Promoting Global IT-PMI^#1

In preparation for the investment in priority business fields and reorganization of businesses under “Inspire 2027”, Hitachi Group’s Management Plan, we are enhancing the capability to support the integration and separation of IT, which will be key points for successful M&A, and are engaged in initiatives to reduce risks and increase efficiency via IT-PMI globally.

IT departments in the Hitachi Group are promoting IT-PMI, which involves IT integration and separation activities associated with business restructuring. We have carried out large-scale global integrations and IT separation projects associated with business restructuring.　We are currently implementing PMI (Post-Merger Integration) following the acquisition of Thales’ railway signaling-related business, and we are proceeding with smooth and efficient IT integration and separation. To reduce risks associated with IT-PMI and improve efficiency, the Hitachi Group has created IT-PMI guidelines that standardize implementation procedures and know-how.

Companies newly joining the Hitachi Group are required to comply with Hitachi Group IT regulations and to establish IT management structures immediately after the acquisition is complete. In recent years, we have enhanced our security check items in response to increased security risks associated with M&A. This initiative not only speeds up the IT-PMI process, but also improves the effectiveness of IT-PMI from an IT control perspective.

To achieve business income and expenditure plans in M&A, it is important to minimize the discrepancy between the planned and actual costs related to IT-PMI. To ensure that all parties involved in M&A have a common understanding, we take steps such as holding IT-PMI briefing sessions both inside and outside Japan. In addition, IT-PMI experts strategically participate in actual projects to supplement skills and knowledge, and we strengthen human resources who have expert knowledge, thereby improving our project-support capabilities.