CEO Message - 2023 is a year to make the leap forward: Let’s aim to reliably provide the social values we create
Happy New Year!
I wish you all a wonderful 2023!
As our Purpose, we at NEC are aiming to create the social values of safety, security, equality, and efficiency and to realize a sustainable society where everyone has the chance to reach their full potential. Guided by this Purpose as our starting point, 2022 was the second year of the 2025 Mid-term Management Plan, and a year in which we became convinced that the direction we are aiming for is correct. I think it was also a year in which we were able to take on many challenges and were able to make significant progress as a result.
Here are some specific examples of the progress we have made:
In terms of our "Strategy" under the 2025 MTP, in our Core DX business, we strengthened our consulting business to advance Internal DX, Customer DX, and Social DX. We enhanced our collaboration with Abeam to accelerate the development of digital human resources. We also expanded the NEC Digital Platform, which integrates NEC's strengths in biometrics, AI, and security, and we are widening the scope of our proposals as a trusted partner to support our customers' DX. We have also expanded our strategic collaborations with many global partners, including Microsoft, AWS, SAP, Oracle, ServiceNow, Zoom, and RedHat, to enhance our in-house DX applications and further promote our offerings leveraging our in-house experience and know-how.
In the Global 5G Business, NEC has been gaining recognition as one of the leaders in the commercialization of Open RAN. Our initiatives towards commercialization in partnership with other telecommunications companies are expanding, allowing us to make steady progress along the way. To further promote our business, we acquired Blue Danube Systems, Inc. in the U.S. and Aspire Technology Unlimited Company in Ireland to develop Global 5G-related products and strengthen our system construction services.
In the Digital Government/Digital Finance (DG/DF) business, three companies which joined NEC Group in the past four years (NEC Software Solutions, KMD, and Avaloq) are playing a central role in improving profits over the medium term. Moreover, we are now seeing the synergistic effects within the NEC Group, creating a positive cycle in the global expansion of our DG/DF business. In particular, in the DG business, we are drawing on KMD’s experience and know-how in Denmark to accelerate proposals for digital government in Japan.
In the field of business innovation (new business creation), we have reached a level where we can talk about creating social value through concrete ecosystems in various fields, such as AI drug discovery, agriculture, and the environment. In the AI drug discovery business, we began developing next-generation vaccines for the prevention of future pandemics in collaboration with the Coalition for Epidemic Preparedness Innovations (CEPI). In agriculture, together with Kagome, we established a new company in Portugal to help tomato farmers grow their crops more efficiently using AI.
Another pillar of our 2025 MTP is "Culture." Aiming to improve employee engagement, we are promoting organizational reforms and the creation of a work environment that we can be proud of, where diverse human resources can work with enthusiasm and play active roles. Under Smart Work 2.0 in Japan, which aims to enhance employee job satisfaction, we are also accelerating the creation of a favorable work environment based on the three pillars of "Workplace", "Work Principles", and "Digital Technology".
- Further, as an expansion of our thought leadership activities, we are promoting reforms at the Institute for International Socio-Economic Studies (IISE), an NEC Group think tank, to strengthen our capacity to "seize the future together."
2023 will be an important year to accelerate the transformation of both our "Strategy" and "Culture", to refine our 2025 MTP, and to make a big jump forward. By steadily connecting various measures to results, we will win the trust of our stakeholders, make significant progress toward co-creation for the future world we presented in our NEC 2030VISION, and eventually lead to great strides toward the realization of our Purpose.
"Keep in mind that a stable company is unstable, and an unstable company is stable." This is one of the "Ten Principles of Management" espoused by former Chairman Koji Kobayashi, who advocated the Computers & Communications (C&C) concept and led the second founding period of NEC. I am keenly aware of the importance of these words in our rapidly changing world.
We can deliver value to society only when we have the ability to execute and produce tangible results without fear of undergoing change ourselves.
The NEC Group will continue to move forward as one team in 2023 without wavering in our efforts to bring about true transformation.
January 5, 2023
President and CEO (Representative Director)
About NEC Corporation
NEC Corporation has established itself as a leader in the integration of IT and network technologies while promoting the brand statement of “Orchestrating a brighter world.” NEC enables businesses and communities to adapt to rapid changes taking place in both society and the market as it provides for the social values of safety, security, fairness and efficiency to promote a more sustainable world where everyone has the chance to reach their full potential. For more information, visit NEC at https://www.nec.com.
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