The Hitachi Group’s Growth Strategy

Accelerate Innovation
An R&D Strategy to Accelerate the Global Creation of Value
For more than 100 years since the Company’s foundation, Hitachi’s

technologies to expand Lumada business during the three years

R&D has been putting the Hitachi Mission – “Contribute to society

covered by the Plan.

though the development of superior, original technology and products”

The strength of Hitachi’s R&D lies in its centralized ownership of theinto practice, developing the most cutting-edge technologies andtechnology platforms and knowhow integral to the Hitachi Group’s

fostering innovations that ushered in the future. As part of our 2021

operational technology (OT), IT, and products, as well as the fiveMid-term Management Plan, Hitachi aims to become a global

Hitachi sectors, allowing the Company to establish a value creation

innovation leader advancing the realization of the United Nations’cycle that extends from collaborative creation to development, andSustainable Development Goals (SDGs) and Society 5.0. Moreover, tofurther accumulation. Moreover, as Hitachi creates solutions that

contribute to enhancing social, environmental, and economic value forprovide value to our customers, R&D efficiency continues to improve

our customers, the Hitachi Group will invest ¥1.2 trillion in R&D tothrough the value creation cycle.

establish an ecosystem for driving innovation and enhance our core
To become a global innovation leader advancing the realization of SDGs and Society 5.0
Research & Development Group

Raise peoples' QoL and customers' corporate value
Improvesocial value

Improveenvironmental value

Improveeconomic value

Collaborative
Creation

Value, Solutions

Simultaneously improve the three customer values through our five solutions
Societal andcustomer issues
IT solutions

Energy solutions

Industry solutions

Mobility solutions

Smart Life solutions

Products

Products

Products

Products

Products

Wide range
businesses
issuesValue Creation
Cycle
Accumulation

Development“OT x IT x Products”
Technology platforms, Knowhow

1. The Evolution of Collaborative Creation to Accelerate Innovation
The Evolution of Collaborative Creation Accelerating Innovation
Building an Innovation Ecosystem
In the 2021 Mid-term Management Plan, we will accelerate open

Evolving Collaborative Creation through Open Innovation with
Stakeholders

innovation where we will grow together with partners by using

Further Evolution of Open Innovation

Hitachi’s technology platforms and knowhow, and bringing in external
knowledge, as we work to create the three values of social,environmental, and economic value by raise peoples’ quality of life andcustomers’ corporate value.
To accomplish this, we are developing NEXPERIENCE, Hitachi’s
original customer collaborative creation methodology to promote

Setting up“Kyoso-no-Mori”

Vision creation
and rule building

Fusion of collaborative creationand technology development
Foster an ecosystem for industryacademia-university collaboration
Conduct ideathons*1 andhackathons*2

Creation ofservice ideasdelivery of Lumada solutions. We expect to realize this throughKyōsō-no-Mori, the new research initiative launched from the Central
Research Laboratory, and through stronger collaboration withindustry-academia-government initiative and startups.
In April 2019, we established a new Corporate Venturing Office topromote collaboration with external startups, and in June establisheda corporate venture capital fund. By promoting investment in andcollaborative creation with startups, especially in Europe and the US,
we are bringing in disruptive technologies and business models.

38

Hitachi Integrated Report 2019

Industry-academia-government ecosystem(WED-C41R, joint research with universities)
Open forums / Ideathons

Solutiondevelopment andverification

Hackathons / startup collaboration

Business model/ testing

Lumada ecosystem / joint businessprogramKyōsō-no-Mori

Evolution of NEXPERIENCE*1 Ideathon: A competitive event to generate ideas*2 Hackathon: A competitive event to develop commodities such as services, systems, and applications

Creating Visions through Industry–Academia- Government Collaboration
Joint laboratories were established with the University of Tokyo,

Prefecture. The Hitachi-Hokkaido University Laboratory is also

Kyoto University, and Hokkaido University in 2016 for the purpose ofworking on themes such as “regional issues” and “food and health.”

creating value to resolve future societal issues.

