APC 2013 Annual Report Download - page 30

1OVERVIEW OF THE GROUP'S STRATEGY, MARKETS AND BUSINESSES
COMPANY HISTORY AND DEVELOPMENT
Connect, Schneider Electric’s company program
(2012-2014)
Connect, Schneider Electric’s company program for the 2012-2014 period, is another major step in
the consistent deployment of the Group’s strategy. With Connect, the Group extends 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.
The 3-year plan covering 2012-2014 includes four major initiatives: support the long term growth potential of new economies
in Schneider Electric’sportfolio.
Connect
for Efficency
Connect
Everywhere
Connect
to Customers
Connect
People
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 mature countries.
Connect People: the target of this transformation is to create a
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culture and an environment for the Group’s employees’
Connect to Customers: this initiative aims at further improving
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development and performance.
the performance of its business models in order to be a leader in
Engaging leaders: train leaders with Schneider Electric
–
products and in solutions, and to adapt the different dimensions
University and promote Diversity.
of the customers and partners experience with Schneider
Electric when they interact with the Group:
Engaged individuals: support employee development via
–
training, empowerment and cross-business mobility.
Partner Excellence: continue to grow in products by
–
Engagingworkplace: step-up collaboration &
–
creating new opportunities for Distributors and Partners, in a communities, regroup locations, ensure safety at work,
win-win relationship leveraging the strength of One develop the Schneider Way.
Schneider Electric and leading product innovation. This
Connect for Efficiency: this initiative includes the actions
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initiative will further reinforce the Group’s leadership
aiming at writing a new chapter in the Group’s history of
position in the Product Business.
profitable and responsible growth.
Solution Excellence: leverage the Group’s unique value
–
proposition with its solution capabilities, improve equipment Industrial Productivity: raise the bar with tailored supply
–
cost competitiveness, reinforce execution while being more chain and drive significant industrial productivity through
selective on projects, and boost service sales. This initiative purchasing, footprint optimisation, supply chain flow
will temporarily impact the Solution Business’s growth but re-design and transportation rationalisation. This will be
will significantly raise its profitability and return profile. supported by a best-in-class planning process by customer
Tailored supply chain: bring the supply chain to a new
–segment and an IT system aligned with supply chain
level of excellence by aligning organisation to customer segmentation.
needs and providing differentiated manufacturing and Support Functions Efficiency: leverage scale to drive
–
delivery models for each customer segment. This initiative savings on support functions, through non-production
should lead to higher customer satisfaction and inventory purchases rationalisation, more globalisation of corporate
efficiency. functions, simplification of business and country level
Connect Everywhere: this initiative is designed to identify key
lset-up, and implementation of acquisition synergies. At the
investment areas in new economies and create new
same time, the company will continue to invest in
opportunities in mature countries to be a leader in both types of
commercial presence and research and development to
geographic areas.
support future growth. Total R&D expenses to revenues
ratio is expected to move towards 5% of revenues going
Grow in new economies: expand geographical coverage
–forward.
by increasing the Group’s presence in the fast-growing Planet&Society Barometer: maintain best-in-class
–
second-tier cities and further penetrate these markets with standard in environmental sustainability and social
mid-market segment offerings supported by strong brands responsibility. Management compensation is partly tied to
with wide local coverage. The initiative will continue to barometer performance.
28 2013 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC