Tokyo, Feb 25, 2009 - (JCN Newswire) - NEC Corporation announced today an organizational reform plan, scheduled to launch April 1, 2009, as part of the company's strategic measures to overcome the challenging economic conditions of the current worldwide recession.
The primary goals of NEC's new organizational framework consist of strengthening company earnings, and an organizational streamlining that includes company-wide business process innovation, improved sales operations, and a reinforcement of competitive strength, in order to provide innovative new products and services in preparation for the post-economic downturn period.
Furthermore, the NEC Group of subsidiaries and affiliates will work together under the "One NEC" concept to implement these new procedures, and utilize group strengths, so as to provide global customers with innovative new value added solutions, services and products.
1. Organizational Reform Overview
(1) Streamlining the organization and strengthening company-wide business process innovation
Remove duplicated company functions, institute internal controls and advance the company's accounting system to create a streamlined organization that can quickly respond to the current economic slump.
1) Structural reduction from the current 9 business units, 5 business support units, and corporate staff to a new streamlined organization of 7 business units, 1 business support unit, and corporate staff that will improve organizational efficiency by reducing the number of departments by approximately 20%, and decrease fixed costs.
2) Simplify operations and reorganize staff by consolidating overlapping corporate functions through the reorganization of 4 units, with the exception of the Intellectual Asset R&D Unit.
3) Leveraging NEC's know-how of production process innovation with the hardware / software / system integration businesses, NEC's divisions in charge of managing information systems, software process innovation, "Monozukuri" industrial innovation, purchasing and quality assurance will be reorganized into corporate staff to reform and strengthen company-wide operational processes including intra-company IT systems.
(2) Strengthening Sales Operations
The sales operations that have heretofore been conducted independently by several Business Units will now be integrated into two units: The Sales Business Unit, and International Sales and Operations Business Unit. This will enable NEC to efficiently respond to customer needs and to strengthen the delivery of its innovative fusion of IT and Network solutions.
1) Establishment of Sales Business Unit
NEC will integrate its domestic sales operations into an effective 3,300 person framework that will expand sales through the efficient delivery of NEC products and services to customers throughout the country.
2) Establishment of International Sales and Operations Business Unit
The International Sales and Operations Business Unit is being established in order to expand international performance through a unification of the company's international business resources. The International Sales and Operations Business Unit will become the "hub" for connecting overseas affiliates with each business unit in order to strengthen NEC's ability to offer products and services, and accelerate business growth on a global scale.
(3) Creating a Framework for New Solutions that Accelerate Growth
1) Strengthening Business Structures that Support the Cloud Computing Era
The IT Services Business Unit is being established in order to consolidate the divisions responsible for consulting, system integration, operations, maintenance and outsourcing management, in preparation for the growth of businesses that cater to the era of cloud computing. NEC is aiming to fortify its services even further through the establishment of a value chain structure of more than 30,000 individuals from worldwide subsidiaries and affiliates working in cooperation with one another. Furthermore, the strength of NEC solutions will become fortified through the combined value of the IT Services Business Unit's industry know-how on top of the reinforced customer relationships of the Sales Business Unit.
2) Strengthening New Personal Solutions Business
The strength of new Personal Solutions business will be fortified by the unification of NEC's mobile terminal and PC business through the establishment of the new Personal Solutions Business Unit, which combines the existing Mobile Terminal Business Unit, Personal Solutions Business Unit, and the Display and Document business. The new Personal Solutions Business Unit will be able to streamline internal value chains through the most efficient allocations of materials, sales promotions, manufacturing, and others, in order to reduce costs and create integrated products and services that capitalize on the synergies between the mobile terminal, PC, Display, and BIGLOBE businesses.
3) Environment & Energy Business Promotion
NEC will establish a Smart Energy and Green Business Development Division that takes advantage of NEC Group strengths to create products and services that address the growing importance of environmental issues, including electric power conservation and reduced CO2 emissions. NEC's Environment & Energy Solutions are expected to introduce customers to innovative new services, and will contribute to NEC's new era of growth.
NEC's organizational renewal represents an important managerial step to accelerate the company's realization of its NEC Group Vision 2017, "To be a leading global company leveraging the power of innovation to realize an information society friendly to humans and the earth."
2. Executives in Charge of Business Units
Please visit http://www.nec.co.jp/press/en/0902/2501.html for a full list of executives and further information.
About NEC Corporation
NEC Corporation (TSE: 6701) is one of the world's leading providers of Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of a diversified global base of customers. NEC delivers tailored solutions in the key fields of computer, networking and electron devices, by integrating its technical strengths in IT and Networks, and by providing advanced semiconductor solutions through NEC Electronics Corporation. The NEC Group employs more than 150,000 people worldwide. For additional information, please visit the NEC website at: http://www.nec.com.
Contact:
Makoto Miyakawa
NEC Corporation
+81-3-3798-6511
E-Mail?Fm-miyakawa@bk.jp.nec.com
Joseph Jasper
NEC Corporation
+81-3-3798-6511
E-Mail?Fj-jasper@ax.jp.nec.com
Feb 25, 2009
Source: NEC Corporation
NEC Corporation (TSE: 6701) (FTSE: NEC.IL) (U.S: NIPNY)
From the Japan Corporate News Network
http://www.japancorp.net
Topic: Press release summary
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