[We've created a dedicated IT Subsidy site, "The Easy Guide to the IT Introduction Subsidy." Please take a look here.]
In our previous article, "You Can Build a Website Using a Program That Subsidizes Two-Thirds of Your Costs!," we gave a brief introduction to the subsidy currently accepting applications.
To recap briefly, the IT Introduction Subsidy is a program that lets you receive a grant—which does not need to be repaid—covering two-thirds of the costs paid to introduce so-called "IT tools," such as website production or business software, up to a maximum of 1 million yen.
With this program, you can fund the kinds of systems you've been thinking about introducing, such as order and reservation systems, sales/purchasing/inventory management systems, attendance and payroll systems, accounting software and other business systems. It can also be used for building or renewing a website that strengthens your sales capabilities.
This software may be either packaged software or cloud-based (in the case of cloud services, only one year's worth of usage fees is eligible).
In other words, it can be applied to software introductions that match exactly the areas where you want to improve your operations or strengthen your sales.
That said, this subsidy is not something everyone is guaranteed to receive. In addition, not all commercially available software is eligible, and depending on where you make your purchase, it may or may not qualify.
So in this article, we'd like to look at who is eligible for the IT Introduction Subsidy and what qualifies for it.
Are You Eligible? Or Not... Who Can Use the IT Introduction Subsidy?
First, who can use (apply for) the IT Introduction Subsidy? Let us introduce the eligible parties.
※ You must be a small or medium-sized enterprise or a sole proprietor.
(Eligibility also depends on capital, number of employees, and the composition of officers)
※ You must not have applied before.
(Each corporation may apply for the IT Introduction Subsidy only once. As of April 2017, a second round of applications is being accepted, but those who applied in the first round are not eligible)
Which Purchases Are Eligible?
To use the IT Introduction Subsidy, the item must be purchased and introduced through an "IT Introduction Support Provider." If you currently have a specific IT tool in mind and are considering using the subsidy, you should check whether the vendor is a registered IT Introduction Support Provider.
You can check whether a vendor is an IT Introduction Support Provider on the IT Introduction Support Provider / Consortium search page. Incidentally, we at Merci are already registered as an IT Introduction Support Provider.
An IT Introduction Support Provider does more than simply sell you software or build your website. In fact, choosing your IT Introduction Support Provider is quite important for you.
That's because the IT Introduction Support Provider handles the subsidy application on your behalf, and the way the application is prepared can greatly change your chances of being selected. Yes—if your application isn't approved, you don't get the money! We'll cover the keys to improving your chances of selection another time, but you should be aware that a carelessly written application may well not be approved.
Furthermore, the IT Introduction Support Provider continues to play a major role even after your application is approved and the tool is introduced.
If you receive this subsidy, you must measure the effects of the subsidized IT tool and submit a report once a year for a total of five years—from one year after introduction through the following four years. This reporting is to be carried out in cooperation with your IT Introduction Support Provider, so they must be a trustworthy company with whom you can maintain a good business relationship for at least five years.
(If you neglect to report, you may be required to return the subsidy you received.)
We've strayed a little off topic, but in any case, teaming up with a trustworthy IT Introduction Support Provider is the fundamental prerequisite for making use of the subsidy.
What Exactly Are the "IT Tools" Covered by the Subsidy?
"IT tools" refers to the software, websites, and web services that contribute to the operational improvements and stronger sales capabilities mentioned at the beginning.
An IT tool must be software or a web service registered in advance by the IT Introduction Support Provider that supplies it. That said, if an IT vendor has made you a proposal with the subsidy in mind, it can be assumed the tool is already registered, so there shouldn't be any problem.
So here, as an additional topic, let's touch on the kinds of IT tools that are likely to be approved.
First, as a prerequisite for applying for the IT Introduction Subsidy, the requirement that "its introduction will improve productivity" must be met. So what is "improved productivity"? Roughly speaking, it is defined as "an increase in added value per employee."
How do you increase added value per employee? There are only two ways.
※ Increase sales with your current number of employees
※ Reduce expenses while maintaining current sales
So the tool must contribute to one of these.
With that in mind, what comes to mind?
The first IT tool that comes to mind for increasing sales is probably the "website." Building a website that helps attract customers is, we think, an IT tool that is likely to be approved.
Conversely, a website that is merely a company introduction won't attract customers. An online shop without a clearly defined target audience may also be judged to have little effect.
Among business software, tools for internal information sharing and customer management are expected to lead to stronger sales capabilities. Since such software is offered by many software makers, we believe selecting one that suits your objectives and environment will raise your chances of approval.
What about IT tools that reduce expenses? A common example is introducing software that "visualizes" and manages sales, purchasing, and inventory. Once you can manage sales and purchasing accurately, you can maintain appropriate purchasing and stock levels, which leads to cost reductions.
Conversely, what kind of software is unlikely to be approved? This is a personal view, but we think software such as accounting or payroll packages is unlikely to be approved on its own.
That's not to say such software is no good. But although it is more efficient than doing things by hand, it seems a bit weak when viewed from the perspective of "does it raise productivity?"
So if you are introducing this kind of software, combining it with other software (such as sales and purchasing management software) will make approval more likely.
What do you think? The IT Introduction Subsidy is there to support "investment that raises the productivity of your business."
The IT Introduction Subsidy is currently accepting applications until the end of June under the FY2016 supplementary budget. But even after this round closes, there is a strong possibility that further rounds will be held intermittently, if not immediately.
So rather than rushing into an introduction without verification, it's important to consider things carefully and identify what you truly need and what will genuinely be useful.
