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Hitachi

Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.

March 21, 2012

Hitachi to launch "Hitachi Global Solution for SAP"

-- Solution that includes a global template that enhances SAP® Best Practices, a global AMO service and a global knowledge database --

Tokyo, March 21, 2012 – Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced that it enhanced the flexibility in order to meet global requirements from an implementation to an operation phase of SAP® ERP*1 and prepared "Hitachi Global Solution for SAP" for supporting customers throughout. On April 2, Hitachi will launch this solution for the companies that are considering using SAP ERP or have already implemented it in some local sites.

Currently, globalization on business in Japanese companies is advancing rapidly. It is required to achieve a global business management with more restricted budget for investment than before in order to have the ability to complete on the market.

Against the backdrop, Hitachi added the functions which correspond to a business process adapting practical business to SAP® Best Practices*2 which is utilized normally in an implementation of SAP ERP used in common as an package software and prepared them by the name of "Hitachi Global Template for SAP." According to the announcement of SAP, it is said the project of SAP ERP implementation with utilizing SAP Best Practices can reduce the total man-hour by 32%*3 on average.

And Hitachi also prepared "Hitachi Global AMO Service for SAP"*4 for an operation phase after an implementation to solve the issues such as multi vendor compatibility which are seen frequently in a global project. It can realize the one stop system operation including the sites overseas.

Hitachi will launch "Hitachi Global Solution for SAP "by the combinations of "Hitachi Global AMO Service for SAP," "Hitachi Global Template for SAP" and "Hitachi Global Knowledge Database" in which a great deal of the know-how based on the experiences of the implementations for Hitachi group is included.

Features of "Hitachi Global Solution for SAP"

(1) "Hitachi Global Template for SAP", greatly enhances SAP Best Practices

"Hitachi Global Template for SAP" realizes an implementation based on SAP Best Practices which is new methodology. And the supplemental solutions for business process (Point 5 Solutions), Industry Solutions, Country requirements were added to the basic contents of SAP Best Practices in order to solve the issues regarding legal requirements and business practices of a region or a country which are likely to occur in a global project. The number of the scenarios is increasing sharply.
It is hopeful to reduce costs still more by adding more functions to SAP Best Practices which makes it possible to achieve workload reduction.

[Table]Comparison Between SAP BP & Hitachi Global Template for SAP

(2) "Hitachi Global Knowledge Database", includes the know-how of global implementations

Hitachi has accumulated much knowledge through the implementations for Hitachi group so far. The knowledge was collected into a knowledge database systematically. It is possible to grasp the legal requirements in a target country and region by utilizing this knowledge database in the implementation project.

(3) A lot of patterns of an implementation by the combinations of the templates for Domestic and Overseas

There may be various patterns of implementation of SAP ERP depending on the situation and requirement of a company.
In addition to the template for a domestic project, Hitachi prepared the template for a project overseas as "Hitachi Global Template for SAP". It can realize a lot of patterns of implementation. And it enables to adapt to the company's specific situations and requirements more flexible than before, by the suitable combinations of both templates.

(4) "Hitachi Global AMO Service for SAP" realizes one stop operation service for global system

Hitachi can provide the SAP ERP operation service not only for the system which was constructed by Hitachi, but also for the one which was constructed by other vender, by utilizing the top-class actual results of SAP ERP system operation in Japan.
This service enables to reduce the issues(Problems between systems, An increase of adjustment work between multi-vendors and so on) caused by multi vendor compatibility which are seen frequently in a global project.

Price and launch date of "Hitachi Global Solutions for SAP"

Tools Product Contents Price Launch
Date
Template
(Overseas)
Hitachi
Global
Template
for
SAP
The global template for medium and large enterprise which is useful for a SAP ERP implementation. It enhances SAP Best Practices
  • Solutions to supplement business process in SAP Best Practices and achieve business process adapted to a practical business.(Point 5 Solutions)
  • Industry solutions completely based on SAP® Solution Composer recommended by SAP as a business map.
  • The functions to meet country requirements.
Quotation April 2,
2012
Knowledge
(Overseas)
Hitachi
Global
Knowledge
Database
The knowledge accumulated through the global implementation for Hitachi Group(Documents which include the knowledge about legal requirements and business practice in target countries and regions).
AMO
(Domestic,
/Overseas)
Hitachi
Global
AMO
Service
for
SAP
Outsourcing services: It realizes the one stop operation of SAP ERP systems (Domestic/Overseas) including the systems implemented by other vendors.
Template
(Domestic)
Hitachi
Template
for
SAP
The template provides a lot of functions adapting to legal requirements and business practice for Japan and all kind of the documents which are required in a project management. Available

Sales target

The total 30 billion yen by the end of 2015 fiscal year for overseas implementation (Including hardware, license fees).

*1
SAP® ERP: Enterprise system (Package software) provided by SAP.
*2
SAP® Best Practices: The business process and project accelerator in order to streamline the implementation
*3
Reduction by 32% :SAP collected the results from the projects overseas and compared days required of the project based on a conventional methodology with those of the project based on SAP Best Practices. It is not always possible for all the companies to achieve reduction by 32%.
*4
AMO: Application Management Outsourcing: Outsourcing an operation of business system to a 3rd vendor.

About Hitachi, Ltd.

Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2010 (ended March 31, 2011) consolidated revenues totaled 9,315 billion yen ($112.2 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

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