APC 2015 Annual Report Download - page 18

2015 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC16
OVERVIEW OF THE GROUP’S STRATEGY, MARKETS AND BUSINESSES
1GROUP STRATEGY ANDMARKETOPPORTUNITIES
the use of advanced analytics and mobile technology to unlock
higher effi ciency and profi tability, as well as improved security . For
example, real time data analytics allows for predictive maintenance
and improved Asset Performance Management, while augmented
reality helps maintenance operators improve productivity and
minimize downtime. Together with OT sensors and control devices,
industrial software is the core of smart factories. With the acquisition
of Invensys, Schneider Electric has signifi cantly strengthened its
industrial software offering, especially in operations management, for
process management as well as industrial automation applications.
In addition to continuously innovating and digitizing our offerings,
Schneider Electric aims to provide the best-in-class digital
experience to our customers and partners, such as a 24x7
dynamic sales & marketing channel and a tailored customer service
experience. Digitization is at the core of the Group’s strategy and
Schneider Electric is committed to support the digital transformation
of its customers and its partners.
Urbanization, industrialization and digitization are creating many
new opportunities for Schneider Electric, from the growing needs
in terms of automation and connectivity to the massive entitlement
of energy effi ciency that recquires an optimized use of resources.
Schneider Electric will continue to play a leading role in the
movement toward a more effi cient, sustainable, and connected
world.
1.3 Group strategy
As a leader in energy management and automation, Schneider
Electric is at the forefront to capture these megatrends with an
extensive energy management and automation offer that it delivers
globally through complementary business models and access
channels.
Leveraging the world’s new energy challenges
The quest for economic growth and development is straining our
planet’s resources. T he world is facing many energy challenges:
scarcity of natural resources, CO2 emissions reduction requirements,
integration of unpredictable and intermittent renewable sources of
energy, higher in peaks of consumption and others. In its World
Energy Outlook, the International Energy Agency (IEA) estimates
that the various energy effi ciency policies that are being introduced
in many countries across the world could account for about 70%
of the reduction in projected global energy demand in 2035,
and 68% of the cumulative global savings in CO2 emissions. This
compares with a 46% increase in global energy demand by2035
if nothing changes.
Boosting e nergy e ffi ciency i n the three major energy-consuming
sectors (industry, buildings and residential ) could help a country
reduce its overall energy use by 15% to 25% –in effect, providing
a very attractive business case in both mature and new economies.
e nergy e ffi ciency also offers an excellent payback: according to
the IEA, every euro invested, in particular in buildings, would yield
EUR1.60 in energy savings. Schneider Electric has developed a
wide range of products and solutions that will provide homeowners
and managers of industrial plants, data centers, infrastructure and
buildings with signifi cant levels of energy effi ciency and savings.
Our building automation solutions can save up to 30% of a
building’s energy needs, signifi cantly improving a company’s carbon
footprint, while deliveringsavings on its charges, with limited upfront
investment.
Our smart grid solutions help electricity producers and distributors
to improve the effi ciency of their assets and to offer a better service
to their customers . This also contributes to the improvement in
the operation of the grid and the reduction in investment in new
generation capacity.
Serving our customers’ increasing need for
automation in key market segments
The rapid industrialization taking place in new economies and the
need to modernize existing industrial facilities in mature economies
create signifi cant opportunities for growth. Coupled with this, large
corporations are looking to improve operational effi ciency across
the whole enterprise, while at the same time improving security and
safety for operators and the environment.
With the recent acquisition of Invensys, Schneider Electric enjoys
a strong position both in discrete and process automation and is
well-placed to address these challenges. We leverages the Group
extensive software capabilities to help customers in key industries,
such as mining, oil & gas, food-processing or cement plants,
improve their productivity and operational effi ciency, reduce their
energy consumption and optimize their use of resources.
Schneider Electric also helps machine manufacturers in markets
such as materials handling or packaging develop reliable, fast,
precise and effi cient machines. Our application design engineers
optimise the machine’s performance and reduce the length of the
design cycle, shortening the machine builder’s time-to-market.
Supporting the digital transformation
ofcustomers and partners
The convergence of operational technology (OT) and information
technology (IT) creates many new opportunities for customers.
It makes their life easier, increases productivity, creates new
business models that provides new value propositions for their own
customers. Digitization is at the heart of their future growth. Through