WALLDORF and TOKYO — SAP SE (NYSE: SAP) has announced that NEC Corporation (TSE: 6701 “NEC”) has chosen SAP S/4HANA Cloud through the RISE with SAP solution, powered by Amazon Web Services (AWS). This significant move underscores NEC’s commitment to optimizing its operations and advancing its digital transformation goals.
Strategic Partnership for Digital Transformation
NEC, a global leader in the integration of IT and network technologies, is set to collaborate with ABeam Consulting, leveraging their expertise to facilitate this transition. The migration strategy will capitalize on NEC’s generative AI capabilities alongside SAP’s Joule copilot, a generative AI tool designed to enhance natural language processing within SAP applications.
Objectives and Expected Outcomes
The primary objective of NEC’s migration from on-premise SAP S/4HANA to SAP S/4HANA Cloud is to streamline data systems and improve integration across various business lines. This move aligns with NEC’s broader strategy to reduce costs and enhance operational efficiency. By adopting a clean-core approach, NEC aims to standardize its offerings, which will not only simplify future upgrades but also minimize operational expenses.
Currently, NEC operates a complex system with 1,200 add-ons and over 200 external interfaces. Transitioning to the cloud will involve the use of generative AI to manage this complexity, ensuring a smooth and efficient migration. AI tools will automate critical processes such as add-on analysis, report interpretation, code generation from specifications, and test automation. This automation is expected to significantly cut down migration costs and improve overall operational efficiency.
The Role of SAP’s Joule Copilot
Joule, SAP’s generative AI assistant, is central to this transformation. By understanding user roles and acting as a work copilot, Joule will streamline various tasks within SAP applications. NEC will be one of the first companies to leverage these AI tools from SAP, setting a precedent for others in the industry.
Leadership Perspectives
“NEC sees itself as the first customer of its own innovations, applying cutting-edge technologies internally and sharing the gained insights and know-how with customers and society,” said Takayuki Morita, NEC President and CEO. This initiative with SAP is expected to create a new industry blueprint for cloud migration, highlighting NEC’s leadership in technological adoption and societal contributions.
Christian Klein, CEO and member of the Executive Board of SAP SE, echoed this sentiment, stating, “Our shared vision with NEC of creating a sustainable society through digital transformation is the foundation for our long-term partnership. This project marks a milestone in our relationship, and we’re excited to support NEC on their continued transformation journey.”
Future Implications
By migrating to SAP S/4HANA Cloud, NEC anticipates enhanced system operations, aided by AI to support version upgrades and reduce operational costs. This flexibility will enable NEC to quickly respond to market changes. Moreover, the integration of innovative technologies, including AI, is expected to drive digital transformations across society and industry, aligning with NEC’s 2025 mid-term management plan.
Conclusion
NEC Corporation’s migration to SAP S/4HANA Cloud represents a significant step in its digital transformation journey. By leveraging cutting-edge AI technologies and collaborating closely with SAP and ABeam Consulting, NEC is poised to set new standards in operational efficiency and innovation. This strategic move not only underscores NEC’s commitment to technological advancement but also its dedication to societal contributions, paving the way for a sustainable and digitally-driven future.
This partnership between NEC and SAP exemplifies the transformative potential of cloud-based solutions and AI in modern business operations, offering a blueprint for other organizations looking to embark on similar journeys.
