Hitachi, Ltd. invested 100 billion yen to develop Internet of Things technology

According to "Nikkei Business News" reported on April 18, Hitachi, Ltd. announced on April 14 that it will establish an "Internet of Things (IoT)" related technology research and development center in the United States.

The headquarters of the new organization "Service Platform Business Unit (BU)" is located in Santa Clara, California, USA, and is scheduled to open in early May. The diary plans to increase the investment by 30% and hire local technicians. In fiscal 2016, we will build a 200-person system. Develop basic technologies that enable artificial intelligence and big data parsing through the Internet of Things.

Hitachi has invested heavily in research and development, and plans to invest about 100 billion yen in development costs within three years. We will promote technology development related to big data analysis, etc., not only to sell equipment to customer companies, but also to provide services. Strive to build a revenue model for new manufacturing industries, including consulting. For example, use big data parsing and artificial intelligence to predict the short-term and long-term needs of customer products. Make comprehensive recommendations for the production planning and new business of the customer's factory.


As a global competitor, General Electric (GE) established a special organization such as the Internet of Things (GE Digital) in 2015. It is envisaged to equip the engine delivered to the aircraft manufacturer with sensors, etc., to obtain revenue through real-time monitoring services.

In order to achieve differentiated competition, Hitachi will provide advice to actual customers, which are responsible for 12 parts of power, finance and industrial equipment, but building a common IoT foundation through new institutions will help achieve efficient development. .

Hitachi’s executive director, Kojima Koji, said: “Accelerate the speed of development by setting up a base in the United States with the most talented people and information.”

Hitachi strives to become a company with both corporate functions such as IBM and consulting giant Accenture. Imagine providing IBM with the ability to provide IT systems and demonstrate how to use them, as well as Accenture (pointing out customer business issues). This creates a differentiation from competing companies.

Hitachi’s president, Toshihiro Aihara, stressed that “depending on the extension of the existing organization, it is impossible to overcome the barrier of operating profit margin of sales of around 6%”. On this basis, the purpose of setting up a new institution is to point out that "it is necessary to build a new business model to meet the profit margin of more than 10% of GE."

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