May 11, 2016:
Digital transformation is a key initiative for many public and private sector organisations looking to optimise processes, implement broader efficiencies and improve interactions with their customers and constituents. And IoT is propelling a rapid convergence of our physical and digital worlds, creating unprecedented opportunities and challenges for businesses, cities, governments and industries. The application of IoT solutions that can deliver valuable insight to support transformation is rapidly becoming a strategic imperative in almost every industry and market sector. However, building IoT solutions that provide real value can be difficult – especially without the right underlying architecture or the deep understanding to properly simulate and digitalise operational entities and processes. IoT platforms are necessary, but often introduce new layers of complexity and rigidity to IoT solutions, making them difficult to modify and incapable of holistically supporting all the elements of digital business and market ecosystems at scale.
To address this requirement, Hitachi - a pioneer in the creation and application of sensors to provide connected intelligence and support early IoT use cases in industrial markets, such as predictive maintenance and optimised factory, today announced the formation of Hitachi Insight Group. With Social Innovation as the overarching and unifying corporate vision of the Hitachi family of companies, the formation of the Hitachi Insight Group will drive Hitachi’s unified Internet of Things (IoT) – based digital solutions business and go-to-market strategy worldwide. With USD$5.4 billion in IoT solutions and services revenue generated in 2015 and 33 solutions in-market today, Hitachi offers one of the broadest IoT solutions portfolios in the industry. By uniting its digital and IoT solutions and services businesses, Hitachi is positioning itself to lead in this fast-growing market, for which IDC projects a $1.46 trillion IoT market opportunity by 2020.1
Concurrently, Hitachi Insight Group has introduced its Lumada IoT core platform, integrating proven commercial technologies from across Hitachi’s portfolio. Lumada is a comprehensive, enterprise-grade IoT platform with an open and adaptable architecture that simplifies IoT solution creation and customisation. It incorporates expansive expertise in operational technology (OT) and information technology (IT), blending data orchestration, streaming analytics, content intelligence, simulation models, and other Hitachi software technologies. Hitachi is the only large-scale company that has extensive expertise in building OT like trains, construction equipment, building systems, automotive parts, power plants, robots, and much more as well as a broad range of IT products like mainframe and micro-computers, enterprise storage, networking, sensors, RFID, and software such as analytics, algorithms, artificial intelligence, applications and more.
Hitachi’s IoT portfolio includes solutions and services for public safety and smart cities, renewable and sustainable energy, intelligent transportation, precision agriculture and manufacturing, water treatment and urban development, construction, mining and more. These digital solutions deliver connected intelligence and drive actionable insights to support better business decision-making and tangible real world outcomes, like increased productivity and safety, streamlined business processes, lower cost of operations, reduced carbon footprint, and improved quality of life. Lumada accelerates synthesising of actionable insights, delivering faster time to value and supporting better decisions, or improved quality of life.
Lumada provides a comprehensive framework of key IoT solution building blocks, including edge device and connectivity integration, application integration, data integration and orchestration, data repositories, stream and batch data processing, advanced analytics, artificial intelligence, simulation tools, repeatable solution blueprints, and enterprise services. The platform will serve as the core foundation on which all of Hitachi’s IoT solutions are built and will enable the creation of IoT business ecosystems. Lumada is specifically designed to address the challenges associated with IoT solution creation. Its uniquely open and adaptable architecture makes it broadly applicable for a wider array of industries and use cases, providing an extensible, flexible platform from which Hitachi and its customers and partners can easily tailor solutions or co-create.
The formation of Hitachi Insight Group is part of Hitachi’s corporate strategy and initiative to move its business toward a market-in approach. Hitachi has also established global Centres for Social Innovation in multiple geographies staffed by cross-disciplinary researchers, data scientists and solution architects to work closely with customers on solution development to solve unique challenges, ultimately verified through a proof-of-concept process. These labs will work closely with Hitachi Insight Group to apply the Hitachi’s market-in strategy and solve real world challenges in areas such as energy & natural resources, transportation, telecommunications, and healthcare. The group will drive R&D and go-to-market strategies for Hitachi’s IoT-optimised solutions and services, in four key market segments: Smart City, Smart Energy, Smart Healthcare and Smart Industry. Hitachi’s global IoT-focused team of more than 16,000 employees from Hitachi Insight Group and various divisions across Hitachi Ltd. and its Group companies, including Hitachi Data Systems and Hitachi Consulting among others, will collaborate to accelerate delivery of solutions.