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C&C User Forum & iEXPO2016 Keynote Speech

NEC: A Driver of the Digital Industrial Revolution
Creating a society that is safe, secure, efficient, and equal

November 24, 2016

Values that NEC offers in the digital industrial revolution

Now let's look at the values that NEC offers in the Digital Age. It has become very common to hear about “digital transformation,” “digital revolution,” and “digital innovation.” The wave of digitalization will bring about new business formats in many fields, such as smart cities, smart businesses, and smart lifestyles.

This is because digitalization has enabled individuals to freely choose companies, rather than the other way around. Likewise, companies are now able to offer services at significantly lower costs.

New players such as Uber and Airbnb have utilized digital tools to carry out innovative businesses without large capital investments. NEC believes that this wave of digitalization constitutes a “digital industrial revolution” that goes beyond mere innovation of business models.

This is NEC's concept of the processes for value proposition in the midst of the digitalization wave. “Visualization” is carried by converting the various events that occur in the real world into data through IoT devices. Various kinds of “analysis” are then carried out on these data to predict and forecast future events, the results of which are used as basis for implementing “prescriptions” both before and after the event.

Within this series of processes, “Visualization = Digitization” is particularly an area in which NEC has competitive advantage. NEC has expertise in digitization of the vast amount of complex information in the real society through advanced sensing methods and in processing data to facilitate analysis. The data obtained through digitization are then analyzed using advanced data science technologies. “Prediction” and “forecasting” are then carried out to know early on what will happen so that countermeasures or “prescriptions” can be carried out in advance to prevent occurrence of untoward events. This is how NEC will transform customers' business models while creating new social values.

The following are the three areas in which NEC can offer value to its customers. First is AI or artificial intelligence. NEC has distinctive advantages particularly in visualization and analysis of data. Second is connectivity. No matter the increase in the amount of data, if they cannot be securely and flexibly connected to each other, then it would not lead to offering of values. Third is security. In the IoT age, where different connections come about, security will become more important than ever.

First, about AI. NEC announced that it will be branding its lineup of AI technologies as "NEC the WISE" and globally launching this new brand last July. NEC has a distinctive lineup of AI technologies catering to different business objectives, for each of the processes of “visualization,” “analysis,” and “prescription.” NEC combines various AI technologies to offer values in accordance with customers' business scenarios. These technologies are either No.1 or Only 1 technologies.

Second is connectivity. In a society where all sorts of devices are connected to the Internet, a large volume of traffic will flow across a wide array of networks, increasing the complexity of connectivity. NEC, which has realized “connectivity” from the bottom of the sea to outer space, will continue to offer the best solutions in connectivity.

Third is security. When these new connections are made, a single security hole may jeopardize the entire value chain. Society as a whole is tasked with enabling smooth, nonstop flow of people, things, money, and information—the lifeblood of our economies. And security measures are essential in achieving this task.

NEC is developing next–generation security technologies to protect the security of the entire value chain. In the coming hyper-connected era, it will be increasingly difficult to deal with unknown attacks and unexpected failures. NEC has developed an Automated Security Intelligence technology that is based on AI. This technology learns the normal state of the system and shuts it down as soon as it detects an error.

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