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Page 5 - Hitachi Oceania Brochure 24 Pages Dec
P. 5
Our Challenges

Building the Future Through Under the 2018 Mid-term Management Plan, Hitachi will accelerate

About Hitachi collaborative creation with customers and partners through the advanced
Collaborative Creation Social Innovation Business, with a focus on the trend toward digitalization

that is significantly changing society and industry. Leveraging three
with Customers
Building the Future Through Collaborative Creation with Customers strengths—operational technology, IT, and products/systems—we deliver
For more than 100 years, Hitachi has developed social infrastructure that provides the foundation for nearly every aspect innovations to society and customers.
of modern life. Leveraging three core strengths – operational technology, IT, and products/systems – we deliver innovations to
society and customers.

Our IoT solutions provide insights that help organisations make more informed decisions to deliver exceptional outcomes and smarter, safer,
A New Business Plan to Make Hitachi an Innovation Partner for the IoT Era
healthier and more effcient societies. Lumada, our IoT core platform, connects physical and digital technologies via data and software intelligence
to drive innovation and accelerate digital transformation. Number of employees: 310,000+ FRONT
Hitachi’s Strengths
Delivering innovations to customers and society through fusion of OT, IT, and products/systems
Number of companies: 900+
• Increase front workforce (salespeople, SEs, consultants, platform developers) by 20,000 to reach 130,000 by fiscal 2018
• Strengthen focused areas for expansion of the Social Innovation Business
OT* 1 IT Four focus business domains
Control, Monitoring, Analyzing,
Operation Forecasting (As of September 2016.)
Industry/ Finance/Public/
Power/Energy Urban
Distribution/Water Healthcare
Transition to distributed power Use “Lumada” IoT platform to Improvement of quality of life in FinTech, My Number
supply utilizing IT optimize value chains for industry communities Healthcare service (platform)
• Microgrid, regional energy and distribution From rail as a service to outcome
Hardware, Materials, Engineering/Procurement/
management delivery
Construction, System Integration
• Renewable energy
*1 OT: Operational Technology.
2018 Mid-term Management Plan Targets
2018 Mid-Term Management Plan Fiscal 2015 Results Fiscal 2018 Targets* 1 • Developing the Lumada IoT platform, a core of Social Innovation, enabling customers to enjoy digitalized innovation quickly and easily
Consolidated revenue 10,034.3 billion yen 10,000.0 billion yen
In May 2016, Hitachi announced its 2018 Mid-Term Management Plan, which guides its corporate strategy for the next three years. The Customers
Adjusted operating income ratio
Over 8%
company’s goal is to become an innovation partner for the IoT era. Hitachi is applying the vast expertise and resources of its Social Innovation
Over 8%
EBIT ratio
Business to tackle complex societal and business challenges. The 2018 plan emphasise digitisation as Hitachi moves from delivering individual
products and systems to customers to connecting these products and systems through digital technologies. Hitachi will focus on four core areas:
Over 400.0 billion yen
Net income attributable to Hitachi, Ltd. stockholders
172.1 billion yen
Power and Energy; Industry, Distribution and Water; Urban; and Finance, Public and Healthcare. Hitachi’s Front
*1 Foreign exchange rate assumption: 110 yen/dollar, 120 yen/euro.
IoT Platform Lumada Customers’ and partners’
Accelerating the Social Innovation Business platforms
Solution functions
The front delivers Hitachi’s technologies and expertise to customers as services Society 5.0
Industry, Distribution,
Power, Energy Urban Finance, Public, Healthcare
Water Industry 4.0
CUSTOMERS Industrial Internet
Basic functions Made in China 2025
Symbiotic Autonomous Etc.
Analytics Artificial Intelligence Hitachi AI Technology/H Security
Develop and provide services close
Regional bases
to the customers
Customer segments (12 business units)
• Expanding digitalized products that support innovation, focusing on investing in globally competitive products
PLATFORM Use platform to provide services
Core of Social Innovation quickly and efficiently
Feedback to the frontlines
Creating measures
Communication terminals Equipment and facilities
Strengthening digitally OT × IT
connected products expertise
PRODUCTS Analysis IoT controllers Motors, inverters, automation
Provide value through products
Industrial products, automotive parts, materials, etc. Data-gathering and storage
2 3
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