Hitachi Construction Machinery – Digital Transformation Strategies

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Published: June 21, 2024 Report Code: GDDT0833ES-ST

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Hitachi Construction Machinery Digital Transformation Strategies Overview

Hitachi Construction Machinery uses real-time construction site data, to improve safety and productivity at a construction site. AI, big data, cloud, IoT, and robotics are among the key technologies under focus for the company. The annual ICT spending of Hitachi Construction Machinery was estimated at $362 million in 2023. A major share of this spending is earmarked for acquiring software, network and communications, and hardware from vendors.

Hitachi Construction Machinery Co. Ltd. (HCM), a subsidiary of Hitachi Ltd, is a manufacturer of construction equipment and transportation machinery. It offers construction and mining equipment for digging, loading, breaking, grabbing, cutting, crushing, and screening purposes. Its portfolio of services includes excavators, wheel loaders, cranes and foundation machines, demolition equipment, dump trucks, loading shovels, and compaction equipment. The company also provides troubleshooting, technical training, extended warranty services; and mine management services. HCM serves its products to residential and building construction, plant construction, urban development, infrastructure maintenance and mining resources, demolition, waste recycling, and agricultural markets. The company has manufacturing facilities in Japan and operates in Asia and Oceania, Europe, Africa, the Middle East, and the Americas.

The Hitachi Construction Machinery digital transformation strategies report will act as a reference point to understand a company/competitor’s digital strategy. It will also help in understanding the digital preparedness of the company against its peers. The information included in these reports is sourced from a mix of our very own internal database and authentic secondary research links such as the company’s annual report, presentations, press releases, etc. The report covers an overview of the company, its digital transformation strategies, technology focus areas, technology initiatives, technology introductions, partnerships, investments, and ICT spending among others.

Total ICT Spending 2023 $362 million
ICT Spend by Function Network, Application, Data Center, End-User Computing, Management, Communications, and Service Desk
ICT Spend by Channel Internal Development and Maintenance, Technology Vendors (Direct), Local Resellers, Telcos, ICT Services Providers/Consulting Firms, Specialist Outsourcers, and Systems integrators
External ICT Spend by Segment Software (including Cloud SaaS), Network and communications, Hardware (including Cloud IaaS), ICT services, Consulting, and Others
Technology Theme Focus Artificial Intelligence, Big Data, Cloud, IoT, and Robotics
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Digital Transformation Strategies

HCM uses real-time construction site data, such as worker location, changes in terrain, equipment location, and operational status, to improve safety and productivity at a construction site. The company analyzes data collected by equipment and sensing systems to identify risks at construction sites, and then it shares those results among shareholders to improve worker safety. The company also collects and analyzes weather forecasts and other external information to prepare contingency plans. In 2024, HCM collaborated with ShareMat, a provider of software and fleet management systems for construction equipment, to introduce cutting-edge telematics services for HCM Europe (HCME) equipment that improve the operations and monitoring of construction machinery in the region. The company is also leveraging Microsoft Dynamics 365 Finance and Operations in functions including streamlining operations, enhancing visibility, automating service maintenance, and tracking equipment, among others.

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Hitachi Construction Machinery Technology Theme Focus

 Hitachi Construction Machinery is tapping the power of digitalization, cloud, virtual reality, AI, IoT, and big data to enhance its equipment safety and operational efficiency as well as improve its customer experience.

Hitachi Construction Machinery Technology Theme Focus

Hitachi Construction Machinery Technology Theme Focus

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Hitachi Construction Machinery Technology Initiatives

Hitachi Construction Machinery has been involved in several strategic technology partnerships and collaborations, technology rollouts, and investments over the past few years. For instance, Hitachi Construction Machinery Europe (HCME) entered a strategic collaboration with ShareMat, a provider of professional software and fleet management systems for construction equipment, to introduce telematics services for HCME equipment. HCME equipment with factory-integrated telematics will transmit operational data; this real-time data ensures precise equipment management, providing users with accurate insights while eliminating inaccuracies associated with recalculated information. This collaboration will facilitate the seamless integration of Hitachi equipment into the ShareMat platform through direct API services.

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Hitachi Construction Machinery ICT Spend by Function

  • Network
  • Application
  • Datacenter
  • End-user computing
  • Management
  • Communications
  • Service desk

Hitachi Construction Machinery ICT Spend by Function, 2023(%)

Hitachi Construction Machinery ICT Spend by Function, 2023(%)

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Hitachi Construction Machinery ICT Spend by Channel

  • Internal development and maintenance
  • Technology vendors (direct)
  • Local resellers
  • Telcos
  • ICT services providers/Consulting firms
  • Specialist outsourcers
  • Systems integrators

Hitachi Construction Machinery ICT Spend by Channel, 2023(%)

Hitachi Construction Machinery ICT Spend by Channel, 2023(%)

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Hitachi Construction Machinery External ICT Spend by Segment

  • Software (including Cloud SaaS)
  • Network and communications
  • Hardware (including Cloud Iaas)
  • ICT services
  • Consulting
  • Others

Hitachi Construction Machinery External ICT Spend by Segment, 2023(%)

Hitachi Construction Machinery External ICT Spend by Segment, 2023(%)

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Scope

This report provides:

  • Insight into Hitachi Construction Machinery’s technology activities.

  • Overview of technology initiatives covering product launches, partnerships, and investments.

  • Insights on each technology initiative including technology theme, objective, and benefits.

  • Details of estimated ICT budgets.

Reasons to Buy

  • Gain insights into Hitachi Construction Machinery’s technology operations.

  • Gain insights into its technology strategies and innovation initiatives.

  • Gain insights into its technology themes under focus.

  • Gain insights into its various product launches, partnerships, and investments.

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Table of Contents

Overview                                                                                              

– Brief information about the company, its business divisions, and its financials

Digital Transformation Strategy                                                      

– A summary of key digital strategies/implementation efforts of the company

Accelerators, Incubators, and Other Innovation Programs      

– Discusses the company’s key strategic units, innovation labs, incubation, and accelerator programs dedicated to technology innovation

Technology Focus                                                                               

– Lists the technology themes pertinent to the industry the company operates in and highlights the themes adopted by the company

Technology Initiatives                                                                       

– Discussion about all the technology introductions & partnerships the company has entered

Investment                                                                                         

– Brief discussion about the investments made by the company to acquire new technologies

Partnership, & Investment Network Map           

– A bird’s eye view of all the partnerships/investments that the company has made in the last 3-5 years

ICT Budget and Contracts                                                                 

– The company’s ICT budget segregated into hardware, software, and managed IT services

Key Executives                                                                                     

– Lists key executives and Digital Transformation Executives of the company, typically the key decision makers/influencers.

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