Slide 1: R&D Strategy to Become a Major Global Player
R&D Strategy to Become a Major Global Player April 16, 2013 Shigeru Azuhata Executive Vice President & Executive Officer, General Manager, R&D Group, Hitachi, Ltd. © 2013 Hitachi, Ltd. All rights reserved.
Slide 2: Contents
Contents 1 Background 2 Global R&D strategy 3 Prioritizing Social Innovation Business 4 Strengthening the management platform 5 Open innovation © 20112Hitachi, Ltd. All rights reserved.
Slide 3: Contents
Contents 1 Background 2 Global R&D strategy 3 Prioritizing Social Innovation Business 4 Strengthening the management platform 5 Open innovation © 20112Hitachi, Ltd. All rights reserved.
Slide 4: Management directive
1-1. Management directive Contribute to the creation of sustainable social infrastructures Accelerate Social Innovation Business Strategies Execution Leverage Hitachi’s strengths to promote a global growth strategy Focus business resources on Social Innovation Business Strengthen the business struct
Slide 5: Social Innovation Business: focused business areas
1-2. Social Innovation Business [Focused Business areas] Social Innovation Business Industrial, Transportation and Urban Development Systems Eco-cities Water treatment Construction Elevators and escalators Cloud computing machinery Green mobility Consulting Healthcare Data centers Energy (Thermal, n
Slide 6: R&D organization
1-3. R&D organization Hitachi’s 6 Business Group structure and the R&D Group President Kokubunji-shi Research & Development Group Tokyo Social Innovation Business Project Division Hatoyama-machi, Technology Strategy Office Saitama Infrastructure Systems Group Central Research Lab. Hitachi-shi, Ibara
Slide 7: R&D investment
1-4. R&D investment Approx. 400 billion JPY invested in Hitachi Gr. R&D, approx. 4% of revenue 500 6 R&D investment as a % of revenue [%] As a % of Revenue R&D investment R&D investment [billion yen] 400 5 300 4 200 3 100 2 0 1 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fiscal year
Slide 8: R&D investment efficiency & personnel
1-5. R&D investment efficiency & personnel Annual trend in R&D investment return 6 R&D expenditure/operating profit margin (%) 1.20 R&D investment as a % OPM [ROI] Operating income as a % of revenue R&D expenditure/Revenue (%) R&D investment as % of revenue 5 1.00 4 0.80 3 0.60 2 0.40 1 Operating in
Slide 9: Strategic allocation of investment
1-6. Strategic allocation of investment 2012 2015 2020 Business target Business strategy roadmap [Business Group-led] Sponsored Frontier & Sponsored research Current business Platform research research 30% <Business div. funds> R&D investment 50% Adv. sponsored Next-generation Adv. research business
Slide 10: R&D strategy to become a major global player
1-7. R&D strategy to become a major global player Enhancing regional research 1. Global growth strategy contributing to overseas business expansion 2. Prioritization of Social Development of No. 1 technology Innovation Business for prioritized business areas Cost structure reform 3. Strengthening
Slide 11: Contents
Contents 1 Background 2 Global R&D strategy 3 Prioritizing Social Innovation Business 4 Strengthening the management platform 5 Open innovation © 20112Hitachi, Ltd. All rights reserved.
Slide 12: Global R&D strategy
2-1. Global R&D strategy Reinforcement of regional research supporting global business expansion [Measure 1] Expand global research bases 500 No. of personnel 400 1) Increase research personnel in IT, Infrastructure and Materials 300 (approx. 280@2013 → approx. 400@’15) 200 2) Utilize global human r
Slide 13: Network of seven regional R&D bases and newly established labs
2-2. Network of seven regional R&D bases and newly est. labs Europe (Hitachi Europe Ltd.) China (Hitachi China R&D Corporation) USA (Hitachi America, Ltd.) Maidenhead Santa Clara Shanghai Beijing US Big Data Laboratory ☆ (2013/4) European Rail Detroit Research Centre ☆ （2012/10) ☆ Japan Hitachi Chin
Slide 14: European Rail Research Centre
2-3. European Rail Research Centre Contributing to European Rail Systems Europe business expansion Rail car Maintenance Operation & Management Design support for rail cars Sophistication of Development of a U.K. traffic for the European market maintenance systems management system © 2013 Hitachi, Lt
Slide 15: Hitachi China Materials Technology Innovation Center
2-4. Hitachi China Materials Technology Innovation Cntr. Strengthen Hitachi Group cost structure through increased use of Chinese materials To be established on the campus of Shanghai Jiao Tong University (SJTU) Hitachi exclusive laboratory Selection of high quality inexpensive Quality and charact
Slide 16: Contents
Contents 1 Background 2 Global R&D strategy 3 Prioritizing Social Innovation Business 4 Strengthening the management platform 5 Open innovation © 20112Hitachi, Ltd. All rights reserved.
