First of all, thank you very much for joining us today. We are very excited about this interview. Before we begin, could you briefly share your background?
Certainly. I began my career at Andersen Consulting, now known as Accenture. After working there and at a startup company, I returned to Accenture. Then, I founded INTLOOP in February 2005.
Throughout my consulting career, I worked across business strategy, BPR, and project management. Over time, I came to believe that a consulting firm should not only advice clients, but also build own businesses. Even now, INTLOOP runs its businesses based on this belief. Today, I am delighted to be speaking with you about some of the pressing challenges facing Japan—particularly its shrinking market and demographic crisis.
Japan is facing a serious demographic challenge. Each year, the working-age population declines by about 600,000 people, and by 2040, it is expected that the country will lose approximately 11 million workers. This has significant implications for industries across the board—from services to manufacturing, and especially in consulting. How do you view this challenge, and how is your company responding?
Indeed, Japan’s declining birthrate and aging population are creating a profound shortage of working-age individuals. Until recently, many Japanese corporations did not perceive this issue with a sense of urgency. However, the COVID-19 pandemic became a turning point. Suddenly, remote work had to be adopted, digital transformation could no longer be delayed, and companies realized they had to invest in efficiency or risk falling behind.
We recognized this shift as an opportunity. As Japanese companies became more serious about addressing demographic decline, their willingness to invest in productivity and digital transformation increased significantly. That has directly translated into greater demand for our services. Clients are approaching us with concrete requests, and our business has grown rapidly as a result.
Japan has been accelerating its digital transformation in recent years. However, compared with Europe and the United States, it is still lagging behind. For example, while over 90% of companies in the U.S. and Europe utilize cloud-based services, the adoption rate in Japan remains around 60%. The uptake of AI is also still relatively low. How do you see this situation, and how do you envision the evolution of DX and AI in Japan?
You are correct—Japan is behind. I estimate that we are about three to five years behind Europe and the U.S. We are only just beginning. For example, I recently read that American firms are reducing new graduate hires in computer science because automation is taking over certain tasks. In contrast, many Japanese companies are still operating with largely manual processes.
That being said, I believe the next three to five years will be transformative. Japanese companies are already beginning to catch up with Western IT trends, and once momentum builds, I expect the IT and consulting industries in Japan to enter a very dynamic growth phase.
Japan is also experiencing governance reforms, with stricter rules around capital efficiency and increasing pressure for portfolio restructuring. Do you see these changes creating opportunities for a company like yours?
To be honest, I feel governance reform has not yet deeply permeated corporate Japan. There is some momentum—for instance, in the financial sector, we see players like SBI investing in companies with low price-to-book ratios and pushing for management reform. But I don’t yet sense a widespread sense of urgency among most Japanese corporations.
That said, I do think we will see more consolidation and restructuring. When companies merge, there is naturally a stronger need to streamline operations, and this inevitably drives investment in digital transformation and AI. Traditional companies may take longer, but over the next three to five years, we will see a gradual acceleration.
Globalization is also becoming increasingly essential for Japanese corporations. How do you support companies that wish to expand overseas?
We provide consulting services as our core business, but recently we have expanded into investment partnerships to help Japanese companies globalize. For example, we jointly launched a buyout fund with Asahi Shokuhin, one of Japan’s largest food wholesalers. Many excellent Japanese food manufacturers have high-quality products but limited overseas sales channels. By leveraging Asahi’s distribution network and our consulting expertise, we can help these companies succeed abroad.
Additionally, we have investment support from ITOCHU corporation, which strengthens our ability to open new channels. Through this fund, we aim to assist traditional Japanese manufacturers not just in food but across various sectors, helping them globalize and grow. Our overseas bases will further support Japanese companies by localizing their operations and strengthening their presence in global markets.
This year marks INTLOOP’s 20th anniversary. Looking back, what do you consider the key turning point in your company’s growth?
When I founded INTLOOP in 2005, I believed strongly in the potential of the freelance consulting market. But until around 2014, our growth was stagnant. We were essentially operating as a small consulting firm, and revenue was stuck at around 1 billion yen.
The problem was that the company wasn’t growing, and when that happens, people leave. We went through a very difficult period, with many employees resigning. It felt like the company might collapse.
