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NEC strengthens internal core system using two-tier ERP

- Introducing SAP® cloud-based ERP solution, SAP Business ByDesign®, to NEC Group companies -

Tokyo, September 27, 2016 - NEC Corporation (NEC; TSE: 6701) today announced that it will progressively introduce and deploy a core system  using SAP's cloud-based enterprise resource planning (ERP) solution, SAP® Business ByDesign®, to NEC Group companies throughout the world in order to further strengthen global management. NEC New Zealand Limited initiated the first system in September this year.

NEC standardizes the business processes of sales, accounting and purchasing that are individually optimized for each NEC Group organization and company, and supports the business by establishing a core system that uses the SAP ERP application. The expansion of the core system to NEC Group companies began in 2010.

NEC has decided to apply these standardized business processes to NEC Group companies that have not yet introduced the core system by deploying SAP Business ByDesign. It has a high degree of compatibility with SAP ERP, and can flexibly deal with a wide variety of conditions.

This project is based on the two-tier ERP concept and aims to realize total optimization globally. NEC will maintain the core SAP ERP application (tier 1) that has already been introduced at headquarters and primary group companies. Now, it complements this investment by deploying the highly flexible SAP Business ByDesign solution (tier 2), which can be introduced at a low cost in a short period of time, at its subsidiaries.

Taking advantage of the high compatibility between these two solutions, and promoting the linkage of management data, NEC strengthens corporate governance through improved transparency of management information and expediting account settlement. It also supports the locally based management and real-time business analysis for each company.

In addition, NEC will promptly and flexibly adapt to the changes in a wide variety of business environments–such as legal systems, commercial practices, new entries, M&A and the market fluctuations of each country–by using the SAP Business ByDesign solution for medium-sized companies. It will also develop the methods and principles of switching to a core system using SAP ERP in line with future business growth.

NEC will model the knowhow of the introduction and deployment of the core system using this in-house SAP Business ByDesign, as well as the coordination and migration of the core system using SAP ERP. NEC will offer it as a two-tier ERP solution that helps enhance the global management of a customer's business.

NEC offers a comprehensive introduction and deployment service using the ERP template that is compatible with SAP's latest product, SAP S/4HANA, which supports tier 1 of the two-tier ERP solution, as well as SAP Business ByDesign, which supports tier 2.

NEC will continue to provide global support mechanisms that meet customer needs related to SAP solutions in cooperation with ABeam Consulting Ltd., an NEC Group company, and United VARs, a global alliance member of SAP partners.

"SAP welcomes NEC's initiatives to further strengthen its own global management platform by deploying SAP Business ByDesign in addition to modernizing its SAP ERP solution on SAP HANA. The two-tier ERP approach using SAP products makes it possible to integrate information of both the company's head office and its overseas subsidiaries, helping to improve not only management transparency but also speed of management information exchange. NEC has been engaged with SAP for many years, and I look forward to working together to contribute to further innovation for our customers in the future," said Michael Schmitt, senior vice president & general manager, SAP Business ByDesign, SAP.


About NEC Corporation
NEC Corporation is a leader in the integration of IT and network technologies that benefit businesses and people around the world. By providing a combination of products and solutions that cross utilize the company's experience and global resources, NEC's advanced technologies meet the complex and ever-changing needs of its customers. NEC brings more than 100 years of expertise in technological innovation to empower people, businesses and society.  For more information, visit NEC at

The NEC Group globally provides "Solutions for Society" that promote the safety, security, efficiency and equality of society. Under the company's corporate message of "Orchestrating a brighter world," NEC aims to help solve a wide range of challenging issues and to create new social value for the changing world of tomorrow. For more information, please visit

Orchestrating a brighter world

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SAP Forward-looking Statement

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission ("SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

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