Throughout the entire Hitachi Group, including companies in business reorganizations and companies integrated as a result of M&As, we are working to ensure compliance and business continuity for internal IT.
To respond to the risk of information leaks and increasing cyberattacks, as well as to ensure proper use of software, we are continuing our efforts to strengthen our IT controls.
In preparation for the investment in priority business fields and reorganization of businesses under the Hitachi Group's 2024 Medium-Term Management Plan, we are enhancing the capability to support the integration and partitioning of IT, which will be key points for successful M&A, and are engaged in initiatives to lower risks and increase efficiency via IT-PMI globally.
Hitachi Group's IT departments are promoting IT-PMI, which involves IT integration and separation activities associated with business restructuring. In recent years, the Hitachi Group has carried out large-scale global integrations such as the integration with GlobalLogic, as well as divestitures of companies such as Hitachi Transport System, Hitachi Metals, and Hitachi Construction Machinery. Currently, we are conducting IT-PMI for the acquisition of the European railway signaling-related business and are working on smooth and efficient IT integration and separation. To reduce risks associated with IT-PMI and improve efficiency, the Hitachi Group has adopted IT-PMI guidelines to systematize the processes to be performed as standard.
Companies newly joining the Hitachi Group are required to comply with Hitachi Group IT regulations and to establish IT management structures immediately after the acquisition is complete. In FY 2023, we enhanced our security check items in response to increased security risks associated with M&A. This initiative not only speeds up the IT-PMI process, but also improves the effectiveness of IT-PMI from an IT control perspective.
To achieve business income and expenditure plans in M&A, it is important to minimize the discrepancy between the planned and actual costs related to IT-PMI. To ensure that all parties involved in M&A have a common understanding, we take steps such as holding IT-PMI briefing sessions both inside and outside Japan. In addition, IT-PMI experts are invited to strategically participate in actual projects to further consolidate skills and knowledge. We are improving our project-support capabilities by enhancing resources.
