Business Strategy&Plan

Vision

Since its founding, Broadleaf has been committed to creating added value that contributes to the growth of customers' businesses and the creation of an affluent society by providing products and services that contribute to the growth of our customers' businesses, while valuing the spirit of gratitude, happiness, and the brand name Broadleaf. In order to quickly respond to changes in societies and businesses resulting from technological innovations in recent years and to create and provide new value that meets the needs of the times, we need to clarify the directions we should take and accelerate the pace of change. We have therefore set our vision as "The Field for Our Future that will lead to thinking and spreading."

<10-Year Vision>
Products, People, Technologies, and Hearts. Contributing to the realization of a prosperous society through the creation of diverse value through various connections. What do we think today, what we connect, and what expand for our future? As a partner that creates innovation, we will promote co-creation with our customers and all of our stakeholders.

Issues to be Addressed

The main issues Broadleaf Group (“the Group”) recognizes are as follows.

Promotion of switching to cloud-based software and expansion of services operated on Broadleaf Cloud Platform
The Group has captured a large share of the industry by providing business applications that improve our customers' operations. By switching these applications to cloud services, the Group will provide the functions needed more quickly and flexibly for Mobility sector, which is undergoing a period of change, and pursue customer success. In addition to the cloud services developed by the Group, it will provide a variety of services on Broadleaf Cloud Platform in collaboration with various partner companies regardless of industries and business sectors. By combining cloud services with a variety of Broadleaf Cloud Platform services, the Group will expand the scope of services from “support for operational efficiencies through the provision of conventional business applications” to “support for management and operational reforms through the provision of a total management system.”
 
Support for transition to new working styles (support for digitization of operations)
Through the digitization of our customers' businesses, the Group provides a variety of services to support the transition to new ways of working. In November 2023, businesses began offering “Priceprint.c” in order to reduce the workload when creating a price board that corresponds to the presentation of the total amount of mobility payments in accordance with the revised fair competition rules and enforcement rules for labeling in the Mobility sector. This will create an environment where used cars can be purchased and sold more quickly, as well as an environment where consumers can purchase vehicles with a sense of security and safety. Going forward, the Group will continue to provide products and services that respond to legal revisions and digitization as quickly as possible, and support customers in their transition to new ways of working.

Penetration of the auto parts ordering business and development of e-commerce business
The Group provides electronic ordering services for mobility components using the customer base and data base of our strength, Mobility sector. The Group will eliminate inefficiencies in parts trading and logistics, which are issues facing the industry, by digitizing ordering businesses through this service. In addition, the Group will work to further penetrate services through the adoption of this service in the cloud. Through the penetration of this service, the Group will also contribute to the realization of a resource recycling-oriented society by reducing the use of paper to protect resources and promoting the use of recycled parts that can be handled by this service.
 
Creation of services that utilize data
The Group will launch new service businesses such as services for car owners utilizing big data related to mobiles. The Group will aim to increase the added value of our database to create businesses targeting not only cars but also all mobility, including next-generation cars and non-cars. To this end, the Group will pursue joint research and alliances with related companies. Since May 2023, the Group have been providing our customers with our own large-sized language model and generating AI functions using our knowledge database. The aim is to help them improve their operational efficiency and productivity. In August 2023, the Group developed a function to detect business irregularities and fraud with the aim of helping our customers strengthen their governance. In the future, it will be successively installed in “.c Series”. In addition to these services, the Group will continue to create new services that combine our proprietary big data with the latest technologies.

Medium-term Management Plan

Under the Medium-Term Management Plan (2022-2028), Broadleaf’s management policy is “Evolution into a unique platform company through promotion of DX in the automobility industry.” It will build a prosperous society together with business operators in various industries by challenging new domains starting from the automobility industry, rather than limiting itself to existing client industry. Through these initiatives, it aims to achieve an operating margin of 40% and profit attributable to owners of the parent of 8 billion yen in the fiscal year ending December 31, 2028, which is the final year of the plan.

Basic Strategy

With the cloud-based infrastructure “Broadleaf Cloud Platform (BCP),” as the starting point, Broadleaf has positioned “Penetration of cloud-based products” and “Expansion of services” as two basic strategies and will implement priority measures.

１) Penetration of cloud-based products
With “.c Series,” the cloud-based software, at the core, Broadleaf will support DX of its clients.

1. Increase the number of provided licenses by expanding the target market by utilizing the product features of the “.c Series,” and increase sales per company by proposing DX solutions.
2. Prolong period of continued use by increasing the number of various kind of systems manufactured by other companies (accounting, personnel, etc.) that link with the “.c Series” through API (standard interfaces).
3. Implement enhancement of non-face-to-face sales and surely capture the renewal demand accompanied by the expiration of old software contracts, while further increasing the acquisition of new users.

２) Expansion of services
With “BCP,” the cloud-based infrastructure, as the starting point, Broadleaf will diversify its platform-type services.　　　

1. Improve functionality and usability to increase the usage rate and usage frequency of “BCP Ordering Platform” and make it the standardized platform for sales and purchase transactions in the auto parts market.
2. Consolidate auto finance affiliates into “BCP Auto Finance Platform” so that Broadleaf can provide a variety of financial services to users of the “.c Series.”
3. Promote the expansion of “BCP MaaS Platform” into the logistics domain.
4. Enable deployment of “.c Series” to car maker-affiliated dealers, etc. by increasing the number of third party vendors using the software development kit (SDK) of “BCP,” which will allow the usage of third party development resources.

Performance Plan

The following information was published on February 9, 2022

Notice of Formulation of Medium-Term Management Plan (2022-2028)

Medium-term Management Plan (2022-2028) Briefing Material [Excerpt][718KB]