NEC Corporation, a global IT and network technologies giant hailing from Japan, has initiated a significant digital shift by opting for SAP S/4HANA Cloud, delivered through the RISE with SAP offering, hosted on Amazon Web Services (AWS). Collaborating with their implementation partner, ABeam Consulting, NEC aims to harness the power of AI, including NEC’s generative AI expertise, in conjunction with SAP’s advanced natural language processing AI, Joule copilot.
The move signifies NEC’s strategic prioritization of a clean-core methodology in its approach to system migration – intending to maintain a lean, standard core that eases future upgrades and diminishes operational costs. Currently, NEC is managing an expansive system network that comprises 1,200 add-ons and in excess of 200 external connections. The intended cloud migration will be facilitated through generative AI technology, reducing costs and enhancing efficiency throughout the process.
The use of SAP’s Joule copilot, an AI that adapts to the unique requirements of each user’s role to streamline application use, represents one of the company’s forays into leveraging internal, advanced technologies to refine its migrations.
NEC’s forward-thinking approach in deploying its own innovations for internal use demonstrates its commitment not only to technological evolution but also to its broader societal and industrial impacts. This move is a crucial component of NEC’s mid-term management plan for 2025, which emphasizes a transformative approach internally, with their customer base, and society-wide.
SAP’s support underpins this initiative, as both companies share a vision for a sustainable and digitally transformed society. This project is hailed as an important step in their longstanding partnership. SAP’s dedication to advancing business and technology over the past half-century has established them as a pivotal force in the enterprise applications and business AI domains. For further information on SAP’s solutions and vision, please visit their official website.
Related Questions and Answers:
1. What is SAP S/4HANA and why is it important for NEC?
SAP S/4HANA is an integrated enterprise resource planning (ERP) system that runs on SAP’s HANA database. It’s designed to handle complex business processes in real-time, providing organisations with enhanced analytical capabilities and greater efficiency. For NEC, migrating to SAP S/4HANA is important because it represents a modernisation of their business operations, enabling them to utilise AI and data analytics to improve decision-making and operational efficiency.
2. What is the RISE with SAP offering?
RISE with SAP is a business transformation-as-a-service offering that provides customers with a comprehensive package to move their business processes to the cloud. It includes tools such as SAP S/4HANA Cloud, business process intelligence, technology credits, and services designed to facilitate the transition. For NEC, leveraging RISE with SAP means a more straightforward and guided transition to a cloud environment.
3. How will AI be used by NEC in the transition process?
NEC plans to utilise AI, particularly generative AI, in conjunction with SAP’s AI capabilities to facilitate the transition. AI can automate many of the repetitive and time-consuming tasks associated with system migration, such as data analysis and cleansing. It can also provide insights to optimize the migration process and afterwards, to enhance business operations.
Key Challenges and Controversies:
– Complex System Network: NEC’s extensive network of add-ons and external connections could present a technical challenge in the transition to SAP S/4HANA Cloud. Ensuring that all components integrate seamlessly in the new environment is essential to avoid business disruption.
– Change Management: Getting employees accustomed to a new system and processes requires thorough training and a well-planned change management strategy. Resistance from staff is a common hurdle in digital transformation projects.
– Data Security and Privacy: Moving sensitive enterprise data to the cloud always raises concerns about security and compliance, which must be addressed with robust security measures and protocols.
Advantages and Disadvantages:
Advantages:
– Improved operational efficiency through the use of AI and real-time analytics.
– Lower operational costs by decreasing reliance on physical infrastructure and maintenance.
– Enhanced scalability and flexibility, making it easier for NEC to adapt to changing business needs.
– Future-proofing the business by keeping the core system clean and easily upgradable.
Disadvantages:
– Initially high transition costs and potential business interruption during the migration period.
– The need for comprehensive training and change management to ensure successful adoption by staff.
– Possible risks associated with data security, especially when moving to a public cloud platform.
For further information on NEC’s commitment to innovations and digital transformations, you may visit NEC’s official website at NEC. To explore SAP’s cloud solutions, AI technology, and enterprise applications, you can visit SAP’s official website at SAP. Please ensure to verify the URLs before accessing them to confirm their validity.
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