APC 2007 Annual Report Download - page 26

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The Schneider Business Innovation
System: more ideas, better selected
cross-functional projects and more
quickly available solutions
In 2007, Schneider Electric formalized a broader approach
to innovation encompassing both technology and market
aspects (meeting new needs, marketing, customer serv-
ice). This approach is designed to make Schneider Electric
even more creative and responsive so that the Group can
deliver breakthroughs to its core markets.
In 2007, Schneider Electric officially launched the Schnei-
der Business Innovation System.
The basic idea is to spur innovation by observing and an-
alyzing the world around us from four angles:
1/ Changes in customer needs and anticipation of future
priorities.
2/ Major sociological trends (mobility, permanent connec-
tion via new communication and IT resources, energy ef-
ficiency, etc).
3/ Technological breakthroughs that could influence
Schneider Electric’s businesses.
4/ Process orthodoxy (can we do the same thing differ-
ently?).
Constant monitoring from these four angles brings new
ideas to the surface that are then incubated and analyzed
for potential value and feasibility. This process for bringing
innovative projects to maturity was first deployed in 2007 in
China, a flagship region in light of its vibrancy and growth
potential.
Customer satisfaction:
an integral part of innovation
Responding to customer specifications is a key moment in
the innovation process. To align its response to user ex-
pectations, Schneider Electric analyzes and assesses
each request so that no stone is left unturned in finding an
innovative solution. Improving design quality, offering sim-
plicity through innovation, guaranteeing technical compli-
ance and reducing time to market are ongoing objectives.
To achieve these goals, Schneider Electric involves its host
countries in lineup development. In addition, it increasingly
co-develops or "co-invents" with Global Strategic Accounts,
particularly OEMs.
Schneider Electric is committed to developing and patent-
ing products that can be marketed worldwide to meet de-
mand for product and system interoperability.
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 maintain-
ing the product ranges, increasing quality levels, reducing
raw material, component and process costs, and adapting
products to new environmental regulations such as RoHS,
Reach and WEEE–a Schneider Electric priority.
Nearly two-thirds go to innovation and new product re-
search. The objective is to design and market products and
solutions that deliver more and more value to users.
New products and solutions in 2007 included:
Leverage the benefits of the Group’s multinational/
multilocal scope.
Facilitate the integration of acquisitions and the start up
of new businesses.
Speed innovation in all areas (technology, business and
customer service).
The Group comprises:
4 Operating Divisions
Asia-Pacific Operating Division,
European Operating Division,
International Operating Division.
North American Operating Division,
8 Business Units
Building Automation and Security,
Critical Power & Cooling Services,
Customized Sensors,
Industrial Automation and Control,
Installation Systems and Control.
Power,
Renewable Energies,
Services and Projects,
5 Corporate Divisions
Finance,
Globalization & Industry,
Human Resources,
Quality,
Strategy, Customers & Technology.
Innovation:
a more comprehensive approach
to spur creativity
The in-depth technological changes of today’s world are
having a profound impact on lifestyles and work habits. As
energy efficiency becomes indispensable and automation,
information and communication technologies converge, in-
novation for innovation’s sake is no longer a valid response
to energy issues. Customers are looking less for bells and
whistles than for integrated solutions that will make their
lives easier and optimize costs.
This assessment, made by Schneider Electric’s Innovation
Department (created in November 2006), has become the
cornerstone of the Group’s innovation strategy. A key com-
ponent of this comprehensive approach to innovation is to
acquire the necessary competencies and know-how to in-
tegrate or combine existing technologies. Another is to
focus first and foremost on customers’ current and future
needs, with the goal of giving each customer the world's
very best products, solutions and services. And, at the
same time, of making Schneider Electric ever more inno-
vative for its partners and users.