Constructing a Digital Management Platform
To contribute to the expansion of social innovation businesses and to the realization of digital management, we aim to build a digital management platform that will be shared throughout the Hitachi Group.
Even as we expand our company scope and portfolio, this shared platform will provide information for growth and keep costs down.
By standardizing core operational processes and introducing a global shared ERP platform, we can slim down IT assets, strike a balance between lower IT costs and greater flexibility, and make rapid decisions through the consolidation of data.
Individual Hitachi Group companies implemented and operate the current ERP systems, which will reach the end of their maintenance period in 2027. We will take this opportunity to integrate and consolidate the ERP systems within the Hitachi Group onto a shared ERP platform, thereby enabling us to shift human resources and assets to competitive business areas and to respond more quickly to issues such as business restructuring.
The shared ERP platform will increase the ratio of Core areas#2 and Common areas#3 while also appropriately allocating Distinct areas#4 that support business competitiveness. In addition, we will build the minimum ERP instances necessary for each business model and carry out efficient migration and implementation using the Fit to Standard methodology.
Implementing the capabilities of the legacy systems, which were individually developed and operated at various Hitachi Group companies, and incorporating them into a shared ERP platform will accelerate the reduction of IT assets. Furthermore, by keeping the development scope to the minimum required level, we can both maintain business competitiveness and keep IT costs down.
The shared ERP platform will centrally manage the Hitachi Group's management data and organically link with other shared IT platforms, contributing to data-driven management and regional autonomous decentralized management. Also, by proactively utilizing cutting-edge technologies and cloud services and solutions, we will contribute quickly and flexibly to changes in the business environment and the realization of a sustainable society.
After the first pilot company of the shared business model was officially launched in April 2023, the simultaneous migration from the old systems to the shared business model was completed in April 2024 for overseas sites.
In FY 2024, development of the medium-volume production and made-to-order design production business model will be complete, and the first pilot company will use it in operation.
Additionally, we are reducing costs by consolidating all ERP instance operations and maintenance into AMO#5, which handles them in a unified, uniform, and scalable manner.
We will utilize the knowledge gained through these implementations to the maximum extent possible in subsequent projects, with the aim of achieving steady integration and consolidation by FY 2027.