Further, in 2018, we also signed a collaboration agreement withThe Hitachi The University of Tokyo Laboratory holds open forums

Tsinghua University to resolve future societal challenges in China.

under the themes covering societal issues such as “urban planning”

Through such efforts, we hope to gain insight into future societaland “energy” to publish books and policy proposals to share visions,issues, and by innovation, we will communicate to the world new

as well as conducting verification trials in Matsuyama City, Ehime

visions to achieve both the resolution of those challenges and while

Prefecture, to resolve regional challenges. The Hitachi-Kyoto

realizing economic development.

University Laboratory developed a “policy-proposing AI” focusing on
issues in society in the year 2050m and is verification trials in Nagano

Launching Kyōsō-no-Mori to Accelerate Collaborative Creation with Partners and Customers
To foster an innovation ecosystem, Hitachi launched a new researchoutside of Japan in areas such as FinTech and blockchain

and development initiative, Kyōsō-no-Mori, from the Central

applications. In parallel, Hitachi is cooperating with Kokubunji City to

Research Laboratory in Kokubunji, Tokyo. The Company

evaluate local digital currencies, while in North America, theconsolidated the customer collaboration functions of the Akasaka

Company has started developing technology such as remotefacility in Kokubunji, to facilitate agile development of value bycontrol for 5G solutions, and will continue to expand open

deepening the fusion with cutting-edge research.

innovation globally from Kyōsō-no-Mori.

At the Kyōsō-no-Mori Opening Ceremony, a panel discussion washeld on “smart city initiatives” with the ambassadors from Thailand
and Australia participating in dialog on the value and significance ofsmart city initiatives. Further, to generate ideas and accelerateinnovation, ideathons*1 and hackathons*2 are being held both in and

2. Enhancing Core Technologies to Expand the Lumada Business
Strengthening Core Technologies Supporting Lumada
In addition to promoting innovation through collaborative creation, we

successes that we are achieving through OT X IT X Products. In theare focusing investment on the “5 sectors x Lumada,” Lumada coremobility sector, “Dynamic Headway” which is currently undergoing

technologies and strengthening products, to expand Lumada

field tests will be further advanced so that it can be provided to notbusiness.

only trains but also as an facility planning optimization solution for

Lumada is being deployed in each sector. For the IT sector, we arebuilding facilities such as elevators. In the smart life sector, we arefocusing on data utilization solutions for financial, social, and public

focusing on smart therapies, smart cities, and connected cars,

systems. In the financial area, we are working with state-owned

including autonomous driving and software updates via Over the Airbanks in India for next-generation digital payment platforms and(OTA).

developing solutions based on next generation blockchain
technology in North America. In the energy sector, we are aiming for a
low-carbon or decarbonized society through system stabilization
solutions suitable for introducing renewable energy. Meanwhile, in theindustry sector, to realize the “smartification” of priority areas such as
manufacturing, maintenance and logistics, we are working tomaximize customer KPIs through the seamless connection of on-site
operations with management. Notably, we have achieved practicalpredictive maintenance technologies to improve the operating
efficiency of industrial and medical equipment, which represents

39

The Hitachi Group’s Growth Strategy

Accelerate Innovation

SectorIT

Solutionexamples• Financial solutions• Predictive maintenancesimulations

Lumada(core technologies)

Products

Energy• System stabilization• Automated power
distribution• Energy management• P2P Electric power
trading

Mobility

Smart Life

• Next-generation
manufacturing• Next-generation
maintenance• Next-generation logistics• Building/facility solutions• Smart ticketing• Connected cars
• Smart therapies• Smart cities

Cyber Space

AI, Video analysis
Sensing
Electrification• Storage

Industry

Data

5G
Robotics
Security

OT for Real

Physical Space• High voltage transmission
systems• HVDC• Circuit breakers,transformers• Large centralized powersources• Global railway vehicles• Railway vehicle inverters• High-speed elevators• Service robots• Air compressors• Marking• 3D printing• EV components• Diagnostic and treatment
systems• Home electronics and airconditioning equipment

HVDC: High Voltage Direct Current

To strengthen Lumada core technologies, our efforts are directed
towards realizing Lumada CPS (Cyber Physical System) whichconnects cyberspace with the real world, focusing on AI andaudiovisual analytics, sensing, electrification, 5G, robotics and security.
The strength of Hitachi's AI is that its development is based on

