#Japan #Modernization #Tokyo #AI Development #Shift

SHIFT's New Modernization Services

SHIFT, headquartered in Minato, Tokyo, has recently announced the launch of a groundbreaking modernization service centered on system visualization and AI-driven development. Led by President Hiroshi Tange, this initiative aims to assist customers in creating software products and services that are not only effective but also cost-efficient, thereby improving the return on investment in system renewal.

In its journey toward becoming an 'AI-native SI company,' SHIFT has extensively promoted the utilization of AI across various internal divisions. Leveraging years of expertise in software quality assurance and testing, the company has successfully automated over 1,200 business processes through AI, developing a deep reservoir of knowledge and experience in the field. This new service is designed to efficiently facilitate modernization, which is critical for accelerating digital transformation (DX) in organizations.

Background of Service Launch

As many domestic enterprises face aging and complicated systems, they grapple with rising operational costs and a shortage of personnel to handle system renewal and maintenance. The Ministry of Economy, Trade and Industry has highlighted the gravity of these issues in its 'DX Report,' warning that failure to address them could result in an annual economic loss of up to 12 trillion yen post-2025, coining the term '2025 Cliff' to underline the urgency.

While traditional legacy systems have typically included mainframe and COBOL-based systems, newer systems are also suffering from technological debt after only a decade in operation. These systems have unexpectedly become burdensome, significantly escalating development and operational costs. Many enterprises have been unable to visualize these systems effectively, resulting in vital projects being stalled, which in turn obstructs their digital transformation efforts.

In response, SHIFT has innovated its modernization services to resolve the issue of system black-boxing. This move aims to create a conducive environment for genuine digital transformation among Japanese companies by harnessing its quality assurance experience and AI expertise.

The Process of AI-Driven Modernization

The newly introduced modernization services incorporate AI visualization of systems alongside a proprietary development framework named 'SHIFT DQS (Development Quality Standard)' combined with AI agents for driving system development. This enables a seamless flow from the initial stages of modernization to completion. By visualizing the system, SHIFT can identify the scope of the renewal, while high productivity in the development process ensures a positive return on investment.

Research indicates that unnecessary source code in legacy systems can reach upwards of 30-50%. Consequently, selecting the right components for migration is critical to the success of modernization efforts. Through its innovative service, SHIFT employs various AI tools to visualize legacy systems and business processes before determining migration targets and creating effective transition strategies.

Since the service's launch in April 2024, SHIFT has accumulated a diverse range of implementations across different industries, utilizing proprietary AI visualization tools such as the 'AI Document Reverse.' This tool visualizes the functional specifications, data flows, and business flows of systems and facilitates the reconfiguration of large-scale software into fully independent, smaller service entities, promoting microservice architecture that offers greater scalability and ease of reshaping.

Achieving High Quality and Productivity in System Development

By optimizing its developmental framework for AI-driven development, SHIFT has successfully enhanced the quality and efficiency of the development lifecycle—from requirements definition to testing. The company has integrated 'Devin,' an AI software engineer provided by Cognition AI, into its processes. Through consistent dialogue between development engineers and Devin, SHIFT forecasts a potential improvement in development efficiency of approximately 30-50% across multiple projects by the end of August 2025.

SHIFT is determined to lead the AI-driven development landscape in Japan, partnering with Cognition AI to support domestic enterprises in their transition to AI-enhanced development. For additional insights, see the full press release at URL.

Future Goals and Developments

Looking ahead, SHIFT aims to build a new project management methodology that utilizes AI agents to replace traditional roles previously filled by offshore and subcontracting firms. This acknowledges the changing nature of development engineers and programmers, seeking to establish a robust training process for talent equipped for an AI-centric world.

In its ongoing commitment to promoting AI-powered development, SHIFT will also address the longstanding imbalances and challenges in the IT industry, including the multi-tier subcontracting structure. The company is dedicated to continuously evolving their approaches to software development and project management, ensuring that they meet the demands of the AI era.

About SHIFT

Founded in the enterprise sector, SHIFT has crafted a robust foundation through software quality assurance and testing services for critical systems, from financial institutions to e-commerce platforms, and mobile app/game validation. Now focused on creating a 'smart society devoid of waste,' SHIFT seeks to resolve various IT-related business challenges, from system planning to DX promotion.

For more information:

• - Company Name: SHIFT Inc.
• - President: Hiroshi Tange
• - Address: 1-3-1 Azabudai, Minato, Tokyo, Japan
• - Corporate Website: SHIFT Inc.
• - Service Website: Shift Service