NEC & System Integration : DX Solutions Business【1,448KB】

DX Solution Business

June 12, 2024

Osamu Kikuchi, Senior Vice President

NEC Networks & System Integration Corporation

(TSE: NESIC, 1973)

© NEC Networks & System Integration Corporation 2024

Business Performance

* Forecast figures are as of April 26, 2024

Strategic areas drove the growth of sales and profit.

Improvements in profitability will accelerate further with the cycle from existing areas to the DX area.

				19.0	Year-on-year
(¥ Bn.)					growth rate	20
					+21%
200						18
		15.7
						16
		13.2
Operating income	13.0		135			14
150			129.7		+4%
		114.2				12
Net sales	108.0	33.0
	50			10
100	20.3	24.9
Strategic areas						8
							6
50	88	89	97	85
Existing areas			4
							2
0							0
	FY22/3	FY23/3	FY24/3	FY25/3
	Result	Result	Result	Forecast

1 © NEC Networks & System Integration Corporation 2024

Basic Policies

Acquiring new customers utilizing the strength of our brand for workstyle innovation and continue to cultivate

existing customers.

Becoming a co-creation partner that works with customers, discovers issues, makes improvement proposals from

every angle and solves these issues.

Customer

	Solving Issues Through Co-
Operation, BPO	Creation
Issue
verification	Workstyle DX network security & utilization	Digital twins Local govt
Partner-type recurring
	Next-gen Data analysis

business	DX

Monitoring and maintenance

2 © NEC Networks & System Integration Corporation 2024

Upstream proposals

Partner-type consultation

Self- implementation

Systems integration

and construction

Business Strategy

1. Responding to post-COVID-19 workstyles and return to office

Acquiring new customers by utilizing the strength of our brand for workstyle innovation and making sure to receive orders for office relocation and renewal projects

2. Capturing growing demand for network security, attributed to renewal of ICT infrastructure

Responding to growing demand for network renewal resulting from an increase in data traffic and providing advanced security operation

3. Increasing approaches to customers in public fields, starting from the DX area including digital twins

Expanding business areas from DX projects to existing areas, including network security and surveillance cameras and monitors

3 © NEC Networks & System Integration Corporation 2024

Strategy

Facilitating a hybrid business combining project-type existing businesses with DX services Circulating businesses with flexible approach from both existing areas and DX areas

Management Communication dashboard

Approached from

DX businesses

Receive more orders and stabilize profit through internal cooperation

Hybrid work	Digital twins

Use Symphonict to	ICT infrastructure	Video equipment
circulate businesses
Approached from	Broaden the scope of
	proposals and strengthen
	existing businesses	the customer base

Voice and network	Facilities and
construction

Ecosystems with vendors

4 © NEC Networks & System Integration Corporation 2024

Business Strategy

Responding flexibly to the ICT environment, which is getting complicated,

by shifting from resident BPO to center-based offsite BPO Eliminating dependence on individual skills and realizing high quality through automation using AI

Increasing the number of users to which we provide services with global response and leverage

…

Company A

Company B

Company C Company D

Company E

Company F

	BPO services using DX	Offsite operation
		center
Quality and service	Standardization, visualization, AI prediction/projection and automation
Scope	Domestic/global
Domain	ICT infrastructure, operation services, and support for use of DX

Services based on our self-implementation (examples)

Workstyle DX

Visualize workstyles and productivity

Automation of processes

AI analyses and forecasts of management and sales data,

…

Operational DX

Visualize the status of use of cloud services

Visualize security

NaaS

…

5	© NEC Networks & System Integration Corporation 2024	BPO: Business Process Outsourcing NaaS: Network as a Service

Case: Workstyle DX and Innovation of Executive Meeting

A meeting-style innovation

made in time with the renewal of the executive meeting room A leading-edge executive meeting created by integrating space, equipment, and DX

DX

Existing

Customers'

issues

• Insufficient functions of existing equipment
• A conventional meeting style based on use of paper

Differentiating

factors

Our self-implementation Flexibility and speed

STEP 1	STEP 2	STEP 3
Order received in FY24/3	Order received in FY24/3
Consultation on	Renewal of executive	Meeting-style
meeting room &
meeting style renewal	innovation using DX
Introduction of DX
	Eliminating waste before and after	Prompt management decisions
	meetings with paperless operations
	made with the latest real data
	and AI meeting minutes

6 © NEC Networks & System Integration Corporation 2024

Case: In-Factory Network Security

Next-generation digital factory

-Ahigh-speed, secure network of domestic and overseas production bases

for centralized management of information

DX

Existing

Customers'

issues

Productivity and manufacturing volume which are comparable to those of overseas competitors

Differentiating	One-stop provision, from worksites to DX
factors	Flexibility and speed

STEP 1

Order received in FY24/3

High-speed network for production lines Security for preventing unauthorized connection

STEP 2	STEP 3
	Using AI to predict the
Visualizing production lines	operation of
production lines
including those of overseas
Operating domestic
bases
and overseas bases
	with BPO services

7 © NEC Networks & System Integration Corporation 2024

Case: Digital Twins

Specific solutions to issues co-created with the customer in a step-by-step manner

-Expanding the area to existing areas and smart city, starting from digital twin data analysis

DX

Existing

Customers'	Want to solve social issues through co-creation,
issues	making a small start with analysis of flow of people
	STEP 1	STEP 2
	Order received in FY24/3

Differentiating	Flexibility and speed
factors	One-stop provision, from worksites to DX

STEP 3

Analysis of flow of people	Expansion of existing	Safety and security
Visualization of traffic lines	businesses	Smart city
		Network security
		Cameras and monitors

Digital twins

8 © NEC Networks & System Integration Corporation 2024

Factors Differentiating NESIC from Competitors

1. DX services provided in a one-stop manner from the worksite to the cloud

Efficient services backed by a history of self-implementation, the optimal introduction of DX based on a thorough understanding of customers' on-site environments

2. Flexibility and agility (always using the most advanced, optimal cloud services)

Agility independent of specific products or vendors and an assortment of DX services with new venture discovery systems in North America and other regions

3. Self-implementation

(discovering and implementing DX technologies which are one step ahead)

Sharing issues and achievements of iour self-implementation with customers to support their transformation

Branding (workstyle innovation), extensive industries/large-scale SI capabilities,

advanced DX/network professionals

9 © NEC Networks & System Integration Corporation 2024