Sensing
Ultrasensitive vibration sensor that can measure very small
status changes in large spaces exceeding 100 meters.
Digital city monitoring/Ultrasensitive sensors

equipment control technology, product design, and maintenancetechnology that the Hitachi Group has built-up over the years. For

Roads

Commercial facilities
Water andsewage systems

example, in predictive maintenance technology for industrial

Undergroundareas

equipment, the AI visualizes the difference between a normal state oran abnormal state which could lead to material degradation or failure,from real-world operational data. This helps to determine whether there
is a high probability of industrial equipment failure. This technology
already has a good track record in Hitachi’s medical equipment and is

DetectingcircuitControl
circuitMEMS• Damage to underground piping(leak detection)• Construction status• Crowd movement
Understanding conditions
during a disaster• World’s highest sensitivity* (15ng/√Hz)• Wide detection range (>100m)

being used in regions such as North America.
In the area of audiovisual analytics, video images from stations and* MEMS sensor

Data analysis, AI technology

Semiconductor device technology

buildings are analyzed in real time, allowing specific people to be searchedor tracked, as well as human flow analysis. In sensing, we have realized an
extremely sensitive vibration sensor that can detect and measure verysmall signals even in large spaces exceeding 100 meters by applying

Solving societal issues also requires the creation of disruptive

MEMS technology based on semiconductor device technology fostered

technologies. In collaboration with the University of Cambridge in theat the Central Research Laboratory. We are currently proceeding with

UK and CEA-LETI in France, Hitachi has successfully demonstrated

water leakage detection field tests using this device. Such technologies

the world’s first silicon quantum bit *2 system which promising

will be key in realizing safety and security in smart cities.

advantages for system integration for quantum computers. In the near

*1

With regard to products, we are aiming to deliver world No. 1

future, we believe this will contribute to resolving complex societal

technology. For example, with inverter technology which is central toissues. In 2017, the Hitachi established the Hitachi Kobe Laboratory inelectrification, we have created and commercialized the world’s mostthe Kobe Biomedical Innovation Cluster to achieve practical

efficient full SiC inverters for use in railway cars. For diagnostic andapplications in regenerative medicine. The Laboratory has alreadytreatment systems, Hitachi has developed the world’s smallest particle

created technologies contributing to a healthy society, including theaccelerator for the treatment of cancer, and it is currently in operationworld’s first successful automated culture of retinal cells derived fromat a heavy ion therapy center in Japan. Furthermore, we have realized

human iPS cells.

wear- and corrosion-resistant material which was unachievable with

Globally, we are promoting joint research with many universities

existing alloys, and have started applying it in the 3D printing of

based on their respective strengths to create disruptive technology andindustrial machinery parts.

enhance technology platforms. For example, in the area Fintech, we

By accelerating such efforts, we hope to contribute to the global
expansion of Lumada business based on OT x IT x Products.
*1 MEMS : Micro Electro Mechanical Systems

40

Creating Disruptive Technologies

Hitachi Integrated Report 2019are working with Stanford University and in the smart manufacturingarea, with a research institute in Germany.

We are also actively participating in the open communities, contributing

deployment of Lumada solutions. We aim to move ahead of otherto open projects and consortiums in areas such as blockchain andcompanies to acquire intellectual property rights for coreedge computing. Also, through participation in organizations such astechnologies supporting Lumada, centering on Lumada CPS. We will

WEF-C4IR,*3 we are also actively involved in forming rules.

also promote an open policy for intellectual property related to public*2 Quantum bit: the smallest unit of encoded quantum information, including in the direction of the electron spin
*3 WEF C4IR: World Economic Forum, Center for the Fourth Industrial Revolution Network

matters to contribute to the design of future societies, and themaintenance and progress of societal norms. Further, we will aim toestablish an intellectual property strategy for a new era, “IP forSociety,” by working with international organizations.

