Business Platform Business Area
May 2023
Mitsubishi Electric Corporation

Contents

1.

Executive Summary

P3

2.

The Role of Business Platform BAP5

3.

Core Competence

P7

4.

DX Strategy : Build up “Business Foundation for Circular Digital-Engineering”
4-1.Overview

P11

4-2.Establish a value creation process

P124-3.Business DX promotion strategy ①

P134-4.Business DX promotion strategy ②

P144-5.Operational DX promotion strategy

P15

５． Information Systems & Network Service Business Strategy

P16

６． Vision of DX strategy

P192

1

Executive Summary

3

Executive Summar y
1. Business Platform BA builds up “Business foundation for Circular Digital-Engineering” to strongly
promote the creation and expansion of Integrated Solutions in coordination with each BA. It also
expands “Information Systems & Network Service Business”.
2. Build WebAPI linkage platform and Data analysis platform for various solutions owned by each businessfor mutual collaboration. Accumulate knowledge and knowhow through “DX Innovation Hub” activities
and exert strength as a conglomerate.
3. Standardize operational processes and codes and masters that had been individually optimized for eachbusiness and build an operational platform where data can be centrally managed. Realize data-driven
management by enhancing synergies between business DX and operational DX.
4. Solving social challenges calls for further co-creation with customers and partners on a global scale.
Continue to support the creation of Integrated Solutions by expanding, evolving and sophisticating“Business foundation for Circular Digital-Engineering” as well.
4

2The Role of Business Platform BA

5

The Role of Business Platform BA
Business Platform BA strongly promotes the creation and expansion of Integrated Solutions in coordination with each BA/Group byproviding “Business foundation for Circular Digital-Engineering.” It also expands Information Systems & Network Service Business.

Infrastructure

Industry ＆ Mobility

Life

Business PlatformGroupGroupGroupGroup

Factory Automation
Systems

Building Systems

Information Systems &Network Service

Automotive Equipment

Living Environment &Digital Media Equipment

BA

Energy & Industrial Systems
Defense & Space Systems

BABA

Further growth inexisting businesses

Public Utility Systems

BA

Semiconductor &Device
Group
Semiconductor & Device

Build up “Business Foundation for Circular Digital-Engineering”

6

3Core Competence7Core Competence
Classify our core competence into “services/results,” “technologies/human capital” and “customers/partners”.
Utilize them for the promotion of business DX and operational DX.
Services /results• Build and operate information systems for social
infrastructures (aviation and railway etc.)• Build and operate large-scale cybersecurity systems• Operational DX for manufacturing industry

Services/results

Technologies/human capital

Customers/partners

Technologies /human capital• Business architect• The cloud• Data science/ data management• Advanced security technologies• Large-scale/agile project management
Customers /partners• Customer base centered on manufacturing industry
and major financial institutions• Many software partner companies
84DX Strategy :Build up “Business Foundation for Circular Digital-Engineering”

9

DX Strategy : Build up “Business Foundation for Circular Digital-Engineering”

Infrastructure

Industry ＆ Mobility

Life

Business Platform

GroupGroupGroupGroup

Factory Automation
Systems

Building Systems

Information Systems &Network Service

Automotive Equipment

Living Environment &Digital Media Equipment

BA

Energy & Industrial Systems
Defense & Space Systems

BA

BA

Further growth inexisting businesses

Public Utility Systems

BA

Semiconductor &Device
Group
Semiconductor & Device

Build up “Business Foundation for Circular Digital-Engineering”

10

DX Strategy-1. Over view
Build up “Business foundation for Circular Digital-Engineering” that supports the promotion of business DX andoperational DX. Provide each BA/Group the services that are implemented in business foundation for speedy
creation/expansion of Integrated Solutions.
Customers

Business DX
WebAPI linkage platform

Integrated Solutions
Systems

Components

DX Innovation Hub

Data analysis platform

Business foundation for Circular Digital-Engineering
Highly skilled
DX human capital

Technology/service
development platform

Standardize operational
processes and code masters

Centralize data

Operational DX

Global O&M(Data management)

Data

Enhance informationsecurity

Mitsubishi Electric Group*O&M：Operation＆Maintenance11

DX Strategy-2. Establish a value creation process
Establish value creation processes and implement various services such as data analysis/ utilization/ managementthat enable "data circulation" in "Business foundation for Circular Digital-Engineering”.

