Presents Group's New Strategic Ambition and Operational Priorities
Dubai-UAE: 29 April 2012 - Schneider Electric, the global leader in energy management, today announced the group's strategic ambitions and operational priorities under the new 'Connect' program for the period 2012 - 2014.
Aimed at driving performance and efficiency, Schneider Electric's three-year 'Connect' program is conceptualized around four pillars that include 'Connect to Customers', 'Connect Everywhere', 'Connect People', and 'Connect for Efficiency'.
Schneider Electric's latest program builds on the success of its earlier initiative 'One', which re-organized the group into five customer-focused businesses and strengthened the integrated portfolio. In addition to establishing the Group as a global reference for energy management, the 'One' program allowed Schneider Electric to reduce the number of brands and drive operational efficiency for achieving a more refined operation.
The 'One' additionally enabled the Group to became a leading provider of value-added solutions and develop a strong position in new economies. In 2011, Group sales from new economies represented 37 per cent and 39 per cent, marking a significant jump from 2008 when the initiative was launched.
Reflecting on the success of 'One' and offering an insight into 'Connect', Jean-Pascal Tricoire, President and CEO, Schneider Electric, said: "The 'One' program represented a big step forward in the transformation of the Group's profile. The program also laid a solid foundation for our future.
"Moving forward, Connect, our latest program signals another crucial phase in the consistent deployment of our strategy. With Connect, we will extend the strong foundation of 'One' to all our strategic levers: products and solutions, mature and new economies, as well as our people - even while continuing to drive efficiency at a multi-tier levels."
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Connect at a glance
- Connect to Customers: Is aimed to further improve the performance of the Group's business model and position it as a leader in energy management products and solutions.
o Partner excellence: Facilitates continuous growth in products to drive a win-win relationship with partners through creating new opportunities for Distributors and Partners, leveraging the strength of 'One' and leading product innovation. The initiative will further reinforce the Group's leadership position in the Product Business.
o Solution excellence: Leverages the Group's unique value proposition and its solution capabilities, improves equipment cost competitiveness, reinforces execution while being more selective on projects, and boosts service sales. The initiative will temporarily impact the Solution Business's growth but will significantly raise its profitability and return profile.
o Tailored supply chain: Bring the supply chain to a new level of excellence by aligning organization to customer needs and providing differentiated manufacturing and delivery models for each customer segment. The initiative will lead to higher customer satisfaction and inventory efficiency.
Connect Everywhere: Directed to identify key investment areas in new economies and create new opportunities in mature countries to position the Group as a leader in mature and new economies
o Grow in new economies: Expand geographical coverage by increasing the Group's presence in the fast-growing second-tier cities and further penetrate the markets with mid-market segment offerings supported by strong brands with wide local coverage. The initiative will continue to support the long term growth potential of new economies in Schneider Electric's portfolio.
o Grow in mature countries: Grow activities that develop independently from traditional capex trends with a focus on opex-driven opportunities and new businesses. The strategy includes developing installed base and energy management services, capturing the smart grid opportunity while investing in new businesses in areas such as electric vehicle charging infrastructure, home automation and carbon management. With this initiative, the Group aims to create its own growth momentum in the mature countries.
Connect People: Creating a culture and an environment for the Group's employees' development and performance:
o Engaged leaders: Train leaders with Schneider Electric University and promote diversity.
o Engaged individuals: Support employee development via training, empowerment and cross-business mobility.
o Engaged workplace: Step-up collaboration and communities, regroup locations, ensure safety at work, develop the Schneider Way.
Connect for Efficiency: A new chapter in the Group's history of profitable and responsible growth:
o Industrial Productivity: Raise the bar with tailored supply chain and drive significant industrial productivity through purchasing, footprint optimization, supply chain flow re-design and transportation rationalization. Supporting the initiative by a best-in-class planning process focused on each customer segment and an IT system aligned with supply chain segmentation.
o Support Functions Efficiency: Leveraging scale to drive savings on support functions, through non-production purchases rationalization, more globalization of corporate functions, simplification of business and country level set-up, and implementation of acquisition synergies. At the same time, the company will continue to invest in commercial presence and research and development (R&D) to support future growth. Total R&D expenses to sales ratio is expected to move towards five per cent of sales going forward.
o Planet and Society Barometer: Maintain best-in-class standard in environmental sustainability and social responsibility. Management compensation is partly tied to barometer performance.
About Schneider Electric
As a global specialist in energy management with operations in more than 100 countries, Schneider Electric offers integrated solutions across multiple market segments, including leadership positions in Utilities & Infrastructures, Industries & Machine Manufacturers, Non-residential Buildings, Data Centres & Networks and in Residential. Focused on making energy safe, reliable, efficient, productive and green, the Group's 130,000 plus employees achieved sales of 22.4 billion euros in 2011, through an active commitment to help individuals and organizations make the most of their energy. www.schneider‑electric.com
For further information, please contact:
Schneider Electric
Sakina Tazun
Tel: +971 4 7099 624
Email: sakina.tazun@schneider-electric.com
APCO Worldwide (JiWin Public Relations)
Mathilda Saad
M: +971 55 6999 890
Tel: +971 4 361 3879
Email: msaad@apcoworldwide.com
Razi Hassan
(T) +971 4 3613598
(M) +971 553786543
(F) +971 4 3688001
rhassan@apcoworldwide.com
© Press Release 2012
