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Vibrant SMEs of JAPAN

Developing Creative Services through the Internet [DreamNet's]

Secret to Robustness
  • Proper human resource organization depending on the company size.
  • Withdrawing from subcontracted development work.
  • Developing original products born from an unconfined corporate culture.

"Want to Sell", "Want to Buy"

DreamNet's President Kazunari Inoue first ventured into the internet field in the latter half of 1997. At the time, Inoue was an employee working at an iron works company, but his interest in the internet was sparked when he wondered if it could be used to connect different things. With a total of three people including his younger brother and a programmer, Inoue launched the "Shiba [lawn] Campus", an internet-based free market website.
 At the time, the word "homepage" had not yet become a widespread term, but people wanting to "buy" and "sell" quickly gathered at the website, and access to the website grew. A method was adopted in which the operations side took temporary custody of the products that were sold and the money that was received for those products, and after the products were examined, a 12% commission was deducted, the products were shipped to the buyer, and the money was transferred to the seller. The website gained great reviews from users because it allowed them to engage in transactions "with peace of mind."
 The website was improved to reflect opinions from customers, and with those changes, price negotiations were enabled just like a free market. As a result, membership surpassed the 50,000 mark. President Inoue felt like the "Internet, which allows you to give form to ideas, is a lot of fun."

Full-scale Participation in the Internet Business

In 2000, President Inoue handed over control of the free market business to his younger brother so that he could participate fully in the internet business. By himself, he then founded the "Internet Development Laboratory", the predecessor to DreamNet's.
 Inoue wondered if it was possible to "create a mechanism that would enable anyone to begin online sales." With that in mind, he developed a software package that included functions necessary for online sales such as product registration, sales and customer management, and after sales follow-up, and he commercialized the software package under the name "Jikuu Shounin [space-time merchant]".
 He also began producing corporate homepages and developing systems on a contract basis. Locally, there were almost no companies that would undertake the task of building systems, so when a newspaper ran a story about his services, business grew. "Jikuu Shounin" became a hit with over 100 packages sold. The product received excellent feedback, but it was the happy faces of customers that brought Inoue the greatest joy.

Something is wrong...Decision to stop subcontracting.

When his reputation began to spread and orders for development work expanded, the number of employees at both the Fukuyama headquarters and Tokyo branch office increased to 40. Many of the clients were large corporations, and sales surpassed 100 million yen. On the other hand, management couldn't keep up, and it became impossible to know what was going on inside the company. The need to rework delivered product at the local site also increased. As President Inoue was traveling back and forth between Fukuyama and Tokyo, he started telling himself, "Something is wrong..."
 However, with 40 employees, Inoue felt obligated to complete the orders at hand and grow sales, and accepting the unreasonable demands of the companies placing the orders and working around the clock as a result had become the norm. Inoue agonized about this issue on a daily basis for over 4 years, and then in 2008, he made a major decision.
 "Subcontracting (commissioned work) is not fun. Let's stop it altogether." President Inoue and his employees were exhausted. There were some voices of opposition within the company, but the company gradually decreased its subcontracted work. About that time, the company advanced with the development of "Abroad", the improved version of Jikuu Shounin, and of "Wook", an electronic book that can be published by anyone. The company narrowed its efforts down to the development of those two products and made a course correction as a package software developer.
 Commissioned work from major companies disappeared, and the company was then impacted by the Lehman Shock. As a result, sales decreased by half, and the number of employees was cut to 10. However, in inverse proportion, the atmosphere inside the company began to come alive. The "Wook" business was sold to King Jim Co., Ltd., and the company obtained revenue as a result. There began to be leeway for employees, the company was able to pursue quality, and it was able to output good products. In addition, while sales had decreased by half, the profit margin improved. Adoption of the app creation service "Appsta" launched in 2013 for smartphones by restaurant chains and hair salons is also increasing.
 Through a series of twists and turns, DreamNet's returned to its starting point of software development as its main business channel. President Inoue is confident about this move. "Size is not what is important for a company. What is important is that a company produces creative, interesting products that aren't found anywhere else in the world and then ties those products to business."

"Appsta" for smartphones

"Appsta" for smartphones


Focus on Small and Medium Size Companies

DreamNet's has done business with a lot of major companies, but President Inoue's focus is also on small and medium size companies. The impact of his work at a local iron works company is still large. "Appsta" for smartphones is a service that can be used to create unique apps for small and medium size companies and small-scale stores. With a selling point of no initial costs, DreamNet's continues to receive applications from various industries such as restaurants, clothing stores, and temples.
 DreamNet's plans to continue commercializing these types of new services at a pace of three per year.

Company Data

President: Kazunari Inoue

President: Kazunari Inoue

Company name DreamNet's, Inc.
President Kazunari Inoue
Industry Type Internet service planning and development
Address 13-20 Motomachi, Hukuyama City, Hiroshima Prefecture, Japan
Phone 084-973-3521

Printing day:August 7, 2014

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