Hitachi Review Vol. 67, No. 6 702–703 75.

F E A T U R E D A R T I C L E S Hitachi Solutions for New Work Styles

1. Introduction

Against a background that includes an incident that

rocked Japan in 2016 in which the stress of work led

to a person taking their own life, reforming working

practices to deal with long working hours has become

a pressing concern. With other societal factors includ-

ing a falling workforce due to the aging population

and low birth rate and people taking time off work

to care for parents or children, action on work style

reform is now starting to happen across both the pub-

lic and private sectors (see Figure 1 and Figure 2).

2. Categorization of Customer Needs and Identification of Issues

Figure 3 shows a breakdown of the diff erent things

customers are looking for. Th ese customer needs cover

a wide range of topics, a major one being ways of cut-

ting down on overtime that have prompted reviews of

working practices. Others include operational reforms,

human resource development, healthcare, and offi ce

Satoshi BannaiEiji SonodaKunihito Uchida

Overview

Hitachi’s Views on How to Achieve Work Style Reform and Solutions for Reform Implementation

• Develop new markets• Respond to regulatory

change• Maintain and expand

existing businesses

Business-related factors

Difficulty of combining work

and childcare

Staff reaching retirement age

Difficulty ofrecruitment

(becoming more and more a seller’s market)

Difficulty of combining work and caring for the elderly

Mental illness

• Aging population and low birth rate

• Shrinking workforce

Social factors

Increasing work volumes

Changes in business environment

Falling corporate productivity

Long working hours

Figure 1 — Latent Problems Raised by Work Style ReformLong working hours give rise to a variety of problems and become an obstacle to improving corporate productivity.

76.

environments. In some instances, a number of issues

have been considered at the same time whereas in

others the focus has been on one issue in particular,

and there have also been customers for whom the

range of issues considered has been too broad, leaving

them uncertain about where to even start. Accordingly,

rather than marketing specifi c products or solutions,

the work style business requires a mix of consult-

ing and sales that identifi es the challenges faced by

the customer and off ers ways of dealing with them.

Looking back at past activities to review the key issues

raised by customers indicates that a wide variety of

measures have been considered, with the two big issues

of dealing with long overtime hours and labor short-

ages predominating (see Figure 4). Accordingly, while

there are many ways of going about work style reform,

what is needed before deciding which approach to

adopt is to consider better ways of doing things by

clarifying the diff erent objectives that companies have

for work style reform and expanding the available

options for achieving them. To make this possible, the

service provider, in this case Hitachi, needs to be able

to provide consulting to identify the objectives and

challenges when considering work style reforms, and

to supply a wide range of solutions and products for

overcoming these challenges. Also needed for those

customers whose needs cannot be served by Hitachi

products alone is to off er a wide range of solutions

and services through alliances with partner companies.

3. Hitachi’s Views on How to Achieve Work Style Reform

As noted above, customers have a variety of needs for

undertaking work style reform, with diverse objectives

and means of achieving them. Accordingly, the top prior-

ity is to identify the current challenges and to transform

issues of tacit knowledge into digital (numeric) form.

Strengthen infrastructure for

child care support and care for the elderly

Lift demand and expand

investment

Increase labor participation rate and productivity

Increase labor participation rate and productivity through “social security that

fosters a sense of safety”

Eliminate the need for people to leave work to care for family members

Achieve the desiredbirthrate of 1.8

through “child care support that fosters dreams”

through a “strong economy that creates hope”

Achieve a GDP of600 trillion yen

Second arrow

Third arrow

First arrow

Growth Distribution

Figure 2 — Abenomics Growth Strategies and Promoting the Dynamic Engagement of All CitizensJapan is working collectively to tackle its struc-tural problems of an aging population and low birth rate head on, promoting the dynamic engagement of all citizens with the aim of implementing the “new three arrow policy” of a “strong economy that creates hope,” “child care support that fosters dreams,” and “social security that fosters a sense of safety.”

GDP: gross domestic product

Operational reforms and enhancements

Telework, collaboration, virtual workspaces

Dealing with long overtime hours, productivity improvement, RPA, AI

Early-stage consulting, visualization

HR technology, organizational vitality, healthcare

Office fit out, free-addressing

Paperless document handling, meeting efficiency

0% 5% 10% 20% 30%15% 25%

Figure 3 — Diversity of Customer NeedsThe graph shows a breakdown of the diff erent things customers who contacted Hitachi between November 2016 and April 2018 were looking for in regard to work style reform.

RPA: robotic process automation AI: artificial intelligence HR: human resource

Hitachi Review Vol. 67, No. 6 704–705

F E A T U R E D A R T I C L E S

77.

