NEC 2015 Annual Report Download - page 11

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Carrying Out NEC’s Growth Strategy
In the “Mid-term Management Plan 2015,” the NEC Group has
established “Solutions for Society,” as a focus business for global reach,
and is advancing initiatives to deliver lasting growth. In the two years
after our announcement of the midterm plan, we built stronger business
portfolio with clearer focus areas. In the third and final year of the plan,
we strive to make major contributions to markets.
In looking back at the past two years, the environment has
improved in domestic public infrastructure investment, including
outdoor communications systems, initiatives related to fire
prevention digital technology, and initiatives related to the adoption
of the Social Security and Tax Number System in Japan. On the
other hand, some markets were slower than we initially expected,
namely, the launch of the market for SDN for telecom carriers and
the launch of energy markets, which we had expected would
expand significantly. Furthermore, the weakening of the yen
resulted in higher materials costs, particularly in the system
platform business.
Taking these into consideration, in fiscal 2016, we will focus on
accelerating growth strategies and improving profitability.
With respect to accelerating the growth strategies, we plan to
increase strategic investments in SDN and energy by ¥15 billion
year on year in fiscal 2016, and boost both sales and profits of
these businesses over the medium term. We will also increase the
sales ratio of focus businesses, such as SDN, cloud, Big Data, safety,
and smart energy, from 10% to 15% year on year.
In terms of bolstering initiatives aimed at improving our level of
profitability, we are taking initiatives to streamline business
processes and reduce workload of indirect operations by 30%. We
will allocate abundant resources from these initiatives into growth
fields, such as businesses related to the Social Security and Tax
Number System and the Tokyo 2020 Olympic and Paralympic
Games, thereby achieving more efficient business management.
In fiscal 2016, we will set the course of direction that the NEC
Group can follow to achieve future growth, and create the next
medium-term management plan.
Going forward, our goal remains to contribute to realizing a
better society by developing “Solutions for Society.” NEC is
transforming into a “Social Value Innovator” to serve a broader
range of stakeholders.
10
NEC Corporation
Annual Report 2015
Management Policies