NEC 2015 Annual Report Download - page 25

Download and view the complete annual report

Please find page 25 of the 2015 NEC annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 66

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66

Popularization and expansion of cloud services and Big Data due to the
uptake of the IoT
Expansion of demand for security
Accelerate creation of new services in growth areas such as Big Data
and cloud services
Create solution platforms in preparation for the IoT
Maintain cost competitiveness through further cost reductions and
development cost efficiency
OPPORTUNITIES NEC’S RESPONSE
THREAT FACTORS
The environment encompassing the system platform business has
become increasingly harsh in recent years with customers seeking
lower costs particularly in the general-purpose hardware. Added to
that, costs rose in the latter half of fiscal 2015 due to the rapid yen
depreciation, which is expected to continue through fiscal 2016.
On the other hand, the market is expected to grow in areas that
can strengthen competitiveness and cost reductions for customers.
These include cloud platforms, SDN, Big Data and security, and
advanced information processing platforms supporting the
enormous amounts of digital data generated by the popularization
of the IoT (Internet of Things) going forward.
The general-purpose market is expected to become fierce in
competition going forward. For the system platform business to
deliver significant value over the medium- to long-term in this
environment, NEC is reforming its business models from providing
various types of hardware, software and components parts, to
providing the combination of these items as solutions.
NEC has proprietary technology and expertise in Big Data
engines with vector supercomputers, virtualized platforms evolving
SDN and edge computing. NEC will leverage these strengths going
forward as we strive to take the lead in the upcoming IoT age.
Furthermore, we will integrating these three strengths and
accelerate creation of solution platforms that provides higher
added-value.
To provide strong ICT assets as a foundational business and
support business units in promoting the “Solutions for Society”
amid such an operating environment, the System Platform Business
Unit will streamline costs and expenses by standardizing parts used
in various types of hardware. Moreover, we are reforming the
development and production framework to raise cost
competitiveness and maintain our position in the existing market.
In addition, we are creating new solutions in fields such as SDN,
safety and security, Big Data and cloud platforms for further
growth. NEC sees sales expansion in these areas as an immediate
goal and is accelerating business development by investing in the
growth areas.
Price competition to intensify in the general-purpose market
Costs to increases due to weak yen
For Future Growth
Business Environment
NEC's Issues and Responses
Medium- to Long-Term Value Creation
24
NEC Corporation
Annual Report 2015
Business Activities for Value Creation