Th e purpose of expressing the current situation

in terms of digital data is to facilitate the setting of

key performance indicators (KPIs) and to provide

managers with the basis on which to make invest-

ment decisions. Th is is because the success or failure

of particular measures can be determined by assessing

their investment cost-benefi t, and the outcomes of

work style reform initiatives can be better linked to

management indicators through ongoing monitoring

of these outcomes (see Figure 5).

Automation of routine tasks

Reform of sales activities

BPO on back-office works

Communication platform enhancement

More efficient meetings

Paperless document handling

Telework

Satellite offices

Staff health management

Dealing with long overtime hours

Labor shortages Recruitment of high-caliber staff and productivity improvement to achieve growth

Legislative compliance

Productivity improvement, cost reduction

Creating environments where it is easy to work

Specific work

Generic work

Figure 4 — Two Big Issues of Work Style Reform and Approaches to Resolving ThemA wide variety of measures have been considered, with the two big issues of dealing with long over-time hours and labor shortages predominating.

BPO: business process outsourcing

IoT platform

• Assess of current working practices

• Identify and collate issues

• Trial at certain departments• Assess trial outcomes and

deploy company-wide• Hypothesis

testing• Bed-in reforms

• Hypothesis testing

• Bed-in reforms

Sales reform

Telework infrastructure

Invigorate organization

Office environment

Productivity improvement

Paperless document handling

OperationOperation

D

P

A

C

Analyze correlations between KPIs and data

Consulting service

• Define objectives and scope• Formulate hypotheses for

policies and outcomes• Specify monitoring indicators

Work

Humancapital

Managementaccounting

Managementaccounting

Sensors

IT toolsSFA

Workshops

QuestionnairesQuestionnaires

Consulting phase Policy implementation phase

Visualization of working practices

Policy implementation

Set targetoutcomes

Hitachi artificial intelligence

Hitachi artificial intelligence

Assessment of current situation

Solution deliverySolution delivery

Qualitativeand

quantitativedata

Figure 5 — Hitachi’s Views on How to Achieve Work Style ReformBy using a variety of diff erent data to shed light on working practices, Hitachi is undertaking the quantitative assessment of current circumstances, the development of policies and target outcomes, and ongoing performance measurement.

IoT: Internet of Things KPI: key performance indicator IT: information technology SFA: sales force automation

78.

As overturning current practice is one of the issues

considered when embarking on work style reform, it

is common for some staff or parts of customer orga-

nizations to react negatively. Quantifying the current

issues is therefore critical if people are to appreciate

the importance of work style reform measures.

Th is means that the following steps are needed

when undertaking work style reform.

(1) Express (quantify) the current situation in terms

of digital data

(2) Set objectives and develop policies

(3) Implement policies

(4) Bed-in policies

(5) Ongoing measurement of outcomes

4. Hitachi’s Proposed Solutions

Based on action taken on working practices at Hitachi

and its group companies over more than 20 years,

Hitachi’s work style reform solutions are made up of

a range of solution products for overcoming customer

challenges, including consulting on how to implement

work style reform, and the IT infrastructure services

needed to underpin these solutions.

Given the diverse requirements for work style

reform, an approach is needed that seeks to address

the diff erent challenges and needs of customers

in ways that draw on past successes and failures at

Hitachi. Th ese solutions encompass the establishment

of systems and practices that underpin operations,

support for those aspects of operations that are aimed

at improving work effi ciency and value, and the provi-

sion of infrastructure such as fl exible workplaces, with

the key means of getting to grips with reform being

consulting services that analyze and visualize the chal-

lenges facing customers (see Figure 6).

5. Past Successes and Failures

As noted above, Hitachi’s work style reform solutions

are built on the base of its own experience and involve

the commercialization of the successful experiences

Office environmentsOffice environments Teleworkinfrastructure

Teleworkinfrastructure

ConsultingConsulting

Sales reformSales reform Paperless documenthandling

Paperless documenthandling

Health managementHealth management

Humanresourcesystems

Humanresourcesystems

NetworksNetworks AuthenticationAuthentication ClientsClients CommunicationsCommunications SecuritySecurity SupportSupport

Automation ofroutine tasks

Automation ofroutine tasks

More efficientmeetings

More efficientmeetings

Working practice visualizationWorking practice visualization Restructuring and BPORestructuring and BPO

Management and planning

IT

Operations Human resources

Figure 6 — Overview of Hitachi’s Work Style Reform SolutionsHitachi’s work style reform solutions encompass the establishment of systems and practices, operational support, and the provision of infrastructure. The starting point for these is the consulting service that analyzes and exposes the challenges faced by customers.

Hitachi Review Vol. 67, No. 6 706–707

F E A T U R E D A R T I C L E S

79.

and know-how so acquired. It is also the case that

Hitachi and its group companies have experienced

numerous failures along the road to commercializa-

tion. Among the main reasons for failure were that the

introduction of tools in advance of reforms meant that

the benefi ts of introduction could not be determined,

and that implementing measures from the bottom-up

resulted in a lack of coordination between depart-

ments. Th ere were also instances in which implemen-

tation was left to the workplaces themselves, with the

result that current practices remained in place and few

measures were actually adopted.

