Aaron Davis - Schneider Electric - Presentation for young leaders

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Presentation of Aaron Davis - Chief Marketing Officer, Member of the Executive Committee , Schneider Electric to young leaders from 42 countries during the 6th Economic Forum of Young Leaders.

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Aaron Davis - Schneider Electric - Presentation for young leaders

  1. 1. A message to the leaders oftommorowAaron Davis, Chief Marketing OfficerSeptember, 2011
  2. 2. ●1●Wife 9 Bikes! ●5 Kids of unknown extraterrestrial originSchneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 2
  3. 3. Schneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 3
  4. 4. 1) We are in a “New Normal” re: energyThe earth at night Even sea-level rises at lower level of estimates will cost multiple times more than “global stimulus “ “Human history becomes more and more a race between education and catastrophe…” HG Wells Schneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 4
  5. 5. Primary Effects and Observations Coal burned Coal particulates inhaled Coal minedSchneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 5
  6. 6. Secondary Effects and ObservationsSchneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 6
  7. 7. ●PyrocumulonimbusSchneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 7
  8. 8. Educating on generational and geographical stakes "This is a marked difference from the normal advertising we see coming out of energy companies as they scramble to convince us they are trying to save the planet…bringing people back into the equation, not something most energy companies consider to be their responsibility.Schneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 8
  9. 9. Schneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 9
  10. 10. Schneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 10
  11. 11. The 3 Phases of Society Response to threat Technology1500010000 5000 Cost 0 ROI Investigation Prevention Mitigation -5000 Altruism-10000-15000 Policy We are here… Schneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 11
  12. 12. 3) We have 10 years… quickest wins: 50% of C0 cut The 2 must come from behaviourto fix 4 critical problemsGeneration: Transmission: Buildings and Process: Point of Use:> 10 years to fix > 10 years to fix 1- 5 years to fix 1-5 years to fixProblems:CO2 Emissions Stranded Capacity Stranded Capacity EfficiencyTransmission Efficiency Capacity Constraints Service Entrance Capacity and IntegrationCapacity Constraints Focusing on point of use architecture provides fastest impact and frees upstream capacity through Power Plant to Plug OptimizationSchneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 12 Source: Hot, Flat and Crowded: Tom Friedman
  13. 13. I=P A T x x The Ehrlich Equation: Foundation of modern science of evaluating human-caused environmental impactSchneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 13
  14. 14. Today’s annual impact $8,000 / person28,000,000,000 Tons CO2 Today Impact Affluence GDP / person I=P A T x x Population Technology Impact / GDP 6,800,000,000 0.5 Ton CO2 / $ The Ehrlich EquationSchneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 14
  15. 15. Projected 2050 annual impact: no technology improvement $12,000 / person 54,000,000,000 Tons CO2 2050 $8,000 / person28,000,000,000 Tons CO2 Today Impact Affluence GDP / person I=P A T x x Population Technology Impact / GDP 6,800,000,000 0.5 Ton CO2 / $1,000 9,000,000,000Schneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 15
  16. 16. Solution for 2050 5,000,000,000 Tons CO2 $12,000 / person 54,000,000,000 Tons CO2 2050 $8,000 / person28,000,000,000 Tons CO2 Today Impact Affluence GDP / person I=P A T Cutting emissions from 54GT to 5GT required by 2050 to hold the 450ppm CO2 x x limit: This means technology must de-carbonize by a factor of 10X Population Technology Impact / GDP 6,800,000,000 0.5 Ton CO2 / $1K GDP 9,000,000,000 0.05 Ton CO2 / $1K GDPSchneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 16
  17. 17. Active energy management is about being smart grid ready..efficiency is an asset!! Demand / supply mgt : Active Energy Efficiency Energy visibility Energy control & optimisationCentralised 2Generation Electric Vehicles & 3 Energy Storage Residential Industry Human to Human internet still immature, Building Machine to machine just beginning Datacenter Transmission Distribution Commercial & Industrial Renewable Energy Decentralised Plants Generation 1 Communication and software at all levels of 4 Schneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day the “Smart Grid” 17
  18. 18. Boeing 787: 8 million lines of codeF-35 Joint Strike Fighter: 6 millionChevy Volt: 10 millionSchneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 18
