Happy New Year to everyone.
I am happy to celebrate the new year with each of you, who actively work in various places.
I would like to share a few thoughts with you at the start of 2023.
As we look back on 2022, we can see it was a year with a harsh macro-economic environment, due not only to the spread of the COVID-19 pandemic, but also to factors such as increasing geopolitical risk and accelerating global inflation. I would like to express my sincere appreciation for the efforts of all the executives and employees who continued to carry out business activities even while making efforts to prevent infection.
As we work to achieve our budget goals for FY 2022 over the remaining three months, I ask that you all work to increase sales by accelerating your Go-to-Market activities, including improving white space proposals for existing customers as well as expanding sales for merchandise that can be used for N-fold magnification (applying successful cases to other jobs).
Next, I would like to talk about three things that are my aspirations for 2023 and what I would like to ask of you.
These are "Ensuring health and safety", "Initiatives to expand our business", and "Strictly following Basics and Ethics".
In Japan, COVID-19 entered the eighth wave of infections in November of last year. I ask you all once again to take thorough measures to stop the spread of and to prevent infection.
With regard to the working structure, please work in a style that flexibly combines coming into the office with telecommuting based on the work to be done. If you feel unwell, do not come into the office. Also, do not allow people feeling unwell to come into the office.
In Japan, the "Health Up & Guard Plan (HUG)" began last year as an initiative for helping everyone maintain and improve their health. Last month, we began providing service at the "Smart One Clinic", a next-generation medical clinic, in collaboration with an external medical agency operating a medical clinic near the Head Office of Hitachi Systems. Visits can be both online and in-person, and there are visiting hours exclusively for our employees. These factors and more help create an environment that reduces the hassle and time needed for hospital visits and makes it easier for employees to visit a doctor. I ask that you take your own health management seriously, always stay aware of the fact that "you are responsible for protecting your own health", and proactively use this environment so that you may live a fulfilling life with family and friends.
In order to achieve the 2024 Mid-term Management Plan, in 2023, we will promote the expansion of our business in growing fields such as digitalization, security, and the global market, also taking M&A and the like into consideration as we aim for a growth rate (CAGR +6%) that exceeds the growth rate of the IT service market (CAGR +3%).
I would like you all to take measures to ensure profitability by reflecting in sales prices the increases in various costs due to inflation including increasing electricity rates, investment in employee training, increasing wages, and the like.
In our global business, Hitachi Systems Trusted Cyber Management Inc. (HSTCM), which was reorganized in October of last year, will take the lead as we strive to strengthen our highly-reliable security service infrastructure and operation services under the digital strategy of Hitachi. We will promote reforms to our business structure, placing India and Southeast Asia as strategic areas for the expansion of our global business. We will also accelerate our shift towards managed services, such as providing new advanced security services and the like.
In order to expand our business, it is essential that we expand and improve our human resources, which are the base for that business.
In Japan, we are engaged in cultivating human resources for our security businesses and the like based on growth predictions for the security market (CAGR 12.5% (for 2022 to 2024)).
Furthermore, in order to improve productivity and further promote the active involvement of diverse human resources, the Hitachi Group has set establishing a workstyle that is optimal for both the company and the individual and ensuring fulfilling and motivating work for each and every employee as the shared basic concept for workstyles under the new normal. It is necessary that we select the places for work that are optimal based on each workplace and the individual's work, and that we shift to a workstyle that allows employees to autonomously carry out work using a discretionary labor system, flexible working hours, and the like. It will also become necessary for each workplace to shift to a management style that supports autonomous workstyles as well as to ensure communication that cultivates a sense of unity and psychological safety in the workplace.
When making decisions and judgments in various situations, I would like each and every employee to use this order of priority: "S (Safety) >> Q (Quality) > D (Delivery time) > C (Cost)".
The double-page spread at the start of our Company Profile has the following words:
"Create a place for everyone in an ever-changing world".
"Everyone" here includes not only our customers and partners, but also our employees. I hope you will take pride in your work and engage in your work with a positive attitude, never forgetting that you have a place to be and a place to work here. As a company, we will engage in various measures and support everyone so that your place to be here becomes even more attractive.
I would like to conclude my message by offering my best wishes for a healthy, bright, and fulfilling year for our customers, partners, Hitachi Systems Group employees and their families, and all other stakeholders.
January 6, 2023
Setsuo Shibahara
President and CEO
Hitachi Systems, Ltd.
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