Hitachi, Ltd. · TSE:6501
Hitachi — Investor Day (June 2018)
37 slides from Hitachi's investor day presentation, Jun 28, 2018
Slide 1: 2018 R&D Strategy
2018 R&D Strategy Driving the evolution of Hitachi towards further globalization 28 June 2018 Norihiro Suzuki, Ph.D. Vice President & Executive Officer Chief Technology Officer General Manager, Research & Development Group Hitachi, Ltd. © Hitachi, Ltd. 2018. All rights reserved.
Slide 2: R&D 100th Anniversary
４-５ オープンイノベーション R&D 100th Anniversary ~ New challenges for the next 100 years ~ Mission Contribute to society through the development of superior, original technology and products Hitachi Founding Spirit For invention and discovery Harmony ・ Sincerity ・ Pioneering Spirit “We must have the ethos of t
Slide 3: Contents
Contents 1. Progress in FY2018 Mid-term Management Plan & Basic stance in FY2018 2. Enhancing co-creation of global solutions 3. Creating and focusing on world-leading technology 4. Promoting basic research to resolve societal issues 5. Summary © Hitachi, Ltd. 2018. All rights reserved. 2
Slide 4: Contents
Contents 1. Progress in FY2018 Mid-term Management Plan & Basic stance in FY2018 2. Enhancing co-creation of global solutions 3. Creating and focusing on world-leading technology 4. Promoting basic research to resolve societal issues 5. Summary © Hitachi, Ltd. 2018. All rights reserved. 3
Slide 5: 2018 Mid-term Management Plan: An Innovation Partner for the IoT Era
1.1 2018 Mid-term Management Plan An Innovation Partner for the IoT Era Accelerate collaborative creation with customers through advanced Social Innovation Business Four Focus Business Domains Industry ・ Finance ・ Social Power ・ Energy Urban Distribution ・ Water ・ Healthcare Growing need for Social
Slide 6: FY2018 R&D Group organization
1.2 FY2018 R&D Group organization Global R&D driving new growth in Social Innovation Business Technology Strategy Office M.Akatsu Global R&D Strategy GM & Head of Strategy Planning Center Global Center for Social Innovation (CSI) K.Funaki Global co-creation to create service business GM N.Suzuki Vic
Slide 7: R&D for Social Innovation Business
1.3 R&D for Social Innovation Business Hitachi’s ・For a sustainable society Social Innovation ・Co-create digital innovations with customers Business ・Global deployment of solutions Step 1 (FY2015～) Step 2 (FY2016～FY2017) Step 3 (FY2018～) Co-create with customers Digital innovation Scale up globally
Slide 8: Enhancing global co-creation
1.4 Enhancing global co-creation Utilize regional co-creation centers to contribute to Lumada business Mori GM CSI-Europe Chen GM Saikalis GM CSI-China CSI-North America CSI-Tokyo Kitagawa GM Beijing Guangzhou CSI-APAC December 2017 New Beijing office & co-creation space, Harada GM New Open Automati
Slide 9: Contributing to Lumada business
1.5 Contributing to Lumada business FY2016 FY2017 FY2018 1,000 Number of NEXPERIENCE 175 502 R&D Group customer cases 9 98 Number of Lumada customer cases /200 /500+ 150 (R&D Gr/ Hitachi Gr) 3.1 Lumada core 1.2 2.3 Hitachi Group business revenue (JPY 100 billion) 10.7 Lumada business revenue (JPY 10
Slide 10: World's No.1 technology through co-creation
1.6 World’s No.1 technology through co-creation World-leading products & services through No.1 technology for societal needs Railway systems High-speed elevators Particle beam therapy*2 Traffic Management System World’s fastest elevator*1 1,260m/min. 2 June 2017 News release Rail car 4D tumor tracki
Slide 11: Allocation of R&D Group funds
