The document discusses the partnership between system integrators and automation manufacturers. It argues that both parties need each other to best serve customers. When the partnership works well, with openness, transparency, trust and communication, it can provide great value for customers. The document provides an example of a successful collaboration between Schneider Electric and a system integrator, George T. Hall Co., to upgrade the PLC and I/O for a gold mine's processing plant. The project was completed on time and without issues, demonstrating the benefits of the manufacturer-integrator partnership.

1. Can System
Integrators and
Automation
Manufacturers be
True Partners?
Greg Bodenhamer
April 27, 2012
CSIA Executive Forum
Scottsdale, AZ

2. More than 175 years of history
Energy
2010
Acquisition of Areva’s distribution
1999 Management
activity (in process)
Power &
Groupe Schneider becomes 2008
Schneider Electric,
Control
focused on Power & Control
Acquisition of
Xantrex
1996 2007
Acquisition of
Modicon, historic leader in
APC corp. and Pelco
Automation, becomes a
Schneider brand 2005
Acquisition of
1991 Power Measurement Inc.
Steel Square D joins
Groupe Schneider
2003-2008
Targeted acquisitions in wiring devices
Industry 1988
and home automation
(Lexel, Clipsal, Merten, Ova, GET, etc.)
Telemecanique joins 2003
Groupe Schneider Acquisition of
1836 T.A.C
1975
Creation of Schneider 2000
Merlin Gerin joins
at Le Creusot, France Acquisition of
Groupe Schneider MGE UPS Systems
19th century 20th century 21st century
2

3. Schneider Electric – the global specialist
in energy management
Balanced geographies – FY 2011sales
billion $ sales Western
North Europe
America 32%
23%
Asia
Pacific
Rest of 27%
of sales in new economies World
18%
Diversified end markets – FY 2011 sales
people in 100+ countries Utilities & Infrastructure 24%
Industrial & machines 22%
Data centres 16%
Non-residential buildings 29%
Residential 9%
of sales devoted to R&D
3

4. How Big is the Solutions Market?
US Automation Services Sales
in billions of US dollars
System
Integrator
$4.2
Provided
Automation
$8.2 Supplier
Provided
Services Growth rate project at 7.6% CAGR
Plenty of room at the table for us all!!
Schneider Electric -- January 2012 Source: ARC Supplier Provided Services Outliook 5

5. Country deployment
Global Footprint of System Integrator Partners
status in Sept 9th 2011
Alliance Partners
Registered 800
# of Countries 37
PlantStruxure Certified
Alliance Partners
21
# of Countries (*) 6
Engineers 130
Schneider Electric - Industry Business – Plant Solutions – Global SI team – Georges Ailloud 6

6. How can the System Integrator
and the Automation Vendor
be partners??
7

7. Answer:
Unite in our approach to put the
customer first!!
8

8. Solution Approach
Typical Customer
Questions
● Customers want solutions
How can I
increase my ● To their business problems
return on
investment?
● From reliable suppliers who bring real value
How can I
reduce my ● Supported over the complete scope and lifetime
Time to of their projects
Market?
How can I apply
my standards
consistently?
9

9. Customer Service Triangle
Offers
End User
Logistics
Integration
and Support
10

10. Customer Service Triangle
Offers
● Market expectations
● Build a quality product that works and is available when needed
● Support for the product, solution, and the implementing partner
● Innovative and accepted offers and solutions
● Scale, financial viability, and geographic reach when customers demand
11

11. Customer Service Triangle
Logistics and
Support
● Market expectations
● Material availability – innovative approaches to supply chain challenges
● Front line technical product support
● Intimate relationships with key End Users
● Help drive market acceptance of manufacturer solutions
● Financial buffering
12

12. Customer Service Triangle
Integration
● Market expectations
● Customer process (business) knowledge
● Localized, daily customer engagement
● Rapid deployment for emergency service or quick turn engineering needs
● Quality solutions with measurable benefits
● Continuous process improvement and ongoing support
13

