APC 2012 Annual Report Download - page 33

2012 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC 31
OVERVIEW OF THEGROUP’S STRATEGY, MARKETS AND BUSINESSES
1
ORGANISATIONAL SIMPLICITY ANDEFFICIENCY
•Mutualization: The most signifi cant organizational evolution
in2012 involved the creation of 3Operational Regions: Global
Operations, North America and China. These Regions are
split into 17 zones with empowered Zone Presidents. These
changes also strengthened the role of the Country Presidents,
which are appointed in each country to oversee all delegated
businesses (and associated income statements), monitor the
full transversal P&L of the country, deploy Schneider Electric’s
strategy in the country (including all local cross-functional topics
such as increasing cross-selling among businesses) and pooling
of local back-offi ce resources. These resources are gradually
brought together in each country or region under the C ountry
President’s supervision and can include multiple local support
functions ranging from administration to project execution,
depending on the situation. In addition, the Country President
serves as the mutualization driving force and Schneider Electric’s
main representative in the country, most notably in dealings with
employees and local offi cials.
•Globalization: M ajor support functions that are not specifi c to
a given country or business are gradually globalized to increase
experience and leverage a signifi cant scale effect around cost
and service. Manufacturing and supply chain operations, areas
of shared services or expertise (such as fi nance or human
resources), information systems, strategy & innovation as well
as certain marketing functions (e.g. web services) are now
included within the Group’s Global Functions. The various Global
Functions have followed their structuring and rollout approach at
a global level and since early 2011. Global Supply Chain was a
key topic over the course of2012, focusing on the areas of Global
Productivity, Customer Differentiation and Customer Satisfaction.
Geographic dimension and legal structure
The Group’s goal is to establish, where ever possible, a single legal structure in each country.
Schneider Electric’s simplifi ed legal organization chart is as follows:
Schneider Electric
Industries SAS Boissière Finance
Operational
companies
Schneider
Electric SA
The list of consolidated companies is provided in note32 to the
consolidated fi nancial statements (see pages 219 and following).
Boissière Finance is the Group’s centralized cash-management
structure; it also centralizes hedging operations for all subsidiaries.
5.2 A more modular approach to information systems
In2012, Schneider Electric launched a 3-year strategic IT plan in
line with the Company strategy and Connect company program.
The IT Strategy for Schneider Electric is comprised of four
strategic directions:
•Standardize where it creates value: six IT domains as modular
as possible and which can be easily integrated for agility and
focused differentiation;
•Make Diversity Efficient: ERP federation with coordinated
data achieved by minimizing the number of ERP migrations by
replacing only when necessary, ultimately aiming for a consistent
ERP landscape per country;
•Working Smarter: Leverage a global IT platform to provide an
interface accessible anywhere and anytime by end users;
•Run IT as a Business: Clear governance rules to run IT with
effi ciency, speed and security.