I would like to express my deepest sympathies to everyone affected by the 2024 Noto Peninsula Earthquake. I am praying for the safety of everyone involved, for the quick recovery of all affected areas, and for those affected to be able to return to normal life as soon as possible.
I would also like to express my sincere gratitude to our employees and others who are assisting the recovery efforts that have been underway since the earthquake occurred.
Caution will still be required for some time, as aftershocks continue. Please keep safety as your top priority.
Now, I would like to share a few thoughts with you at the start of 2024.
Looking back on 2023, we achieved growth centered on digitalization services. I would like to express my sincere appreciation to all executives and employees for your efforts.
Next, I would like to talk about my aspirations for 2024.
Hitachi Systems places a high priority on human resources. Our Corporate Philosophy (Societal Mission) includes the phrase “respect for humanity and its infinite potential.” We have established “Human * IT” as our business brand with the goal of contributing to “a truly affluent society by developing and providing information technologies, products, and services.”
There are three things that I would like to ask of you in order to achieve this goal.
In order for our company to grow, we need to maximize our human resources and organizational strength. It is important for each employee to think and act autonomously. When setting goals, please think carefully about what you want to accomplish in your work, what skills and mindset are necessary to do so, and what kind of work environment will allow you to maximize your abilities.
To this end, the company is continuously working on measures to encourage you to achieve autonomy. You should feel secure in your workplace and know that “this is where you belong.” I would like you to feel confident that you are contributing to the growth of the organization as you achieve your own personal growth through your work.
As a prerequisite for this, it is important to ensure health and safety.
The most important thing, above all else, is the health and happiness of each individual. I ask that you take your own health management seriously and always stay aware of the fact that “you are responsible for protecting your own health” so that you may live a fulfilling life with family and friends.
As 2024 is the final year of the 2024 Mid-Term Management Plan, it is time to reap the benefits of the projects that we have been preparing for the past two years. In addition to DX in the manufacturing industry, with strong ERP solutions at its core, and cloud lifts and shifts in core systems, we will focus on achieving the 2024 Mid-Term Management Plan by continuously strengthening our white market strategy of integrated manufacturing and sales through GTM activities.
We will also provide high added value services to achieve sustainable growth. I ask that each and every one of you engage in your daily work with a new mindset aimed at achieving growth. In our global business, please make every effort to accelerate the shift to services and improve profitability.
To ensure business growth and profitability, it is essential that we expand and improve our human resources, which are the base for business. We will employ new graduates in April 2024 as well as mid-career hires throughout FY2023, to expand our human resources in line with sales growth while also taking into account improvements in productivity.
At the same time, this is an important year for planting the seeds for the 2027 Mid-Term Management Plan. We will reach for 2025 and beyond by using generative AI for business innovation, encouraging the expansion of business in growth areas such as digitalization, green transformation (GX), and cloud services, and promoting the actualization of measures for inorganic growth.
In the field of generative AI in particular, the Business Innovation Promotion Committee launched the “BiAI (Business innovation powered by generative AI) Subcommittee” in October 2023 to promote business growth and profitability through high added value services and to improve productivity in internal operations.
I would like to ask you to provide high added value services to our customers by accumulating know-how based on in-house demonstrations and collaborating with the Hitachi Generative AI Center.
In November last year, Hitachi, Ltd. spun off the digital solutions business of Hitachi Vantara LLC into a new company, Hitachi Digital Services LLC. As an integrator that implements OT x IT, Hitachi Digital Services LLC will provide digital value to a variety of industries and drive the creation of synergy that is unique to Hitachi. In the future, managed security services where IT and OT overlap will clearly differentiate us from other companies and undoubtedly become a strength of the Hitachi Group. Hitachi Systems will also work to create further synergy with Hitachi Digital Services LLC, GlobalLogic, and Hitachi Vantara, and to accelerate inorganic growth with a focus on North America.
When making decisions and judgments in various situations this year as well, I would like each and every employee to continue to use this order of priority: “S (Safety) >> Q (Quality) > D (Delivery time) > C (Cost).”
We will also continue the “901” campaign to prevent problems, such as accidents and harassment caused by the consumption of alcohol, and to maintain good health. Please observe the rules to avoid drinking in excessive amounts and for long periods of time.
I would like to conclude my message by offering my best wishes for a healthy, bright, and fulfilling year, in both your professional and private affairs, to our customers, partners, Hitachi Systems Group employees and their families, and all other stakeholders.
January 23, 2024
Setsuo Shibahara
President and CEO
Hitachi Systems, Ltd.
* This translation is a summary of a message shared with the employees of Hitachi Systems, Ltd. on January 4, 2024.
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