CRESCO at a Glance
Unchanging management philosophy
CRESCO is in a solid financial position with an equity ratio of 64.2%. Operating profit to sales ratio (consolidated) is 8.8% and ROE (consolidated) is 14.8%, achieving high profitability. Especially in recent years, we have been working to selectively take orders by strengthening pre-order reviews, improve profitability by setting a target profit ratio for the entire company, minimize unprofitable projects by strengthening quality management and project management capabilities, and building a strong business base. The unchanging management philosophy emphasizing earning power (profit) is a strength that supports CRESCO’s growth.
Commitment to profit management and quality management
CRESCO has a particularly strong commitment to profit management and quality management of projects (units of development work) that are directly linked to profits.
・ Profit management
As a general rule, we set a common target profit rate for all projects (excluding some policy projects), regardless of the customer industry and business category, for a consistent profit rate of some 1,000 projects annually. Before to receiving an order, the executive officer, general manager of the relevant department, and the “Quality Management Unit” will check the order and determine whether or not to accept the order taking into consideration profitability and risks. After receiving the order, we check the profitability of all projects on a weekly basis, and designate thoroughly follow projects that are at high risk of falling below the target profit rate as projects under supervision.
・ Quality management
We have set up the “Quality Management Unit” and have a “dedicated executive officer” and an “experienced project manager who is able to play an active role on the front lines of the field.” By taking a bird’s-eye view of all projects across the organization, we work to identify problems early on, minimize unprofitable projects, and eliminate unprofitable projects. In addition, in order to strengthen the project management that influences the quality of deliverables, since 2011 we have required that project managers (PMs), who are the persons in charge of projects, obtain the international qualification “PMPR”, which is certified by the American “Project Management Institute (PMI).” Currently, all our PMs (over 280) are qualified. PMs practice project management based on a standardized method, trying to ensure management of all development processes including estimation, initiation, planning, execution, etc. and prevent the occurrence of delivery delays, additional costs, liability for damages, etc.
Business structure that creates a competitive advantage
CRESCO collaborates with group companies and develops a comprehensive development system (requirement definition, development, maintenance) for a wide range of customers regardless of industry or business category, and offers a variety of services and solutions including original products. It has thus established a system to meet the various requests and expectations of its customers. We are endeavoring to generate innovative new businesses (services and products) that incorporate advanced AI and cloud technologies, with a business structure that captures new business opportunities with the Technology Laboratory as a central role, in order to respond in an agile way to changes in the times and the business environment, and to further ensure its competitive advantage. At CRESCO, stock-type businesses (maintenance development) produce stable growth accounts for 60-70% of the company total, and a large number of customers have been consistently making transactions for a long time. We always face our customers with sincerity and make speedy proposals that help solve problems. This is of course the basis of “trust and growth.” The partnership with its customers is an important asset of CRESCO.
Expansion through active M&A and collaboration
As of April 2021, CRESCO Group has a structure of 12 subsidiaries and 3 affiliates. Since 2010, we have been strategically conducting M&A and capital participation to expand our business areas, customers, and sales bases. Sales of consolidated subsidiaries accounted for approximately 42% at the end of the fiscal year ended March 31, 2021. The expansion of business through close collaboration among group companies will continue to be the driving force behind the growth of the CRESCO Group. Considering capital efficiency, we are also proceeding with the appropriate reorganization of consolidated subsidiaries. Furthermore, in order to solicit and integrate knowledge and ideas indispensable for maintaining technological prowess and for generating a revolutionary new business, we will also actively conduct research and development of new technologies through alliance with other companies, industry-academia collaboration, joint research with customers, open innovation, etc.