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The Digital Transformation that NEC envisions

NEC will connect the resources required for the next generation of management to achieve a sustainable society that brings vitality to companies, industries, cities, and people.

Why do we need Digital Transformation now?

Initiatives have been implemented throughout the world to resolve the social issues of disparities in wealth, shortages of food, energy resources, and climate change. Under these circumstances, Sustainable Development Goals (SDGs) as common global goals for 2030 were established by the United Nations Summit in September 2015.

In the process of establishing a sustainable society, technology is an important key to resolving social issues. Exponential evolution in technology accelerates productivity growth and efficiency in industries, hastens the arrival of the Zero Marginal Cost Society*1, where network costs for information, energy, and transportation are significantly reduced, and leads to a future where you can use as much as you need, when you need it. While people’s ideas about consumption and ownership have been changing, the sharing economy, such as car sharing, using information networks has spread throughout people's lives.

In such future management, having advanced technologies is not special, and it will not be a factor differentiating one company from another. We must leverage the application and scope of use of technologies to create new services, products, business models, and value. This kind of commitment will greatly streamline corporate and industrial business activities and city operations, transform all aspects of people's lives in a better way, and achieve a sustainable society. This sort of social phenomenon is Digital Transformation (DX).

If you look at the changes made by the transformation to digital photography from silver halide film, the digitization of photos transformed the use of photos in conjunction with mobile communications and created new value in our lifestyles while resolving environmental problems in the picture development process. And at the same time, it has hugely impacted the supply chain of the film market from production through retail and revolutionized the business model.

In recent years, the spread of online shopping has affected retail markets, and the spread of the mobile internet with smartphones has changed the manner of mass media, consumption trends, and the behavior of people. The changes caused by the digital wave have been felt in every industry. In this way, the revolution in the business models of enterprises and industries caused by DX will change the lifestyles of people.

According to market forecasts by survey firms, investment in DX will increase significantly over the next five years, and it predicts that there will be significant changes in the three large sectors of manufacturing, public services, and distribution. NEC has long been involved in solutions for these sectors and has been contributing to the development of our customers’ businesses. Today, NEC would like to work with customers for further development and to resolve social issues.

*1 The society advocated by Jeremy Rifkin in The Zero Marginal Cost Society: The Internet of Things, the Collaborative Commons, and the Eclipse of Capitalism is where efficiency and productivity increase to the ultimate level from advances in technology, such as IoT, and consequently objects and services will be free.

What is the Digital Transformation that NEC envisions?

The real world is established by connecting people to people, people to things, and people to contexts; value is generated by these encounters. However, in many cases, new value fails to be created because of insufficient connections, no connections, limited connections, or inefficient connections, which therefore costs more.

Digitizing events in the real world, incorporating them into the cyber world, and connecting people, things and contexts to gain deeper levels of information connect to the ability, aptitude, and interest inherent in people to create new value. Consequently, it will change our lives and businesses for the better. This is the Digital Transformation that NEC envisions.

With such future management, NEC aims to achieve a sustainable society that creates vitality in enterprises industries, cities, and people by connecting resources to people, things, and contexts.

For example, in enterprises, DX can connect the company, business, and information, such as the ability, aptitude, and interest inherent in people, to create vitality for people; consequently, NEC achieves a world where automation is advanced by streamlining operations. This enables the application of people to more creative tasks and leads to increased productivity. Also, DX will realize the operation of crowd sourcing to outsource the business via the internet, which means people can select their working style without the constraints of location or time. For an active senior generation, offering a challenging job may also be possible to take advantage of their skills and abilities. People can live with more vitality, if they can select their working style and achieve a sense of fulfillment. At the same time, management can apply human resources in the right place at the right time, thus eliminating labor shortages.

In the industrial sector, the connection to information from manufacturing, logistics, and retail in real time will optimize the workforce across workplaces and balance supply and demand; as a result, the loss of food and disposal of products will be reduced. In addition, personalized marketing, which is based on the analysis of consumer needs or feedback to a producer, can be created, so people can get as much as they need when necessary. Eventually, it will optimize the value chain by involving consumers.

In cities, DX will make operations more efficient by connecting public service sites with a wide variety of information possessed by management and will optimize all public services from the perspective of the entire city based on the concept of city management. For example, traffic congestion and inefficient services can be reduced and city life improved. In addition, DX enables the prediction of the time and place where crimes are likely to occur so that police officers and security guards can be appropriately assigned. With this, the security of the city will improve by reducing terrorism and crime to achieve a safe, secure society. By connecting people to medical institutions and medical services, personalized medical care is optimized for individuals to maintain health and improve the quality of our lives where is possible and to do a wide range of activities more freely.

In this way, NEC creates vitality for companies, industries, cities, and people, and achieves a sustainable society.

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Case Study

case1

JGC Corporation

Aiming to enhance stability, safety and efficiency Deploying digital data in plant operations

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case2

Kitahara Neurosurgical Institute

AI supports hospital management reforms as the goal to be achieved by the Kitahara Neurosurgical Institute.

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