NEC 2015 Annual Report Download - page 19

Business Environment
Activated domestic investments in preparation for the introduction of
the National ID number system and hosting of the Tokyo 2020 Olympic
and Paralympic Games
Expanded investment in urban infrastructure centered on emerging
countries/Measures against degradation of infrastructure
Take a proactive approach to domestic customers by leveraging our
strengths in sensors, networks, IT and other fields
Enter international markets with competitive solutions including
Predictive Monitoring and Diagnostics System, water management
solutions, complete airport solutions, cyber security and biometrics
Effectively leverage resources, including the standardization of devel-
opment processes
Loss of opportunities from a shortage of resources
OPPORTUNITIES NEC’S RESPONSE
THREAT FACTORS
ICT investment in Japan is on the road to recovery and there is a
tailwind of support for social infrastructure projects ahead of the
January 2016 implementation of the Social Security and Tax
Number System in which individual numbers will start being used,
and the Tokyo 2020 Olympic and Paralympic Games. In the
international market, meanwhile, demand for constructing new
infrastructures is arising at cities in newly emerging countries,
while in developed countries there are needs for infrastructure
diagnostics and preventative preservation to counter degradation
of existing infrastructures. It is estimated that markets for
transport, water and energy will expand in particular.
The public business is largely related to social infrastructure, and the
projects are characteristically long in life cycle. As a result, it is
important to conduct business development with future outlook in
an early state to deliver medium- to long-term growth. To this end,
we initiated the development of a Water Leak Detection Service for
a local government in the state of Texas, U.S.A. which then led to
initiatives such as conducting joint research on social infrastructure
projects with Texas State University in fields other than detection
of water leaks. We will expand growth on a global scale by steadily
commercializing these initiatives and continuing activities that
produce results.
Going forward, NEC will proactively propose solutions
incorporating cutting-edge technology in response to market
opportunities, including the Tokyo 2020 Olympic and Paralympic
Games. Furthermore, we will accelerate the transformation as a
service provider in the ICT field for global development, while focus
on building business models that are competitive in the
international market.
Under this business environment, NEC works to expand sales by
responding to demand unique to Japan in the Social Security and Tax
Number System, regional revitalization, national resilience projects,
and the New Basic Plan on Space Policy. In addition, with initiatives
taken in focus businesses in Japan and overseas such as Big Data,
SDN, cloud-based services and safety, we will establish new
businesses that will provide a foothold for growth going forward.
NEC carried out field trials with customers and delivered systems.
Our initiatives include the Predictive Monitoring and Diagnostics
System (PMDS), a safe operation system for large-scale facilities
that detects equipment irregularities at the predictive stage; a
Water Leak Detection Service that inspects and efficiently manages
waterway leaks; and complete airport solutions that support air
traffic control through to service facilities within airports for safe
and smooth operations. Moreover, we are steadily expanding results
of the Cyber Security Factory, which protects customers’
information assets from cyberattacks. Currently, we are providing
security monitoring services to about 100 companies. Additionally,
NEC holds the world’s most accurate facial and fingerprint
identification technologies, and we are expanding the applications
of the technologies with immigration control and urban surveillance
to applications such as verifying people entering concert halls and
preventing illegal access to PCs.
On the other hand, NEC acknowledges possible risks of losing
business opportunities due to resource shortage in system
integration. In response, NEC is working to standardize development
processes to enhance efficiency.
For Future Growth
NEC's Issues and Responses
Medium- to Long-Term Value Creation
18
NEC Corporation
Annual Report 2015
Business Activities for Value Creation