At NEC, we have implemented the Client Zero strategy as part of our Mid-term Management Plan 2025. As part of this initiative, we are promoting an internal transformation towards data-driven management, where we accumulate various types of data and utilize digital technologies to make data-driven decisions in all aspects of our business. The practical, real-world digital transformation (DX) knowledge gained through these efforts is leveraged to provide value to our customers and society. This paper introduces NEC’s data-driven management, centered around our management cockpit and dashboards, including its objectives, current achievements, initiatives for internal deployment, data management to support these efforts, and future initiatives utilizing AI.

1. Introduction

Efforts to support enterprises’ management decision-making with computers began with Decision Support Systems (DSS) in the 1970s and 80s. This was followed by the emergence of Business Intelligence (BI) tools, such as BusinessObjects in the 1990s, and the development of Modern BI tools, such as Tableau, in the 2000s. 

However, most companies have not yet been able to make the transition to management in which decision-making is driven by data. Even in companies with progressive data utilization, in many cases, that is limited to specific operations and has not reached the management level. In some instances, BI tools are deployed within the organization like office automation tools, resulting in an overabundance of dashboards. 

NEC has taken on the challenge of data-driven management, and while we are still in the midst of our journey, we have started seeing certain results. In this paper, we offer an introduction with specific examples of NEC’s approach to data-driven management.

2. Overall View of NEC’s Data-Driven Management

At NEC, in light of the challenges in business management we have faced up to this point, we have established a vision for data-driven management in which everyone from executives to employees uses the same data to face facts that lead to future-oriented actions. Our aim is to maximize business speed, starting with data (Figs. 1 and 2).

2.1 Management cockpit and dashboards

NEC’s data-driven management centers around the management cockpit (Fig. 3) and dashboards (Fig. 4) and is promoted by the company’s Chief Officers (CxO) who take ownership. Dashboards are maintained for each CxO, and currently, there are 98 types across 10 domains in operation and being continuously refined. Additionally, as a higher-level concept, a management cockpit has been developed from the Chief Executive Officer’s (CEO) perspective, where key company-wide indicators are selected from the various dashboards and presented. It should be noted that dashboards are tools for visually displaying data and information, whereas the management cockpit is a tool that emphasizes serving as a control room for linking information to actions. 

2.2 Data-driven management results

The management cockpit and dashboards achieve what is often called "the visualization of management," and their effectiveness is highly anticipated. Solving management issues requires involvement not just from those directly concerned, but also from a large number of stakeholders. Therefore, a shared understanding of the issues is critical, as issues that are unseen cannot be resolved. The management cockpit and dashboards can thus be considered essential platforms for addressing management issues.

For example, in NEC’s Mid-term Management Plan 2025, two KPIs have been set: (1) an average annual EBITDA growth rate of 9% and (2) an engagement score of 50%. The management cockpit and dashboards are making significant contributions toward achieving these goals.

With regard to financial indicators, a representative case is pricing management that thoroughly utilizes data from the company-wide management and finance innovation project. By analyzing data from various perspectives, such as planned sales price versus actual sales price, and implementing numerous improvement measures, the gross profit margin improved by 5.5% over the course of two years.

In terms of cultural indicators, the results of employee surveys are made open company-wide, and after analyzing this data, organizational leaders engage sincerely with their teams and implement various initiatives for improvement. Additionally, successful measures from certain organizations are rolled out to other departments, and the company as a whole is putting a code of values into practice that emphasizes an open organization where all employees can grow together. As a result, the engagement score has improved from 19% in FY2018 to 42% in FY2024 (Fig. 5).

These are excellent examples of company-wide data sharing, with CxO ownership, the leadership of business leaders, and frontline initiatives working together effectively. While these are just a few examples, various results have been achieved through the management visualization, and now, whenever a company-wide transformation project begins, visualization through the use of dashboards is always included as part of the process.

