Proving the Business Case for the Internet of Things

Hitachi boosts IoT Division with Consulting Merger

William Payne
September 19, 2019




Hitachi is merging its industrial IoT and manufacturing analytics arm, Hitachi Vantara with its consulting business, Hitachi Consulting. The merger is aimed at boosting the company's IoT and industrial internet businesses by focusing its consultancy business squarely in that area.

The new organisation will operate under the Hitachi Vantara brand.

Company veteran, Toshiaki Tokunaga, currently chairman of the board of Hitachi Global Digital Holdings, will become the chief executive and board chairman of the combined organisation. 

The current chief executives of Vantara and Hitachi Consulting will stay with the company in new, currently unannounced, roles.

The company is defining the merger as an "integration", and it will come into effect in January.

Last week, Hitachi Vantara launched a machine learning industrial IoT suite. The software suite, called Lumada, is designed to provide data and machine learning derived insights for the manufacturing industry. An early adopter is Ericsson, who is using it to ramp production for 5G.

Lumada is designed to integrate data silos and stranded assets and augment data from video, lidar and other sensors.

The new suite support what Hitachi describes as 4M (machine, man, material and methods) correlations for root-cause analysis at scale, and it evaluates equipment effectiveness (OEE) and enhancement recommendations based on AI and ML techniques.

In a statement, Hitachi said it plans to make aggressive investments to drive growth in its 2021 Mid-term Management Plan. 

The merger will, the company says, strengthen front line and delivery capabilities to increase alignment and unlock the synergies between Hitachi Vantara and its vertical business units. Hitachi Vantara will drive the Lumada business and create new value for customers and partners by accelerating digital innovation solutions across Hitachi and expanding its global delivery and co-creation capabilities.

“I’m confident that Hitachi Vantara will deliver even greater value for our customers and partners by reinforcing its digital business and solution delivery capabilities,” said Toshiaki Tokunaga. “The combined entity, in collaboration with Hitachi’s Global Social Innovation Business, will map to Hitachi’s 2021 Mid-term Management Plan, which outlines the expansion of its digital business, global market share growth, and the delivery of social, environmental and economic value for customers and partners.”