New Global Digital Business Structure

01/04/2022

Tokyo, April 1, 2022 - Hitachi, Ltd. (Hitachi) announced today that it has reorganized the IT sector, which had been playing the core role of Lumada*1, into the Digital Systems & Services sector in its upcoming Mid-term Management Plan in order to accelerate the digital business of the Hitachi Group on a global basis and further strengthen collaboration with other sectors including the Green Energy & Mobility sector and the Connective Industries sector. To accomplish this, Hitachi has strengthened its structure by launching two new organizations as of April 1.

The first, for the global market, Hitachi Digital, *2 is launched in North America, where the digital domain is growing rapidly. Hitachi Digital will also strengthen cooperation with Hitachi Energy, Hitachi Rail, and other companies to formulate and promote a global digital strategy across the Hitachi Group.

The second, for the Japanese market, where further digital domain growth is expected in the future, GlobalLogic Japan, Ltd. (GlobalLogic Japan *3), is established in Japan. GlobalLogic Japan will accelerate the adoption of customers' Digital Transformation (DX) leveraging Hitachis strong customer base, and GlobalLogic Inc.s ( GlobalLogic *4) Design-led Digital Engineering capabilities.

Through these efforts, Hitachi will strengthen its global digital business, and accelerate Lumada expansion through the growth by DX, furthering its transformation into a global digital company.

*1: Lumada is the name of Hitachis advanced digital solutions and services for turning data into insights that drive digital transformation of social infrastructure.

*2: Hitachi Digital LLC was renamed from Hitachi Global Digital Holdings LLC with expanding the role and functions of Hitachi Global Digital Holdings, a corporate organization that had previously overseen the digital business of the IT sector.

*3: GlobalLogic Japan is established in Japan as a wholly owned subsidiary of GlobalLogic.

*4: GlobalLogic is a business subsidiary of Hitachi Digital LLC and was acquired by Hitachi last July. Hitachi News Release (July 14, 2021) https://www.hitachi.com/New/cnews/month/2021/07/f_210714.pdf

Advancing Hitachi's Global Digital Strategy

Strengthening the Global Digital Business with the Launch of Hitachi Digital

In the global market starting from North America, Hitachi Digital will fulfill the growing DX needs expected in social infrastructure fields such as energy, transportation, and industrial & manufacturing. Hitachi Digital will make rapid locally-led decisions and lead commercialization in the following mission.

Lead the Formulation and Execution of a Digital Growth Strategy by Strengthening Collaboration Across the Hitachi Group in OT x IT x Products

Hitachi Digital will strengthen collaboration with Hitachis global bases in the energy, transportation, and industrial & manufacturing fields, formulate digital strategies related to Green Transformation (GX), and drive the commercialization of strategic themes across the Hitachi Group in the OT x IT x Products.

Specifically in the energy sector, the One Hitachi task force of Hitachi Energy, Hitachi Vantara, and GlobalLogic have been working to provide the Lumada Asset Management*5 solution which enables efficient operation of infrastructure assets. They are also developing next-generation green digital infrastructure businesses, including the provision of maintenance and the development of digital products and services leveraging design & technology expertise by GlobalLogic. In the mobility field, GlobalLogic is making a significant contribution with its design and digital engineering capabilities for electric buses in Europe, and is providing services such as agile development of core applications, in order to promote zero-carbon solution business through the decarbonization program.

Including these ongoing projects, Hitachi Digital will coordinate the One Hitachi task force and continue to lead local initiatives to bring together projects across the Hitachi Group and drive them toward commercialization.

Accelerate Global Digital Growth by Leveraging the Lumada's Platform and Ecosystem

Hitachi Digital will develop and leverage its business infrastructure to accelerate continuous global digital growth.

Specifically, the Lumada platform and ecosystem that has been successful in Japan such as the Lumada Alliance Program*6, a co-creation program with customers and partners, the Lumada Innovation Hub*7, a service and co-creation space for realizing innovation, and the Lumada Solution Hub*8, which connects Hitachi and its partners' digital solutions and technologies, will be deployed globally to quickly provide value based on their know-how and achievements.

*5: Hitachi News Release (February 23, 2021) https://www.hitachi.com/New/cnews/month/2021/02/210224a.html

*6: Hitachi News Release (November 4, 2020) https://www.hitachi.com/New/cnews/month/2020/11/201104.html

*7: Hitachi News Release (March 22, 2021) https://www.hitachi.com/New/cnews/month/2021/03/210322a.html

*8: Hitachi News Release (March 18, 2019) https://www.hitachi.com/New/cnews/month/2019/03/190318.html

DX Promotion in the Japanese Market with the Launch of GlobalLogic Japan

GlobalLogic Japan has been established to address the growing DX needs of the Japanese market by deploying GlobalLogics Design-led Digital Engineering capabilities to support DX for Japanese customers.

GlobalLogic has approximately 25,000 professionals working in design studios and engineering centers around the world, and has a wealth of DX experience and capabilities developed through work with more than 400 customers worldwide. Hitachi has large community of existing customers in the Japanese market and a track record of building highly reliable mission-critical systems. By combining these strengths into a powerful approach, GlobalL

LINK:	https://www.hitachi.eu/en/press/new-global-digital-business-structure...
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