Connect - Schneider Electric
Connect - Schneider Electric
Connect - Schneider Electric
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DESCRIPTION OF THE GROUP, AND ITS STRATEGY, MARKETS AND BUSINESSES<br />
GLOBAL SPECIALIST IN ENERGY MANAGEMENT<br />
<strong>Connect</strong>, <strong>Schneider</strong> <strong>Electric</strong>’s new company programme<br />
(2012-2014)<br />
<strong>Connect</strong>, <strong>Schneider</strong> <strong>Electric</strong>’s company programme for the 2012-2014 period, is another major<br />
step in the consistent deployment of the Group’s strategy. With <strong>Connect</strong>, the Group will extend<br />
the strong foundation of One to all its strategic levers: products and solutions, mature and new<br />
economies, people, while continuing to drive efficiency at all levels.<br />
The new 3-year plan covering 2012 - 2014 includes four<br />
major initiatives:<br />
<strong>Connect</strong><br />
People<br />
<strong>Connect</strong><br />
to Customers<br />
<strong>Connect</strong><br />
for Efficency<br />
<strong>Connect</strong><br />
Everywhere<br />
• <strong>Connect</strong> to Customers: this initiative aims at further improving the<br />
performance of its business models in order to be a leader in products<br />
and in solutions, and to adapt the different dimensions of the customers<br />
and partners experience with <strong>Schneider</strong> <strong>Electric</strong> when they interact<br />
with the Group:<br />
– Partner excellence: continue to grow in products in a winwin<br />
relationship with partners by creating new opportunities<br />
for Distributors and Partners, leveraging the strength of One<br />
<strong>Schneider</strong> <strong>Electric</strong> and leading product innovation. This<br />
initiative will further reinforce the Group’s leadership position<br />
in the Product Business.<br />
– Solution excellence: leverage the Group’s unique value<br />
proposition with its solution capabilities, improve equipment<br />
cost competitiveness, reinforce execution while being more<br />
selective on projects, and boost service sales. This initiative will<br />
temporarily impact the Solution Business’s growth but will raise<br />
signifi cantly its profitability and return profi le.<br />
– Tailored supply chain: bring the supply chain to a new level<br />
of excellence by aligning organis ation to customer needs and<br />
providing differentiated manufacturing and delivery models for<br />
each customer segment. This initiative should lead to higher<br />
customer satisfaction and inventory efficiency.<br />
• <strong>Connect</strong> Everywhere: this initiative is designed to identify key<br />
investment areas in new economies and create new opportunities in<br />
mature countries to be a leader in both types of geographic areas.<br />
– Grow in new economies: expand geographical coverage by<br />
increasing the Group’s presence in the fast-growing secondtier<br />
cities and further penetrate these markets with mid-market<br />
segment offerings supported by strong brands with wide local<br />
coverage. The initiative will continue to support the long term<br />
growth potential of new economies in <strong>Schneider</strong> <strong>Electric</strong>’s<br />
portfolio.<br />
– Grow in mature countries: grow activities that develop<br />
independently from traditional capex trends with a focus<br />
on opex-driven opportunities and new businesses. This<br />
includes developing installed base and energy management<br />
services, capturing the smart grid opportunity while investing<br />
in new businesses in areas such as electric vehicle charging<br />
infrastructure, home automation and carbon management.<br />
With this initiative, the Group aims to create its own growth<br />
momentum in the mature countries.<br />
• <strong>Connect</strong> People: the target of this transformation is to create a culture<br />
and an environment for the Group’s employees’ development and<br />
performance.<br />
– Engaging leaders: train leaders with <strong>Schneider</strong> <strong>Electric</strong><br />
University and promote Diversity<br />
– Engaged individuals: support employee development via<br />
training, empowerment and cross-business mobility<br />
– Engaging workplace: step-up collaboration & communities,<br />
regroup locations, ensure safety at work, develop the<br />
<strong>Schneider</strong> Way<br />
• <strong>Connect</strong> for Effi ciency: this initiative includes the actions aiming<br />
at writing a new chapter in the Group’s history of profi table and<br />
responsible growth.<br />
– Industrial Productivity: raise the bar with tailored supply<br />
chain and drive signifi cant industrial productivity through<br />
purchasing, footprint optimis ation, supply chain fl ow re-design<br />
and transportation rationalis ation. This will be supported by a<br />
best-in-class planning process by customer segment and an<br />
IT system aligned with supply chain segmentation.<br />
– Support Functions Efficiency: leverage scale to drive<br />
savings on support functions, through non-production<br />
purchases rationalis ation, more globalis ation of corporate<br />
functions, simplifi cation of business and country level set-up,<br />
and implementation of acquisition synergies. At the same time,<br />
the company will continue to invest in commercial presence<br />
and research and development to support future growth. Total<br />
R&D expenses to sales ratio is expected to move towards 5%<br />
of sales going forward.<br />
– Planet & Society Barometer: maintain best-in-class<br />
standard in environmental sustainability and social<br />
responsibility. Management compensation is partly tied to<br />
barometer performance.<br />
2011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC<br />
19<br />
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