Founded in 1910 in Japan, Hitachi Ltd. is a multinational electrical engineering company. The Tokyo-headquartered conglomerate has undergone restructuring within the past years to focus on a core business promoting “social innovation” and bundling its competencies in operational technology (OT) and information technology (IT) with hardware solutions, mainly in social infrastructure (energy, finance, railway, etc.) and industrial applications (manufacturing, robotics, etc.). Products range from
Streamlining the business with divestments
Hitachi divested a number of its subsidiaries to strengthen its profile. After selling Hitachi Transport Systems, the latest step was to announce selling off shares of
Hitachi Construction Machinery within 2022, becoming an equity-method affiliate with around 25 percent ownership by Hitachi. The following divestment is the complete sales of Hitachi Metals by the end of the fiscal year ending in 2023. According to Hitachi, it uses income from those sales to fund, among others, investments in its core business.
Segment restructuring to reflect corporate goals
In the latest mid-term management plan, the company has outlined its principles "digital", "green", and "innovation", referring to IT, environmental technologies, and
immense research and development (R&D) of products such as medical devices. Accordingly, the company has transformed its business segments as of April 1, 2022, into "Digital Systems & Services", "Green Energy & Mobility", "Connective Industries", and “Automotive Systems”. The latter comprises subsidiary Hitachi Astemo mainly, whose name stands for “
advanced
sustainable
technologies for
mobility”,
electric vehicle powertrains, for example. "Digital Systems & Services" encompasses all businesses of the former IT segment; "Green Energy & Mobility" is the former energy segment, including the railway systems business unit; and "Connective Industries" subsumes all remaining business units. However, the flagship business of Hitachi is not linked directly to a single segment or business unit.
What is Lumada?
While promoting the perks of
the Internet of Things (IoT), Hitachi “illuminates data” for its clients with its “Lumada” business: tailor-made digital transformation solutions for companies comprising system integration, digital engineering, managed services, and connected products. For manufacturing companies, for example, Hitachi offers hardware capable of controlling industrial machinery and simultaneously processing quickly many operational data. The data is then saved on Hitachi hardware and
uploaded onto cloud services, connecting the client's OT and IT infrastructure via a platform that processes and visualizes the data. In the process, artificial intelligence analyzes digital twins created by sourced data, suggesting solutions that Hitachi can use for consulting services and technological solutions. In a circular process, the client, in turn, may implement this feedback to improve its operations with the technical support of Hitachi.
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