Services to be offered by “Business foundation for Circular Digital-Engineering”

Explore needs, consultation

Exploreneeds,
consultation

Market trend research services, Sales promotion activities services

Data analysis, business concept
Data analysis,

Offer andexpand value

business

Value creation process
toward solving

challenges faced bycustomers and society

Realize
IntegratedSolutions

Valuecreation

concept

Data analysis platform services, Business model study services, Highly-skilled DX
human capital utilization services

Value creation

PoC environment (data) utilization services, Highly-skilled DX human capitalutilization services

Realize Integrated Solutions

Technology/service development platform, WebAPI linkage platform utilization
services, Agile project management services, Highly-skilled DX human capitalutilization services

Offer and Expand value

Sales promotion services, solution rollout services, global O&M services,
Data management services, IT human capital utilization services

12

DX Strategy-3. Business DX promotion strategy ①
Build WebAPI linkage platform and data analysis platform to enable mutual utilization of functions and data invarious solutions owned by each business, thereby realizing the composable system architecture which connect
various solutions flexibly by using these platform.
Functions and data in each solution build up for each business can be utilized easily
Energybusiness solutions

Energybusinessdata

Data analysis platform：

platform

business solutions

Building
business
data：
Link solutions owned by each business on
WebAPI and speedy create Integrated
Solutions that offer new value to customer

Factory automation
business solutions

Factoryautomation
businessdataTransform

Extract data

Components

linkage

Building

Store data

Systems

WebAPI

Consolidate data

Integrated Solutions

Data analysis andutilization

Consolidate dispersed data and sort outfor mutual utilization：13

DX Strategy-4. Business DX promotion strategy ②
Promote DX Innovation Hub activities to accumulate and link business needs, digital technologies and knowhow.
Develop DX human capital by reskilling our engineers and recruiting/promoting human capital from outside thecompany.
Customers/Partners

InfrastructureBA

Industry ＆Mobility BA

Life BABusiness PlatformBASemiconductor& Device

DX Innovation Hub


Utilize solutions (best practices) owned by each businessAgile co-creation process in cooperation with customers and partners
Seminars/Networking events both in and out of the company
Share information via in-house social network and communication tools
Develop and enhance digital literacy through reskilling
Active recruitment/promotion of highly-skilled DX human capital fromoutside the company

Targets

Establish business DX platform
Support acceleration of Integrated Solutions PJ and DX promotion PJ of each business group
Develop and allocate DX human capital
Establish development methods and quality assurance for DX

14

DX Strategy-5. Operational DX promotion strategy
Promote standardization of operational processes and codes/masters to build an operational platform wherevarious data dispersed across the company can be centrally managed, thereby realizing data-driven management.
Standardize diverse operational processes and codes/masters across the company, aiming for total optimization
Manager

LeaderRevenue, profit, ROIC, CF,inventory balance,・・・

Orders received,
production, quality,
inventory balance, …

Operationalplatform

Staff・・・

production、quality、
cost、delivery、・・・

Realize data-driven
management using
management dashboard

Shared database
Centralize data

Standardize operational processes

FromindividualStandardize codes/masters

ProductionMaterials

Accounting

to total

optimization

Promote standardization of operational processes andcodes/masters through operational DX
Sales

optimization

・・・

Individually optimized various operational processes and internal information systems(status quo)15

5Information Systems & Network
Ser vice Business Strategy

16

Information Systems & Network Ser vice Business Strategy

Infrastructure

Industry ＆ Mobility

LifeBusiness Platform

GroupGroupGroupGroup

Factory Automation
Systems

Building Systems

Information Systems &Network ServiceAutomotive Equipment

Living Environment &Digital Media Equipment

BA

Energy & Industrial Systems
Defense & Space Systems

BABA

Further growth inexisting businesses

Public Utility Systems

BASemiconductor &Device
GroupSemiconductor & Device

Build up “Business Foundation for Circular Digital-Engineering”

17Information Systems & Network Ser vice Business Strategy
Increase the ratio of Circular Digital-Engineering Business in Information Systems & Network Service Business byleveraging the core competence of each organization under Business Platform BA and skills/knowhow that havebeen accumulated through build up “Business foundation for Circular Digital-Engineering”.
Increasing the ratio of Circular Digital-Engineering Businessin Information Systems & Network Service Business DX solutions for the manufacturing industry
Provide consultation, system implementation and global O&M services to the manufacturing industry
based on various operational processes, system construction procedures, product knowhow, etc. thathave been accumulated from operational DX

IT/OT security solutions (cooperation with Industry ＆ Mobility BA)

Creating the new business by utilizing our skills, knowhow and global O&M services that have beenaccumulated through information security enhancement measures implemented in our company
and its affiliates both in Japan and abroad Service providing business (subscription business)
Doing the service providing business (subscription business) to leverage knowhow that have been
accumulated through build up the Business foundation for Circular Digital-Engineering
Examples: Cloud-based NW/IT Infrastructure service, SaaS business with own software package

Ratio of Circular Digital-Engineering
Business

50%

Over 40%

40%
30%
20%

Over 15%

10%0%
FY2023

FY203118

6

Vision of DX strategy

19

Vision of DX strategy
Solving social challenges calls for further co-creation with customers and partners on a global scale. Support the creation ofIntegrated Solutions by expanding, evolving and sophisticating “Business foundation for Circular Digital-Engineering”.

Customers, partners and the Mitsubishi electric group connect to each otheron Business foundation for Circular Digital-Engineering

Contribute to solving social challenges

Create Integrated Solutions

Customers

Partners

Humancapitalfurther data utilization
Technologies

Products

The Group (Mitsubishi electric)

Intellectual
properties

Co-creation with customers and partners on a global scale

Business foundation for Circular Digital-Engineering
20