Hitachi 100 billion yen developing the Internet of Things

Hitachi April 14 announced the establishment of “Internet of Things (IoT)” related basic technology research and development centers in the United States. We will invest about 100 billion yen in development expenses in three years. Will advance and technology development related to large data analysis, not only sell equipment to corporate customers, will provide services. And strive to build a revenue model including counseling, including a new manufacturing industry.

The new organization “Service Platform Business Unit (BU)” The headquarters will be set up as early as in early May in the city of Santa Clara, California. Compared with the past three years, the investment will expand by 30%. The hiring local technical staff of 200 people within the system to build 2016 year. Internet of things developed by artificial intelligence and big data analysis to make other infrastructure to utilize the technology.

Hitachi is seen as a competitor of the US General Electric (GE) 2015 was set up in things such as the specialized agency “GE Digital”. Conceived with sensors on the aircraft manufacturers to deliver engines, real-time monitoring services to obtain benefits.

Hitachi also plans to offer a variety of services in the sales and maintenance of equipment at the same time. In addition, try to undertake a comprehensive consulting business consulting services through the new institutions to develop the technology needed.

For example, the use of large data analysis and artificial intelligence to predict the short-term and long-term needs of customers products. For the customer’s plant production planning and new business and put forward comprehensive proposals.

Actual customers to provide recommendations by 12 partly responsible for electricity, finance and industrial equipment, however, build a common foundation of internet of things through the new mechanism will contribute to the development of high efficiency. Hitachi Senior Executive Officer Keiji Kojima said, “by the most sophisticated human resources and information focused on the establishment of US bases to speed up development.”

Hitachi strive to become both a US consulting giant Accenture and IBM enterprise features such businesses. Envisaged in equipment sales while providing IBM (for customers with IT systems and demonstrate utilization method) and Accenture (noting customer business problems) services provided. Whereby the formation of differentiated and competitive enterprise.

Hitachi’s competitors are many, but the former East Minzhao president stressed that “rely on existing organizations to extend the line, insurmountable obstacles to sales of around 6% operating margin.” On this basis, on the purpose of the establishment of the new body that “can compete with GE to achieve more than 10% profit margin, and build new business models is essential.”