Reform of Management Control System and Information System to Support Consolidated Management

When Hitachi High-Technologies was established in 2001 linking and integrating the existing information systems was an essential task. Study began in March 2001 on the topic of how to deal with the information system situation during the integration of the disparate organizations that merged to form Hitachi High-Technologies. Working on a tight schedule of just six months, a new accounting system was completed and put into operation after much effort, overcoming differences in the terminology and culture of the manufacturer and trading company components of the new company. After this the process of standardizing the core systems for “manufacturing, sales, and services” into a single, unified system got underway

Then, in 2009, reforms of the management control system and information system began in order to realize consolidated management and cash fl ow management on a global scale.

Based on a New Management Control System under which the performance of each of the business groups that together constitute the unified “manufacturing, sales, and services” company is managed separately while cash fl ow management is implemented on a consolidated basis, the New Consolidated Management Information System was put in place in 2010. Under this system balance sheets and cash fl ow statements were prepared for each division on a consolidated basis, and profit and loss statements were prepared for each product and region, also on a consolidated basis.

Then, in a bid to speed up consolidated management globally, the Global Services Support System (GSS), enabling sharing among “manufacturing, sales, and services” personnel of information on product operating status and service activities, and the Global ERP System (GERP), integrating the core systems of offshore facilities, entered service in fiscal 2012. These systems became a reality thanks to the strong determination of top management to continue investment in IT even in periods when business performance is poor in order to strengthen the corporate competitiveness of Hitachi High-Technologies.

Positioning of policies within the IT strategy