In a rapidly digitizing world, where nations are striving to modernize their infrastructure and improve the quality of life for their citizens, technology firms play a crucial role in enabling this transition. A recent case study on NEC Corporation India (NEC India), developed by INSEAD Professors Paddy Padmanabhan and Guoli Chen, and case writer Jean Wee sheds light on how strategic leadership, cultural transformation, and a focus on innovation can position a company not only as a business leader but as a formidable and lasting nation-building partner.

Overcoming Challenges: From Fragmentation to Cohesion

NEC India, a subsidiary of the Japanese technology giant NEC Corporation, has been present in India for over seven decades. However, its journey as a consolidated entity began in 2018, when the company merged its sales and technology units to form NEC Corporation India. This strategic move aimed to create synergy, improve service offerings, and address the demands of India's rapidly growing economy.

This transition was not without its hurdles. It had inherent challenges that came from siloed operations, brand identity issues, and the need to adapt premium-priced Japanese technology to India's cost-sensitive market. Moreover, the project-based nature of NEC India's business model, characterized by long sales cycles and revenue volatility, complicated its efforts to maintain financial stability.

"This changed our headquarters' expectations for country affiliates," remarked Takayuki Morita, President and CEO of NEC Corporation. "Rather than just being an importer, we now expect country affiliates to create value for local customers and society by combining NEC's technology and assets with local needs."

Change of Guard: Strategic Leadership Redefined

The company underwent a crucial turning point in early 2020 with the appointment of Aalok Kumar as President and CEO of NEC India. His leadership brought a clear mandate: to drive growth, improve profitability, and transform NEC India into a key player in the country's technological and economic development.

"We had to rethink how we operate and how we're perceived," said Aalok. "We needed to change our internal mindset to one of growth and impact."

He introduced a three-pronged strategy to drive growth by enhancing commercial acumen, boosting brand recognition, and fostering a high-performance culture. Key initiatives included restructuring financial operations, redefining the brand, and implementing a transparent, merit-based performance system.

Building Winning commercial capability in the market

NEC India reorganized its finance and supply chain management teams into four pillars—commercial finance, financial planning and analysis, controllership, and tax—to improve governance, risk management, and project execution. The company also optimized cash flows and hired a new Legal Head to strengthen contractual frameworks and ensure robust risk management, marking a shift toward cross-functional alignment.

By fostering collaboration across business units (BUs) and engaging finance early in deal cycles, NEC India improved accountability and operational efficiencies. Tightened contracts and more favourable payment terms improved cash conversion ratios, enabling greater risk tolerance for large-scale projects.

Elevating Brand Recognition: Building Pride

To improve brand awareness, Aalok led rebranding efforts by emphasizing NEC’s global leadership, local relevance, and employees personal engagement through redefined communication architecture. Through digital campaigns, storytelling, and media engagement, NEC India showcased its technological prowess and local impact, transforming its perception among stakeholders. Internally, employee-driven initiatives reinforced pride and ownership in NEC India's mission.

Cultural Shift: Empowering People for Long-Term Success

Another critical factor in NEC India's transformation was its cultural overhaul. Under Aalok's leadership, the company moved toward a meritocratic and transparent culture. Internally, a new performance management system increased employee engagement through clearer appraisals and merit-based rewards. Leadership development programs like LEAP for senior leaders and EMPOWER for mid-level managers further supported the transformation, positioning NEC India for sustained growth and innovation.

Programs such as 'No-Meeting Day' and internal innovation initiatives created an environment where employees felt empowered and inspired to contribute to NEC India's success. "If people do not know where the company is going, why will they be engaged with it?" Aalok noted.

Employee engagement scores jumped from 59% in 2019 to 82% in 2022, reflecting increased alignment with organizational goals and a collectively shared purpose.

Building Innovation and Delivering Impact

From 2020 to 2023, NEC India achieved a significant turnaround, improving governance, operational efficiency, and market positioning. Stricter commercial governance led to better deal selection, reduced risks, and improved cash flow. By 2022, NEC India had strengthened its financial health, won competitive tenders, and boosted its brand visibility.

NEC India's success stories include several high-profile projects including the KLI cable project, CANI Submarine cable Project, Delhi Smart City and several others that have been the cornerstone of strengthening partnership in India's digitalization journey. These projects have been catalysts for accelerated economic development and the creation of flourishing societies in these regions. Other projects include DigiYatra, under the Airports Authority of India, wherein NEC's cutting edge and proprietary biometric and facial recognition technology has transformed passenger experiences across airports. These projects underscore NEC India's ability to deliver large-scale, complex solutions that contribute to broader national initiatives like Smart Cities and Digital India.

A Vision for the Future

As NEC India continues its journey, it aims to become a global nerve center for NEC Corporation, leveraging its expertise in AI, telecommunications, and blockchain to deliver transformative solutions worldwide. Its vast body of work resulting in deep domain expertise has given them a head start, in domains like Smart City solutions, logistics and transportation.

Transforming from its early existence to its current success, NEC India's journey is a testament to the power of strategic leadership and innovation. The INSEAD case study captures this evolution, showcasing how a combination of local market understanding, cultural alignment, and technological innovation can drive not just business success but also meaningful societal impact.

NEC India is no longer just a subsidiary. It is a model for how technology can empower lives and shape the destiny of nations.

Note:
Case By: V. (Paddy) Padmanabhan, Guoli Chen, Jean Wee
Developed by: INSEAD
Distributed by: INSEAD Publishing, Harvard Business Publishing and The Case Centre

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