In terms of continuation, we opened new doors for business in the Americas in 2022, and carrying on our development in these areas will be crucial. I also look forward to seeing us put more energy than ever into building a sustainable society throughout our value chain, in line with our corporate vision “Ensure a prosperous land and society for the future.”
We must also ensure that Hitachi Construction Machinery Group evolves. “Delivering innovative solutions” serves as a slogan for this work, which is supported by our people and organizations. As a solutions provider, we shall continue to grow as people and as a company in order to demonstrate our true capabilities. The four pillars are interconnected, and I look forward to seeing them lead to our future growth.
Among our various efforts, being a solutions provider is our overarching guiding principle. Two of our key strengths will serve as the foundation for development and growth in this area.
As may be expected, the first of these is reliable hardware. The technology we have built up over more than 70 years is second to none. As a manufacturer of construction machinery, we have provided solutions that go from “manufacturing” to “creating,” and we will remain steadfast in passing this tradition on into the future.
Second, we have the Customer Interest First (CIF) mindset that we have established throughout the company over the course of many years. The processes in which construction machinery is used involve a variety of customer needs, including site safety, efficiency and minimizing life cycle cost. The question is what solutions we can propose in these areas. We plan to further promote the permeation of customer perspectives in our work.
Prior to formulating our new Medium-term Management Plan, we carried out organizational reforms with the aim of better reflecting customer needs. This proved to be a crucial turning point. In fiscal 2022, we established five business units. The Construction Business Unit covers civil engineering and construction sites, Mining is responsible for ultra-large mining machinery, and Compact covers urban civil engineering work. The Parts and Service Business Unit and the Rental and Used Machine Business Unit, meanwhile, are connected to the expansion of the value chain business.
When manufacturers like us focus on being a solutions business, there is a tendency to adopt a structure under which “hard” and “soft” elements are separate. In the past, we had also been operating under an organizational structure that separated machinery development, manufacturing and sales functions. However, taking a step back, it seems obvious that customers working in construction have completely different needs from those in mining, and the approach to solutions and the ideal way of working also changes. We therefore decided to focus on the needs of each customer and create integrated business units capable of providing support across the entire chain, from development to manufacturing and after sales service.
In addition, the New Business Creation Unit, which was established with the aim of generating new business, runs through the business units with a matrix structure that provides flexible lateral and vertical connections.