Constructing a Digital Management Platform
To contribute to the expansion of social innovation businesses and to the realization of digital management, we aim to build a digital management platform that will be shared throughout the Hitachi Group. Even as we expand our company scope and portfolio, this shared platform will provide information for growth and keep costs down.
By standardizing core operational processes and introducing a global shared ERP platform, we can slim down IT assets, strike a balance between lower IT costs and greater flexibility, and make rapid decisions through the consolidation of data.
The current versions of ERP systems that were introduced and individually operated by Hitachi Group companies will reach the end of their support periods in 2027. The Hitachi Group is taking this opportunity to integrate and consolidate ERP systems within the group towards a shared ERP platform. This will enable Hitachi to respond rapidly, for example shifting human resources and asset resources to competitive business areas, and by effectively reorganizing businesses.
The shared ERP platform will raise the proportion of core areas#2 and common areas#3, while also appropriately allocating distinct areas#4 that provide support for business competitiveness. In addition, we will build ERP instances that are appropriate for and at the minimum required scale for each business model, and promote the efficient migration and introduction of these instances by using the “Fit to Standard#5” method.
By bringing over the capabilities of the legacy systems that have been individually developed and operated at various Hitachi Group companies and incorporating them into a shared ERP platform, we can accelerate the slimming down of our IT assets.Furthermore, by keeping the development scope to the minimum required level, we can both maintain business competitiveness and keep IT costs down.
The shared ERP platform will contribute to data-driven management and the acceleration of DX#6 adoption, through the centralized management of Hitachi Group management data and linkage with other shared IT platforms. In addition, by proactively utilizing cutting-edge technologies and advanced cloud services and solutions, we are contributing to flexible and rapid responses to changes in the business environment, and are helping to build a sustainable society.
In FY 2022, we finished building instances for the shared business model, and in April 2023, we officially commenced operations of the first pilot company for the same model.
Through this introduction case study, we acquired practical expertise on shared introduction procedures for the shared ERP platform as well as on the “Fit to Standard” method, and we have formed a specialized, highly skilled global team who is responsible for introduction and migration. Furthermore, we have established an AMO provision organization who is responsible for the centralized and scalable operation and maintenance of all ERP instances.
We will make maximum use of these in subsequent introduction projects, aiming for steady integration and consolidation by FY 2027.
