This paper introduces NEC BluStellar, NEC’s DX business brand launched in May 2024, and discusses its future development and outlook. In an era of rapid advances in AI and DX, NEC BluStellar is a value creation model that leverages NEC’s long-cultivated expertise, insights gained from NEC’s own Client Zero approach that places transformation at the core of its management and operations, and cutting-edge technologies to lead customers into the future and contribute to their digital transformation (DX). Through a deep understanding of customers' management challenges and providing comprehensive support from strategy formulation to technology implementation and talent development, NEC aims to drive sustainable growth for customers and create value for society.

1. Introduction

Amid the growing complexity of international affairs, the limitations faced by businesses reliant on human resources in a shrinking and aging society, and the rapid acceleration of the AI industrial revolution, the business environment is undergoing unprecedented change. In this context, the urgent need for the transformation of companies has never been greater. As a response, digital transformation (DX) has rapidly advanced in recent years and significantly changed how businesses and society operate. Today, businesses are expected to leverage digital technologies such as AI to quickly and flexibly address complex challenges while creating new value. NEC’s mission is to continuously drive our own innovation and lead the transformation of customers and society by implementing cutting-edge technologies and DX. To meet the demands of this era, we launched NEC BluStellar, a value creation model that leads customers into the future by solving corporate and social challenges through the power of DX and generating sustainable value. NEC BluStellar serves as a key driver accelerating NEC’s company-wide transformation. This paper discusses NEC’s strategy, initiatives, and future outlook centered on NEC BluStellar.

2. NEC BluStellar’s New Value Creation Vision

2.1 NEC BluStellar Concept

By extracting and standardizing the success factors from NEC’s extensive collection of successful and advanced case studies, we have developed models that can be broadly applied. Through the ongoing delivery of advanced DX, supported by proven results and achieved at the fastest possible pace, we realize sustained growth together with our customers. NEC BluStellar features three key strengths: cutting-edge innovation realized through the use of research technologies, safety achieved by sharing the know-how gained from the successful DX practices of NEC and its customers, and rapid transformation made possible by shortening the period required for change through standardization (Fig. 1). Rather than taking a system-driven approach, NEC BluStellar is committed to genuine value creation, working together with customers to envision the future of their IT.

2.2 Strengths of the new value creation model

2.2.1 Strategic Planning Ability

By leveraging the practical expertise developed through NEC’s Client Zero approach, NEC has a deep understanding of customers’ actual management challenges and develops digital strategies to address them. Backed by a track record as one of the largest consulting organizations in Japan, NEC, which includes ABeam Consulting Ltd. (ABeam), uses an AI-driven approach to lead customer transformation.

2.2.2 Technologies and know-how

NEC offers practical expertise by combining technologies such as its core AI technology “NEC cotomi” with security technologies at the national security level. NEC BluStellar reliably supports our customers’ transformation through three key foundations: cutting-edge technology, extensive development and operational know-how, and the accumulation of practical knowledge from internal Client Zero initiatives at NEC.

2.2.3 Organization and talent

We are focusing on developing and securing highly skilled professionals to drive DX, and the number has now surpassed 10,000. In addition, by providing co-creation programs and community platforms with our customers, we offer NEC BluStellar Programs, which functions as an ecosystem supporting our value creation model, and together with approximately 400 co-creation partners, we accelerate our customers’ transformation.

Based on our extensive customer base across various industries and our experience and expertise in system development and operation, which have been cultivated over many years, we will continue to evolve the aforementioned three elements, and together with our customers, ensure the continuous evolution and growth of this value creation model (Fig. 2).

2.3 NEC BluStellar Scenario

As scenarios for solving a variety of challenges faced by our customers and society, we offer standardized solutions called “NEC BluStellar Scenario,” which combine offerings from upstream consulting-driven approaches to downstream operations and maintenance. This enables comprehensive support throughout the entire process, from visualizing management issues and solving challenges, to formulating roadmaps. We prioritize market and customer feedback, always adopting a market-in approach as we expand the NEC BluStellar Scenario. In particular, we have designated data management, modernization, AI, and security as key focus areas, and we will continue to strengthen and advance these initiatives.

3. Business Transformations with NEC BluStellar

3.1 Business model transformation with NEC BluStellar

We are evolving from NEC’s traditional mainstay of system integration to become a value driver that propels our customers’ value creation.

NEC BluStellar Scenario combine our Client Zero initiative which shares internal practical expertise with customers, a consultant-driven approach which understands customers’ management challenges on a deep level and works alongside them, and automation, autonomy, and standardization by AI in addition to model-based system integration (SI), which combines application platform and system integration expertise into reusable templates. By placing NEC BluStellar Scenario at the core of our strategy, we are generating significant business impact, such as higher profitability, improved quality, shorter implementation periods, and increased upsell and cross-sell opportunities.