  19. 19. Parking Garage= Datacenter● Features over 100 electronic controllers, 10 million lines of code, and even has its own IP address.● …it allows vehicles to connect remotely to other products like OnStar or Ford SYNC, which allow for more flexibility in how functions can be delivered to the customer.● Electric cars like the Volt could eventually be able to interact with the electric grid or connect with other applications.●“Ultimately as a user of a vehicle, I don’t care whether the processing is being done in a processor onboard the car or somewhere off in an IT farm somewhere else, as long as it makes my vehicle do something cool and interesting,”● Sky Matthews, director of Rational Systems Products at IBM.Schneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 19
  20. 20. ● Kevin Warwick, professor of Cybernetics at University of Reading● Photo: TimeSchneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 20
  21. 21. Elasticity and the law of supply and demand 38% <2% 18% 15% 27% Industry Data centres & Buildings Residential Transportation & Infrastructure networks Source: US DOE-EIA (Energy Outlook 2007) and Green Grid for Data CentersSchneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day Industry Buildings are included in building and not in industry 21
  22. 22. ”The law of diminishing marginalutility…”● Water or Diamonds● Water or DatacenterSchneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 22
  23. 23. Digital economy is the « killer app>> 20 milligrams of CO2 per second spent on the web IT in world electricity consumption From 4% in 2008 to 40% in 2030 Sources : IEA Scenario based on a 15% yearly growthSchneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 23
  24. 24. Machines won’t make humanssmarter…Schneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 24
  25. 25. Our children: The last generation●That will need to learn to drive a car●That will be able to make commercial piloting a lifelong career●That will have the majority of surgeries done by human hands●That will use physical passports●That will wonder where their kids are…Schneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 25
  26. 26. Impact on companies and careers: A question of curves! Socialization of technology (human to human) Cost of computing: Moore’s LawPopulation growth Price of Energy: Elastic Market Share of Renewables Schneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 26
  27. 27. And it’s just starting… Machine to Machine InternetTypical Company Expense 1950 2000 2020% of Revenue on IT 0 4 2% of Revenue on Energy ? ? 6-30%+ Schneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 27
  28. 28. Schneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 28
  29. 29. What would Pascal do? Climate Change is True False largely caused by human energy practices? Take action today to Save 30% of Save 30% of reduce consumption, reinvest at consumption, reinvest at higher ROI higher ROI Make reduction impact in home, business etc Take no action More than 10% of global Short term benefits of GDP invested in carbon-intensive mitigation, poor ROI status quo Long term dire consequences to human prosperitySchneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 29
  30. 30. Let’s look at the world we are living in6 billion inhabitants 8 billion inhabitants50% lives in cities 60% will live in cities2 billion have access to an additional2 billiona decent energy people in the “energy”infrastructure middle class 1.2 billion still have1.4 billion have no no access to energyaccess to energySchneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 30
  31. 31. Schneider Electric is committed to tacklethe main energy challenges Achieve more while Energy management • Making energy intelligent using less: • Spreading energy efficiency • Integrated solutions - Reduce energy consumption - Lower the environmental impact of business activities Energy access Spread access to • Training young people in electrical Careers B I energy • Developing adapted offers and BOP to the 1.5 billion who do not business models P • Fostering entrepreneurship in have it to foster development access to energySchneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 31
  32. 32. BipBop access to energy programme B BOP I P A unique social business model based on a simple idea: there is no sustainable development without business Business entrepreneurs the Give potential 500 contractors their of the pyramid* opportunity to start at the baseObjectives From 01/2009 to 12/2011 objectives business set up their activities in the energy management sector supported by our sustainable investment fund. Q3 2010: 130 Rely on local Provide local people Innovation knowledge with the skills to maintain, 1M households from BoP equipped with + bring project adequate energy offers/solutions management, develop and sell Q3 2010: 608,000 the solutions technological and operational capabilities People 10,000 young people from the base of the pyramid trained in energy skills Q3 2010: 4,065 Schneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 32