3. Internally Deployed Initiatives

This initiative was a transformation that started from scratch and various challenges arose during its rollout within the company. Here, we will introduce the issues we faced—particularly regarding the involvement of management and frontline personnel—and the measures taken to address them.

3.1 Ownership at the management level

NEC has strong business lines and traditionally, data utilization was optimized on an individual business unit basis. In order to achieve company-wide optimization, it was necessary to strengthen overall governance through the CxOs, and in data-driven management, CxOs are leading the initiative with ownership.

To involve CxOs, it was effective to quickly create a tangible example and let them experience the benefits of visualization firsthand. Those in management are extremely busy and requiring too much of their time can cause their interest and enthusiasm to wane, so acting with a sense of speed is essential.

3.2 Involving the frontlines

Even after gaining the understanding of those at the management level, rolling out the initiative to frontline teams proved to be extremely challenging. As we progressed with company-wide deployment across divisions and business units under CxOs, we encountered four major barriers and implemented specific measures to address each of them (Fig. 6).

4. Data Management

When promoting data-driven management, the challenges related to data are significant, further increasing the importance of data management. This is a steady and ongoing effort that might also be called the infrastructure of management, and we therefore have to be conscientious in how we address it. At NEC, we promote data management by organizing it into the following elements: Strategy, Frameworks (platforms, analytics /AI), and Governance (organizations/controls, personnel, and culture).

4.1 Strategy

As the vision for data-driven management, we envision a world where everyone from executives to employees utilizes data, and by incorporating AI into BI, people can focus on making and executing important decisions. To realize this vision, we have placed the highest priority on our data strategy, and have defined the following six directions (Fig. 7).

4.2 Framework

The One Data Platform is the core of the framework that supports data-driven management (Fig. 8). This platform enables rapid implementation of data virtualization with Denodo and centralized management using Snowflake, facilitating data utilization internally. Additionally, AI tools, such as dotData and generative AI are used to realize AI-driven decision-making. 

Using Denodo, we are preparing two types of catalogs: a catalog of standardized data (business catalog) and a catalog of data sources (data catalog), in an effort to manage metadata (Fig. 9). The business catalog clarifies the profiles of standardized data and the meanings of table items, enabling accurate data utilization when building dashboards. The data catalog turns the data available for use in each system into an asset, which significantly reduces the amount of work required to find out which system contains the necessary data.

4.3 Governance

A robust system of governance is essential for the sustained promotion of data-driven management. At NEC, the Data and Analytics Department, a specialized data organization, functions as the Center of Excellence (CoE) for data governance. Through initiatives such as the development of data strategy defining documents, data governance guides, data quality management guidelines, report design guidelines (including design and performance guides), analysis templates, feedback via ServiceNow, data talent development, the promotion of data-driven culture, workshops, and contests, NEC is advancing data-driven management by establishing and implementing a variety of systems and initiatives.

5. The Management Cockpit and AI

The development of generative AI is enabling the realization of a world where BI and AI support human decision-making, which is the embodiment of what data-driven management is striving to achieve. At NEC, we have created a concrete vision of transformation in management practices that connects the management cockpit to decision-making and actions (Fig. 10). This framework consists of three components. first, the CEO‘s AI insights into the overall management status; second, AI-driven performance forecasts for each division along with AI-generated improvement proposals; and third, AI support for implementing those proposals.

To make these tools truly usable, it is necessary to run feedback loops to further evolve AI. We continuously refine the system through practical application. By enhancing input data and incorporating user feedback, we improve both the quantity and quality of its output, thereby promoting an AI-driven management transformation.

6. Conclusion

In this paper we introduced NEC’s data-driven management initiatives, and among them, the following four points are of particular importance (Fig. 11).

Going forward, we aim to continue creating value through management practices that utilize digital technologies, always staying one step ahead of the times. We intend to incorporate this value into NEC BluStellar’s offerings and contribute to the transformation of our customers’ management practices, as well.

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