*Per Takayuki Morita
As our purpose, we at NEC aim to create the social values of safety, security, equity and efficiency, and act to bring about a sustainable society where everyone has a chance to reach their full potential. Guided by this purpose as our starting point, 2022 was the second year of the 2025 Medium Term Management Plan (MTP 2025), when we became convinced that the direction we were aiming for was the right one. I think it was also a time when we faced many challenges and, as a result, we were able to make significant progress.
Here are some specific examples of progress we've made:
- From the point of view of "Strategy", based on the medium-term plan (MTP) of 2025, regarding the digital transformation (DX), we strengthened our performance as a consultancy to, thus, advance with the Internal DX, the DX of the Customer and Social DX. We enhanced our collaboration with consulting firm Abeam to accelerate the development of digital human resources. We also expanded the NEC Digital Platform, which integrates the company's strengths in biometrics, AI (Artificial Intelligence) and security. We are expanding the scope of our proposals as a reliable partner to support our customers' DX. We have also expanded our strategic collaborations with many global partners, including Microsoft, AWS, SAP, Oracle, ServiceNow, Zoom and RedHat, with the aim of enhancing our in-house DX applications and further promoting our offerings by leveraging our expertise and know-how internal;
- In the global 5G business, NEC is gaining recognition as one of the world's leading marketers of Open RAN. Our commercialization initiatives in partnership with other telcos are expanding, allowing us to make steady progress along the way. To further advance our business, we acquired Blue Danube Systems, Inc. in the US and Aspire Technology Unlimited Company in Ireland to develop global 5G-related products and strengthen our systems building services;
- In the Digital Government and Digital Finance businesses, three companies that have joined the NEC Group over the past four years – NEC Software Solutions, KMD and Avaloq – are playing a pivotal role in improving medium-term earnings. In addition, we are following the synergistic effects within the group and creating a positive cycle in the global expansion of our business in these two verticals. In particular, in the Digital Government business, we are relying on the experience and know-how from KMD in Denmark to accelerate tenders in Japan.
- In the field of business innovation (new business creation), we have reached a level where we can talk about creating social value through concrete ecosystems in various fields such as AI-based drug discovery, agriculture and the environment. . In the AI-based drug discovery business, we started to develop next-generation vaccines for the prevention of future pandemics, in collaboration with Coalition for Epidemic Preparedness Innovations (CEPI). In agriculture, together with Kagome, we have established a new company in Portugal that aims to help tomato growers grow their crops more efficiently using AI.
- Another pillar of our 2025 MTP is “Culture”. With the aim of improving employee engagement, we are driving organizational reforms and creating a work environment we can be proud of, where diverse human resources can work enthusiastically and play active roles. According to smart work 2.0 in Japan, which aims to increase employee job satisfaction, we are also accelerating the creation of a favorable working environment, based on the three pillars: “Workplace”, “Working Principles” and “Digital Technology”.
- Additionally, as an expansion of our thought leadership activities, we are promoting reforms at the Institute for International Socioeconomic Studies (IISE), a think tank of the NEC Group, in order to strengthen our ability to “enjoy the future together”.
2023 will be an important year to accelerate the transformation of our “Strategy” and “Culture”, to refine our 2025 MTP and to take a big leap forward. By constantly connecting multiple measures to results, we will earn our customers' trust. stakeholders, we will make significant strides towards co-creating for the world we showcase at the NEC 2030VISION and consequently take great strides towards realizing our purpose.
“Keep in mind that a stable company is unstable and an unstable company is stable.” This is one of the “Ten Management Principles” championed by former NEC President Koji Kobayashi, who championed the Computing and Communications (C&C) concept and led the company's second founding period. I am deeply aware of the importance of these words in our rapidly changing world.
We can only deliver value to society when we have the ability to execute and produce tangible results, without fear of going through changes.
NEC Group will continue to move forward as a team in 2023, without wavering in our efforts to bring about true transformation.
*Takayuki Morita, President and CEO of NEC Corporation
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
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