Slide 17: Development of innovative technology for focused business
3-1. Devt. of innovative technology for focused business Devt. of global No. 1 components and pioneering systems & service business Innovative technology development Infrastructure Systems Group Healthcare Water business Rail systems Information & Telecommunications Big data Clouds Systems Group The
Slide 18: Healthcare
3-2. Healthcare Development of cutting-edge technology for healthcare business expansion Expand current business Pioneer new business Cell processing Diagnostic Regenerative medicine Diagnostic imaging Superconductive Imaging System Closed automatic culturing equipment Analysis Platform technology f
Slide 19: Healthcare (1): Superconductive Imaging System
3-3. Healthcare (1): Superconductive Imaging System Realization of an oval bore reducing subject psychological burden Application of design technology Spacious developed for nuclear fusion equipment Superconductive Imaging System Simulation for nuclear Feature Oval bore with a horizontal fusion equi
Slide 20: Healthcare (2): Clinical Analyzer for in vitro diagnostics
3-4. Healthcare (2): Clinical Analyzer for in vitro diagnostics High-speed high-accuracy automatic biochemistry analyzer reducing patient burden and testing costs Sample dispenser probe capable of handling 1μL Automatic analyzer “LABOSPECT” series Medium-sized model released in Nov. 2012, Sample dis
Slide 21: Healthcare (3): Biopharmaceutical production plant technology
3-5. Healthcare (3): Biopharmaceutical production plant tech. Optimization of bio-manufacturing plant cell culture environment using simulation Combined fluidics & metabolomics Pilot 200L cell culture facility Stirred 流体解析 flow simulation in tank Optimize the environment within a Shear stress cell c
Slide 22: Big data / Clouds
3-6. Big data / Clouds Innovative technology for big data/cloud to support Social Innovation Business ① High reliability ultra-high speed platforms ② High speed networks for the Cloud ③ Human big data,* ultra-high speed data base engines Government 教育 administration 行政 Education 健康／医療 Water 水 Health
Slide 23: Clouds: High reliability ultra-high speed platform
3-7. Clouds: High reliability ultra-high speed platform World-class high-speed Integrated management software for mid-range storage (1.3x previous model*1) storage/server/network High-end storage hardware & control software downsized and applied to *3 mid-range storage VM deployment time: *4 15 days
Slide 24: Network: High speed response networks for the Cloud
3-8. Network: High speed response networks for the Cloud High-speed response network technology to achieve M2M*1 societal infrastructure through the Cloud Conventional technology Technology developed: Delay approx. 1/15*2 Signal delay is long due to distance between Signal delay is reduced by using
Slide 25: Big data (1): Utilization of human big data
3-9. Big data (1): Utilization of human big data Solving management issues utilizing large body of human behavioral data Name tag sensor node • Communication log 2005~ joint research with MIT • Behavioral log 2009~ Hitachi High-Technologies etc. Corp. business 13% increase in call center orders rece
Slide 26: Big data (2): Ultra-high speed database engine
3-10. Big data (2): Ultra-high speed data base engine The “Out-of-Order Database Engine”*1 technology proposed by Prof. Kitsuregawa (Univ. of Tokyo and also Director-General, National Institute of Informatics) accelerates big data analysis by a hundred times*2 Conventional technology Ultra-high-spee
Slide 27: Power systems
3-11. Power systems Development of creative energy technology for a clean & prosperous future Gas turbine Coal-fired thermal power generation • Highly efficient, lower-environmental • Next-generation coal-fired thermal power impact new gas turbine technology*1 generation technology drastically reduc
Slide 28: Power generation (1): Highly efficient medium capacity gas turbines
3-12. Power generation (1): Highly efficient medium capacity gas turbines 40MW-rated output achieved with AHAT*1 system equipped facility AHAT: Gas turbine cycle using Features of the 40MW pilot facility highly humid air Start-up time: 60 min. from ignition to 40MW rated power → 1/3 previous equip.
Slide 29: Power generation (2): Gas turbine clean combustion technology
3-13. Power generation(2): Gas turbine clean combustion technology Achieved dry, single digit NOx at the coal gasification pilot power plant Pilot plant 2(EAGLE 太陽光なみのCO 輩出に向けて*1) NOx reduction technology Gasifier Dry, low NOx combustion using “Multi-hole co-axial jet burner” Air separation unit Rap
Slide 30: Recovery-support technology
3-14. Recovery-support technology Innovative technology for radiation monitoring & decontamination High dose rate environment gamma camera Simultaneous removal of 2 radionuclides Adsorption effect Gamma ray Sea water condition Increased strontium adsorption 10000 This adsorbant detection module Arti
Slide 31: Smart grids
3-15. Smart grids Voltage regulation technology for the mass introduction of renewable energy Issue in introducing renewable energy Voltage regulation technology Frequent voltage Voltage deviation reduced from 10% to 3% 12,800 deviation Upper limit (1,000 homes with 40% solar power, 2 SVC*1) Voltage
Slide 32: Battery: Industrial Li-ion batteries
3-16. Battery: Industrial Li-ion batteries Development of energy storage systems for power plants using renewable energy sources Large capacity secondary batteries Large capacity energy storage systems Large capacity Li-ion battery (CH75-6) Thermo-fluidic analysis to improve cooling efficiency • 75A
Slide 33: Contents
Contents 1 Background 2 Global R&D strategy 3 Prioritizing Social Innovation Business 44 Strengthening the management platform 5 Open innovation © 20112Hitachi, Ltd. All rights reserved.
