This paper introduces NEC BluStellar, the value creation model announced in May 2024 that leads our customers into the future. Starting from each customer’s management agenda, NEC BluStellar drives successful digital transformation (DX) for both customers and society through an end‑to‑end business model that spans from value-creation concept design to implementation. By leveraging NEC’s strengths—strategy planning capabilities, AI‑ and security‑driven technologies and expertise, and a robust pool of DX talent and training programs—NEC BluStellar enables rapid, high‑quality system implementation and high‑precision value creation through a business model centered on NEC BluStellar Scenarios, which are developed by extracting, analyzing, and standardizing best practices and experiential knowledge.

1. Introduction

In recent years, rapid shifts in the global landscape and the accelerating adoption of AI have amplified the impact of technology on society, driving transformation across all domains—from how people work to the structure of economic activity. In an unpredictable world, companies are required not only to anticipate change but to continually evolve ahead of it.

In light of these dynamics, NEC has pursued the practical realization of digital transformation (DX)—continuously leading the transformation of both customers and society. In May 2024, we introduced NEC BluStellar as a new value‑creation model to embody this aspiration.

This special issue explains what NEC BluStellar is, its competitive advantages, and how it continues to evolve.

2. What is NEC BluStellar

NEC BluStellar is a value-creation model that is helping to lead our customers into the future. Starting from each customer’s management agenda, NEC BluStellar drives successful DX for both customers and society through an end‑to‑end business model that spans from value‑creation concept design to implementation.

2.1 NEC’s DX initiatives

In 2019, NEC began full-scale initiatives across three pillars of digital transformation: business model, technology, and organization/human resources.

In the area of business model, we strengthened our strategic consulting capabilities and enhanced proposal processes starting from the upstream phase. On the technology front, we consolidated expertise from across the company, developed a unified set of offerings, standardized our DX platform under a single architecture, and advanced global alliances with partners such as AWS and Microsoft. In organization/human resources, we steadily developed more than 10,000 DX professionals—ranging from cloud specialists and agile engineers to data scientists—through company‑wide training programs.

Building on five years of transformation and achievements, NEC introduced its new company‑wide DX branding, NEC BluStellar, in 2024—reflecting our commitment to systematizing our experience and leading the digitalization of Japanese society (Fig. 1). Since then, in addition to providing end‑to‑end value—from upstream consulting to system development and organizational and human resources support—we have further evolved NEC BluStellar Scenarios to accelerate value creation.

2.2 The meaning behind NEC BluStellar

“BluStellar” is derived from an Italian term meaning the brightest star in the night sky (Sirius), expressing our aspiration for it to serve as a guiding light that leads society and our customers toward the future they want to pursue. As a Value Driver that grows alongside our customers, NEC aims to help revitalize and strengthen Japan’s competitiveness.

2.3 How NEC BluStellar differs from traditional business approaches

NEC has traditionally developed systems based on individual customer requirements. Going forward, in addition to conventional customized system integration, we will deliver standardized, high‑quality, and highly scalable services that draw on the expertise and experience NEC has cultivated over many years.

This enables customers to move away from conventionally siloed, business‑unit‑focused systems and instead adopt cutting‑edge, enterprise‑wide optimized systems that can be used securely and at speed—allowing them to reach solutions to their management challenges more quickly.

2.4 Components of NEC BluStellar

NEC BluStellar consists of three layers: Products & Services, Offerings, and NEC BluStellar Scenarios. (Fig. 2)

For example, in the area of facial recognition, the “image recognition software” corresponds to the Products & Services layer, the “face recognition access control system” represents the Offering, and “Empowering New Workstyles: How Digital ID and Data Enable the Future of Work” constitutes the NEC BluStellar Scenario.

As one moves from Products & Services to Offerings and then to NEC BluStellar Scenarios, the value delivered to customers increases. In particular, NEC BluStellar Scenarios provide a comprehensive, end‑to‑end approach—spanning strategic consulting to service delivery, operation, and maintenance—and optimize this approach through the effective combination of multiple Offerings.

2.5 NEC BluStellar scenario-driven business model

The NEC BluStellar Scenario is structured by extracting key success and failure factors from co-creation initiatives with customers utilizing advanced technologies, as well as from NEC’s own practical experience as Client Zero. These insights are used to optimize and standardize the combination of offerings and approaches. (Fig. 3)

The value delivered by NEC BluStellar Scenarios can be summarized in three key points:

By rapidly delivering these high-quality system implementations to the market and continuously incorporating both internal and external feedback, we are able to achieve highly accurate value creation.

3. NEC BluStellar’s Competitive Advantages

NEC BluStellar delivers distinct and concrete competitive advantages across all phases—from issue identification and problem solving through to value realization (Fig. 4).