1.7 Allocation of R&D Group funds Strengthen R&D investment in digital solutions and open innovation Step 1 (FY2015～) Step 2 (FY2016～FY2017) Step 3 (FY2018～) Co-create with customers Digital innovation Scale up globally Increase co-creation funds Expand investment in Lumada Expand investment in open
Slide 12: Digital transformation in R&D
1.8 Digital transformation in R&D Drastically reduce product development time with Lumada & AI Improved development efficiency Improved productivity in storage in innovative materials Optimize test process by analyzing Highly efficient design & devt. of innovative vast inspection item data using AT/
Slide 13: Hitachi Gr. investment in R&D
1.9 Hitachi Gr. investment in R&D Raising R&D efficiency to contribute to Hitachi’s profitability Investment in R&D R&D efficiency 400 5 4 Profit / Past 3-yr. avg. of R&D expend. R&D expenditure/Revenue (%) Ratio to R&D R&D expenditure (Billion JPY) expenditure/Revenue 3 Hitachi 4 300 2 3 Expenditur
Slide 14: Major awards and recognitions
1.10 Major awards and recognitions Major products & services awarded external recognitions especially in the Four Focus Business Domains Four Focus Business Domains Platform Oil-free scroll compressor*1 IoT sensor Particle beam therapy iPS cell w/ integrated amorphous equipment*2 mass culture equipm
Slide 15: Basic stance in FY2018
1.11 Basic stance in FY2018 Become a global innovation leader to drive the evolution towards a global company Hitachi challenge Directives Enhancing co-creation of Monetizing capability global solutions aimed at creating SIB • From individual solution to connected industries • Focus on growth domain
Slide 16: Contents
Contents 1. Progress in FY2018 Mid-term Management Plan & Basic stance in FY2018 2. Enhancing co-creation of global solutions 3. Creating and focusing on world-leading technology 4. Promoting basic research to resolve societal issues 5. Summary © Hitachi, Ltd. 2018. All rights reserved. 15
Slide 17: Co-creating global solutions
2.1 Co-creating global solutions Expand co-creation in Social Innovation Business and strengthen global deployment 1. Expand from point solutions to “Connected Industries” Directive 2. Focus globally on growth areas & societal issue FY2017 results and next steps FY2017 results Global CSI’s next in
Slide 18: "Connected Industries" solution examples
2.2 “Connected Industries” solution examples Finance Healthcare Industry Finance (Dai-ichi Life Insurance) (Mizuho Financial Group) Accurately estimate risk of hospitalization Manage & share global supply chain data, from lifestyle-disease assessment models to agilely respond to financing needs
Slide 19: Focus on growth area & regions (1)
Global deployment 2.3 Focus on growth area & regions (1) Industry: Industrial equip., NA Mnfg./Mobility solutions EMEA Urban: Railway systems, Railway digital solutions Finance: Financial system integration Expand from maintenance to mobility services Expand from railway carriages & signals to
Slide 20: Focus on growth area & regions (2)
Global deployment 2.4 Focus on growth area & regions (2) Healthcare: Elderly nursing Industry: Manufacturing solution China Urban: Digital solution for buildings APAC Financial/Social: Digital infrastructure Expand digital business for Healthy China 2030 Digital infrastructure business w/ govts.
Slide 21: Global deployment of Social Innovation Business
2.5 Global deployment of Social Innovation Business Industry • Finance • Power • Energy Urban Distribution • Water Social • Healthcare EUR CHN Asia NA Railway systems/ Elevators & Escalators Financial Financial SI Railway digital /Building-related digital & Societal solutions Industrial equip.
