APC 2006 Annual Report Download - page 27

Worldclass R&D
The Group’s R&D investments put it among the top
world players in its businesses.
Around a third of the R&D budget is devoted to main-
taining the product ranges, increasing quality levels,
reducing raw material, component and process costs,
and adapting products to new environmental regula-
tions such as RoHS and WEEE–a Schneider Electric
priority.
Nearly two-thirds go to innovation and new product
research. The objective is to offer products and solu-
tions that deliver more and more value to users.
An international base
Schneider Electric has internationalized its R&D base
to put R&D centers closer to customers, innovate next
to needs and adapt production processes to local con-
ditions.
In addition to France, the Group has highly effective
R&D teams with some 1,500 people in Germany, the
US and Japan.
New centers in Bangalore, India and Shanghai, China
had nearly 700 employees at the end of 2006.
The Group works with some fifty university and private
laboratories and has forged technological partnerships
with manufacturers offering strategically related
expertise. These include Toshiba for speed drives, Fuji
Electric for low voltage circuit breakers, Tata Elxsi for
embedded software and IBM for quality control and
traceability solutions for the microelectronics and food
and beverage industries.
Sixty centers dedicated to applications such as eleva-
tors, packaging, textiles and data centers support this
system. Their mission is to develop the best possible
solutions with customers, with input from contractor
and systems integrator partners.
Lastly, Schneider Electric Ventures performs technolo-
gy intelligence and looks to acquire new competen-
cies. The fund invests in start-ups whose technologies
will form the core of the Group’s future lineup. These
include software, network and communication elec-
tronic components, radio-frequency identification
(RFID) solutions, network security, voice-data-image
(VDI) systems, radio communication, sensors and
micro-electrical-mechanical systems (MEMS).
Innovation: a priority
Around 5% of revenue devoted to R&D
(500 million in 2006).
6,500 R&D team members in 25 countries.
Cooperation agreements with more than 50
prestigious laboratories.
A venture capital fund focused on advanced
technologies.
Plentiful and
promising areas of research
The Group has stepped up research and innovation in
digital electronics, power electronics, mechatronics,
software and Internet-based technologies.
January 2006: Electropole, the world’s leading power
protection and control R&D center opens in Grenoble,
France. More than 1,000 people work at Electropole,
which offers 35,000 square meters of laboratories and
design offices.
February 2006: Launch of the Airlink lineup based on
radio technology for installation and monitoring sys-
tems.
March 2006: France’s newly created Industrial Inno-
vation Agency (AII) selects Schneider Electric’s
HOMES project among its first five programs. In coop-
eration with world leaders in lighting, building control,
shutters, HVAC and other systems, Schneider Electric
will develop technologies and solutions to actively con-
trol energy. Designed to reduce energy consumption
by up to 20% in new and existing buildings, these solu-
tions will confirm Schneider Electric’s ambitions in the
energy efficiency market.
May 2006: The Schneider Electric-led Minalogic
industrial cluster is certified. Bringing together
research and manufacturing skills in the Grenoble
region, Minalogic develops embedded intelligence
technologies that will form the core of future smart sys-
tems for electrical distribution and automation.
September 2006: Square D introduces the Intelligent
Load Center in the US, which allows users to connect
to an alternate power source and effectively manage
loads connected to that source. This opens the door to
distributed power generation and smart consumption
management.
October 2006: The Information Technology for Euro-
pean Advancement (ITEA) program attributes its
Achievement Award to the SIRENA project led by
Schneider Electric. SIRENA is designed to develop
technologies that facilitate systems integration in real
time. It leverages emerging web services technology
for plug and play connection, easier upgrading and
simplified maintenance.This technology will be used in
industrial applications, buildings, homes and water
treatment.
November 2006: Schneider Electric Ventures invests
in Semisouth, an American start-up specializing in sil-
icon carbide (SiC) materials and electrical components
that will drive very high yield power conversion prod-
ucts in the future.
December 2006: Schneider Electric and France’s
Laboratoire d'Electronique de Technologie de l'Infor-
mation (LETI) sign a cooperation agreement to devel-
op new MEMS silicon technologies and components
and create a dedicated joint laboratory.
Global, selective purchasing
Purchases correspond to around 40% of consolidated
revenue and play a crucial role in the Group’s techni-
cal and business performance. To use this lever to the
fullest, the Group has decided to globalize 75% of pur-
chases and increase local sourcing in emerging mar-
kets as part of its program to re-balance costs and
revenue.
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