Keynote speech for the 2018 Industrial Transformation Asia Pacific conference, the leading event around the future of technology, digitization, IIoT and Industry 4.0 in Asia. Focus on the rising importance of business and technology Ecosystems.

1. Priming the Collaboration Landscape & Ecosystem for Growth
David Orgaz D’Hollander
Senior Vice President, Asia Pacific, Schneider Electric

2. A quick view of global IoT spending
Manufacturing leads the way in every major region
#3
EMEA
#2
Americas
#1
Asia-Pacific
$500+ Bn
47.9%
Share of global IoT spending by 2021
(IDC Forecast)
Top industries for IoT by region
1. Manufacturing
2. Consumer
1. Manufacturing
2. Industry
1. Manufacturing
2. Utilities
$329 Bn
28.6%
$264 Bn
23.2%
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Disrupt
disruptedor be
Seizing IoT opportunities
of executives believe failure to leverage digital
transformation will cause their companies to struggle for
survival.1
64%
¹Source: https://www.accenture.com/us-en/service-industry-x0
² Report by Microsoft Asia in cooperation with IDC Asia Pacific, entitled “Microsoft Asia Digital Transformation Study 2018”
of executives in APAC see themselves as
digital transformation leaders.2
7%

4. Augmented
Reality
Mobility &
Wearable
Technology
Artificial
Intelligence
& Machine
Learning
Internet
of Things
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The present is digital
Assets

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How can we leverage the value
of this data to make it
meaningful for you?
of data generated from connected things
was created over JUST the last 2 years!
90%

6. Companies across the industry still use
only a fraction of the data
The average cost of IoT sensors is falling
1.50
1.25
1.00
0.75
0.50
0.25
‘04 ‘06 ‘08 ‘10 ‘12 ‘14 ‘16 ‘18 ‘20
2004 average cost: $1.30
2020 average cost: $0.38
$
Averagecost($)
Year
<1%
Data
capture
Infrastructure
Data
management
Analytics Visualization
Information
Execution
Failure
points
Source: Goldman Sachs, BU Intelligence Estimates Source: McKinsey & Company
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It’s about more than applying technology…

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It’s simple.
How do we capture IoT’s
long-term value today?

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A changing mindset:
solving problems instead of making technology
New approach
Dynamic
Distributed
Global value chain
Multi-sided market
Community-centric problem solving
Old approach
Siloed
Centralized
Fragmented value chain
Single-sided market
Company-centric problem solving

9. from companies… to communities…
Let’s refocus the conversation
in order to solve business challenges, now.
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10. Universities
Customers
Suppliers
Partners
Startups Technology
Providers
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A dynamic ecosystem to accelerate digital innovation
…Catalyzed by active governments & standards organizations
Government Standards & Platforms
Organizations

11. The ecosystem in action….
Waterforce - Supporting sustainable farming in New Zealand
End User Integrator
Technology
Partner
Technology
Provider

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Schneider Electric at a Glance
€24.7 billion
2017 revenues
41%
of revenues in new economies
142,000
Employees in over 100 countries
5%
of revenues devoted to R&D
North
America
27%
Western
Europe
27%
Asia
Pacific
28%
Rest of the
World
18%
18% 43% 15% 24%
Energy Management Industrial
AutomationMedium Voltage Low Voltage Secure Voltage
Key figures for 2017 A well-balanced global presence
2017 Revenues breakdown
Four integrated and synergetic businesses – FY 2017 revenues

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Our community of solvers:
Schneider Electric Exchange

15. Collaborate
We celebrate diversity
of communities, co-creating
solutions to serve
the full lifecycle.
Scale
We effectively and
efficiently scale
exponential growth
opportunities for
all communities.
Create
We are committed to develop
integrated efficiency solutions
across all domains in energy
management and automation
on open ecosystem.
Schneider Electric Exchange
Open ecosystem for IoT energy management
and automation solutions
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unites professionals of different fields
into a collaborative community
Schneider Electric Exchange

17. #5 Operate & Scale
- Live data hosting / access
- Analytics / User Application
- Scalable business model
#1 Post Challenge & Discover
- Structured problem statements
- Verified providers & solutions
- AI powered communities
Technology
expertise
EcoXchangeExchange
How does this ecosystem solve customer problems?
Use Case – Collaboratively solving a business challenge around wire-wrapping machines
#2 Test & Select
- Setup private space with candidate
- Access and expose datasets
- Proof of value trials and demos
- Benchmarking tools and assistance
#4 Transact & Build
- Private and secured workspace
- On line payment tools
- No / Low code application design
#3 Solve Problem
- Workspace and SDK
- APIs, Analytics, Data Sets
- Advanced IIoT Program
Outcome
Proof of Concept decided with
AI startup Senseye on data from one machine
Scalable Predictive Maintenance
Stephane Muethon - Maintenance
manager @ Schneider Electric
Le Vaudreuil Plant
France – France
« How do I minimize unplanned
downtime of my wire-wrapping
machines ? »
Outcome
Solution by combining
 Senseye techno
 Schneider IIoT box
 AVEVA cloud SW
Outcome
Application deployed
ROI < 3 months

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schneider-electric.com
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