A New Era Begins in April 2025
Hitachi has announced a new business structure that will take effect on April 1, 2025.
During a press conference on January 31, where the company disclosed its consolidated earnings for the third quarter of FY2024, Hitachi’s Executive Vice President and CFO, Tomomi Kato, explained the rationale behind the new structure. He stated, “The goal of the new structure is to transform into a truly ‘One Hitachi’ centered on digital technology, accelerate the growth of our social innovation business, and enhance corporate value.”
Key Highlights of the New Business Structure
Hitachi’s new business structure is built around four key strategic initiatives:
1. Establishment of the Strategic SIB Business Unit
One of the most significant changes is the creation of the Strategic SIB (Social Innovation Business) Business Unit.
SIB, an acronym for Social Innovation Business, represents Hitachi’s core focus—integrating IT (Information Technology), OT (Operational Technology), and products to address societal challenges through its Lumada platform.
The Strategic SIB BU will adopt a top-down approach to determine key growth areas, including data centers, healthcare, and batteries, which are experiencing surging demand due to the expansion of generative AI. The unit’s mission is to create new business opportunities globally.
Furthermore, the company highlights the importance of leveraging internal and external ecosystems to stay ahead of technological shifts, emphasizing open innovation through corporate venturing. The goal is to identify groundbreaking technologies, drive business creation, and ensure long-term sustainable growth by anticipating shifts in both technology and society.
2. Advancing “One Hitachi” with Digital at Its Core
Hitachi is further accelerating its One Hitachi strategy by reinforcing its digital capabilities.
Hitachi will focus on enhancing collaboration between the Digital Systems & Services (DSS) sector and OT/product businesses to accelerate digital transformation across all divisions.
To support this, Hitachi is establishing two new business units:
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The Digital Engineering & AI Solutions Business Unit, which will unify global operations, including GlobalLogic, to expand business worldwide.
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The AI & Software Services Business Unit, which will focus on enhancing the Lumada business through generative AI, enabling growth across industries and regions.
Additionally, Hitachi’s Connective Industries (CI) sector will be reorganized into three business units:
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Urban Systems Business Unit
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Industrial Products & Services Business Unit
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Industrial AI Business Unit
This restructuring aims to streamline Hitachi’s business portfolio, enhance operational efficiency, and drive synergy across sectors to strengthen market competitiveness.
Furthermore, the Industrial Digital Business Unit will be reorganized, with certain functions being transferred to the Social Business Unit. By aligning closely with the Digital Systems & Services sector, Hitachi seeks to accelerate digital transformation within the industrial domain.
3. Strengthening Global Operations & Corporate Functions
To enhance global competitiveness, Hitachi is reinforcing its corporate functions and regional operations.
The company is strengthening its strategy and marketing functions across six key regions:
- Americas
- EMEA (Europe, Middle East, Africa)
- APAC (Asia-Pacific)
- India
- Japan
- China
Each region will have dedicated strategic officers who will play a pivotal role in identifying growth opportunities and risks in real time. This structure will accelerate decision-making and improve coordination between regional, sector, and business unit strategies.
Additionally, Hitachi is focusing on strengthening corporate functions by formulating a company-wide growth strategy centered on digital transformation (DX).
The company also aims to invest heavily in AI research and development while cultivating global talent to drive the One Hitachi initiative across borders and business domains.
Looking Ahead: The Next Phase of Hitachi’s Growth
With the announcement of this new structure, Hitachi has provided a glimpse into its strategic direction under President Tokunaga, which officially begins on April 1, 2025.
During his appointment announcement on December 16, 2024, Tokunaga stated, “We will accelerate our journey toward becoming a global leader in social innovation, with digital as our core, an evolved Lumada, and a commitment to identifying new growth opportunities across regions through the One Hitachi approach.”
This latest business restructuring is a clear step in that direction. Following Tokunaga’s inauguration, Hitachi is expected to unveil its next mid-term management plan for FY2025 and beyond, shaping the company’s growth trajectory in the years to come.
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