Digital Transformation towards Society /09/07 Shigetoshi SAMESHIMA Research & Development Group, Hitachi, Ltd.
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1 Digital Transformation towards Society /09/07 Shigetoshi SAMESHIMA Research & Development Group, Hitachi, Ltd.
2 1. Changes of Macro-Environment 2. Society 5.0: Society Vision of Japan 3. Autonomous Decentralized System 4. Digital Transformation of Society 1
3 Politics & Economy: Uncertainty The feelings of opacity is intensified due to the uncertain politics and economy. Global EPU, PPP-Adjusted GDP Economic Policy Uncertainty Index (based on newspaper coverage frequency) Source: Economic Policy Uncertainty [Baker, Bloom & Davis] 2
4 Society: Sustainable Development Goals The 2030 Agenda was adopted in 2015 to realize sustainable economic growth while no one will be left behind. Source: United Nations 3
5 Technology: Progress of Digitalization The digitalization of industries and infrastructure is accelerated worldwide. Europe Industrie4.0 China Made in China 2025 Internet Plus Asia Smart City Japan Society5.0 North America Industrial Internet The Internet of Things will grow to over 20 billion connected devices by
6 Responsibility with Digital Transformation Discussion at World Economic Forum: Leaders are responsible to make digital technology into citizen s benefit. 2015: 産学連携から産学協創へと変革 The New Global Context The dark and light sides of technologies such as Internet of Things (IoT), Big Data, Artificial Intelligence, Robotics, Machine Learning for society. (Light side: Growth of European industry with Industrie4.0, Dark side: Robots taking jobs, etc.) 2016: Mastering the Fourth Industrial Revolution Given the uncertainty due to innovations, how technologies should be used? How leaders adopt the trend like Industrie4.0 / Industrial Internet into policy and business strategy? 2017: Responsive and Responsible Leadership A Compact for Responsible Business Leadership How can industry leaders restore the compact between business and society, ensuring that companies are responsive and responsible to all their stakeholders? Source: World Economic Forum 5
7 1. Changes of Macro-Environment 2. Society 5.0: Society Vision of Japan 3. Autonomous Decentralized System 4. Digital Transformation of Society 6
8 Maturity of Japanese society Japan faces challenges such as aging population ahead of the world. Energy Aging population Productivity Decreasing self-sufficiency Increasing tariff Medical expenses Labor shortage for nursing Rapid change of industrial structure Safety & Security Public safety Cyber security Transportation Accident/Congestion Persons with Reduced mobility Urban development Aging infrastructure Gaps between city and suburb areas Rate [%] Rate of over-65 population Rate [%] Rate of aged water pipes Japan Developed Developing Source: United Nations Source: MHLW 7
9 Vision of Japan: Society5.0 A new social structure satisfying the needs of individual citizens by making the most of digitalization. Hunting Human-centered Agrarian Information Industrial The 5 th Science and Technology Basic Plan (2016/01) Council for Science, Technology and Innovation, Cabinet Office, Government of Japan 8
10 Human-centered society: Beyond Smart Watch the movie 9
11 Transformation to Society 5.0 Creating values by connecting autonomous individuals to solve changing societal challenges in this uncertain era. Society which encourages individuals, and creates values from insights From The Future Investment Strategy 2017, Cabinet Office 10
12 1. Changes of Macro-Environment 2. Japan s Vision: Society Autonomous Decentralized System 4. Digital Transformation of Society 11
13 Underlying Eastern Philosophy 諸行無常 :Everything is constantly changing. 諸法無我 :The essence is in the connection. Hitachi, Ltd All All rights reserved. 12
14 Hitachi s Experience Autonomous Decentralized System An ADS consists of autonomous sub-systems, and allows some of them to be out of order. A sub-system controls itself, and cooperates with each other. Out of order Sub-system Recovery Addition System 13
15 Implementation of ADS JR-EAST ATOS (Autonomous decentralized Transport Operation control System) One of the world s largest real-time control system It supports safe, and reliable train operation in Tokyo metropolitan area 24 hours a day Distributed control of trains Extension of service Nonstop service Converged delivery of information Kofu Atami Jimbohara Komagawa Ōme Musashi- Itsukaichi Ōfuna Ikebukuro Tachikawa Kurihama Ōmiya Shinagawa Kuroiso Hatori Ueno Chiba Mitaka Shinjuku Soga Tokyo Yokohama A collaboration with the society and the customer. Running for over 20 years, and still expanding. Uses open components. Evolving flexibly with changing passengers and customer. Hitachi, Ltd All All rights reserved. 14
16 Co-creation of Society 5.0 Creating System of Systems based on ADS concept to adapt to the change of societal challenges. Open connection to heterogeneous systems Finance Medical care Railway Society 5.0 Growth Road transportation Building Collecting digital data with IoT Change of societal challenges ADS: Autonomous Decentralized System 15
17 1. Changes of Macro-Environment 2. Japan s Vision: Society Autonomous Decentralized System 4. Digital Transformation of Society 16
18 Digital Transformation of society (1) Challenge : Alleviating traffic congestion. Solution : Visualizing people flow in multiple transportation modes by analyzing activities of smart phones. Open connection to heterogeneous systems Finance Medical care Society 5.0 Railway Growth Road transportation Building Collecting digital data with IoT Change of societal challenges 17
19 Digital Transformation of society (1) 18
20 Digital Transformation of society (2) Challenge : Preventing and solving crimes. Solution : Grasping activities of people by real-time analyses of public surveillance cameras. Open connection to heterogeneous systems Finance Medical care Society 5.0 Railway Growth Road transportation Building Collecting digital data with IoT Change of societal challenges 19
21 Digital Transformation of society (2) 20
22 Digital Transformation of society (3) Challenge : Expediting processes of various insurance. Solution : Optimizing policy creation, claim application, and claim approval with shared records by Blockchain. Open connection to heterogeneous systems Finance Medical care Society 5.0 Railway Growth Road transportation Building Collecting digital data with IoT Change of societal challenges 21
23 Digital Transformation of society (3) 22
24 Hitachi s open platform Storing and applying insights with our open platform. Ideal society Comfortable mobility Stable energy supply Extended healthy expectancy Friendly environment Secure & Safe Value creation Transforming data into insights Analyzing data Mobility solution Diagnostic service Partners Security Energy solution Maintenance solution Logistic solution Payment service Open platform Lumada by Hitachi Disaster solution Smart manufacturing Government Privacy Collecting data Public Commercial Infrastructure Transportation Individual 23
25 Applying cyber insights into physical human life Creating values for individual s needs Transforming society Society 5.0 Open innovation Insight Hitachi, Ltd All All rights reserved. 24
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