  33. 33. Focus on: Pilot project at Bhubaneswar Battery charging station● Context ● In slums of Bhubaneswar, Schneider Electric partnered with Aide & Action to provide basic electricity trainings to young underprivileged people ● Trained electricians developed entrepreneurial activities through a battery rental model● Solution: ● One entrepreneur sold In-Diya lamps to 47 customers (90-LEDs for INR 900 and 45-LEDs for INR 500) ● Entrepreneurs rent daily charged batteries for INR 5● Economic model: y Ch arg ers Training atter i de B centre Prov ining to tr a Centre Prov id To e e In-Diy ntrep a rene lamps Sell In-Diya lamps & urs Entrepreneur Rent charged batteries Communities Schneider Electric - Aaron Davis, CMO – Feb 8 2011 – EDHEC USA day 33
  34. 34. In-Diya helping familyto work and study 34
  35. 35. Installation of SHS by trained electricians 35
  36. 36. The first step towards brighter life 36
  37. 37. Make the most ofyour energy™schneider-electric.comSDreport.schneider-electric.com 37
  38. 38. Life’s lessons learned… If you want to build a ship, dont drum up the men to gather wood, divide the work, and give orders. Instead, teach them to yearn for the vast and endless sea Antoine de Saint Exupery 38
  39. 39. “Find somone silly enough to payI wonder ifto you I cando what you like…” get paid in doughnuts? Does marketing really work?? 39
  40. 40. Take your responsibility to mentor seriously 40
  41. 41. Simplify to the essence…●“Everything should be made as simple as possible, but no simpler…”● Albert Einstein 41
  42. 42. Get involved!●“It is easy to be brave from a distance, and quite safe too!! 42
  43. 43. Embrace power of positive influence●Say something nice to someone who cannot hear you… 43
  44. 44. Question everything we do and havedone●“There is nothing more wasteful as doing with great efficiency that which does not have to be done at all…” 44
  45. 45. Support change, especially if it’suncomfortable●"There is nothing more difficult to plan, more doubtful of success nor more dangerous to manage than the creation of a new system… for the creator has the enmity of all those in existing system, and merely lukewarm support from those who would benefit from the new… "●Machiavelli, The Prince, 1590 45
  46. 46. Listen to crazy people…●“All progress depends on the unreasonable man…”● George Bernard Shaw 46
  47. 47. Enjoy “appropriate anxiety”●A comfort zone is always relative and time specific 47
  48. 48. Share your passion!●“No wild enthusiast ever yet could rest, till half mankind were, like him, possessed…” William Cowper Typically 1% of a segment is an ADVOCATE 48
  49. 49. Keep moving: Ebay, FaceBook, Google ● "The only way to survive (and succeed) these days is to do some sXXX and see what happens.” ● Every now and then you do sXXX that, for reasons which are completely unspecifiable, turns out to be big sXXX, as opposed to little sXXX. ● You just have to make sure there is enough sXXX going on that some big sXXX happens." Tom Peters 49
  50. 50. Your actions dictate your success… ●“Man must sit in chair for very long time before roast duck fly in mouth…” Chinese Proverb 50
  51. 51. Surround yourself with people smarterthan you… ●When we succeed, we succeed together. If we failed, we failed alone. 51
  52. 52. Above all, don’t listen to the experts●“Before man reaches the moon, your mail will be delivered within hours from New York to Australia by guided missiles. We stand on the threshhold of rocket mail… “ Arthur Summerfield, US Postmaster General, 1959 2002 52
  53. 53. P b T il Po c u l oe rj t ic t e G A :M s n S P isioFamilies pay back to local district government over twoyearsCreates Create aid programs that don’t rely on donations utility infrastructure Work with GhanaiansSolar panels Good intentions are not good enough - beComposting toilets internet cafe accountable portable girl-run internet cafe projectImprove Ideas from within the community sanitation Wealth creation Innovation Don’t do anything that creates dependency 53
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  59. 59. Building a career, company or diploma… Whose stupid idea was this??! 60
  60. 60. But the view will be worth the effort… “There is no quicker way to kill the human spirit than to ask it to do mediocre work…” Ayn Rand 61

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