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Hitachi Insight Group Formed to Accelerate Hitachis Global Internet of Things Business

Following its corporate statement of direction on April 14th, Hitachi announced the formation of Hitachi Insight Group. Headquartered in Santa Clara, Calif., the new group will drive Hitachis unified Internet of Things (IoT) business and go-to-market (GTM) strategy worldwide. With $5.4 billion in IoT solutions and services revenue generated in 2015 and 33 solutions in-market today, Hitachi offers one of the broadest IoT solutions portfolios in the industry. By uniting its digital and IoT solutions and services businesses, Hitachi is positioning itself to lead in this fast-growing market. The newly formed Hitachi Insight Group will be the tip of the spear in Hitachis quest to capture market share in what IDC projects to be a $1.46 trillion market opportunity by 2020.1

IoT is propelling a rapid convergence of our physical and digital worlds, creating unprecedented opportunities and challenges for businesses, cities, governments and industries. Hitachi is a pioneer in the creation and application of sensors to provide connected intelligence and support early IoT use cases in industrial markets, such as predictive maintenance and optimized factory. The companys rich 106-year industrial heritage and extensive proficiencies in operational technology (OT), combined with its more than 50 years experience in developing advanced information technologies (IT), make it uniquely capable of helping customers to extract actionable insights from IoT and fully capitalize on the benefits of digitalization. Few companies possess Hitachis breadth of expertise or deep understanding of the IoT value chain, which are essential to build and deploy digital solutions at scale.

“The greatest opportunity for IoT lies in the enterprise, industrial and public sector markets, which stand to benefit significantly from digital transformation. Although the market is still nascent, digitalization is already disrupting traditional product-based business models, driving demand for solutions and an everything-as-a-service approach,” said Vernon Turner, senior vice president, enterprise systems and IoT research fellow at IDC. “Few companies possess the expertise and breadth of resources required to deliver IoT solutions and services, and drive real business value at scale. With todays announcements, Hitachi is making good progress toward positioning itself to be one of the few likely IoT powerhouses as the market shakes out.”

Hitachi’s IoT portfolio includes solutions and services for public safety and smart cities, renewable and sustainable energy, intelligent transportation, precision agriculture and manufacturing, water treatment and urban development, construction, mining and more. These digital solutions deliver connected intelligence and drive actionable insights to support better business decision-making and tangible real world outcomes, like increased productivity and safety, streamlined business processes, lower cost of operations, reduced carbon footprint, and improved quality of life.

To enhance its existing portfolio and support the development of new solutions and services, the company has created Lumada, Hitachis IoT core platform. Lumadas open, adaptable software architecture is designed to accelerate the development of IoT solutions, while providing flexible support for customization and co-creation with Hitachis customers and partners.

The formation of Hitachi Insight Group is part of Hitachis corporate strategy and initiative to move its business toward a market-in approach. Led by CEO Keiji Kojima, Ph.D., who also holds concurrent positions as senior vice president and executive officer at Hitachi Ltd, the group will drive research and development and GTM strategies for Hitachis IoT-optimized solutions and services, in four key market segments: Smart City, Smart Energy, Smart Healthcare and Smart Industry. Hitachis global IoT-focused team of more than 16,000 employees from Hitachi Insight Group and various divisions across Hitachi Ltd. and its Group companies, including Hitachi Data Systems and Hitachi Consulting among others, will collaborate to accelerate delivery of solutions.

“Through the formation of Hitachi Insight Group and the Lumada IoT core platform we will provide Hitachis customers and partners with the fastest and simplest path to develop and deploy comprehensive digital solutions at scale,” Keiji Kojima commented. “It is a profound honor to lead this elite team in accelerating Hitachis global IoT business through the creation of digital solutions and services.”

Hitachi Insight Groups leadership team includes veteran executives Kevin Eggleston, general manager for the Americas, and Patrick Sjoestedt, general manager for EMEA. The group will receive strategic direction and support from Hitachi Ltd. regional leaders Jack Domme, chief executive of the Americas; Klaus Dieter Rennert, chief executive for EMEA; Ichiro Iino, chief executive for Asia-Pacific; and Kenichi Kokubo, chief executive for China. Hitachi said it plans to establish regional operations for Hitachi Insight Group in APAC later this year.

“IoT represents a critical inflection point, in which the interests of business, industry and society are now intersecting and aligning like never before,” said Kevin Eggleston. “Our repeatable solutions are already helping businesses, cities, municipalities and industrial companies around the world. The formation of Hitachi Insight Group will now enable us to take Hitachis vision for Social Innovation to the next level, as we move our IoT business into the next critical phase of its evolution.”

Hitachi has also established global Centers for Social Innovation in multiple geographies staffed by cross-disciplinary researchers, data scientists and solution architects to work closely with customers on solution development to solve unique challenges, ultimately verified through a proof-of-concept process. These labs will work closely with Hitachi Insight Group to apply the Hitachis market-in strategy and solve real world challenges in areas such as energy & natural resources, transportation, telecommunications, and healthcare.

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