
Customers’ robust trust in ITFOR underpins their
ongoing utilization of ITFOR’s solutions, and thatrecurring business generates a steady revenue
stream for ITFOR.

Quality human resources and in-housedevelopment
Key to our provision of optimal solutions for ourcustomers is the ability of our in-house development. This characteristic demonstrates theindependence of ITFOR. ITFOR management has
the utmost regard for the individuals who are thebackbone of its operations.

Strong customer basesociety at large. This is why ITFOR identifies itself
as a B2B2C company whose intention is to enhancethe value of the solutions provided to an entire arrayof customers.

B2B2C perspectiveComprehensive IT services and business
operations

ITFOR’s principle is to develop products andservices to satisfy end customers. It is essential,
therefore, that we consider who in society are theusers of our offerings. In system development, ouremphasis lies in gaining profound insights into thelives, habits, service usage scenarios, and emotionsof our customers and all who might use what weoffer. We aim to extend the power of empathy toITFOR’s solutions extend beyond systems designedwith end users in mind. We also furnish the maintenance services essential for utilizing our systems
and offer operational support as part of our BPO
services. The comprehensiveness and reliability ofwhat ITFOR offers consistently contributes to ITFOR
being customers’ preferred choice for IT solutions.

Our solid customer base, moreover, is generating
customers and business opportunities for us. A
distinctive feature of our business is the frequency
with which customers recommend us to others
grappling with IT issues. This, again, indicates thetrust and confidence our customers have in ourability to address such issues. In response, we continually enhance our offerings to meet and exceedexpectations. And this commitment leads us into
new business domains that, along with additionalcustomers, contribute significantly to our growth.

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