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Digital Platform Strategy

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Digital Platform Strategy Digital Platform Strategy Hiroshi Kodama, Executive Vice President 1 © NEC Corporation 2020 World Values Politics Life Society Security International cooperation Earth Different personalities Integrating social changes Safety and security and competition for Environment and resource all living together and technology supported bytransparency leadership strategies Great reset Change to a society with Personal Change to a new life style Societal more focus on Changes for safety and security Changes sustainability Digital connection which transcends physical boundaries Digital shift in various settings Increase in 49% increase in internet traffic Lifestyle Business style digital More than 300 million consumption Workstyle participants in online conferences 5 themes aimed at achieving DX for change Remote Online Touchless Automation 2 © NEC Corporation 2020 World Pursuing with Our Digital Platform We're developing a digital platform by connecting data of all kinds in order to build a data-driven super-city with a safe, secure, fair and efficient society Provided Value Logistics Public Expand Medical Production Technology & Services Communication Retail Blockchain Airport Transport AI Social Evolution Security Data-driven Achieving overall societal safety, by Digital security, fairness and efficiency super-city (Use and application of data and Digital ethics) layers Cloud Expand City OS connecting Economic Sectors Biometrics Identification people, goods, enterprises and towns (improve productivity, reform of working style, Well-Being) with technological partners technological with Smart City expand operation operation expand Digital ID collaborating Market Expand operation areas by collaborating with industry partners by Expansion 3 © NEC Corporation 2020 Key Strengths of Our Digital Platform Smart City (City OS:FIWARE) Digital ID / AI Network / Edge Implementation World's No. 1※1 in face/ Smart Connectivity in Japan:11 cities fingerprint/iris recognition FIWARE Foundation Implemented over 1,000 Public Safety platinum member systems worldwide Data connection and Decentralized control/ Advanced Analytics PF utilization platform Edge AI Cloud Managed services Multi-Cloud Hybrid (Leading position※2） (Top Class Industry Player in Japan) (Enterprise - Public - Government) Security ※1:Won the 1st Place five times in the USA National Institute of Standards and Technology contest (Face recognition) ※2:IDC MarketScape: Japan Managed Cloud Services 2018 / Vendor Assessment Source IDC Japan February 2019 4 © NEC Corporation 2020 FIWARE NEC leads board, technological development/operation, standardization, market application, globalization Registered as a platinum member of the FIWARE Foundation in February 2017 for the first time among Japanese companies Expand and Spread Worldwide Cases of Japan's Smart City Initiative FIWARE Participant※1 Okinawa 993 enterprises Utsunomiya 18 business hubs (iHub) Toyama Kakogawa Tokamachi Shinci Town 2 accelerator programs Fukuoka Osaka Kumagaya Tsukuba Hiroshima Regions 10 FIWARE Lab nodes Okazaki Kashiwa implementing Toyosu Area (Europe, Africa, India, Mexico, Brazil) Aso FIWARE Niihama ※2 Nara FIWARE 350+ FIWARE Foundation members Kawasaki Utilization ※3 Takamatsu Regional 30 countries, 140 cities Hamamatsu co-creation activities ※1: NEC independent survey based on FIWARE website http://map.fiware.org/ ※2：https://www.fiware.org/foundation/members/ ※3：http://oascities.org/list-of-cities/ 5 © NEC Corporation 2020 NEC Digital Platform Strategies Formulation of Digital Consultations predicting a future where Transformation strategy society has a vastly different New Normal upstream upstream to offer stop from One ③ Enhancing the DX Strategy Upstream Approach/Structure Innovation Creativity Linking technology from value provided to DX customers / Achieve DX with a sense of speed ② Establishment of DX offerings Customer Business Contact Reform Reform ing One platform linking the world / Laboratory technology Human Resources s & Platform ① NEC Digital Platform 6 © NEC Corporation 2020 From Process to Deliver Value and Organizational Functions 2019 IR Day CustomerCustomer Customer Customer Customer … Customer Customer Provide value to customers • Labor saving お客様への価値提供 Labor- in order Delivery Cooperation with saving placement existing systems store • Enhance store Offering loyalty DX Offering Deliver value Consulting, Offering Consulting • Automatic to markets order • Entry and placement Design thinking method, Co-creation program exit • Demand • Payment Hospitality forecast Value creation Digital Hub: Digital Capability • Defect etc. forecast Value chain etc. Biometric & Products, Services image NEC Advanced analysisDigital Enable use