Initiatives in Intellectual Property
Amid an ongoing international pro-patent shift, Hitachi isstrengthening its intellectual property activities in products andsolutions. To demonstrate our OT x IT x Products strengths, we havedrafted an intellectual property masterplan that defines areas of focus
and bolsters our patent creation activities. This has resulted in Hitachi
being awarded the National Invention Award three years in a row,
including for railway cars and particle beam cancer treatment
equipment. Under the 2021 Mid-term Management Plan, we will be
accelerating the creation of solutions to further drive the global

3. R&D Investment, Portfolio and R&D structureWith the goal of enhancing competitiveness in the five core Social

The R&D structure to achieve these goals includes the Global Center

Innovation Business sectors, the Hitachi Group’s R&D investment

for Social Innovation (CSI) that will lead through ideation and solution

amounts to about 4% of total revenue. Approximately ¥1 trillion wasdevelopment, the Center for Technology Innovation (CTI), responsible

invested in R&D during the period covered by the 2018 Medium-term

for building world No. 1 technology platforms, and the Center forManagement Plan and the aim is to increase this to ¥1.2 trillion during

Exploratory Research (CER), addressing the challenge of resolving

the 2021 Mid-term Management Plan. This includes corporate-led

challenges faced by future societies, together with the research bases

R&D investment focused on collaborative creation with our customers,in North America, Europe, China, and Asia. In FY2019, a North

global No. 1 technology, and exploratory research, as well as

American employee was appointed to be head of CSI to further

investment to accelerate the global development of Lumada businessaccelerate the global deployment of Social Innovation Business.

which is our engine for growth. To realize this, we are establishing a

Through such measures, Hitachi will aim to simultaneously realize

common digital platform for efficient global development, as well as

improvements in social, environmental, and economic value.

enhancing our research resources worldwide.

Trends in R&D Spending
FY2014FY2015FY2016FY2017FY2018FY2019 (forecasts)

R&D expenditures (¥ billion)

334.8

333.7

323.9

332.9

323.1

335.0

Share of revenues (%)

3.4%

3.3%

3.5%

3.6%

3.4%

3.7%

R&D spending has remained generally flat due to portfolio restructuring, including the sell-off of listed subsidiaries, and the fact that investment has been carefully focused in targeted areas.
Moving forward, we will continue to focus investment in the field of digital solutions, including Lumada.

[Recognition for Outstanding Technology and Design]
Hitachi was bestowed the Imperial Invention Prize in the National Commendations for Inventions for its global railway vehicles, which was highly
evaluated for design and technologies focused on analyzing comfort and safety. In addition, Hitachi has been granted prestigious awards forsemiconductor measuring equipment, X-ray fluoroscopy equipment, open MRI equipment, and storage equipment, with Kazuo Hiramoto
receiving the Medal with Purple Ribbon award for his development of an innovative particle therapy system.

41

The Hitachi Group’s Growth Strategy

Accelerate Innovation
Human Resource Strategies Supporting Innovation Creation
With the goal of creating innovation and new value in the global and digital era, Hitachi is focused on securing and fostering a diverse workforce andthe organizations capable of driving sustainable growth. We have established a firm relationship between employees and the Company by providing
places of employment that offer a favorable work-life balance, focusing on worker safety and health, and respecting the basic rights of employees
and ensuring equal opportunities. Hitachi is also proactively engaged with all its employees regarding compensation and career advancement.

Transforming Human Resources Management

Global Human Resources Management

The development of the Social Innovation Business requires us toTo create a global common platform for HR management, Hitachi has

actively investigate social and customer issues, and then cooperate

introduced a Global HR Database, as well as Hitachi Global Grade andwith customers to create all new solutions.

Global Performance Management since 2012.

Hitachi is working to transform human resources management with

Hitachi launched in full human capital management integrated

the aim of placing the right person in the right position anywhere in theplatform in January 2018, centralizing processes and measures

world. Clarifying through a global standard the role, responsibilities,

enacted to date. The three main benefits of this platform are as

and reporting lines of each position, and embracing a common

follows.

understanding serves to accelerate the creation of a solid global
structure for Hitachi. In addition, it fosters an organizational culture that

(1) Improving Talent visibility

recognizes and makes best use of its diverse and self-motivatedUntil very recently, it was quite difficult to quickly get a handle on theindividual workers.

skills and abilities of employees in a given country, region, or company.
Improved visibility in this respect allows us to make appropriate

The Transformation in Human Resources Management

placements and provide training suited to a particular individual, to findand develop future leaders, and facilitate better communication

Previously

Current direction

Providing high-quality products andsystems mainly to meet the needs ofdomestic clients in Japan

