The Hitachi Group Value Creation Story

Value Creation Story
Hitachi offers a host of solutions to the problems society faces. To develop these solutions, we maximize our strengths, OT,IT, products we have accumulated over the years, along with the technological capabilities, knowledge and know-how wehave amassed through projects. Here, we introduce a global co-creation project in which Hitachi reduces CO2 emissions andhelps resolve the issues customers face.

“AI Captain” to Curtail Fuel Costs andOptimize Travel Routes
Co-Creation with Stena Line, One of Europe's Leading Shipping Lines,
to Optimize Fuel Efficiency and Voyage Planning
Here, we introduce a flagship project that demonstrates how Hitachi is cultivating social innovation. For this project,
Hitachi has partnered with ferry operator Stena Line to reduce ships' fuel consumption costs and minimize
environmental impact by introducing artificial intelligence (AI) technology.

Integrating Digital Technologies and Hitachi’s Products

planning are two of the highest priorities. While shepherding

Hitachi has created value by capitalizing on its three core

ships from a voyage’s start to finish, crews are tasked withcompetencies: operating technologies (OT), which the Company

minimizing fuel consumption and respecting the expected time

has built up over more than a century of manufacturing; cutting-of arrival (ETA).

edge information technologies (IT), which have a solid track

Fuel represents a major cost for shipping companies, sorecord dating back more than half a century; and products,

controlling consumption is a vital concern. Also, less fuel usedwhich the Company has developed and manufactured since themeans lower emissions. Stena Line is at the forefront of thetime of establishment based on its own technologies.

shipping industry’s efforts to reduce its environmental footprint.

On top of these value sources, Hitachi has developed theAccordingly, pursuing fuel efficiency and optimized shipping

Lumada IoT platform as a system for deriving value from data.

serves the dual purpose of improving financial performance andMaking use of its cutting-edge AI technology, the Company isenvironmental impact. This is well in line with Stena Line's vision

providing various solutions even in new fields and industriesof “Connecting Europe for a Sustainable Future”.

where it does not play a direct role.

In 2017, Hitachi and Stena Line started discussing ways toIn June 2018, Hitachi partnered with Stena Line, one ofimprove operational performance through advances in artificial

Europe’s largest ferry operators, to introduce AI and machine-intelligence and machine learning. This collaborative project

learning in shipping.

involved three Hitachi entities. The Social Innovation BusinessIn this project, although Hitachi does not manufacture theUnit, which has data scientists experienced in marine analytics,

vessels themselves, it is developing an effective solution for

initiated discussion with the customer. Hitachi Consulting acted

Stena Line based on its solid understanding of IT requirements

as a project management partner, providing data scientists with(such as edge-processing capabilities), its AI and machine-

experience in data analytics and visualization. The Center forlearning capabilities, and operating technologies developed andSocial Innovation Europe’s Automotive and Industry Lab

accumulated through the manufacture of other Hitachi

developed the core AI model for the project based on its vastproducts.

experience in AI, deep/machine learning and general data
analytics.

Delivering Global Solutions through Collaboration

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To develop a practical, feasible solution, Hitachi’s team haswith Customers

conducted multiple rounds of workshops to better understand

Stena Line, which transports 7.6 million passengers, 1.7 million

the customer, potential problem areas and the operatingcars and 2 million cargo units each year, has taken on the hugeenvironment. The team accessed historical shipping data,

challenge of becoming the world’s leading cognitive shipping

applying machine learning algorithms to generate insights oncompany by 2021. To this end, optimizing fuel and voyage

how to reduce fuel consumption. In these ways, the teamHitachi Integrated Report 2019sought to identify common characteristics of fuel-efficient

Values Hitachi Delivers

operations and extrapolate these findings across the fleet.

Moder n-day society faces major changes and a host of

The team discovered that weather conditions and the action ofchallenges, from energy and environmental issues to water

captains were major contributors to fuel consumption.

scarcity, rapid urbanization, an aging society, insufficient

Collaborating closely with Stena Line, Hitachi inspired Stenainfrastructure and security needs. Amid these circumstances,

Line to create an AI-based technology that learns captains’

Hitachi is committed to providing value to stakeholders bypractices, such as operating parameters corresponding to low

improving quality of life (QoL) and realizing a sustainable

fuel consumption, and then recommends fuel-efficient operating

environment.

parameters for upcoming trips.

With the Stena Line Project, Hitachi has inspired Stena Line toWith the help of AI, Stena Line’s captains can simultaneously

create a cross-functional team that combines seamanship,consider several variables, such as currents, weather conditions,mathematics and technology and to deliver social, environmental

shallow water, and speed through water, all of which would be

and economic value through AI and machine-learning.

impossible to do manually. Once installed in a vessel, the crew
monitors the ship and AI system, intervening only when necessary—

Optimizing shipping reduces fuel consumption, loweringsuch as reducing vessel speed due to traffic. The technology, dubbed

emissions of CO 2, NOx, and SOx. Rather than replacing theAI Captain recommends fuel-efficient voyage plans in terms ofcaptain and crew, the AI technologies aimed at extending their

propulsion power and speed for given weather and environmental

expertise to allow for better decision-making and execution.

conditions (such as winds, sea current, waves and sea depth), as well

In addition to social and environmental value, considering theas vessel characteristics (such as loading conditions and hull

success of AI Captain, Hitachi is developing a core solution thatroughness). Initial trials of the AI-based model have been very

can be scaled across the industry, which could drive revenues

successful and Stena Line’s current goal is to roll out AI across theand profit for Hitachi. The solution could also help Hitachi gain

entire fleet by 2021.

market recognition in a new business segment and to develop
cutting-edge AI technology.
Going forward, Hitachi will keep providing innovative solutions
and creating social, environmental and economic value.

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The Hitachi Group Value Creation Story

Value Creation Story

Ride a Train or a Bus,
Using Only Your Smartphone
Hitachi Rail STA Starts Proof of Concept of a Digital Ticketing Solution
for a Public Transportation Operator in Italy

In May 2019, Hitachi Rail STS S.p.A, a Hitachi subsidiary

The solution allows passengers to ride multiple types of publico p e r a t i n g i n t h e r a i l w a y s y s t e m s b u s i n e s s , e n t e re d a ntransportation without the need for paper tickets or IC cards,

agreement with Trentino Trasporti S.p.A to carry out proof ofmaking movement seamless and more convenient. For

concept (PoC) of a new digital ticketing solution for the publicoperators of public transportation systems, the system reducestransportation operated by Trentino Trasporti, including Trento-

the need for ticket machines, ticket wickets and other

Malé-Mezzana Railway and buses in the vicinity of Trento, Italy.

equipment, lowering equipment investment and maintenanceThe digital ticketing, which uses smartphones as tickets,costs. With this proof of concept, we are making travel moreleverages the Hitachi Group’s experience in ticketing and digitalconvenient for passengers by allowing them to seamlessly taketechnology.

multiple modes of public transportation in comfort.

W ith this solution, passengers install an app on theirOnce the digital ticketing solution is approved by Trentino

smartphones that allows position information to be read by

Trasporti and the service launches officially, Hitachi Rail STS will

vehicles (such as train cars and buses) and at waypoints (train

start selling tickets for the public transportation system,stations and buses). The ticketing solution then determines

receiving a share of the revenues from ticket sales.

when a person is using public transportation, automaticallycalculates the fare, and charges that fare to the passenger in acashless transaction.

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Hitachi Integrated Report 2019