Connect - Schneider Electric
Connect - Schneider Electric Connect - Schneider Electric
1 DESCRIPTION OF THE GROUP, AND ITS STRATEGY, MARKETS AND BUSINESSES R&D STRATEGY and price level. The available markets are vast with noteworthy potential applications in sectors such as carpeting, car equipment and electronics. Production will begin shortly with the start of the Avantium pilot plant. This equipment – with a 40 tonne annual capacity – was opened in December and fi nanced with money from a consortium of investors, including EUR2.5 million from Aster Capital, convinced of the value of the Company‘s proposed advances in relation to green plastics. A deep commitment within the R&D community Schneider Electric plays an active role in the French and international R&D community, notably in defi ning strategic R&D programmes and in evaluating projects currently under way or submitted to France’s business clusters, France’s national research agency or European organisations such as FP7, ITEA (Information Technology for European Advancement), KIC (Knowledge Innovation Community), InnoEnergy and PPP E2B (Public-Private Partnership on Energy-Effi cient Buildings). The two main business clusters include Minalogic, specialised in microtechnologies, nanotechnologies and embedded software and Tenerrdis, which focuses on new energy technologies and renewable energies. 30 2011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC Schneider Electric is involved in the main skills network, the Organic Electronic Association, and is a promoter of “green electronics” in relation to its WG-Green working group. It heads up the “Intelligent Product” unit for the Plastipolis business cluster, and participates in discussions with the French scientifi c community in the context of the Organic electronics research group. Large area electronics also provide an opportunity for innovation for Group products: this technology is likely to bring greater fl exibility in design, as well as space gains and new functions on the surface of electronic products: printed buttons, autonomous screens, etc. Schneider Electric is also a member of the EMMI (European Multifunctional Materials Institute) support group, whose main objective is to serve as a common platform for its 15 academic members in seven European countries to defi ne and execute research or educational projects in the area of multifunctional materials. EMMI enables different communities to share views about functional ceramics and organic-inorganic hybrid materials, etc. Environmental issues play a key role in much of the members’ resulting work: examples include projects to design new materials or systems to reduce electrical consumption, projects to replace toxic components and a project to develop hypersensitive gas sensors. In this context, Schneider Electric is supporting a thesis begun in 2009, and is backing two thesis subjects for 2011.
4. Organisational simplicity DESCRIPTION OF THE GROUP, AND ITS STRATEGY, MARKETS AND BUSINESSES ORGANISATIONAL SIMPLICITY AND EFFICIENCY and efficiency The reorganisation of the Group has naturally led Schneider Electric to adapt its organisation so as to have a focus in line with its strategic importance at any time, in any country and in any business. The implementation of the new organisation was fi ne-tuned in early 2011, and was accompanied by a wide-ranging corporate culture initiative. Designed for introduction alongside the reorganisation, the One company programme has, in particular, facilitated the rapid integration of acquisitions, notably that of Areva’s distribution arm, which led to the creation of the Group’s Energy business (renamed Infrastructure end of 2011). It is also contributing to the establishment of a common corporate culture within the Group. 4.1 An organisation focused on end markets The year 2011 was dedicated to optimising the operation of the organisational model rolled-out the previous year, the objective being to pursue the advances of the three major changes from the Company’s One programme: • within the scope of the 1 Solution Provider change, the fi ve business lines continued to adapt their organisation to reinforce the closeness of their relationship with the strategic customer segments related to the lines, whether on the level of different countries where the Group is present or at a central level. In the same way, they pursued the development of specifi c offers for these various end customer segments with priority attention given to the development of “integrated solutions, systems and services” offer types; • within the scope of the 1 Leader in New Economies change, the efforts for rollout of functions and resources, with a key role in the design of specifi c offers for the new economies, were pursued and emphasised. The role and the scope of responsibility for Global Functions continued to be strengthen, conforming to the road map defi ned within the framework of the Company programme; • streamlining back offi ce functions and standardisation of information system platforms were pursued within the scope of the 1 Company change. Dual responsibility – products and customers Schneider Electric is structured into fi ve businesses. Each of the businesses has a dual responsibility in terms of its product lines and end-customer segments. This dual responsibility for each business responds to the need to be able to excel simultaneously in two areas: selling products, which requires clear technological leadership, and selling solutions, which means building close customer relationships and acquiring a detailed understanding of end users’ needs. This shift towards solutions is a major focus of the One company program. Each of the fi ve businesses manages its R&D, Marketing and Sales teams and has responsibility for its global results. A number of back-offi ce functions such as fi nance, human resources, IT systems and marketing are handled by the Global Functions, which have a governance role and provide services internally. These fi ve activities cover the following business areas: • Power, which includes the activities of Low Voltage (electrical distribution), LifeSpace (wiring devices and associated interface devices) and Renewables (conversion and connection to the grid) further to the transfer of Medium Voltage to the Energy business in 2011 (see below); the business is in charge of the end-customer segments Residential and Marine when it relates to solutions integrating the offers of several activities from the Group; • Infrastructure, created in 2011 and previously named Energy, combines all Medium Voltage activities including those from Areva Distribution, as well as Telvent; the business is in charge of the end-customer segments Oil and Gaz and Utilities when it relates to solutions integrating the offers of several activities from the Group; • Industry, which includes Automation & Control and three endcustomer segments: OEMs, Water Treatment and Mining, Minerals & Metals when it relates to solutions integrating the offers of several activities from the Group, as well as Custom Sensors & Technologies business (Sensors & Automatives), grouped under Industry from 2011; 2011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 31 1
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4. Organisational simplicity<br />
DESCRIPTION OF THE GROUP, AND ITS STRATEGY, MARKETS AND BUSINESSES<br />
ORGANISATIONAL SIMPLICITY AND EFFICIENCY<br />
and efficiency<br />
The reorganisation of the Group has naturally led <strong>Schneider</strong> <strong>Electric</strong> to adapt its organisation so as to have a focus in<br />
line with its strategic importance at any time, in any country and in any business.<br />
The implementation of the new organisation was fi ne-tuned in early 2011, and was accompanied by a wide-ranging<br />
corporate culture initiative.<br />
Designed for introduction alongside the reorganisation, the One company programme has, in particular, facilitated<br />
the rapid integration of acquisitions, notably that of Areva’s distribution arm, which led to the creation of the Group’s<br />
Energy business (renamed Infrastructure end of 2011). It is also contributing to the establishment of a common<br />
corporate culture within the Group.<br />
4.1 An organisation focused on end markets<br />
The year 2011 was dedicated to optimising the operation of the<br />
organisational model rolled-out the previous year, the objective<br />
being to pursue the advances of the three major changes from the<br />
Company’s One programme:<br />
• within the scope of the 1 Solution Provider change, the fi ve<br />
business lines continued to adapt their organisation to reinforce<br />
the closeness of their relationship with the strategic customer<br />
segments related to the lines, whether on the level of different<br />
countries where the Group is present or at a central level. In the<br />
same way, they pursued the development of specifi c offers for<br />
these various end customer segments with priority attention<br />
given to the development of “integrated solutions, systems and<br />
services” offer types;<br />
• within the scope of the 1 Leader in New Economies change, the<br />
efforts for rollout of functions and resources, with a key role in the<br />
design of specifi c offers for the new economies, were pursued and<br />
emphasised. The role and the scope of responsibility for Global<br />
Functions continued to be strengthen, conforming to the road<br />
map defi ned within the framework of the Company programme;<br />
• streamlining back offi ce functions and standardisation of<br />
information system platforms were pursued within the scope of<br />
the 1 Company change.<br />
Dual responsibility – products and customers<br />
<strong>Schneider</strong> <strong>Electric</strong> is structured into fi ve businesses. Each of the<br />
businesses has a dual responsibility in terms of its product lines and<br />
end-customer segments.<br />
This dual responsibility for each business responds to the need<br />
to be able to excel simultaneously in two areas: selling products,<br />
which requires clear technological leadership, and selling solutions,<br />
which means building close customer relationships and acquiring a<br />
detailed understanding of end users’ needs.<br />
This shift towards solutions is a major focus of the One company<br />
program.<br />
Each of the fi ve businesses manages its R&D, Marketing and Sales<br />
teams and has responsibility for its global results.<br />
A number of back-offi ce functions such as fi nance, human<br />
resources, IT systems and marketing are handled by the Global<br />
Functions, which have a governance role and provide services<br />
internally.<br />
These fi ve activities cover the following business areas:<br />
• Power, which includes the activities of Low Voltage (electrical<br />
distribution), LifeSpace (wiring devices and associated interface<br />
devices) and Renewables (conversion and connection to the grid)<br />
further to the transfer of Medium Voltage to the Energy business in<br />
2011 (see below); the business is in charge of the end-customer<br />
segments Residential and Marine when it relates to solutions<br />
integrating the offers of several activities from the Group;<br />
• Infrastructure, created in 2011 and previously named Energy,<br />
combines all Medium Voltage activities including those from<br />
Areva Distribution, as well as Telvent; the business is in charge<br />
of the end-customer segments Oil and Gaz and Utilities when it<br />
relates to solutions integrating the offers of several activities from<br />
the Group;<br />
• Industry, which includes Automation & Control and three endcustomer<br />
segments: OEMs, Water Treatment and Mining,<br />
Minerals & Metals when it relates to solutions integrating the offers<br />
of several activities from the Group, as well as Custom Sensors &<br />
Technologies business (Sensors & Automatives), grouped under<br />
Industry from 2011;<br />
2011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC<br />
31<br />
1