Identifying worldwide client needs and global
issues of social concern, then providing
problem-solving services to meet theseneeds・Homogeneous organization centered onJapanese and male full-time employees
・Work styles sharing same locations andtomes
・Domestic/individual companies

・Proactive organization with diversity oftraits, including nationality and gender・Work styles unconstrained by location ortimes
・Group/global concerns

・Tendency to rely only on training/job
placements designed for long-term
employment
・Job placements designed for extensive
overtime
・Imprecise division of job duties

・Employees plan their careers
proactively, and retention by managers
becomes important・Creation of environments enabling
efficient and engaged work
・Taking on challenges and making
reforms are promoted

Optimally tailored HR programs andinitiatives for individual companies andcountries

Introduction of groupwide and global
HR Management initiatives

between managers and employees.
(2) Strengthening the “I will” culture
The platform allows employees to enter their own experiences andskills, with all employees having access to that information at all times.
This expands the likelihood of employees taking on challenges in work
areas of interest, resulting in the creation of a workforce of proactive
employees able to think and act for themselves.
(3) Improving Speed and Efficiency
The use of global common data allows us to quickly and smoothly
launch a new project by rapidly and efficiently placing the human

Launched global HR management

Throughout
Japan
Pensions, hiring,
travel, expenses,
etc.

Throughout
CountryA

Throughout
Country
B

Groupwide and global HR
management initiatives• Global HR Database• Hitachi Global Grade• Global Performance Management• Global Leadership Development• Other42

Hitachi Integrated Report 2019

Company G

Company F

Company E

Company D

Company C

Outside Japan

Company B

Company A

Japan

Hitachi, Ltd.

Company E

Company D

Outside Japan

Company C

Company B

Company A

Hitachi, Ltd.

Japan

resources necessary to that project.

Ensuring Fair Evaluations and Compensation

Human Resources Management Initiatives
Fiscal 2012
Global Human Resources Database

Amid the ongoing globalization of business, there is an increased need

Goal: Create a database of human resources information
Global Leadership Development

to establish a global human resources system that ensures fairevaluations and compensation. In order to attract a diverse and highly

Goal: Create a pool of leading global talent and foster theirdevelopment

engaged workforce, Hitachi is focused on building a consistentFiscal 2013
Hitachi Global Grade

Compensation Philosophy” based on “maintaining market

management system and accordingly follows a common “Global
competitiveness,” “pay for performance,” and “ensuring transparency.”

Goal: Use of a uniform Group standard to assess position weightings
for managers and those in higher job positions

We are developing a compensation system that is fair andHitachi Insights (Employee survey)

competitive in the context of each country or region’s labor market,

Goal: Improve employee engagementwith an individual’s compensation determined after an evaluation of
their performance. Individual assessments are conducted annually to

Fiscal 2014
Global Performance Management

set each employees compensation, and feedback on theirGoal: Promote growth and sustained improvement in both thebusiness and the individual by linking the goals of the two
Fiscal 2015–2018
Hitachi University (educational platform for Hitachi Group employees
all over the world)
Goal: Use HR development to contribute to sustainable global growth

performance results is provided to inspire them to develop and groweven further.
We ensure compliance with the laws and regulations of each country
in which we operate when determining compensation. Starting pay for
new graduates in Japan—representing about half of all new graduates

Global Hiring Support System

recruited each year across the Group’s global operations—was

Goal: Ensure hiring of the best individuals as business expands,
improve efficiency in hiring, lower costs

roughly 20% higher than the weighted average of Japan’s regional

Human capital management integrated platform

minimum wages.

Goal: Improve HR visibility, strengthen the “I will” culture, improve
speed and efficiency

2021 Human Resources Strategy

Fostering the Next Generation of Leaders

The mission of the human resources division is “contributing to the

In addition to Hitachi University, the Group’s global learningbusiness through talent and the organization.” The division formulated

management system, we have developed a variety of educationalits 2021 HR Strategy based on the goals of the 2021 Mid-term

programs tailored to different jobs and positions. We are also focusing

Management Plan announced in May 2019. The HR Strategy focusesresources on selective training courses aimed at developing futureon achieving growth throughout the world through a diverse workforce

managerial candidates at an early stage. In these courses, participantsthat is happy and proud to work at Hitachi and creating for all

discuss what is necessary for the growth of Hitachi. The opportunity toemployees a safe and vibrant workplace that respects a wide range ofgenerate ideas to present to senior management helps to cultivate thediverse values.

