RIETI-NISTEP Policy Symposium Open Innovation as a Key Driver of Japan’s Industrial Competitiveness Handout TANABE Yasuo Vice President and Executive Officer, Hitachi, Ltd. August 21, 2015 Research Institute of Economy, Trade and Industry (RIETI) http://www.rieti.go.jp/en/index.html Hitachi’s Social Innovation Aug. 21, 2015 Yasuo Tanabe Vice President & Executive Officer Hitachi, Ltd. © Hitachi, Ltd. 2015. All rights reserved. 1. Hitachi Profile Information & Telecommunication Systems Financial Services Other (Logistics & Other services) Smart Life & Ecofriendly Systems 11% 7% 3% 19% Total Power systems 4% US$ 81,350 million FY 2014 15% 9% 14% 7% 11% Automotive Systems Social Infrastructure & Industrial Systems Construction Machinery Electronics Systems & Equipment High Functional Materials & Components *Figures are on a consolidated basis © Hitachi, Ltd. 2015. All rights reserved. 2 2. Hitachi’s Social Innovation Concept Serving the world with our social innovation business SOCIAL INNOVATION – IT’S OUR FUTURE “IT” × “Social infrastructure” Energy Resources (e.g., water) Cities Transportation Healthcare Logistics Manufacturing and construction Finance © Hitachi, Hitachi, Ltd. Ltd. 2015. 2015. All All rights rights reserved. reserved. © 3 3 3. Hitachi’s Social Innovation Business Build-up solutions utilizing IoT and big data Renewable energy Safe & secure cities Rail systems Raise facility output by detecting PV module failure or deterioration Secure safety & comfort by using widearea surveillance & high-speed image search to protect communities Raise reliability by remote monitoring of carriage condition to predict failure Mega solar Sensing Community Lifestyle disease Big data analytics IoT: Internet-of-Things Rail cars Distribution Preventive medicine Predict and reduce lifestyle disease related medical costs in groups by big data analytics on health check-up data Security Mining Improve retail performance by analyzing customer behavior patterns with AI Human behavior AI: Artificial intelligence Sensing AI Improve productivity by optimizing dispatch through big data analytics of equipment position & operational status Mine devt. Big data analytics © Hitachi, Ltd. 2015. All rights reserved. 4 4. R&D Structure Reorganize the global R&D structure to address innovation Customer-driven 顧客協創 Technology-driven 技術革新 社会イノベーション協創センタ Innovate near customers & markets HC 500 テクノロジーイノベーションセンタ Innovate using new and unique technology HC 2,000 Vision-driven 基礎探索 基礎研究センタ Innovate based on a vision for innovation HC 100 © Hitachi, Ltd. 2015. All rights reserved. 5 5. Research Sites & Personnel CSI North America [100] Santa Clara Farmington Hills Sao Paulo CSI Europe [50] London • Sophia Antipolis • Munich • Copenhagen • Cambridge CSI Tokyo (APAC) [250] Bangalore Singapore Akasaka CSI China [100] Beijing Shanghai CTI [2,000], CER [100] Kokubunji Hatoyama Ohmika Katsuta Yokohama [ ]: Head count, APAC: Asia-Pacific © Hitachi, Ltd. 2015. All rights reserved. 6 6. Collaborative Creation with Customers Solutions & services from the perspective of the customer Extracting & understanding the issues facing our customers IT Systems Products & systems Maintenance Big Data / Analytics System operation Resolving issues Operation & Maintenance Services © Hitachi, Hitachi, Ltd. Ltd. 2015. 2015. All All rights rights reserved. reserved. © 7 7. Partnership Strategy for Open Innovation Acquire necessary resources (customer base, sales channel, technologies) for growth, optimize business portfolios and increase revenue Front Office Function Prizm Payment Services: Finance (India) Stone Apple Solutions: Finance/Industry Customer (Asia) Platform Function Pentaho: Data analytics Product / Service Function AnsaldoBreda / Ansaldo STS : Railway Business (Europe, Australia, etc) Waupaca Foundry: Casting (Automotive, etc.) Product / Service Function (JV, Collaboration) ABB (JV): High-voltage DC power transmission, etc Mitsubishi Heavy Industries (JV): Thermal power generation systems business Johnson Controls (JV) Air-conditioning systems business © Hitachi, Ltd. 2015. All rights reserved. 8 © Hitachi, Ltd. 2015. All rights reserved.