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R&D Strategy for New Growth in Hitachi

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R&D Strategy for New Growth in Hitachi R&D strategy for new growth in Hitachi 10th April 2008 Dr. Eiji TAKEDA Vice President & Executive Officer, General Manager, Research & Development Group, Hitachi, Ltd. © 2008 Hitachi, Ltd. All rights reserved. Global R&D strategy supporting further new growth in Hitachi Creating an industry which can overcome global issues and produce global competitiveness Global R&D Strategy Generate innovation for the creation of new industries １. Fusion of Hitachi Group’s strengths and employing external collaborations Commitment to maintain and strengthen the MONOZUKURI industry ２. Fortifying innovative MONOZUKURI and increasing the productivity of service industries Speed-up global deployment ３. Expanding a seamless global R&D network Foster global and innovative human resources ４. Recruitment, fostering and appointment of global and highly-skilled experts © 2008 Hitachi, Ltd. All rights reserved. 1 Contents 1. “R&D Management Vision” for Hitachi growth 2. For the expansion of current business areas 3. Fortifying the growth strategy 4. Creation of innovative technology Contents 1. “R&D Management Vision” for Hitachi growth 2. For the expansion of current business areas 3. Fortifying the growth strategy 4. Creation of innovative technology 1-1. Hitachi’s management policy Basic Management Policy “Collaborative creation and profit” Rigorous focus on market-oriented approach and profit creation Management Goal Establish a stable, high profit structure Key Initiatives 1. Increased profitability through rigorously FIV-based management 2. Building a stable, high profit structure 3. Evolution to group management for high profitability 4. Innovation through collaborative creation © 2008 Hitachi, Ltd. All rights reserved. 4 1-2. “R&D Management Vision” for Hitachi growth Management ManageManage R&DR&D toto produceproduce "World"World No.1",No.1", "Only"Only one"one" technologytechnology １ of (1) Technology viewpoint + Laboratory balance sheet (B/S.P/L) viewpoint (2) Comply with short-term business division needs and prepare long- Research term research Determine how much R&D Innovation Cycle investment has contributed II R&D investment to Hitachi Group’s (1) Sales, profit increase Return on (2) Creation of new Profit PP DD Development: ２ Technology R&D business development / (3) Innovative new Patent technology, acquisition RR SS Sales and manage based on the innovation cycle Return on investments Research- Management placing emphasis on R&D as the source of ３ based profit and corporate value Management Evolution to “Hitachi = Technology” © 2008 Hitachi, Ltd. All rights reserved. 5 1-3. Research mission for new growth Current Creation of Generation of business innovation １ ２ new business ３ expansion technology 6 Corporate Laboratories CentralCentral ResearchResearch LaboratoryLaboratory MechanicalMechanical EngineeringEngineering ProductionProduction EngineeringEngineering <950><950> ResearchResearch LaboratoryLaboratory <380><380> ResearchResearch LaboratoryLaboratory <340><340> Kokubunji-shi, Tokyo Yokohama-shi, Kanagawa Info. & Telecommunications, Embedded systems, Hitachinaka-shi, Ibaraki Management systems, Production systems & Solution LSI, Storage, Life sciences Mechatronics applications systems processes Hitachi Research Laboratory Systems Development Laboratory <500> AdvancedAdvanced ResearchResearch LaboratoryLaboratory <100><100> <680> Kawasaki-shi, Kanagawa Hitachi-shi, Ibaraki Hatoyama-machi, Saitama Public systems, Devices, Components, Information systems, Security, Ubiquitous, Human & Information systems, Health systems, Materials Storage, Service solutions Environment & Energy, Nano-materials & Devices <No. of employees as at 2008/4/1> © 2008 Hitachi, Ltd. All rights reserved. 6 Engine of growth: 1-4. “Fortifying research matrix” Technology × Business matrix to objectify fortification guidelines Technology axis Business axis: Hitachi policy Circuit design & packaging Nanoelectronics Energy electronics Wireless New energy Machinery / Plant Simulation Motor Human sciences Business Infrastructure Technology Social Industrial Life Information Technology Service engineering Management systems Design platforms Electrical Info. processing platforms Intelligent info. processing Mechanical SensorNet Security Humanities Embedded software Batteries Materials Information Machining process Grouped into 5 areas Measurement Physics/Chemistry Bio-platforms © 2008 Hitachi, Ltd. All rights reserved. 