3.1 Strategic planning capabilities that translate business strategy into digital strategy

In the issue‑identification phase, it is essential to determine the management challenges that must be addressed and to develop a corresponding roadmap. Within the NEC Group, we have one of the largest consulting organizations in Japan—comprising 10,000 consultants—and AI‑driven consulting services that together represent a unique competitive strength.

In particular, our AI-enabled, innovative consulting approach is transforming how consulting itself is conducted. Under the concept of Human–AI Collaboration, consultants leverage NEC’s AI to rapidly generate outputs from initial ideas and explore pathways toward implementation and execution. We also apply this approach to new business creation, using AI to augment human creativity.

3.2 Technology and implementation expertise that enable complete system realization

In the problem‑solving phase, the technologies and implementation know‑how required to build the optimal system are essential. Among advanced technologies, NEC places particular emphasis on AI and security.

3.2.1 Strengths in AI

NEC’s strengths in AI lie in the advanced technological capabilities that enabled the development of our core AI technology “NEC cotomi”, as well as the extensive implementation know‑how accumulated through industry‑ and domain‑specific technology development and the application of AI to industry‑focused solution packages. In particular, applying generative AI to business processes allows us to identify the appropriate areas for deployment and automate entire processes with AI, delivering dramatic improvements in operational efficiency and generating new value. Our technological capabilities and implementation expertise ensure that generative AI drives value creation reliably—from initial deployment through full realization of outcomes.

NEC also brings unique strengths in AI governance. Leveraging our accumulated governance expertise and collaborating with Cisco Security Services, we incorporate measures to mitigate hallucinations and other risks, enabling the implementation of secure and trustworthy AI systems that are distinctively NEC.

3.2.2 Strengths in security

NEC combines its proprietary AI‑based security technologies with its unique intelligence capabilities to detect cyberattacks at an early stage and strongly support rapid, risk‑informed decision‑making such as countermeasure planning. Rather than solely focusing on defensive measures, our approach incorporates active intelligence as a core element—leveraging AI to accurately analyze data and translate insights into timely actions. (Fig. 5).

3.3 Developing advanced specialists who drive DX

Within NEC, we have established and deployed clearly defined roles and training programs for digital talent, continuously refining these definitions as we develop more than 10,000 highly skilled professionals. These specialists work alongside our customers to help realize their DX initiatives.

Furthermore, NEC’s expertise in talent development has been systematized into NEC BluStellar Academy, which delivers tailored programs aligned with the talent profiles required by customers facing DX skill shortages. To date, we have provided these services to more than 540 companies, helping strengthen their capacity to drive DX.

NEC BluStellar leverages NEC’s three core strengths—strategic planning capabilities, technical and implementation expertise, and organizational and human‑resource excellence—to lead customers’ digital transformation.

4. Evolution of NEC BluStellar

Going forward, NEC BluStellar will continue to evolve along two axes: the horizontal expansion of NEC BluStellar Scenarios and their vertical enhancement.

For Scenario expansion, we have already developed around 30 scenarios spanning both cross-industry and industry-specific domains, and we will place even greater emphasis on industry-focused scenarios. We will also pursue global deployment by leveraging synergies with overseas group companies.

For Scenario enhancement, we will capitalize on NEC’s strengths as a technology company by deepening scenarios through the use of Agentic AI, enabling customers to further advance their business operations. In addition, we will continue to reinforce the core technologies that underpin NEC BluStellar Scenarios. Building on the strengths we have established to date, NEC aims to achieve further business growth through new advancements (Fig. 6).

A key value of NEC BluStellar is its ability to clearly articulate how future technologies will evolve. Focusing on the current trajectory of AI, we see a progression from today’s phase—where generative AI and Agentic AI transform actions—to a phase in which full‑scale Agentic AI drives end‑to‑end process transformation using company‑specific data and specialized agents, and ultimately to a world where multiple agents collaborate to transform entire business ecosystems.

As AI technology advances, the objectives and types of business transformation it enables will also change. It is therefore crucial to define a clear technology roadmap and determine the purpose and priorities for AI adoption.

By accurately capturing technological shifts and proactively advancing R&D that contributes to future business transformation, NEC intends to pursue continuous evolution and deepening in both business and technology.

5. Conclusion

In fiscal 2024, NEC BluStellar achieved revenue of 624 billion yen and an adjusted operating profit margin of 13.2%, surpassing the original revenue target set for 2025 ahead of schedule. It has grown to account for one third of the domestic IT services business, and its contribution is expected to continue increasing beyond 2025. This growth demonstrates that NEC BluStellar’s approach—focusing on customers’ management challenges and accelerating and maximizing value creation—aligns strongly with market trends and with our customers’ transformation goals.

With NEC BluStellar, our value creation model, NEC will continue to lead our customers’ digital transformation.

Trademarks

Author’s Profile

YOSHIZAKI Toshifumi
Corporate Senior Executive Vice President and CDO
(Executive Officer)

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NEC BluStellar