APC 2011 Annual Report Download - page 21

192011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC
DESCRIPTION OFTHEGROUP, ANDITSSTRATEGY, MARKETS ANDBUSINESSES
1
GLOBAL SPECIALIST IN ENERGY MANAGEMENT
Connect, Schneider Electric’s new company programme
(2012-2014)
The new 3-year plan covering 2012 - 2014 includes four
majorinitiatives:
Connect
for Efficency
Connect
Everywhere
Connect
to Customers
Connect
People
• Connect to Customers: this initiative aims at further improving the
performance of its business models in order to be a leader in products
and in solutions, and to adapt the different dimensions of the customers
and partners experience with Schneider Electric when they interact
with the Group:
–Partner excellence: continue to grow in products in a win-
win relationship with partners by creating new opportunities
for Distributors and Partners, leveraging the strength of One
Schneider Electric and leading product innovation. This
initiative will further reinforce the Group’s leadership position
in the Product Business.
–Solution excellence: leverage the Group’s unique value
proposition with its solution capabilities, improve equipment
cost competitiveness, reinforce execution while being more
selective on projects, and boost service sales. This initiative will
temporarily impact the Solution Business’s growth but will raise
signifi cantly its profitability and return profi le.
–Tailored supply chain: bring the supply chain to a new level
of excellence by aligning organis ation to customer needs and
providing differentiated manufacturing and delivery models for
each customer segment. This initiative should lead to higher
customer satisfaction and inventory efficiency.
• Connect Everywhere: this initiative is designed to identify key
investment areas in new economies and create new opportunities in
mature countries to be a leader in both types of geographic areas.
–Grow in new economies: expand geographical coverage by
increasing the Group’s presence in the fast-growing second-
tier cities and further penetrate these 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.
–Grow in mature countries: grow activities that develop
independently from traditional capex trends with a focus
on opex-driven opportunities and new businesses. This
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: the target of this transformation is to create a culture
and an environment for the Group’s employees’ development and
performance.
–Engaging leaders: train leaders with Schneider Electric
University and promote Diversity
–Engaged individuals: support employee development via
training, empowerment and cross-business mobility
–Engaging workplace: step-up collaboration & communities,
regroup locations, ensure safety at work, develop the
Schneider Way
• Connect for Effi ciency: this initiative includes the actions aiming
at writing a new chapter in the Group’s history of profi table and
responsible growth.
–Industrial Productivity: raise the bar with tailored supply
chain and drive signifi cant industrial productivity through
purchasing, footprint optimis ation, supply chain fl ow re-design
and transportation rationalis ation. This will be supported by a
best-in-class planning process by customer segment and an
IT system aligned with supply chain segmentation.
–Support Functions Efficiency: leverage scale to drive
savings on support functions, through non-production
purchases rationalis ation, more globalis ation of corporate
functions, simplifi cation 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 to support future growth. Total
R&D expenses to sales ratio is expected to move towards 5%
of sales going forward.
–Planet & Society Barometer: maintain best-in-class
standard in environmental sustainability and social
responsibility. Management compensation is partly tied to
barometer performance.
Connect, Schneider Electric’s company programme for the 2012-2014 period, is another major
step in the consistent deployment of the Group’s strategy. With Connect, the Group will extend
the strong foundation of One to all its strategic levers: products and solutions, mature and new
economies, people, while continuing to drive efficiency at all levels.