Hitachi understandably sees IoT as a growth market, and one in which the company's diverse interests can be exploited.
It achieved US$5.4 billion in IoT solutions and services revenue generated in 2015, and claims to have one of the broadest IoT solutions portfolios.
The formation of Hitachi Insight Group is aimed at increasing Hitachi's share of this market.
Hitachi Insight Group will address four key market segments: smart city, smart energy, smart healthcare and smart industry.
The group is led by Keiji Kojima, who is also senior vice president and executive officer at Hitachi Ltd.
"Through the formation of Hitachi Insight Group and the Lumada IoT core platform we will provide Hitachi's customers and partners with the fastest and simplest path to develop and deploy comprehensive digital solutions at scale," said Kojima.
"It is a profound honour to lead this elite team in accelerating Hitachi's global IoT business through the creation of digital solutions and services."
Other members of the leadership team include Kevin Eggleston, general manager for the Americas, and Patrik Sjostedt, general manager for EMEA.
The group will receive strategic direction and support from Ichiro Iino, chief executive for Asia-Pacific and other regional leaders.
Hitachi said it plans to establish regional operations for Hitachi Insight Group in APAC later this year.
To enhance its existing portfolio and support the development of new solutions and services, the company has created Lumada, an open and adaptable platform for IoT projects.
Hitachi Insight Group is collaborating with a number of companies including SAP, AT&T, Intel and Microsoft.
"We are pleased to be creating IoT-optimised solutions with Hitachi that will help to transform organisations across industries," said SAP executive vice president for line of business digital asset and IoT Tanja Rueckert.
"With SAP's unmatched ability to deliver end-to-end solutions that allow companies to interconnect all aspects of the value chain in real time and Hitachi's powerful technologies, and both companies deep industry and market expertise, we will create even more value for our customers, making digital transformation and connected intelligence a reality."