Hitachi to Establish Global Structure for the Social Innovation Business with Goal to Increase Ratio of Overseas Sales to Mor...
February 04 2015 - 06:13AM
JCN Newswire (English)
Will Appoint Chief Executives Responsible for Local Business in
Four Global Regions
Hitachi, Ltd. (TSE:6501, "Hitachi") today announced that it will
appoint Chief Executives, who will function as representatives of
the Hitachi Group in interactions with regional companies and
customers, in four global regions - the Americas, China, Asia /
Pacific, and Europe / Russia / Middle East and other areas
("EMEA.CIS"). This change is being made to accelerate Hitachi's
growth in the global market and will take effect on April 1, 2015.
In addition to creating regional growth strategies, promoting
localization, and effectively utilizing management resources, the
Chief Executives will have authority to make investments in new
business areas where growth is expected and will be accountable for
achieving positive returns on these investments. The Chief
Executives will implement a transition to an "autonomous
decentralized global management" structure in which each region
leads its business autonomously. Hitachi will expand its Social
Innovation Business on a global scale, in order to reach the goals
set forth in its 2015 Mid-term Management Plan, which will enter
its final year in FY2015, and to achieve further growth in 2016 and
beyond.
In its 2015 Mid-term Management Plan, a three-year management plan
that concludes at the end of FY2015, Hitachi set a goal of
achieving an overseas sales ratio of more than 50%, while expanding
business in the global market for the Social Innovation Business.
In its global plan for regional management, the company created
regional strategies for India in December 2012 and for China in
June 2014. In addition, it has been rolling out new business
strategies by combining the resources of the entire Hitachi Group
as outlined in the plan. In April 2014, Hitachi appointed a Global
CEO in London, U.K. to supervise global strategies for its Rail
Systems Business, and it created structures to enable rapid
decision-making close to its customers. Hitachi has also been
promoting aggressive sales activities targeting railway projects
currently being planned in each region.
In order to resolve a variety of global issues that are becoming
increasingly complex and borderless, the Chief Executives will need
to act as "control towers," developing and building solutions to
issues along with Hitachi customers through "collaborative
creation." In addition to the global strategies that have been
implemented up to now, Hitachi will strengthen the "autonomous
decentralized global management" structure in which regional
management is conducted autonomously. In each region, the Chief
Executive will have authority to make investments in the Social
Innovation Business, where growth is expected, and will be
responsible for recovering those investments and for regional
profits and losses.
In the Americas where economic growth is expected, Mr. Jack Domme,
currently CEO of Hitachi Data Systems Corporation, will be
appointed Chief Executive for the Americas. Mr. Domme will leverage
his expertise to roll out new solutions using big data analytics in
a variety of industries, including energy, communications, finance,
and healthcare. He will anticipate technology trends in the United
States, where cutting edge technologies, particularly those related
to Big Data, are emerging - with a particular focus on Silicon
Valley - and will build effective business models to further expand
Hitachi's business throughout the Americas.
In China, where stable, sustainable growth is expected, Mr. Kenichi
Kokubo will continue as Chief Executive for China. Mr. Kokubo will
execute strategies in keeping with the goals of achieving a
low-carbon society and expanding internal demand in preparation for
the "new urbanization" currently being promoted by the Chinese
government. Specifically, he will strengthen the building facility
management solutions business, including security and energy
management, using the elevator business, where Hitachi holds top
class market share in China, as the base. He will also strive to
expand business by promoting financial solutions using the ATM
business as a base and by promoting solutions targeting the
healthcare industry, where Hitachi hopes to provide services
throughout the entire care cycle, from prevention to screening,
treatment, and prognosis.
In the Asia-Pacific region, where social infrastructure-related
demand is very strong, Mr. Ichiro Iino will be appointed Chief
Executive for the Asia-Pacific. Mr. Iino will promote solutions
targeting the healthcare industry through collaborations with local
partners in Singapore, India, and other countries in that region,
and he will promote new financial solutions targeting Japanese
banks that are expanding operations in Asia.
In Europe / Russia / Middle East and other areas ("EMEA.CIS"),
which is expected to see demand for upgrades in social
infrastructures and market expansion in the healthcare field, Mr.
Klaus Dieter Rennert will continue to serve as Chief Executive for
EMEA.CIS. Mr. Rennert will roll out the solutions business aimed at
increasing efficiency in production and supply chains, based on
activities surrounding "Industrie4.0" (the fourth Industrial
Revolution in Germany). He will expand business by applying
Hitachi's concept of "symbiotic autonomous decentralization," which
aims to improve the quality of people's lives by linking individual
systems such as energy and healthcare and striving to achieve
overall optimization.
In these four regions - the Americas, China, Asia/Pacific, and
Europe / Russia / Middle East and other areas ("EMEA.CIS") - the
Chief Executives will act as "control towers," securing key
accounts and providing services and solutions that leverage the
strengths of the Hitachi Group. They will implement Hitachi's
strategy of "autonomous decentralized global management", which
puts responsibility for regional business operations more solidly
in the hands of each individual region.
At the same time, Hitachi will promote uniform global operations to
enable the efficient use of management resources, in areas such as
R&D, procurement, brand strategies, the use of human resources,
accounting systems, and thorough compliance. In this way, the
Hitachi Group will provide innovations at the highest level, and
establish governance as a global company.
About Hitachi
Hitachi, Ltd. (TSE:6501), headquartered in Tokyo, Japan, delivers
innovations that answer society's challenges with our talented team
and proven experience in global markets. The company's consolidated
revenues for fiscal 2013 (ended March 31, 2014) totaled 9,616
billion yen ($93.4 billion). Hitachi is focusing more than ever on
the Social Innovation Business, which includes infrastructure
systems, information & telecommunication systems, power
systems, construction machinery, high functional materials &
components, automotive systems, healthcare and others. For more
information on Hitachi, please visit the company's website at
http://www.hitachi.com.
Source: Hitachi
Contact:
Hitachi Ltd
Corporate Communications
Tel: +81-3-3258-1111
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