That was the turning point. Around 2015, I decided we needed to change fundamentally. I committed to reinvesting everything we had saved into growth, and I set an ambitious target: 100 billion yen in revenue. Today, we’ve reached about one-third of that, with revenue 33.5 billion yen. So yes, the first 10 years were slow, but the second 10 years have been a period of dramatic growth.
What differentiates INTLOOP from other consulting firms, and what do you see as your key competitive advantage?
Our mission is to create a society where the growth of individuals and the growth of companies reinforce one another. That may sound simple, but it has been our guiding principle.
I believe the most important factor is people. We focus not just on hiring talented employees but on helping them grow. This means committing to their professional development, ensuring they can increase their income and social standing. Unless you make that commitment, people won’t stay.
We have consistently raised salaries at a rate of 7–8% annually for over a decade, far above the national average of around 2–3%. This has allowed us to retain top talent and motivate our teams. I think that people-first approach is our real competitive edge.
Looking ahead, you have set a goal of reaching 100 billion yen in revenue by 2030. What will be the main growth drivers for achieving this?
There are two main drivers. First, our existing consulting business still has enormous room for growth, especially as Japanese companies accelerate their digital transformation. I see strong opportunities over the next three to five years.
Second, our buyout fund strategy. We started with the food sector, but our plan is to expand into other industries that may be struggling domestically but have strong potential overseas. By acquiring companies, we can directly implement DX consulting, improve operations, and support exports. This approach allows us to generate new opportunities within our ecosystem.
This approach allows us to scale without relying heavily on outbound sales. We grow the acquired company, build a successful track record, and then repeat the process. Ultimately, I want INTLOOP to be a consulting firm that doesn’t need to “sell” in the traditional sense—our results will speak for themselves.
Partnerships and co-development with major technology providers also seem to be part of your strategy. At the same time, you are building proprietary digital platforms such as “High Performer”. How do you see alliances and in-house development contributing to your growth?
Both are essential. We are actively developing our own AI-based solutions, but of course, we can’t do everything ourselves. Strategic alliances are critical. We are already working with partners, and by next spring, we expect to launch our first AI-related product. While I cannot yet share details, it will be a significant step forward in expanding our solution offerings.
With the rise of AI agents, many basic consulting tasks may soon be automated. How do you see this affecting the consulting profession?
I believe the impact will be profound. Routine tasks that junior consultants once handled will increasingly be managed by AI. This means the bar for consultants will rise significantly. To stay relevant, consultants will need to be true experts in their respective fields, offering insights and perspectives that AI alone cannot provide.
Consultants of the future will be judged by stricter standards than in my generation. Simply knowing how to use AI tools will not be enough—clients can do that themselves. Our value will lie in combining AI with deep expertise to deliver outcomes that truly differentiate us.
You recently expanded internationally with acquisitions such as KOZOCOM, and you mentioned buyout funds supporting Japanese companies abroad. How do you see global expansion contributing to your 2030 goal?
Global expansion is essential. Japan cannot survive without globalization. With KOZOCOM, the model is offshore development and resource capabilities supply, but going forward, we are more interested in acquiring firms that already provide consulting, system development, or marketing in local markets. By integrating these companies, we can both support Japanese firms abroad and capture opportunities in Asia and eventually Europe and the U.S.
Importantly, we don’t impose our own corporate culture on acquisitions. We prefer to retain the existing management teams, focus on synergies, and help them grow. That way, they feel the benefits of joining our group, rather than seeing it as a takeover.
Looking ahead five years, when INTLOOP celebrates its 25th anniversary, what goals do you hope to have achieved by then?
My personal goal is to make sure INTLOOP can operate smoothly without me. I want to develop the next generation of leaders so that the company continues to grow independently. Ultimately, business is about people, and building a sustainable organization that thrives without dependence on its founder is the legacy I want to leave.
Finally, our readership includes 75 million global leaders—CEOs, investors, policymakers, and entrepreneurs. If you were to describe INTLOOP in just one sentence to them, what would you say?
That is a difficult question. But I would say: INTLOOP is, at its core, a consulting company—whatever businesses we engage in, consulting remains the foundation of everything we do.
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