7 Engine of growth: 1-4. “Fortifying research matrix” Technology × Business matrix to objectify fortification guidelines Technology axis A Focus on platform research ⇒ Part 2: Current business Circuit design & packaging B Fortify environmental, ⇒ Part 3: New business Nanoelectronics energy-saving research Energy electronics Wireless C Fortify next-generation ⇒ Part 3: New business New energy information research Machinery / Plant D Deployment of new ⇒ Exhibited Simulation electronics Motor Human sciences Business Infrastructure Social Industrial Life Information Technology Service engineering Technology Management systems Design platforms Electrical Info. processing platforms Ｄ Intelligent info. processing Mechanical SensorNet Security Humanities Ａ Embedded software Batteries Ｃ Materials Information Ｂ Machining process Grouped into 5 areas Measurement Physics/Chemistry Bio-platforms © 2008 Hitachi, Ltd. All rights reserved. 8 1-5. Research Schemes Business target ２００８２０１０ ２０１５ ２０２５ 「Management for Management collaborative creation & profit」 strategy Environmental Vision 2025 Business Group Business strategy roadmap Long-term technology development plan Sponsored research Adv. sponsored Frontier research R&D Group (50%) research (30%) (10%) Current business expansion Create new businesses Est. innovative business (Generate No. 1 businesses) (speed-up synergy) (Shifts in paradigm) Platform research (10%) © 2008 Hitachi, Ltd. All rights reserved. 9 Contents 1. “R&D Management Vision” for Hitachi growth 2. For the expansion of current business areas 3. Fortifying the growth strategy 4. Creation of innovative technology 2-1. R&D strength & Contributing to profit generation 1. “Collaborative Creation and Profits” progress presentation (28th May 2007) ① Place 15% of corporate researchers in the business division Actual figure: 16.8% ② Cut Development time by 30% MONOZUKURI innovation based on advanced technology ■ Corporate organization: Supervisory Office for MONOZUKURI ■ R&D organization:Follow-up scheme on development time Technology platforms across the Group 2. Contribute to No. 1 businesses © 2008 Hitachi, Ltd. All rights reserved. 11 30% cut in R&D time through 2-2. “MONOZUKURI innovation” Policy: Injecting innovation into MONOZUKURI through cutting-edge technology development Analysis-led Design Supervisory Office for MONOZUKURI Automatically generated analysis model to reduce design labor 1st Subcommittee: Reform of development, Automatically generated design & manufacturing process analysis model ● Analysis-led design ● Phase-gate system ● W/w-TSCM innovation ● Data-linked MONOZKURI Applied from Sept. 2007 in the next shinkansen and express train for the overseas market 2nd Subcommittee: Reinforce risk management, (Railway car strength evaluation time: 21 days → 10 days) project management skills ● PM support system, PM education Data-linked MONOZUKURI 3rd Subcommittee: Enhance reliability High-speed detection of trouble/defects in ● Reinforcing quality assurance activities process & equipment linked with statistical data 4th Subcommittee: Reinforce knowledge-based Early maintenance/inspection management ● Consolidate common DB of success, accident, Monitoring all equipment data and incident examples Process Yes 5th Subcommittee: Enhance MONOZUKURI technology Monitor Trouble? equip. ● Intensify committee activity, enhance factory floor skills 6th Subcommittee: Personnel, organization, Statistics based inspection standard Hitachi Founding Spirit ● Hand-down the legacy of Hitachi Founding sprit © 2008 Hitachi, Ltd. All rights reserved. 12 2-3. Technology platforms supporting MONOZUKURI reform Group wide enhancement & fusion of common key technology and personnel development Mechanical & Electrical Electronics Information Materials Digital Engineering Embedded Systems Service Science Electronics Electron beam-based Solution LSI Outsourcing Environment & Energy measurement Efficient systems development EA*/SoA**/Initial stage consulting New materials Non-destructive measurement Platforming Application of advantage technology Medical Product design support Project management & devices Details & Biotechnology Optimal motor development Optimal inverter development New Service Methodologies Nanotechnology *EA: Enterprise Architecture **SoA: Service Oriented Architecture Simulation Center Center InnovationInnovation Center Center Center Innovation Center Platform Research Laboratory Lab. Open Days) Lab. Laboratory & Analysis Center Advanced （ uVALUE Innovation Mechanical Mechanical Motor Innovation Inverter Embedded System Materials Research Cooperative Creation with Customers Adv. Measurement Technology Platform ’04.04 ’05.03 ’04.04 ’05.10 ’04.04 ’06.04 ’05.04 ’05.10 ’02 ～ © 2008 Hitachi, Ltd. All rights reserved. 13 2-4. Contributing to No. 1 business CRL (Central Research Laboratory), ARL (Advanced Research Laboratory), HRL (Hitachi Research Laboratory), SDL (Systems Development Laboratory), MERL (Mechanical Engineering Research Laboratory), PERL (Production Engineering Research Laboratory), CEL (Consumer Electronics Laboratory, Consumer Business
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