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Hitachi’s strategy to become a global leader in the social innovation business

Tue 5 Feb 2019
FYI, this story is more than a year old

Hitachi announced that on April 1, 2019, it will strengthen its business structures, in order to achieve a transformation into a global leader, as laid out in the 2021 Mid-term Management Plan. 

In the newly created 2021 Mid-term Management Plan, which will begin in FY2019, Hitachi will strive to become a global leader in the Social Innovation Business. To achieve this goal, in various regions, it will concentrate on solutions in fields expected to demonstrate growth through innovations.

Hitachi will aim to leverage its strengths in information technology (IT), operational technology (OT), and products to bring about reforms in social infrastructures through digital technologies. Starting in April 2019, by strengthening business structures as outlined below, Hitachi will increase the value of solutions provided to customers, and accelerate the creation of innovations.

1. Transformation to a structure comprising five key domains, to provide solutions that respond to changes affecting customers

Recently, as innovations arise throughout the world using digital technologies, customers are making efforts to change the content of their own businesses, for example by establishing new business models that transcend the boundaries of the industries where they operated in the past.

Through its 2021 Mid-term Management Plan, Hitachi will aim to accelerate the Social Innovation Business - which resolves issues faced by society and customers - on a global scale and put in place social infrastructures that effectively utilize digital technologies. It will strive to become a global leader by focusing on businesses that will grow as a result of innovations and solutions in growth fields in various regions. 

Defining five growth domains as (1) Mobility; (2) Human Life; (3) Industry; (4) Energy; and (5) IT, it will establish an organizational structure that concentrates resources in creating new value and providing solutions. In this way, it will accelerate the creation of innovations in five key domains, and strive to secure a position as a global leader in each of these fields. "Energy" and "IT" will also serve as platforms for Hitachi.

2. Activities by diverse individuals on the Executive Officer level

In order to execute the 2021 Mid-term Management Plan and achieve a transformation into a global leader, Hitachi will further promote activities targeting "diversity" as part of its management strategy. 

It will also promote the appointment of diverse individuals as executive officers in regions throughout the world, including non-Japanese and persons from outside of the Hitachi Group.

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