Restructuring IT
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.
We are reducing IT assets and maintenance costs by eliminating legacy IT#1 and consolidating and integrating IT assets into modernized and shared IT services.
We are promoting simple and low-cost IT operations by reviewing IT service costs for the entire Hitachi Group.
Until now, Hitachi Group companies possessed and operated IT assets according to their individual business processes, resulting in duplication of IT assets and IT operating costs within the Hitachi Group.
This situation must be changed. We are strengthening our corporate governance, and working toward greater standardization and a thorough sharing of common operational processes and IT operations throughout the Hitachi Group. We are reducing IT assets and maintenance costs by consolidating IT assets into shared IT services, shifting to the cloud, and streamlining legacy IT. Through these efforts, we keep in check the rise in fixed IT costs as our businesses expand, and secure growth investments that contribute to management and business. By regularly monitoring the Hitachi Group's fixed IT costs and return on investment, we implemented a PDCA cycle for improvement, and are able to maintain the ratio of fixed IT costs to sales at an appropriate level.
We are boldly modernizing legacy IT in Hitachi Group companies and consolidating IT assets into shared IT services that combine agility, efficiency, and robustness. We set the reduction of legacy IT as a KPI and achieved the reduction objective of the 2024 IT Medium-Term Plan in FY 2023 ahead of schedule.
In addition, we scrutinized and classified IT assets and costs of all companies into shared IT for use in common (core IT) and business-specific IT. By consolidating the core IT assets that are independently held by each company into shared IT services, we are able to raise the core IT ratio and promote cost structure reforms.