3.2 NEC BluStellar business performance and growth

NEC BluStellar is driving DX across a diverse range of industries and sectors, including private enterprises, government agencies, and local municipalities. As a result, in fiscal year 2024, NEC BluStellar achieved significant growth in both revenue and profit, recording revenue of 542.4 billion yen and an adjusted operating profit margin of 12.2% (66.3 billion yen). These results enabled NEC to reach its mid-term target for fiscal year 2025 one year ahead of schedule. For fiscal year 2025, we are targeting revenue of 624 billion yen and an adjusted operating profit margin of 13.2%. Going forward, NEC plans to increase the proportion of sales generated by NEC BluStellar Scenario, a core element of our business strategy, and we anticipate its importance will continue to grow.

4. The Evolution of NEC BluStellar and Future Outlook

4.1 Positioning of NEC BluStellar and basic expansion strategy in the next mid-term management plan

NEC BluStellar is a key driver leading NEC’s next mid-term management plan, and NEC believes it is an essential presence for achieving a sustainable society. Therefore, it is critical that we continue developing and providing a value creation model. We will promote these initiatives across the entire NEC Group by strengthening NEC BluStellar Scenario, collaborating with global partners, and enhancing partnerships with ABeam and other domestic and overseas group companies. In particular, reinforcing NEC BluStellar Scenario will create value chains by combining by-industry scenarios that address challenges unique to various industries with cross-industry scenarios. 

As the Fourth Industrial Revolution advances, NEC BluStellar is leading the way in industry transformation and creation (Fig. 3). Specifically, NEC BluStellar generates value by applying AI to data protected by robust security, bridges the gap in technology implementation through Client Zero validation, and transforms existing industries. Furthermore, NEC BluStellar drives disruptive innovation in areas where security, data, and AI converge.

4.2 The further evolution of NEC BluStellar Scenario

NEC BluStellar accurately identifies the challenges of this ever-changing world and continuously evolves its scenarios to address them. In a future where AI utilization becomes commonplace, we will further strengthen and advance NEC BluStellar Scenario by incorporating our own AI utilization expertise and proprietary technology developments.

NEC is promoting the identification and development of areas where agentic AI can drive business operations autonomously. Going forward, we will expand into higher value creation areas, such as autonomous management of complex business processes through the collaboration of multiple agents and the provision of insights for strategic business planning. We are also advancing technology development with a view toward embodied AI, which interacts and collaborates with the real world.

In addition, to facilitate integration with the world’s most advanced technologies, we will strengthen our strategic partnerships with global hyperscalers such as Amazon Web Services, Microsoft Corporation (hereafter “Microsoft”), and Oracle Corporation. For example, we are deepening our relationship with Microsoft in the key areas of AI, security, and modernization.

4.3 Enhancing core technologies supporting growth

AI and security can be considered the core technologies supporting the growth of NEC BluStellar.

4.3.1 AI

As our AI business strategy, we aim to accelerate all aspects of DX and achieve a society where people and AI coexist, ultimately creating an AI-native smart society. To this end, we are reinforcing the following three initiatives. 

The first is AI governance to accelerate business utilization. We are promoting the transformation of actions, processes, and business through the use of generative and agentic AI, while enhancing the safety and reliability of AI utilization. 

Second is the enhancement of custom AI based on customers’ own organizational data. We provide AI solutions optimized for each customer’s unique business processes. 

Third is the deepening of global collaboration to support an open architecture. We are also expanding multi-platform support and promoting hybrid platforms. NEC is strengthening partnerships with external partners to quickly deliver value to customers, such as comprehensive AI ecosystem collaboration with Google Cloud and participation in Box’s Model Context Protocol (MCP) server beta program.

Additionally, NEC itself is actively utilizing AI in its daily operations transforming into an AI-native company accumulating practical knowledge through these efforts and leveraging the results of innovation to create value for our customers.

4.3.2 Security

With regard to the abovementioned AI utilization, we will enhance the safety and reliability of AI by strengthening security for AI, including hallucination detection, risk assessment, governance evaluation, and security risk assessment.

The unique intelligence we have cultivated through our security business, domestic AI security technologies, and our personnel with solid backgrounds in the security field, including 560 employees with CISSP certification, are technological value-adds. Leveraging these strengths, together with our business experience and know-how in building highly confidential systems for government agencies and critical infrastructure operators, we will further evolve NEC BluStellar.

To accelerate business transformation for Japanese companies and drive the growth of Japan as a whole, NEC leverages cutting-edge technologies such as AI and security to deliver safe, secure, and intelligent DX through hybrid cloud environments and sophisticated managed services. This enables customers to focus on addressing their core management challenges and enhancing their business operations without being burdened by IT complexities, thereby accelerating the pace of transformation.

5. Conclusion

NEC BluStellar is a symbol of NEC’s transformation and serves as a new engine for creating customer value in the AI era. By responding to the changes in society and leveraging cutting-edge technologies to shape the future and drive transformation, NEC BluStellar aims to make AI a force for society. We are committed to supporting sustainable growth for both our customers and society through trust and innovation, and we declare our intention to remain an indispensable presence.

NEC aspires to be a key driver of industry transformation and continue to lead social change. By embracing change and engaging in ongoing dialogue and hypothesis testing, we seek to refine and enhance value together with the market and our customers.

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