next generation of leaders—people with a unique perspective andHitachi is committed to building a company where employees withdetermination.

different cultural backgrounds, as well as experiences and ways ofIn addition, we have identified a group of about 50 employees fromthinking can work together. We aim to instill in all our employees

around the Hitachi Group with next-generation development potential.

around the world a shared sense of values, including the “Harmony,

People in this “Future 50” group are selected on merit, regardless ofSincerity, and Pioneering Spirit” values central to the Hitachi Groupage, gender, or nationality.

identity, with the “One Hitachi” idea crossing national, regional, andThey are given challenges to help expand their horizons and build theirdepartmental borders and contributing to the betterment of society.

perspective, including tough assignments, different types of work, andWe are also promoting measures aimed at the optimal placement ofinternal and external training opportunities. The Future 50 grouppersonnel through the visualization of HR data, the use of analytics

members receive one-on-one mentoring opportunities with independent

based on accumulated data and HR technologies, and improved

directors to benefit directly from their extensive business experience andefficiency. Finally, we are focused on advancing initiatives for fiscal

global perspective. Our aim is to change mind-sets so that we can

2021 based on the four key concepts of Talent, Culture, Organization,

develop people for important positions in the future.

*1

and HR Transformation.
*1 HR technology refers to technologies using new forms of IT, including big data and AI in human resources tocreate new value.

43

The Hitachi Group’s Growth Strategy

Accelerate Innovation
Strengthening Front-Line HR and Establishing a
Digital HR Training Policy

Diversity & Inclusion
Diversity is the wellspring of innovation at Hitachi and our growth

Hitachi in April 2016 shifted to a business structure with strengthened

engine. Hitachi regards personal differences—gender, nationality, race,

front-line functions to accelerate collaborative creation with ourreligion, background, age, and sexual orientation—as facets ofcustomers as part of the drive to advance the Social Innovation

people’s individuality. By respecting our employees’ individualities andBusiness. Hitachi’s technologies and know-how must be developed so

positioning them as an advantage, Hitachi frames its diversity andthat they can be provided as a service by front-line personnel, who areinclusion as conducive to both the individual’s and the Company’s

closest to our customers. With this in mind, we have strengthened thesustainable growth. We will adapt to the diverse needs of ourfront-line talents we expect to drive the Social Innovation Businesscustomers by using our diverse capabilities, our outstanding

moving forward.

teamwork, and our extensive experience in the global market.

While there are a number of companies focused on achieving a digital

We are promoting diversity management as a key managementtransformation through digital technologies such as AI, IoT, and big

strategy under the initiative slogan “Diversity for the Next 100.” We

data, one key challenge throughout the world is the shortage of data

believe it important to share opinions and recognize diverse values ifscientists specializing in data analysis. In addition to its digital solutions

we are to provide optimal solutions based on an accurate

focusing on the fusion of OT (operational technology) and IT, Hitachi

understanding of the complex issues confronting society and ourhas launched measures to foster a digital workforce that can becustomers. With the goal of having members with different values on

expected to drive digital transformations.

the same team sharing the same goals, we are working not only toWith a target of increasing the number of data scientists to 3,000 by

secure and train a diverse workforce, but also to create an

fiscal 2021, Hitachi’s strengthening of its data scientist workforce atenvironment where each of these individuals can work to the best ofgroup companies in Japan and overseas will allow us to further

their abilities.

support our customers and drive the expansion in digital solutions.

