Hitachi, Ltd. (Tokyo), just days after releasing the results of its fiscal year 2012, announced that it has formulated a management plan to promote growth and transform the company into one driven by Social Innovation Business.
Hitachi's Digital Media & Consumer Products product segment encompasses appliances as well as consumer electronics. While FY 2012 appliance sales were steady, the product group saw overall sales drop due on lower TVs and optical disk drive sales.
The 2015 Mid-term Management Plan targets achieving revenue of 10 trillion yen in fiscal year 2015, compared to the average of 9,340 billion yen in fiscal; 2010-2012. It targets an operating income ratio of over 7%, compared to the average of 4.9%.
Hitachi's strategy under the plan will employ these focuses:
* Innovation: "Strengthen service businesses that maximize the utilization of IT and bring about innovation."
* Global: "Deliver Innovation to Customers and Society globally."
* Transformation: "Transform Hitachi to deliver innovation by standardized and speedy operation."
Hitachi's Social Innovation Business focus will:
* Identify issues from customer perspectives and work on solutions together with customers, as "One Hitachi."
* Realize innovation by providing solutions that combine products, services, and highly sophisticated IT (Cloud-based).
Hitachi said it intends to simplify the group structure, by eliminating waste and by clarifying roles within the organization. It will expand global usage of shared services and globally standardize and integrate its IT and operational systems.
The company will also employ a new market-driven structure. Among the six new groups, appliance and HVAC manufacturing will presumably be a part of the High Functional Material & Components Group, addressing the Machinery and Electric Components Market.
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