NEC Plans to Overhaul Management Structure

TOKYO -- Today, NEC Corp. said it will adopt a new corporate management structure on April 1 to promote the integration of its computer and network-solution businesses. The Japanese computer giant will abolish its existing in-house company system and introduce a flat management structure characterized by separate business lines. This is regarded as the final touch to its ongoing reorganization efforts focusing on solution service-type businesses, such as computer and network-systems integration. NEC spun off its semiconductor business and created a new company, NEC Electronics Corp., in November. It also spun off its thin-film transistor liquid crystal display operations and its plasma display panel operations, resulting in the demise of its third in-house company, NEC Electron Devices. Currently, NEC has two in-house companies left -- NEC Solutions, which handles computer-system solutions businesses, and NEC Networks, which handles network-related equipment and service businesses. Starting in April, the company will instead run nine business lines: domestic sales, industrial sales, systems services, software, computers, broadband solutions, social infrastructure, mobile solutions and personal solutions for individual customers. Among other key steps, NEC will assign executive directors to head business areas covering both information technology and network businesses, such as related-system integration, middleware and hardware, it said. To enhance its personal computer-related service business, NEC will also make its "Biglobe" Internet-service provider operations independent and set up the personal-solutions business line.