Slide 34: R&D activities to reform cost structure
4-1. R&D activities to reform cost structure Contribute to the “Hitachi Smart Transformation” project through production engineering, computational analysis & materials research Production cost transform Design technology to minimize costs in global supply chains Analysis-led design to reduce number
Slide 35: Global supply chain design
4-2. Global supply chain design Optimizing locations of facilities by considering parameters such as tariffs, etc. to minimize costs Global supply chain New design technology Candidate locations Proposal 1 Taking into consideration the configuration of production line & preferential tariffs Assess C
Slide 36: Materials cost reduction
4-3. Materials cost reduction Reduction of raw materials costs through “rare-metal-less” Rare-metal-less motor Au-Sn alternative low melting glasses Feature ① Rare-metal-less structure *1 Feature Sealing temperature equivalent to (News release 2012/4/11) Au-Sn solder (220~300°C) ② Position-sensor-le
Slide 37: Simulation
4-4. Simulation Reducing number of prototypes through analysis-led design Double suction volute pump Air conditioner (Scroll compressor, Fan) Feature Optimization design tool Feature ① Multi-physics simulator able + to handle control / inverter / Fluid simulation motor / compressor mechanism as one
Slide 38: Contents
Contents 1 Background 2 Global R&D strategy 3 Prioritizing Social Innovation Business 4 Strengthening the management platform 5 Open innovation © 20112Hitachi, Ltd. All rights reserved.
Slide 39: Open innovation
5-1. Open innovation R&D collaborations with customers & partners Organization Details King Abdulaziz University Joint experiment in Saudi Arabian water quality monitoring 13 organizations incl. European Advanced ICT integrated platform for EV WAN Accelerator automobile manufacturers Mitsui & Co.,
Slide 40: Joint R&D in water quality monitoring technology
5-2. Joint R&D in water quality monitoring technology Pursuing O&M*1 business through development of rapid water quality measurement technology for desalination plants Rapid water quality measurement technology Verification tests in Saudi Arabian waters Measurement time: Previously 1 day 1 hour Jo
Slide 41: Activities for regenerative medicine business
5-3. Activities for regenerative medicine business Promoting research for future business through industry/academia collaboration Hospital Cell processing facility Pre/post surgical Remove Clinical testing diagnostic imaging cells equipment Transport Fabricate regenerated tissue Hitachi Medical Corp
Slide 42: Cell sheet automatic culturing technology
5-4. Cell sheet automatic culturing technology Establishment of automatic culturing technology for stable quality and cost reduction Small automatic culturing equipment Human corneal & esophageal tissue culturing 1 cm Cell culturing cartridge Cell handling technology to detach tissue without damagin
Slide 43: Digital data recording & retrieval using fused silica
5-5. Digital data recording & retrieval using fused silica Establishment of semi-perpetual digital archiving technology for historically valuable data CD-equivalent density achieved Simple access to data using commercially available optical microscope Kyoto University Optical Microfabrication usin
Slide 44: Major awards & recognitions (1)
Major awards & recognitions (1) Recognition Technology/Product [Joint recipient] The Commendation for Science and Devlopment of Particle Technology by the Minister of Education, Beam Therapy System Culture, Sports, Science and Technology (April 2013) The New Technology Development Foundation For the
Slide 45: Major awards & recognitions (2)
Major awards & recognitions (2) Recognition Technology/Product [Joint recipient] universal design GmbH X-ray equipment “Radnext PLUS” universal design award 2013 [Hitachi Medical Corporation] universal design consumer favorite 2013 Washer/dryer “Heat recycle Kaze-iron Big (February 2013) Dru
Slide 46: Summary: Promotion of R&D for a major global player
Summary Promotion of R&D for a major global player Enhancement of global R&D Increase global R&D personnel to 400 by 2015 Newly establish 1 lab, 3 research centers to lead regional business Prioritizing Social Innovation Business Generate competitive component products as well as lead infrastructure
Slide 47: END
END R&D strategy to become a major global player April 16, 2013 Shigeru Azuhata Executive Vice President & Executive Officer, General Manager, R&D Group, Hitachi, Ltd. © 20112Hitachi, Ltd. All rights reserved.
Slide 48: © 2013 Hitachi, Ltd. All rights reserved.
© 2013 Hitachi, Ltd. All rights reserved.