NEC Leverages RISE with SAP and AI to Build Business AI in Move to the Cloud
Rhea-AI Summary
SAP SE announced that NEC will adopt SAP S/4HANA Cloud via the RISE with SAP solution on AWS, with support from ABeam Consulting. This cloud migration is part of NEC's strategy to optimize costs and streamline data systems using generative AI technology.
The transition involves moving from an on-premise system with 1,200 add-ons and 200 interfaces to a cloud-based clean-core model. NEC's generative AI and SAP's Joule copilot will automate critical processes to enhance efficiency and reduce costs. This initiative aligns with NEC's 2025 mid-term management plan, aiming to drive digital transformation within the company and society.
NEC President, Takayuki Morita, highlighted the significance of leveraging internal innovations for broader societal benefits. SAP CEO, Christian Klein, emphasized the partnership's role in fostering sustainable digital transformation.
Positive
- NEC's migration to SAP S/4HANA Cloud aims to optimize costs and streamline data systems.
- Adoption of a clean-core approach will reduce future upgrade and operational costs.
- Automation through generative AI and SAP's Joule copilot is expected to improve operational efficiency.
- The project supports NEC's 2025 mid-term management plan for digital transformation.
- NEC will be among the first to leverage SAP's AI tools for migration, setting a new industry standard.
- The partnership underscores NEC's commitment to technological adoption and societal contributions.
Negative
- NEC's current system complexity with 1,200 add-ons and 200 interfaces poses significant migration challenges.
- The transition process may involve substantial initial costs and resource allocation.
- Potential risks associated with the reliance on generative AI for critical processes.
News Market Reaction – SAP
In the trading session that priced this news, SAP gained 1.12%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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NEC is currently operating a large-scale system that includes 1,200 add-ons and more than 200 external interfaces. To migrate to the cloud, NEC will use generative AI to facilitate a clean-core transformation, streamline migration costs and improve operational efficiency. NEC's generative AI and SAP's Joule copilot for natural language processing will automate critical processes such as add-on analysis, report interpretation, code generation from specifications and test automation. Joule is SAP's generative AI assistant that understands the user's unique role and acts as a work copilot across SAP applications to streamline tasks. NEC will be among the first companies to leverage AI tools from SAP to streamline its migrations.
"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," NEC President and CEO Takayuki Morita said. "This milestone implementation with SAP creates a new industry blueprint for other businesses looking to migrate to the cloud, underscoring NEC's commitment to leading by example in technological adoption and societal contributions."
By migrating to SAP S/4HANA Cloud, NEC anticipates more-efficient system operations by tapping into AI to support version upgrades and reduce future operation-related costs while being able to quickly respond to market changes. By leveraging innovative technologies including AI, NEC aims to digitally drive societal and industry transformations. This migration to the cloud is a key part of NEC's 2025 mid-term management plan focusing on internal, customer and societal digital transformations.
"Our shared vision with NEC of creating a sustainable society through digital transformation is the foundation for our long-term partnership," said Christian Klein, CEO and member of the Executive Board of SAP SE. "This project marks a milestone in our relationship, and we're excited to support NEC on their continued transformation journey."
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