13. The Partnership Works
Manufacturer
End User
System
Distributor
Integrator
● We all need each other!
● SI needs an innovative, market accepted, and readily available solution to
implement and solve his customer’s needs
● Manufacturer needs an experienced and qualified execution partner and
market access to that partner and the End User
● Distributor needs to represent a high quality product that is widely
accepted and has a network of solutions providers that will work with them
to nurture the customer.
14

14. The Partnership Works
Manufacturer
● Targeting and Cooperation
● Three strategies to tackle the market
End User
System
1. Geographic
Distributor
Integrator 2. Vertical market
3. Named account
● How do we make it work?
● Openness
● Transparency
● Trust
● Respect
● Communication
●Integrity!!
15

15. The Partnership Works
Manufacturer
End User
System
Distributor
Integrator
● The expectations must be…..
● Simple
● Self policing
● Customer focused
Good fences make good neighbors!
16

16. The Partnership Works
When the partnership works it can be
worth its weight in GOLD!!!
Example: Geographic & Vertical Market
17

17. PLC System Upgrade
A collaboration with Schneider Electric and George T. Hall Co., Inc
Vertical Expertise Example.
Gold Mine Hot Standby
Controller & I/O Upgrade

18. Who is George T. Hall Co.
• Founded in 1932, Headquartered in
Anaheim, CA.
• Acquisition of Applied Industrial Controls
(Nevada based System Integrator) in 2006.
• Employs 60 people.
• Offices in Nevada and Southern California.
• Core competencies include:
o Schneider Electric Automation Solutions
o Mining - Water / Wastewater
o Combustion Control Solutions
19

19. Gold Mine Hot Standby Controller & I/O
Upgrade
Gold Mine
Founded in 1920s.
Leading gold producer in the world (5.2 million oz in 2008).
Equates to $6.2 billion in revenue, 2008.
Employs over 30,000 worldwide.
Operates some of the largest Open Pits in the US
20

20. Gold Mine Hot Standby Controller & I/O
Upgrade
Synopsis of existing Processor Equipment
• 12 ea. Modicon 984-785E Hot Standby system on D908
communication network controlled Mill 6 processing plant.
Managed all critical interlocks for the facility.
• Back in the 80’s, Mill 6 was one of the largest hot standby system
in the US.
Major concerns with Hot Standby controller upgrade
• Unplanned downtime – Gold at the time was quickly rising in
value, now it’s at $1,600+ per oz. Any unplanned down time would
be very visible and directly related to the conversion.
• The conversion required a switch in technology from D908 to
Ethernet based hot standby.
21

21. Gold Mine Hot Standby Controller & I/O
Upgrade
Synopsis of existing I/O equipment
• 20 racks of 800 series I/O
• 100 + I/O modules
. • 1200 I/O points
• 4 days allotted for conversion to quantum
hardware
22

22. Gold Mine Hot Standby Controller & I/O
Upgrade
Responsibilities
Schneider Electric Scope – Hot Standby and CPU
upgrade
• Develop Bill of Materials and scope of work for hot standby PLC
upgrade
• Develop Factory Acceptance test for customer review at Schneider
Electric facility
• Perform complete testing for customer approval
George T. Hall Scope – I/O upgrade
• Site evaluation to determine field demo and installation
requirements
• Develop final BOM for quantum I/O adapter cables and rack
conversion device
• Develop Factory Acceptance test for customer review at GTH facility
23

23. Gold Mine Hot Standby Controller & I/O
Upgrade
So What Happened?
• Sucessful commissioning of
all 12 Modicon Quantum Hot
Standby nodes in two
weeks.
• All 12 nodes executed with
no issues.
• All I/O installed and
operational in 4 days
• Completed startup
successfully in alotted time.
Schneider Electric - Industry Business – Plant Solutions – Global SI team – Georges Ailloud 24

24. System Integrator / Vendor Teaming
Really – the results of the upgrade were amazing. Here you will see the before and after
pictures. Advantage
Success:
Customer required
Application Knowledge Schneider Electric
Local Presence George T Hall
Logistics Support George T Hall and Wedco
Financial Scale Schneider Electric
Before After
Schneider Electric - Division - Name – Date 25

25. a winning
combination
Your process know-how Schneider Electric Alliance that gives you a competitive advantage.
Schneider Electric - EU automation – Global SI team – David Orgaz 26