NEC Corporation has announced that it's going to deploy a core system using SAP's cloud-based enterprise resource planning (ERP) solution, SAP Business ByDesign, to NEC Group companies throughout the world.

The expansion of the core system to NEC Group companies began in 2010 and NEC New Zealand initiated the first system in September this year.

According to NEC, this project is based on the two-tier ERP concept and aims to realise total optimisation globally.

The organisation is also taking advantage of the high compatibility between these two solutions, and promoting the linkage of management data. NEC also looks to strengthen corporate governance through improved transparency of management information and accelerating account settlement

In addition, NEC says it will adapt to the changes in a wide variety of business environments—such as legal systems, commercial practices, new entries, M-A and the market fluctuations of each country - by using the SAP Business ByDesign solution for medium-sized companies.

In line with future business growth, NEC will also develop the methods and principles of switching to a core system using SAP ERP.

Michael Schmitt, senior vice president - general manager, of SAP Business ByDesign of SAP, says they welcome NEC's initiatives to further strengthen its own global management platform by deploying SAP Business ByDesign in addition to modernizing its SAP ERP solution on SAP HANA.

“The two-tier ERP approach using SAP products makes it possible to integrate information of both the company's head office and its overseas subsidiaries, helping to improve not only management transparency but also speed of management information exchange,” he explains.

“NEC has been engaged with SAP for many years, and I look forward to working together to contribute to further innovation for our customers in the future.”