OREANDA-NEWS. NEC will change its organizational structure as of April 1, 2013 in order to create new customer value and quickly respond to global market conditions. These changes will enable NEC to more effectively promote its products and services around the world.

Organizational changes include the following:
1. Market Focused Business Structure that is responsive to market conditions
o Business Units based on market and customer needs
NEC's new structure consists of a Public Business Unit, Enterprise Business Unit, Telecom Carrier Business Unit, Smart Energy Business Unit and Global Business Unit. The new structure will encompass NEC's products and services in combination with its sales-force and System Engineers (SE).

o Simplified organization that increases speed
The current business operations unit will become a 'Two-Layer' structure consisting of a Business Unit and a Business Division. This enhances business operations by simplifying the decision-making process, the transfer of responsibility and the review of indirect operations, which helps to ensure flexible operations that are responsive to market change, to accelerate cooperation between departments and to reduce operating costs.

2. Creation of globally competitive products and services
o Establishment of a cross functional organization to focus on the execution of new growth initiatives
The Business Innovation Unit is being established to promote company-wide focus points that include Big Data, Software Defined Networks (SDN), Smart Cities and the C&C Cloud Infrastructure. It will also promote new business models that drive the planning of technological strategies. This discovery of market potential and concentration of company resources is aimed at swiftly expanding NEC's core solutions.

o Establish a single Business Unit for Hardware and Service Platforms
The System Platform Business Unit is being established to collectively supply products from each department, such as terminals, network equipment, computers and service platforms, which were formerly provided separately by the Platform Business Unit and the Personal Solutions Business Unit. This change will create 'Vertically Integrated' solutions which are cost competitive while ensuring quality.

o Organization to promote and strengthen common processes
The 'SI and Services Operations Unit' is being established to oversee shared company-wide functions, such as the development of advanced System Integration and Services practices. The 'Supply-Chain Management Unit,' will play the supervisory role for company-wide supply chain management, global procurement, logistics and optimization of the NEC Group production systems.

The "Corporate Sales and Sales Operations Unit" is being established to oversee company-wide sales management and to promote the training of essential personnel as well as business with small and mid-size enterprises.

As a result, the company anticipates improved productivity and technical capabilities in SI/Services, as well as greater cost competitiveness and stronger management functions.

Going forward, NEC will continue to reinforce its business infrastructure as part of promoting global growth through products and services that exceed customer expectations and create greater value.