What was learned from these experiences was that

implementing work style reforms requires the over-

turning of current practices and the top-down cre-

ation of a cross-functional structure that breaks down

the barriers between departments. Because reform

involves investment, it is also important to assess the

current situation and set KPIs so that outcomes can

be refl ected in management indicators. Another rea-

son why it can be a good idea to use a consulting fi rm

able to adopt a third-party perspective is that pointing

out the challenges facing other departments as well

as one’s own and overturning current practices are all

stressful tasks. Factors seen as important to the success

of work style reforms at Hitachi’s IT divisions were

a top-down implementation process, digitalization

(quantifi cation), and use of third-party consultants

(see Figure 7)

When Hitachi looked at the outcomes at sales

departments where work style reforms had been

implemented on an experimental basis and those

where it had not, the reformed departments had order

levels 27% higher than those that had not introduced

reforms. Even given that order levels are fl uid, a dif-

ference of close to 30% leaves little doubt that work

style reform can contribute to corporate performance.

A variety of outcomes are evident in the numbers

following the practical implementation of work style

reforms (see Figure 8).

6. Conclusions

Th is article has described the make-up and operation

of Hitachi’s work style reform solutions. Hitachi sees

the following as being key to successful work style

reforms.

(1) Work style reform requires resolve and strong

leadership from senior management. Taking a bot-

tom-up approach gives rise to a variety of diffi culties

when it comes to coordination between departments

and the overturning of current practices. Th ird-party

consulting provides a good way to overcome these

challenges.

(2) When undertaking work style reform, it is impor-

tant that KPIs be set for the objectives and expected

benefi ts, and that outcomes are linked to performance

Hitachi work style reform solutions

Reason for successReason for failure

Responsibility delegated to workplaceLack of interdepartmental coordinationTools adopted prior to reform

Objectives defined and results evaluatedTop-downThird-party consulting

…

Policy (1) Failure

Failure

Failure

Failure

Success

Success

Policy (2)

Policy (3)

Policy (4)

Policy (5)

Policy (6)

Figure 7 — Giving Customers the Benefit of Hitachi’s ExperienceHitachi’s work style reform solutions are built on its own experiences and involve the com-mercialization of the successes and know-how so acquired.

80.

indicators such as sales growth and cost reduction.

Failure to clarify this point increases the possibility

that reforms will be abandoned.

(3) It is important that careful attention be paid to

early-stage planning by assessing the current situation

and deciding what the organization wants to become.

In other words, rather than rushing the introduction

of tools, it is essential to get all stakeholders on board

by expressing the current situation and desired out-

comes in digital (quantitative) form.

References1) Prime Minister of Japan and His Cabinet, “The Japan’s

Plan for Dynamic Engagement of All Citizens,” (Jun. 2016), https://www.kantei.go.jp/jp/singi/ichiokusoukatsuyaku/pdf/gaiyou_e.pdf

2) Hitachi’s Work Style Reform Solutions Website, http://www.hitachi.co.jp/products/it/ws_sol/ in Japanese.

AuthorsSatoshi BannaiSolution Business Sales Department, Service Business Sales Promotion Division, Sales Management & Accounting Division, Systems & Services Business Division, Hitachi, Ltd. Current work and research: Sales and marketing of Hitachi Work Style Innovation solutions. Society memberships: Consortium for Economy and Empowering Social Structure (CESS).

Eiji SonodaSolution Business Sales Department, Service Business Sales Promotion Division, Sales Management & Accounting Division, Systems & Services Business Division, Hitachi, Ltd. Current work and research: Product planning and development of Hitachi Work Style Innovation solutions.

Kunihito UchidaWork Life Integration Solutions Department, Work Life Integration Solutions Development, IoT & Cloud Services Business Division, Services & Platforms Business Unit, Hitachi, Ltd. Current work and research: Product development of Hitachi Work Style Innovation solutions.

Higher employee satisfaction

56.8%→61.0%4.2pt

50%

22%

×4

More opportunities for working from homeBetter results in employee survey Higher rate of working from home

due to active promotion of telework

Higher productivityOpen access to knowledge through in-house SNS

Lower rentsRent outgoings reduced by shifting to suburban offices

Lower travel costs due to ITLess expenditure on domestic travel

(1) Satisfaction (2) Work-from-home, productivity

(3) Cost reduction

Growing portfolio of know-how and case studies

Figure 8 — Benefits of Work Style Reform at Hitachi’s IT DivisionThe results shown here are for Hitachi’s IT division in FY2015.

SNS: social networking service