Hitachi, Ltd. announces that it will appoint Chief Executives, who will function as representatives of the Hitachi Group in interactions with regional companies and customers, in four global regions - the Americas, China, Asia/Pacific, and Europe/Russia / Middle East and other areas (“EMEA･CIS”).This change is being made to accelerate Hitachi’s growth in the global market and will take effect on April 1, 2015.
In addition to creating regional growth strategies, promoting localization, and effectively utilizing management resources, the Chief Executives will have authority to make investments in new business areas where growth is expected and will be accountable for achieving positive returns on these investments. The Chief Executives will implement a transition to an “autonomous decentralized global management” structure in which each region leads its business autonomously.
In its 2015 Mid-term Management Plan, a three-year management plan that concludes at the end of FY2015, Hitachi set a goal of achieving an overseas sales ratio of more than 50%, while expanding business in the global market for the Social Innovation Business. In its global plan for regional management, the company created regional strategies for India in December 2012 and for China in June 2014. In addition, it has been rolling out new business strategies by combining the resources of the entire Hitachi Group as outlined in the plan. In April 2014, Hitachi appointed a Global CEO in London, U.K. to supervise global strategies for its Rail Systems Business, and it created structures to enable rapid decision-making close to its customers. Hitachi has also been promoting aggressive sales activities targeting railway projects currently being planned in each region.
In the Americas where economic growth is expected, Mr. Jack Domme, currently CEO of Hitachi Data Systems Corporation will be appointed Chief Executive for the Americas. Mr. Domme will leverage his expertise to roll out new solutions using big data analytics in a variety of industries, including energy, communications, finance, and healthcare. He will anticipate technology trends in the United States, where cutting edge technologies, particularly those related to Big Data, are emerging - with a particular focus on Silicon Valley - and will build effective business models to further expand Hitachi’s business throughout the Americas.
In China, where stable, sustainable growth is expected, Mr.Kenichi Kokubo will continue as Chief Executive for China. Mr. Kokubo will execute strategies in keeping with the goals of achieving a low-carbon society and expanding internal demand in preparation for the “new urbanization” currently being promoted by the Chinese government. Specifically, he will strengthen the building facility management solutions business, including security and energy management, using the elevator business, where Hitachi holds top class market share in China, as the base. He will also strive to expand business by promoting financial solutions using the ATM business as a base and by promoting solutions targeting the healthcare industry, where Hitachi hopes to provide services throughout the entire care cycle, from prevention to screening, treatment, and prognosis.
In these four regions - the Americas, China, Asia/Pacific, and Europe/ Russia / Middle East and other areas (“EMEA･CIS”) - the Chief Executives will act as “control towers,” securing key accounts and providing services and solutions that leverage the strengths of the Hitachi Group. They will implement Hitachi’s strategy of “autonomous decentralized global management”, which puts responsibility for regional business operations more solidly in the hands of each individual region.
At the same time, Hitachi will promote uniform global operations to enable the efficient use of management resources, in areas such as R&D, procurement, brand strategies, the use of human resources, accounting systems, and thorough compliance. In this way, the Hitachi Group will provide innovations at the highest level, and establish governance as a global company.
