Investment Effect Report
Cost-Benefit Analysis and Sustainable Investment Value of Digital Transformation for Family-Run Businesses
1. Report Purpose
This report quantifies the annual benefits, investment recovery, and ROI (Return on Investment) achieved through the implementation of Nashiya's business management system, demonstrating the business value of digital transformation for small and medium-sized enterprises.
Note: This analysis is based on actual measurements and operational records from Nashiya Orchard, designed to balance 'on-the-ground perspective' with 'quantifiable results' for effective business decision-making.
2. Investment Cost Breakdown
Initial Implementation (Total ¥800,000)
System Development¥500,000
Customer/order/master integrated DB, automated label and invoice generation
System Customization¥300,000
Data migration, form layout adjustment, on-site optimization
Implementation Support
Amount¥200,000
On-site interviews, initial setup, test operation, training support
Annual Maintenance
Amount¥100,000
Maintenance, backup, security updates, minor improvements
Major Upgrades (Years 5 & 10)
Amount¥300,000 each
Feature refresh, UI improvements, and security hardening for long-term operations
First Year Total Investment
¥1,100,000
This is the investment required to implement a system equivalent to this one. The actual cost of system implementation may vary depending on system requirements. Please contact us for a detailed quote.
Discuss Implementation Costs3. Annual Cost Reduction
① Direct Benefits (Time Savings)
Automated labels and invoices reduce document creation time by ~150 hours
Annual Benefit¥450,000
② Stability Benefits (Risk Reduction)
Reduced errors, reprints, overtime, and stress-related health issues
Annual Benefit¥189,000
③ Business Intelligence Benefits
Faster shipping, inventory, and sales decisions through DB (~50h saved)
Annual Benefit¥200,000
Total Annual Benefit
¥839,000/year
Amount that can be reduced annually
4. ROI Year-over-Year Progression
• Initial Investment: ¥1,100,000
• Annual Maintenance: ¥100,000
• Major Upgrades in Years 5 & 10: ¥300,000 each
• Annual Benefit: ¥839,000
Year 1-23.7%
Cumulative Effect¥839,000
Cumulative Investment¥1,100,000
Initial year absorbing upfront costs.
Year 2+39.8%
Cumulative Effect¥1,678,000
Cumulative Investment¥1,200,000
Payback achieved around 1.3-1.4 years.
Year 3+93.6%
Cumulative Effect¥2,517,000
Cumulative Investment¥1,300,000
Exceeds investment, entering profit phase.
Year 5+133.1%
Cumulative Effect¥4,195,000
Cumulative Investment¥1,800,000
Even after the ¥300K reinvestment in Year 5, ROI remains strong.
Year 10+222.7%
Cumulative Effect¥8,390,000
Cumulative Investment¥2,600,000
Including the second ¥300K upgrade, returns stay at ~3.2x the total investment.
Breaks even by Year 2. Even accounting for major upgrades, ROI reaches +133% at 5 years and +223% at 10 years, showing stable investment returns.
5. Potential Additional Benefit (Hiring Avoidance)
By implementing this system, you may be able to sustain operations without hiring a new full-time administrative staff member.
1 Full-time Admin Staff
Annual Cost¥3.0M
Annual salary ¥2.5M + overhead ¥0.5M
Potential Benefit from Hiring Avoidance
3 years
¥9.0M
5 years
¥15.0M
Depending on your business structure, this can multiply ROI several times over. It creates a foundation for sustainable operations with existing staff alone.
6. Summary
✓Annual Benefit: ~¥839,000/year
✓First Year Investment: ¥1,100,000
✓ROI: +133% at 5 years, +223% at 10 years (includes major upgrades)
✓Payback Period: ~1.3-1.4 years
✓Potential Benefit: ¥3M/year capacity from hiring avoidance
Conclusion: Digital transformation is not merely about 'efficiency for reducing workload'—it's an investment in building systems that enable stable business continuity despite labor shortages. This effect is most direct for family-run and small-scale businesses.
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