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World Digital Summit organized by Nikkei and the Ministry of Internal Affairs and Communications

Sustainable Societies Pioneered by Digital Industrial Revolution

September 26, 2017

NEC's value creation process underpinning change

I would now like to elaborate on NEC's thinking on value creation. At NEC, data is "visualized" using sensor and image processing technologies, and then analyzed by various AI engines. Along with state-of-the-art AI technology, the important element at this point is a highly reliable integrated ICT platform (computing, networking, security). Possessing both in-house AI technologies and ICT platform assets, NEC is able to deliver new value to its customers.

NEC the WISE AI Technologies

Let's look at the technologies offered by NEC.

Core to creating value for our customers is NEC's impressive suite of advanced AI technologies known as "NEC the WISE". NEC boasts No.1/only 1 technologies in each of the three processes integral to digital transformation, namely "visualization", "analysis" and "prescription". NEC delivers value by combining these technologies in line with customer issues and needs.

These AI technologies are already in use at customer operations. The Argentine city of Tigre is presently deploying a "city video surveillance system" to detect unseen dangers in the city area and prevent crime. The system uses image data captured by cameras placed in major train stations and other locations, and has managed to reduce motor vehicle theft by around 80%.

Closer to home, NEC is making use of AI recognizing text entailment functions in its contact centers. AI technology is being used to analyze large volumes of customer inquiries / complaints to provide prompt and accurate responses. This has resulted in a 30% reduction in operational times. AI's heterogeneous mixture learning technology has also been effective in forecasting demand for fresh food items. By replacing conventional human intuition with automated demand forecasting AI technology has recorded a 40% reduction in wasted food items in some cases.

The era of IoT technology will give rise to a diverse range of big data, but it doesn't matter how many individual analytical technologies we have, they will mean nothing if the entire process, from data generation through to analytical findings, is not linked. One of the computing and networking technologies set to achieve IoT-era linkage is adaptive video delivery control technology.

Think about watching a telecast of a marathon. Viewers often experience a drop in transmission and/or blurred images. Adaptive video delivery control technology predicts network congestion and line size to enable smooth and disturbance-free transmission by adjusting video compression ratios and segment numbers accordingly.

Adapted Image Delivery Control Technology

Experts believe that the IoT era will bring a multitude of security challenges, and as such we will need security technology that protects our safety. Both "cyber security" and "physical security" technologies will be required to meet these diversified security challenges. NEC is supporting a variety of safety and security efforts by combining these technologies.

Frontline to "physical security" is face recognition technology. NEC's advanced face recognition technology has been ranked no.1 four times in face recognition benchmark testing announced by the US National Institute of Standards and Technology (NIST). In benchmark testing conducted in March 2017 focusing on video rather than still image recognition, NEC technology again achieved outstanding results and overwhelmingly beating out the competition. In face in video evaluations, NEC's face recognition solution recorded a matching accuracy of 99.2% under favorable environmental conditions when subjects were positioned face on, and even achieved 85.4% accuracy in adverse conditions when subjects faced in different directions.

NEC also continues to make advances in the area of cyber security. Our AI-driven security monitoring support system (threat analysis system) is being used to analyze a large amount of alerts as cyber attacks become more sophisticated. The system weeds out misdetections and alerts requiring no action so that analysts can focus on those high-threat cyber attacks that require immediate attention.

This system is being deployed at Cyber Security Factory, NEC's dedicated center for security operations to counter threats and attacks. This center conducts round-the-clock monitoring and analysis. As we enter the era of IoT technologies and concern grows over the number and increasing sophistication of cyber attacks, NEC believes that it is vitally important to maintain security.

Press release: NEC deploys threat analysis system using AI technology in security monitoring service

Sustainable Society Pioneered by Digital Industrial Revolution

In all of these ways NEC is making use of its digital assets in cooperative arrangements with our customers to create and bring real change to their businesses and operations. However, we have set our sights beyond simply reforming the business and operational activities of our customers. Looking back over the examples I have outlined today, one can see they are linked to solving the social issues of our time through NEC's efforts to deliver new value to our customers.

The first initiative I spoke about involving the Kyoto Police Department is a prime example. NEC is helping to address the social issue of reducing crime by providing a range of solutions to maintain the safety and security of our cities, and at the same time we believe we are contributing to the achievement of the United Nations' Sustainable Development Goals.

NEC is seeking solutions to the social issues facing our world by creating new value to a diverse range of customer operations, and the examples I have given today are just a small snapshot of these efforts. Through the use of digital technology and partnerships with customers and other stakeholders, NEC is working to meet the needs and challenges of customers all over the world, and, just as importantly, achieve the Sustainable Development Goals established by the UN.

NEC is committed to a sustainable society through co-creation with people everywhere.

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