Hitachi 2009 Annual Report Download - page 10

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RESURRECTING A STRONG HITACHI
An In-House Company System
To further clarify business unit responsibility and authority, business units will be treated in the same
way as Group companies and held accountable individually for their earnings. Each Group company
has grown driven by independence and responsiveness. Now we want to instill this throughout the
entire company. Besides accelerating decision-making within the Group, this move should enable Head
Office to optimally allocate business resources.
Hitachi has adopted the in-house company system
to further reinforce its operating base. Specifically, we
will establish “companies” as virtual companies inside
Hitachi with the same independence and responsive-
ness as Group companies. Hitachi’s Group manage-
ment structure will thus center on approximately 40
companies, with these virtual companies and Group
companies positioned and managed in parallel. This
should establish a high profit structure across the
entire Hitachi Group and create Group synergies.
This will also further clarify Hitachi’s position as a
business holding company whose role is to leverage
the advantages of owning these businesses itself to
enhance the value of the Group as a whole.
Hitachi, Ltd. (Business Holding Company)
Management support functions:
Structural reforms, Optimized allocation of Group resources
Use of common Group resources:
R&D, Sales, Human Resource, Manufacturing
Technologies Procurements, IT and others
Group Corporate
Seven Companies
•฀฀Information฀&฀
Telecommunication
System Company
•฀฀Power฀Systems฀Company
•฀฀Industrial฀&฀Social฀
Infrastructure Systems
Company
•฀฀Information฀&฀Control฀
Systems Company
•฀฀Urban฀Planning฀and฀
Development Systems
Company
•฀฀Battery฀Systems฀Company
•฀ Defense Systems Company
Major Subsidiaries (Group companies)
Continue to implement the most appropriate business
structure reforms along with other reforms aimed improving holistic
strengthen of the social innovation business as Hitachi group.
Enhance Group Consolidated Management
Approximately 40 “Companies”
8Hitachi, Ltd.
Annual Report 2009