Restructuring IT
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.
We will achieve more lightweight IT assets and reduced maintenance costs through the organization of legacy IT#1 and the consolidation and integration into modernized, shared services.
Through a review of IT service costs throughout the entire Hitachi Group, we are promoting simple and low-cost IT operations.
Up to this point, the various companies of the Hitachi Group have owned and operated IT assets according to their own unique operational processes, but this practice has led to duplicated IT assets and IT operating costs within the Hitachi Group.
This situation must change, and as we continue to strengthen our corporate governance, we are working towards a greater standardization and use of shared offerings for operational processes and IT operations that span the entire Hitachi Group. By consolidating to shared services, shifting to the cloud, and organizing legacy IT, we are promoting more lightweight IT assets and reducing maintenance costs. Through these efforts, we can keep rising regular IT costs in check as our businesses expand, while at the same time securing growth investments that contribute to management and business. By periodically monitoring the Hitachi Group's regular IT costs and returns on investment, we are steering the PDCA cycle toward improvement.
By modernizing legacy IT at various Hitachi Group companies, we are moving towards consolidation into company-wide shared IT services that are agile, efficient, and strong. We set the reduction of legacy IT as a KPI, and have been monitoring our progress toward achievement of this goal. In FY 2022, we successfully hit the reduction target.
In addition, we will carefully examine and categorize the IT assets and costs of all Hitachi Group companies into shared IT areas (core IT) and business-specialized IT, and consolidate the IT assets of the unique core IT areas that each Hitachi Group company has had up to this point into shared IT services. In this way, we can expand the proportion of core IT as well as restructure costs.
