Hitachi announces the formation of Hitachi Insight Group, a new group of the company to drive Hitachi’s unified Internet of Things (IoT) business and go-to-market (GTM) strategy worldwide.
The Company claims to have grossed USD$5.4 billion in IoT solutions and services in 2015 with 33 solutions in-market today.
The formation of Hitachi Insight Group is reported as a part of Hitachi’s corporate strategy and initiative to move its business toward a market-in approach. The new entity, led by Keiji Kojima, Ph.D., who is also the senior vice president and executive officer at Hitachi Ltd will drive R&D and GTM strategies for Hitachi’s IoT-optimized solutions and services, in four key market segments: Smart City, Smart Energy, Smart Healthcare and Smart Industry.
Hitachi’s global IoT-focused team of more than 16,000 employees from Hitachi Insight Group and various divisions across Hitachi Ltd. and its Group companies, including Hitachi Data Systems and Hitachi Consulting among others, will collaborate to accelerate delivery of solutions.
“Through the formation of Hitachi Insight Group and the Lumada IoT core platform we will provide Hitachi’s customers and partners with the fastest and simplest path to develop and deploy comprehensive digital solutions at scale,” Keiji Kojima commented. “It is a profound honor to lead this elite team in accelerating Hitachi’s global IoT business through the creation of digital solutions and services.”
The announcement of the new IoT body came amid the Internet of Things World Conference and Exposition at the Santa Clara Convention Center in California where Hitachi Ltd. Chief Executive of the Americas Jack Domme was a keynote speaker.
“Digitalization is driving transformation in every aspect of business and society, fundamentally changing the way that businesses interact with their customers and governments interact with their constituents. With all the hype surrounding IoT these days, it can be difficult to understand what its real world applications are, or what will net the best return on investment,” said Domme. “Hitachi is working to change that paradigm. No other company has the ingenuity, depth of understanding or breadth of capabilities to help customers extract value from IoT and support digital transformation at scale, like we can.”
Hitachi Insight Group’s leadership team includes veteran executives Kevin Eggleston, general manager for the Americas, and Patrik Sjostedt, general manager for EMEA. The group will receive strategic direction and support from Hitachi Ltd. regional leaders Jack Domme, chief executive of the Americas; Klaus Dieter Rennert, chief executive for EMEA; Ichiro Iino, chief executive for Asia-Pacific; and Kenichi Kokubo, chief executive for China. Hitachi said it plans to establish regional operations for Hitachi Insight Group in APAC later this year.
”IoT represents a critical inflection point, in which the interests of business, industry and society are now intersecting and aligning like never before,” said Kevin Eggleston. “Our repeatable solutions are already helping businesses, cities, municipalities and industrial companies around the world. The formation of Hitachi Insight Group will now enable us to take Hitachi’s vision for Social Innovation to the next level, as we move our IoT business into the next critical phase of its evolution.”
“The greatest opportunity for IoT lies in the enterprise, industrial and public sector markets, which stand to benefit significantly from digital transformation. Although the market is still nascent, digitalization is already disrupting traditional product-based business models, driving demand for solutions and an everything-as-a-service approach,” said Vernon Turner, senior vice president, enterprise systems and IoT research fellow at IDC. “Few companies possess the expertise and breadth of resources required to deliver IoT solutions and services, and drive real business value at scale. With today’s announcements, Hitachi is making good progress toward positioning itself to be one of the few likely IoT powerhouses as the market shakes out.”
The company has also announced the creation of Lumada, Hitachi’s IoT core platform, open, adaptable software architecture is designed to accelerate the development of IoT solutions, while providing flexible support for customization and co-creation with Hitachi’s customers and partners.
Hitachi Insight Group is also reported to partner with market leading innovators to co-develop digital and IoT-optimized solutions, including SAP, PTC, AT&T, Eurotech S.p.A., Intel, Microsoft, and others.
Hitachi’s IoT portfolio includes solutions and services for public safety and smart cities, renewable and sustainable energy, intelligent transportation, precision agriculture and manufacturing, water treatment and urban development, construction, mining and more.