Case

Hitachi: A strong foundation

Hitachi Construction Machinery was one of the first manufacturers in the world to connect heavy machinery. Learn how we helped Hitachi become, and stay, an IoT innovator.

Highlights

  • Hitachi Construction Machinery (HCM) partnered with Telenor Connexion to develop and deploy a remote management solution to be able to track and monitor construction machines all over the world.
  • The underlying connected business solution is based on a 2G/3G (GSM) SIM embedded in a Machine-to-Machine (M2M) module.
  • Telenor Connexion is the sole communications provider supplying this solution to HCM across more than 110 countries.
  • Telenor Connexion is also providing technological support to HCM. This is designed to yield significant cost savings, and allow HCM to offer heightened services and value adding support to their customers.

Background

Hitachi Construction Machinery (HCM) produces world class products for the mining and construction industry. Telenor Connexion partnered with HCM to develop and deploy a remote management solution to track and monitor construction machines all over the world. The remote management solution enables new value-adding services as well as outstanding extended support levels.

In the construction industry, companies, no matter the size, find it imperative to keep machines running as much possible. To handle equipment accurately, efficiently and profitably, contractors are constantly looking to connected machines for answers.

Challenge

HCM was looking for a connectivity partner with asset management experience, capable of providing a flexible business model focused on long-term relationships and reliable connectivity. HCM had some experience in connected asset management, but recognized their need for additional technology support.

HCM also wanted a partner that could commit to the unique operational requirements associated with heavy machinery and ancillary services.

Another requirement was simplicity: HCM wanted a single provider of global connectivity who could cut through the complexity when delivering connectivity, the SIM and the M2M module through the supply chain.

Solution

Telenor Connexion surpassed the stringent demands of HCM on every count! HCM’s connected equipment gathers information relating to location and operation. This data is used to comprehensively examine the state of the equipment and to provide contractors with a diverse range of service options including preventive maintenance and cost reductions.

The underlying connected business solution is based on a 2G/3G (GSM) SIM embedded in a M2M module. Telenor Connexion is the sole communications provider supplying this solution to HCM across more than 110 countries, utilizing extensive roaming partnerships to provide a ‘one-stop connectivity shop’ for HCM.

Telenor Connexion is also providing technology support to HCM that would yield cost savings for HCM, and enrich HCM’s value-adding customer offerings. Furthermore, Telenor Connexion’s Service Level Agreements (SLAs) allow HCM to offer their customers a higher level of service guarantees, with increased security and operational support for the equipment.

Just as importantly, Telenor Connexion is always close at hand for HCM to quickly resolve technical issues. HCM can also rely absolutely on the 24/7 Service Operations Center and dedicated local support that is synonymous with Telenor Connexion around the world.

Results

Telenor Connexion enables HCM to offer connected machinery with opportunities for new revenue streams and product differentiation. HCM’s value-adding services to their customers include differentiated service guarantees, unique billing arrangements and just-in-time delivery of heavy equipment.

Connected machinery helps contractors to improve processes including maintenance, operational support and security. Real-time equipment usage and appropriate maintenance can minimize the potential for costly and dangerous equipment failure. Connected equipment can also help improve the safety of construction workers through alarms and real-time sensor alerts.

The Telenor Connexion solution deployed by HCM is designed to evolve over time. To this end, Telenor Connexion hosts, together with HCM, bi-yearly technology workshops alternately in Sweden and in Japan. At these workshops, both companies jointly commit to the technology roadmap for heightening customer service.

Telenor Connexion’s reliable and well managed connected business solution allows us to continue to respond to our customers’ needs throughout the world by providing them with the value-added products and services they have come to expect from Hitachi Construction Machinery.
– Fujio Matsuda, General Manager at Hitachi Construction Machinery, Global Business System Center, IT Promotion Division.

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