Finance/Social/Healthcare
In the Finance/Social domain, targeting customers in social infrastructure fields such as finance, electricpower, and transport as well as customers in varied areas including the public sector, we develop andsupply a broad range of IT services from consulting to systems integration, operation, maintenance, andsupport. In the Healthcare domain, there are three core businesses that we are developing by leveraging
Hitachi’s strengths in digital technology: Diagnostics and Clinical (including diagnostic imaging equipment
and particle therapy systems), Testing and Reagents (including analytical systems), and Informatics(based on big data utilization). We are contributing to the growth of medical institutions and related healthprofessionals as well as the realization of healthy, enriched lifestyles for people.
This domain also plays a central role in developing and promoting the use of platforms that provide
across-the-board support to Hitachi’s front operations, in the process driving the growth of the overall Lumada-based
digital solutions business.

Future Growth Drivers of the Business
Solutions Group Utilizing AI, Big Data Analysis and Other Cutting-edge Digital TechnologiesBy combining the extensive business experience and know-how that Hitachi has acquired to date with cutting-edge
digital technologies such as AI and Big Data analysis, we are offering Lumada-based solutions to customers acrossa variety of fields.
In the Finance domain, we support more advanced and efficient investigative screening of trading in equities byapplying AI to analyze illicit transaction probabilities. Elsewhere, Hitachi analyzed medical big data by leveraging theanalytical know-how we have cultivated in technology for forecasting healthcare expenditures, and we havedeveloped a quantitative model to predict the possibility and length of hospitalization due to lifestyle-related diseases.
This model can assist life insurers in reviewing broadening the scope of their customers who can take out insurance.
In the Social Infrastructure domain, we are supplying solutions to help deliver improved services for passengers
and other end-users. We have been involved in the development of a service that distributes images of visualized
people flows and related crowding phenomena inside stations in a timely manner, with people flow analysis technologyutilizing images from monitoring cameras. We have also helped public transport operators optimize timetables in linewith demand, based on analyzing and visualizing traffic volumes and transportation demand. In other initiatives todevelop and build safe, secure, and comfortable urban
infrastructure, we are supporting the development ofadvanced analytical tools for analyzing and predicting
power demand and pricing trends in electricity retailmarkets with AI.
Going forward, Hitachi aims to engineer further
evolution in the Social Innovation Business by supplying
innovative Lumada-based digital solutions throughcollaborative creation with various stakeholders. In
doing so, we hope to contribute to the realization of asociety in which people around the world can live insafety, security, and comfort.
28

Keiichi Shiotsuka
Executive Vice President and Executive Officer

Market-related Issues
In the Finance/Social/Healthcare domain, we aresupplying innovative solutions to address various social
issues, based on maximizing the strengths of Hitachi indigital technology. Examples include digital payments inthe finance field and informatics in healthcare fields.
In this domain, efforts are also directed toward
undertaking the development of IoT platforms, and as adigital-centric business entity, we are playing a central
role in promoting the expansion of Hitachi’s overall
digital solutions operations by encouraging thecross-sectoral utilization of Lumada.
Today, the connection of a wide range of things tothe Internet enables access to knowledge gleaned fromthe analysis of vast quantities of data. This is causing awave of digitalization to generate new value for society
and businesses. Hitachi is required to create new
business models and service models, and support
dramatic improvements in productivity by leveraging ourstrengths in digital technology.
Where Hitachi Is Focusing
Beyond the domains of Finance and Social Infrastructure,in both of which Hitachi has been supplying IT services
for many years, we are also expanding our digitaltechnology-based operations into the Healthcare
domain. In these areas, working beyond Business Unit
structures, we are helping a variety of customers toundertake digital transformations.
As well as developing new finance and insurance
products based on the utilization of AI and big data, weare also assisting customers with solutions to help easecongestion or improve the efficiency of logistics operations,and developing services aimed at improving the qualityof healthcare or its operational efficiency. We also aim tocreate new value across industrial sectors by using
digital technologies. For example, we facilitate smarter
contracts or transactions via linkage of settlement
systems with various commercial and logistical flows
using blockchain technology.
Today’s rapid pace of technological innovation means
it is essential for us to hone solutions in partnership withcustomers based on identifying issues, formulating
hypotheses, and testing solutions in a continuous,fast-paced cycle. We aim to help customers reinforce
competitiveness and realize an affluent society, we
generalize the Lumada customer case in various fields
and utilize it throughout the whole of Hitachi for rapid
development and supply of solutions.

Our Future Mission and RoleMy role is to take the lead in driving the growth of theSocial Innovation Business and to generate growth inglobal markets by developing a mechanism for applying
state-of-the-art digital technology across the entire
Hitachi Group. I view our mission as the creation andtimely market introduction of high value-added digitalsolutions using Hitachi’s operational technology (OT), IT,and products. To this end, we recognize the importanceof dynamically optimized HR assignments for our digitalspecialists so that we can strengthen the global deliveryof these solutions.
The Creation of Social Value
Even as digital technology has evolved these days, it ispeople who are originating ideas and creating value.
Technology is merely a tool, and the aim of Hitachi’s
Social Innovation Business is to pursue improvementsin the quality of life for people, focusing on people wholive there. We hope to contribute not only to the growthof advanced countries, but also to the development ofnations and regions where residents find it hard toaccess safe drinking water, food, or healthcare. And wecreate solutions that use digital technology to make theworld a better place.
SDG Focus

29Feature: Four Focus Business Domains

Executive Vice President’s Message