of Common platform Integrated Analytics Platform Platform technologies API platform Cloud Heterogeneous Security Face recognition mixture learning engine H/W Engine engine Engineering (System Platform BU) Heterogeneous Research into underlying Face recognition mixture learning technology Technologies technologies technology Labs 7 © NEC Corporation 2020 Targets of Digital Strategy and Initiatives for the Next Mid-Term Plan Digital Digital Shift(Previous IR DAY) Change Lever Frontier Strategic Targets Level of achievement Changes in FY20 (2018→2020) (As of August 2020) Next Mid-term Management Plan To be Adapting to Under achieved COVID-19 and Ratio of Digital 30% Projects* the New Normal ％ 27% 12 Ensuring safety aimed at the resumption of In business (infection control initiatives) DX growth ​Digital progress strategy Track Records Accumulative 3,000 Work style & business (AI, biometric 2,200 style transformation recognition) Accumulative 1,700 Process reform assuming remote work To be Ensuring information achieved ​Digital transparency and 3,000 reliability Human 2,800 Resources 1,600 *: Classified domestic SI and service businesses into SoE/Bimodal/SoR by applying IDC’s definition of the 3rd platform. Of them, SoE/Bimodal projects are regarded as digital projects 8 © NEC Corporation 2020 [Reference] Planning Mid-term Growth Strategy based on Digital Platform * IT services: SBU involved in SI and services ● Domestic IT services: Aim for No.1 operating margin (FY2025) • Strategy consultants, business analysts Global development Upstream SW • Human resources • Future creation design optimization resources and assets shift • Data scientist, data engineering • Domestic IT resources Overall Initiatives High Improved added value Platform Model efficiency SI Model Expand Digital platform SW engineering and mobilization One Strengths Edge AI Ecosystem Integrated Remote Architecture (R&D) management platform (SW factory) projects ​Digital ID ​Smart City​ Business model Connectivity Data connectivity and Alliances utilization platform​ Automation Modernization ​Security AI optimization Players (position) Cloud SaaS/PaaS Secure Multi-cloud connectivity Portfolio managed cloud x business Edge DC (local 5G) * Currently under consideration. Information will be disclosed once decided 9 © NEC Corporation 2020 ①－１． NEC Digital Platform Enhance worldwide support, data function, network connectivity etc. Line-up of solutions responding to hybrid IT and edge computing Citizen ID Individual AI AI CS NW 5G authentication Supply and Equipment diagnosing Automatic when creating vulnerabilities Customer demand maintenance operation Value an account ,anagement Application Biometrics Identification AI Security & Imaging Platform Data Server Storage NEC Cloud IaaS AWS Azure Hybrid IT Infrastructure Quantum Computer Aurora Maintenance Network NEC Smart Connectivity Wi-Fi LPWA 5G Service Edge Edge Computing AI Edge MEC IoT Specialized terminals (POS/ATMs etc.) 10 © NEC Corporation 2020 ①－２． Cloud Strategy Offer an optimal cloud environment to support our customers‘ digital shifts with mega-cloud connections and closed multi-cloud connections of our data centers Domain Construction Hotel SaaS External Links Strategy Point Knowledge Cloud Offering SFA Management SaaS Automation General DX Bio-Idiom Advanced Digital Digital Continuous increase Services Analytics Workplace ID • Digital and domain pillars Functions with a focus on customer needs • Complement for Data Quality & expanding strengths AI & Analysis Integration RPA aPaaS iPaaS Lifestyle • Collaborative interface PaaS Management Management Managed Security Services Managed Cloud Services • Government（ISMAP） Private Cloud Public Cloud • Public IaaS Enterprise Dedicated Competitor’s • Managed services IaaS Hosted Private Cloud NEC Private Cloud Cloud IaaS Cloud On-Premises Public IaaS Government Cloud (ISMAP compatible) On-premises Core DC NECCI Direct Multi-cloud Platform Local Closed Internet • Edge DC (Local 5G) City-type Platform Connect Peering DC Edge Cloud 5G Connection • Direct connect Regional DC • DC collaboration Low PUE 11 © NEC Corporation 2020 ①－３． NEC Digital Platform - Supporting Products & Services Support NEC’s digital platform through smart orchestration under hybrid IT environment, embedding progressive technologies and digitalization of maintenance services Smart Orchestration Hybrid IT Platform (Hybrid IT+ Edge) Enabling integrated operation and management under more expanded and complicated hybrid IT environments by combining cloud-on-premises-edges PC Server Decentralization/Upgrading of data Mainframe Storage analysis utilization through DX Facial POS ATM … (Edge AI/Vector/Quantum) Middleware recognition Offering edge devices with AI engine embedded such as video and system biometric recognition Advanced Data
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