Slide 22: Contents
Contents 1. Progress in FY2018 Mid-term Management Plan & Basic stance in FY2018 2. Enhancing co-creation of global solutions 3. Creating and focusing on world-leading technology 4. Promoting basic research to resolve societal issues 5. Summary © Hitachi, Ltd. 2018. All rights reserved. 21
Slide 23: Technology for world No.1 Products & Services
3.1 Technology for world No. 1 Products & Services Create world No.1 technology platforms based on societal challenges faced by customers 1. Create world No.1 technology to lead Social Innovation Business Policy 2. Further accelerate open innovation Industry • Finance • Power • Societal challenges C
Slide 24: Power Energy: Power grid control
3.2 Power • Energy: Power grid control Proposing an energy system to support Society 5.0 Future energy system No. 1 Tech: Power grid control Cooperative mechanisms integrating diverse An analytical tool assessing grid stability taking into distributed resources with the core systems account supply-d
Slide 25: Industry Distribution Water: Smart Mnfg., Logistics
3.3 Industry • Distribution • Water: Smart Mnfg., Logistics Optimize the total value chain from production to logistics sites Smart production / distribution No.1 Tech: Robot autonomous cooperation Accumulate successful in-house smart Realize both flexibility and increased productivity manufacturi
Slide 26: Urban: Railway / Automotive
3.4 Urban：Railway / Automotive Design and control technology for mobility systems and solutions Railway carriage Autonomous driving Delivery of bi-modal (electric/diesel) high-speed V2X cooperative control for autonomous driving railway carriages for GWR (UK); operation tested in Europe, USA and Jap
Slide 27: Finance Social Healthcare: Security, Diagnostic equip.
3.5 Finance • Social • Healthcare: Security • Diagnostic equip. New services utilizing digital technology to improve safety and convenience Cyber-security Ultrasound diagnostic equipment Collaborate with Keio U. et al to Reduce physical burden on patient and promote cybersecurity for social infrastr
Slide 28: IoT platform
3.6 IoT platform Accelerate global scaling by increasing customer cases & solution cores Enhancing Lumada through open innovation Customer Apply Hitachi OT know-how, AI & robotics Customer case technology for global collaboration / Service model Maintenance & Repair Solution core Partner Partnering
Slide 29: Collaboration with academia & startups
3.7 Collaboration with academia & startups to enhance disruptive technology development Fintech Industry IoT Material Software Industry Academia Stanford Tsinghua Shanghai South China SZTAKI Fudan Univ. University univ. Jiaotong Univ. Univ.of Tech. (Hungary) (China) (USA) (China) (China) (China) Aut
Slide 30: Contents
Contents 1. Progress in FY2018 Mid-term Management Plan & Basic stance in FY2018 2. Enhancing co-creation of global solutions 3. Creating and focusing on world-leading technology 4. Promoting basic research to resolve societal issues 5. Summary © Hitachi, Ltd. 2018. All rights reserved. 29
Slide 31: Strategy to resolve societal issues
4.1 Strategy to resolve societal issues Create disruptive technology & future vision to solve social issues 1) Create disruptive technology through open innovation Policy 2) Create visions to lead Society 5.0 SDGs Society 5.0 Sustainable Development Human-centric Goals Super Smart Society CER's rese
Slide 32: Creating disruptive technology
4.2 Creating disruptive technology Accelerating efforts to realize quantum computing, simple cancer screening CMOS annealing machine Simple cancer screening Scalable based on size of societal Verified low-burden cancer screening challenge to be solved Successful detection in adult & pediatric 10
Slide 33: Initiatives to create future visions
4.3 Initiatives to create future visions Create visions through industry-academia-govt. collaboration to resolve societal challenges, and share with the world Society 5.0 Vision to [City planning] Habitat Innovation resolve societal challenges 1. Vision of future city with goal of Hitachi U.Tokyo La
Slide 34: Contents
Contents 1. Progress in FY2018 Mid-term Management Plan & Basic stance in FY2018 2. Enhancing co-creation of global solutions 3. Creating and focusing on world-leading technology 4. Promoting basic research to resolve societal issues 5. Summary © Hitachi, Ltd. 2018. All rights reserved. 33
Slide 35: Summary
5.1 Summary １ Enhancing co-creation of global solutions ２ Creating and focusing on world-leading technology ３ Promoting basic research to resolve societal issues Investors Hitachi-U.Tokyo Lab. Environmental NGOs Hitachi-Kyoto U. Lab. Customers Hitachi-Hokkaido U. Lab. Communities U. Cambridge Employ
Slide 36: New challenges for the next 100 years at Collaboration Forest
New challenges for the next 100 years at “Collaboration Forest” To be completed in March 2019 © Hitachi, Ltd. 2018. All rights reserved. 35
Slide 37: HITACHI Inspire the Next
HITACHI Inspire the Next