Schneider Electric recognizes that customer expectations are evolving towards an "outcome economy" where customers want solutions, not just products. The company has significantly transformed itself to address these new customer needs by connecting products and systems through its Internet of Things strategy and digital services. This allows Schneider Electric to better understand customers and provide operational efficiency and sustainability services. Connecting customers through products and services enables new business models for Schneider Electric, such as becoming an information provider, services provider, or ecosystem broker.

1. Evolving customer relationships through
connected products and subscription

2. Cyril Perducat
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Cambridge, MA USAExecutive Vice President
Digital Services Transformation

3. Schneider Electric
We are the global specialist in
energy management and
automation
FY 2014 revenues
€25 B ~5% 43% ~170,000
of revenues
devoted to R&D
of revenues in
solutions
people in 100+
countries

4. Schneider Electric
We develop best-in-class
technology and solutions to make
our customers’ ecosystem safe,
reliable, efficient, and sustainable

5. Outcome economy
Schneider Electric recognizes
evolving customer expectations

6. Business
transformation
We have significantly transformed
our company to address the new
customer needs
REVENUES
SOLUTIONS
(in % revenues)
GEOGRAPHY MIX
(in % revenues)
€10 B €25 B
2005 2014
30% 43%

7. Internet of Things
Connecting machines to control
systems is an essential step in our
solutions transformation
Physical Systems Cyber Systems
Cyber-Physical
Systems
Schneider’s Modicon
recognized as the icon for 70’s
Industrial Revolution

8. Customer first
Solution is about end to end
customer support and we built a
complete portfolio
WWW
Green Buildings
Finance
Healthcare
F&B
Marine
Retail
Life Sciences
Oil & Gas
Smart Cities
Utilities
Hotels Cloud & Telecom
Mining
Transportation
Data centers
POWER
(low and medium voltage; secure power)
AUTOMATION
SOFTWARE
(enabling integration)

9. Digital strategy
Schneider Electric Internet of
Things pioneering story boosted by
our digital strategy

10. Relationships
Connecting our products, systems,
services and software is essential
in our digital journey
… better
understanding
of their profile
and need.
We provide
operational
efficiency and
sustainability
services.
New
engagement
model and
customer value
creation enable
innovation in
business models
Connecting
customers
provides…

11. Business models Evolving customer relationship
enables new business models
Information provider Services provider Ecosystem brokerage
> Dashboards
> Reports
> Alerts
> Consulting
> Digital services
> Managed services
> Field services
> Monetize relationships
within the ecosystem
> Infrastructure as a
services (SaaS)
OPERATIONAL EFFICIENCY SUSTAINABILITY

12. Facility Insights
Services and technology to improve
facility performances and
operations
Digital Services
Platform
Measure
1
Collect & connect
2
Store & analyze
3
Empower
4
> Alarms
> Reports
> Diagnosis
ComX’ 200Electricity
Water & gas
Assets
CUSTOMER
BENEFITS
> Energy management
> Asset Management
> Enhanced partner
relationship

13. Key takeaways
Outcome economy requires
customer focus
Schneider Electric IoT pioneering
is milestone in the solution shift
Offer transformation requires
consistency in the business model
evolution

14. HELP PEOPLE MAKE MOST
OFTHEIR ENERGY