Hitachi, Ltd., and 15 major group companies jointly operate theAdvisory Committee and the Diversity Development Council, which
focus on accelerating the promotion of diversity across the Hitachi

Strengthening Front-Line HR and the Digital HR
Training System

resources and providing work-life management. The Advisory
Committee implements to the fullest the Company’s diversity

Before the 2016 start of the new front-line structure, discussions on

management policies, while the Diversity Development Council sharesbolstering front-line talents were initiated by a preparatory committee,

best practices and discusses specific diversity-related activities. Each

which includes officers and business unit managers and was createdcommittee meets every six months. Group companies and businessin 2015. The committee defined front-line functions, roles, andgroups/sites have also set up their own diversity-promotion

personnel qualifications necessary to bolster the front-line workforce.

organizations and projects, such as those to help develop women’s

Based on these discussions, the Company also identified the need tocareers, to enhance initiatives geared to the challenges faced bydevelop human resources, from leaders to practitioners, to promoteindividual workplaces. Hitachi from fiscal 2018 has broadened thethe Social Innovation Business, and in 2016 created the Social

sharing of diversity promotion policies across the entire group, with

Innovation Business Front Talent Development Program, consisting ofGroup companies around the world working together to accelerate

four phases, as well as action learning, group training, and e-learnings

implementation.

programs. Phase 1 and Phase 2 focused on action learning using realworld projects for leaders expected to drive the collaborative creation
business, with Phase 3 and Phase 4 focusing on employees in the
Hitachi Group as a whole based on the results of the first two phases.
Integrating its training institutions to further strengthen and foster its
digital workforce, including front-line workers, Hitachi newly launched
Hitachi Academy in April 2019, which will now be charged with training
the human resources expected to drive digital transformations. The
new entity will combine measures designed to foster digital humanresources with on-the-job-training as it seeks to build a new digitaltransformation training system and accelerate the Social Innovation
Business.

44

Group as a whole, including in regard to supporting diverse human

Hitachi Integrated Report 2019

Diversity Activities and Developing Women’s Careers

fiscal 2020 compared with fiscal 2012. These efforts demonstrate ourWith the goal of promoting participation in management decision-commitment both internally and to the world to improve our diversity

making by people with differing backgrounds and enabling as many

management.

female employees as possible to take up leadership positions, Hitachi,

As part of our efforts in this area, we have been hosting since 2016

Ltd., has created two key performance indicators (KPIs) for the

the Global Women’s Summit, inviting 100 or more female employees

appointment of women in executive and managerial positions.

from Hitachi Group companies around the world. The event is held in

In fiscal 2013, Hitachi set a goal of promoting women to executive

different areas of the world and is focused on improving awareness inpositions by fiscal 2015. In April 2015, the Company appointed its firstleadership and career planning, and to enhance motivation through thefemale corporate officer, a position equivalent to the executive level.

formation of a global support network. The day the summit is held

We will continue to promote this goal to ensure that diverse views andfeatures a message from President and CEO Toshiaki Higashihara, thevalues will be reflected in our management. In November 2017, weparticipation of executives, and the exchange of opinions among the

publicly announced our commitment to increasing the rate of female

many female employees attending.

executive and corporate officers to 10% by fiscal 2020. We are also
working to promote more female employees to managerial positions,aiming to double the number of female managers to 800 by the end of

Number and Ratio of Female Managers(persons)(persons)
3,727

3,670

800

3,459

3,365
577
600

6.4%

6.0%
474

509

635
6.8%

6.4%

6.3%

434

4,000

3,638

3,000
4.8%

400

4.0%

3.7%

4.1%

4.2%

2,000

1,000

200
73

0

2000

2014

Female managers, Hitachi, Ltd.*1 (left scale)
Percentage of total, Hitachi, Ltd.*1

2015

2016

2017

2018

(FY)

0

Female managers, Hitachi Group*2 (right scale)

Percentage of total, Hitachi Group*2

Note: Figures include section chiefs and above.
*1 “Female managers” in fiscal 2017 include managerial employees dispatched from Hitachi, Ltd. to non-Group companies and those accepted from non-Group
companies by Hitachi, Ltd. Figures prior for fiscal 2016 and earlier include regular managerial employees dispatched to non-Group companies but exclude those
accepted from non-Group companies.
*2 All full-time, regular female managers excluding those dispatched to non-Group companies.

Ratios for Female and Non-Japanese Executives and Corporate Officers (Hitachi, Ltd.)

Number of female executive and corporate officers (persons)Ratio of female executive and corporate officers
Number of non-Japanese executive and corporate officers (persons)Ratio of non-Japanese executive and corporate officers

June 2017

June 2018

June 2019

2

2

4

2.4%

2.6%

5.0%

3

5

7

3.7%

6.4%

8.8%

45