Hitachi Data Systems – “Perfect products - no strategy”

Pros

Good local team spirit, talented employees. Very good products. Employees are willing to make decisions and take necessary risk.

Cons

Senior Managment is destroying any motivation - even employees are very well in self-motivation. Absolutely no strategy in which areas to invest - poor communication. What was promoted in one quater is not valid anymore in next quater. Many different business applications which is dramatically decreasing efficiency. A lot of power is used for internal politics instead of customer satisfaction.

Advice to Senior Management

Taking care about SG&A is important. But to decrease it regularely will destroy the culture, motivation, later on quality and at the end customer reputation. Finally HDS will have nice spending numbers with decreasing unsatisfied customers.