Hitachi Construction Machinery to support Hitachi with disclosing specialized knowledge and expertise in areas such as computer programs

Tokyo, Japan June 23, 2020 —- Hitachi Construction Machinery Co., Ltd. (TSE: 6305; “Hitachi Construction Machinery”) announced that the company today entered into a license agreement with Hitachi, Ltd. (TSE: 6501; “Hitachi”) regarding the use of Hitachi Construction Machinery’s knowledge and expertise pertaining to the ConSite^® service solution, for the purpose of expanding the scope of application of ConSite^® beyond remote monitoring and data reports for construction machinery, to target industrial machinery manufacturers outside the construction machinery.

Specifically, the agreement authorizes the disclosure of Hitachi Construction Machinery’s knowledge and expertise to Hitachi, in areas such as computer programs related to services for delivering “Monthly report” and “Alarm report (emergency report)” on Hitachi Construction Machinery’s construction machines currently deployed around the world, and also approves the use of the ConSite^® trademark. The agreement enables Hitachi to leverage ConSite^® in the development of value-creating, maintenance service enhancement solution for industrial machinery manufacturers, which is scheduled for commercial release in October 2020.

Since 2000, Hitachi Construction Machinery has equipped its hydraulic excavators with communication terminals as an option, has equipped them as standard since 2006 and utilized IoT to collect big data, such as information on the operational status and location of construction machines, in the Global e-Service^®. Furthermore, Hitachi Construction Machinery has since 2013 provided the ConSite^® service solution, which improves failure risk awareness through remote monitoring based on Global e-Service^® data and delivers data reports on the status of construction machines, thereby contributing to the reduction of lifecycle costs, which is an important customer concern.

At present, the number of machines with ConSite^® data report service contracts has reached 143,000*¹ in 113 countries and regions, which makes up approximately 73%*² of total unit sales for which the ConSite^® service solution is available. The service has been well received by the many customers in a short period of time. In addition, by actively incorporating AI and analysis technology, the failure prognostic detection rate via remote sensing has been increased to 71%*³. In and after fiscal year 2020, Hitachi Construction Machinery set a new goal to further increase the failure prognostic detection rate to 90% in the future.

ConSite^® is also registered as a use case for the Lumada^® that is a collective name for advanced digital solutions, services, and technologies of the Hitachi Group, and sales of Hitachi’s Lumada^® business also include sales of Hitachi Construction Machinery’s parts and service business for construction machinery. Hitachi Construction Machinery developed the ConSite^® uniquely by combining long-standing knowledge of maintenance and inspection operations, big data analysis and Hitachi Group’s cutting-edge IT technology. In the future, Hitachi will bring ConSite^®‘s knowledge, expertise and experience, and further brush up on ConSite^® for the Lumada^® next generation maintenance solution for Hitachi’s customers.

The Hitachi Construction Machinery Group has always aimed to serve as a familiar and trusted partner by providing “Reliable solutions” that resolve customer issues. As we move forward with efforts to contribute to Hitachi’s Lumada^® business through ConSite^®, we will continue striving to resolve social issues around the world.

*1, *2, *3: As of the end of March 2020.
*4: a model of digital solutions which create new value through collaborative creation with customers.

■ Trademark notice
・ “Global e-Service” and “ConSite” are registered trademarks of Hitachi Construction Machinery Co., Ltd.
・”Lumada” is a registered trademark of Hitachi, Ltd.