Mogic considers

With the combination of a small number of people + software + servers and robots
We are promoting a new era of company management.
We hope to share part of this process with you in this corner.

Representative Director Yoichi Yamane

2025.06.10

Upside and Downside

Developing cloud services as a product is easy to agree upon internally.

There is not much reason to object to this, since it will result in sales and profits if a contract is signed.

If there is, it is only to ask what they are going to do if they don't sell.

On the other hand, internal business systems are surprisingly difficult to develop, even though they are the foundation that supports cloud services.

Perhaps this is because, unlike commodities, it is difficult to relate each workflow directly to profit and loss.

Many people ask whether systemizing their operations will be profitable or wasteful, or whether it will require too much time and effort to maintain.

But the truth is that it is precisely what we don't know sensibly that we should try to estimate once how important it is.

As an example, let's take a small slice of the cloud services business.

Register inquiries, reply to inquiries, receive consultations, provide quotes, sign contracts, send invoices, confirm payments, perform accounting procedures, and analyze data.

I will include the approximate time it will take for these.

Per case
Register an inquiry: 5 minutes
Reply to inquiry: 5 minutes
Receive a consultation: 15 min.
Provide a quotation: 15 minutes
Sending and signing a contract: 30 minutes
Create and send invoice: 10 minutes
Confirming payment: 10 minutes
Perform accounting: 15 minutes
Analyze data: 15 minutes
Total time: 2 hours

and then expand the number of cases.

20 hours for 10 cases
200 hours for 100 cases
2,000 hours for 1,000 cases

It can be simply derived as follows.

If the value of one hour is considered low, say 5,000 yen, 10 cases are worth 100,000 yen, 100 cases are worth 1,000,000 yen, and 1,000 cases are worth 10,000,000 yen.

If this were a per month figure, it would float between 100,000 yen and 10 million yen in perpetuity.

In other words, it is considered more reliable and sustainable to improve the efficiency of business systems than to cover them from the accumulation of sales.

Moreover, this calculation is cut out as a part, so the operations are really connected to each other and can be a multiplier effect.

In business flavor, the assumption is that the upside effect is unlimited and the downside impact is only the development cost incurred (actually, there is an opportunity loss, but it is exempted).

To put it in everyday terms, "If it works, it's very effective; if it doesn't, you just lost the time and effort you put into it.

If you believe that you can make a business system, then you can make a business system.

First, create a small business system and measure the actual time spent floating.

On schedule, below schedule, or above schedule?

If it wasn't on schedule, why was it off?

We will just keep on making and changing things for generations, and when the day comes that everyone finds it useful, we will do it.

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