Hitachi announced that it will strengthen business structure to achieve growth with a focus on digital, environment and innovation in its next Mid-term Management Plan.
Hitachi’s revenues for fiscal year 2020 (ended March 31, 2021) were $78.6 billion, with 871 subsidiaries and 350,000 employees worldwide.
Hitachi will establish a structure, led by Hitachi Digital based in North America, to implement digital strategies that cut across the entire Hitachi Group, and to accelerate growth through digitalization.
EVP Toshiaki Tokunaga, who will take charge of Digital Systems & Services sector, will serve as Chairman, and Jun Taniguchi (currently President of Hitachi Global Life Solutions), who has been involved in promoting DX in the control platform business and the digitalization of the home appliance business, will be appointed CEO.
Hitachi said two leaders will join the management of Digital Systems & Services sector to strengthen structures to drive the global growth of the digital businesses.
Shashank Samant, CEO of GlobalLogic, while leading co-creation and digital business by leveraging GlobalLogic’s digital engineering capabilities, will also serve as an Executive Advisor to EVP Tokunaga to support the development of the Hitachi Group’s digital business growth strategy.
Gajen Kandiah, CEO at Hitachi Vantara, will undertake a concurrent position as Chief Digital Transformation Officer in charge of Digital Systems & Services business. He will apply insights of the cloud and data applications, which are the core strengths of Hitachi Vantara, to expand the Hitachi Group’s service business, and to transform the Group as a whole into a world-class digital solution provider.
Hitachi will implement investment strategies aimed at creating innovations by back-casting from 2050. A new Innovation Growth Strategy Division will be established to accelerate growth throughout the Hitachi Group, with President Keiji Kojima holding a concurrent position as General Manager. This Division will strengthen ties with R&D groups, startup companies, and other entities, undertaking strategic investments to bring innovations through new technologies and business models, and will lead the next stage of growth for Hitachi.
Hitachi will simplify the management structure based on three sectors: Digital Systems & Services; Green Energy & Mobility; and Connective Industries.