The Unique Role of a System Integrator (SI) in Japan
Introduction
The indirect sales channel can be a substantial part of revenue especially in Japan. Resellers work with customers and introduce new and fitting technologies to their customers. The importance of resellers and distributors cannot be understated, as they provide access to their customer base and their brand name. There is different type of partner that goes beyond selling products and is more tightly coupled with the technology stack. System Integrators (SIs) are partners that work directly with the companies and help them implement, adopt, and manage technologies.
What are System Integrators
System integrators are companies or professionals specializing in designing, implementing, and managing complex technological systems by integrating various software, hardware, and network technologies into a unified whole. Their key responsibility is to ensure that disparate technology systems work together seamlessly to meet the specific needs of a business.
Unlike many Western markets where companies might directly engage with software vendors, in Japan, system integrators often stand as intermediaries, wielding significant influence over technology decisions and implementations.
SIs provide holistic solutions to their clients. Rather than piecing together solutions from multiple vendors, Japanese clients often prefer the simplicity of dealing with one SI for end-to-end service. Once the SI engages a company, it ends up managing and overseeing a large part (if not all) of the tech stack. It essentially become an outsourced tech team. As a result, they have high decision-making power since they understand how all the technical pieces fit together.
System Integrators in Japan
Here are a few examples of system integrators in Japan:
1. Fujitsu: Known for large-scale integration services, particularly in cloud computing and infrastructure.
2. NEC: Specializes in systems integration in sectors like telecommunications, public safety, and data analysis.
3. NTT Data: Offers comprehensive solutions in areas like financial services, healthcare, and government.
4. Hitachi Systems: Provides integrated IT services, focusing on manufacturing, logistics, and smart city solutions.
In addition to these established players, there are numerous mid-sized and smaller firms that cater to niche markets, often focusing on specific industries or technologies. These companies form the backbone of IT implementation in Japan.
Partnering with SIs
Partnering with SIs would be a huge shortcut to entering the Japanese market. They are very close to their clients and have a direct influence on their client’s tech stack. Resellers can have a massive impact on revenues from the Japanese market. That being said, the hurdle to partnering with an SI is arguably harder.
If the partnership with the SI does come to fruition, the revenue potential is very high. Japanese companies generally prefer to work with SIs that can provide comprehensive, end-to-end solutions. This means that SIs are responsible for everything from the initial consulting and design phase to the actual integration, maintenance, and support of the system. This holistic approach allows Japanese businesses to rely on a single partner for their IT needs, reducing complexity and risk.
If the partnership with the SI does come to fruition, the revenue potential is very high. With the SI’s comprehensive understanding of their client’s tech stack, SIs would be able to introduce, propose, and implement your product. They also have the complete trust of their client, so even if the product is new to the market, service providers would be able to leverage the SI’s credibility and brand.
Accommodating the System Integrators Requests
During or before a formal engagement with the SI, they may have some specific requests. SIers make these requests to ensure that the product is a good fit for their clients. If the product is not localized, the SIer is likely going to request to provide a UI in Japanese. The SIers have the entire process mapped out including the adoption of a specific tool. Having local language support is a key aspect of the adoption.
There also may be product-specific requests. These requests are likely to ensure that the client’s requirements are met or the product can be seamlessly implemented from a technological perspective. Keeping an open mind about these requests can help the relationship. It is also important to understand why specific requests are being made. This understanding can provide additional context on how the SI imagines the product fitting a client’s specific need or the Japanese market as a whole.
Conclusion
For B2B SaaS companies eyeing the Japanese market, understanding and leveraging the power of system integrators is highly beneficial, especially in a market where the indirect sales channel cannot be ignored. While working with SIs presents its own challenges, the potential rewards in terms of market access, credibility, and scalability can accelerate becoming an established player in the Japanese market. SIs have a unique position of being trusted partners to the clients. They also provide insight into how large companies are approaching technology. If you’d like to learn more about the role of system integrators in the Japanese ecosystem, book a call here.
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