Presentation by Brian Tessier, VP of Innovation at Schneider Electric at the Supply Chain Insights Global Summit 2019. In this presentation, Brian shares how he has implemented digital technologies and approaches at Schneider.

1. BUGANPRESENTATION1

2. Driving Digital
Innovation
Brian Tessier
Schneider Electric
Supply Chain Insights Global Summit 2019

3. Confidential Property of Schneider Electric
Redefining Schneider Electric’s Digital Innovation Roadmap Brian Tessier, VP Innovation

4. Page 4Confidential Property of Schneider Electric |
What is “Digital Innovation” at Schneider?
For us, this means innovating in products, processes, or business
models using digital technology platforms as a means and/or end
within and across internal and external organizations
Digitized
Stored, Transformed,Transmitted, Traced
Harnessed & Repurposed

5. Confidential Property of Schneider Electric | Page 5
Schneider Electric’s Tailored
Sustainable Connected 4.0
Supply Chain
We manage Digital Innovation as part of
our larger transformation through

6. Page 6Confidential Property of Schneider Electric |
Our Supply Chain is TAILORED: We provide our customers
with what they value while leveraging scale and efficiency
11
customer segments
5
supply chain models

7. Page 7Confidential Property of Schneider Electric |
Our Supply Chain is SUSTAINABLE: We optimize resources by
developing circular supply chains, in clean and safe facilities,
powered by renewable energy
Clean, safe facilities Carbon light and digital Resource efficient – circular

8. Our Supply Chain is totally CONNECTED:
We optimize end-to-end efficiency and asset
reliability while providing visibility to customers
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Plan
Source Make Deliver

9. TSC 4.0
Tailored Sustainable
Connected
Footprint & Lean
Manufacturing
Simplification
Footprint & Lean
Manufacturing
Tailored Supply
Chain
Simplification
Footprint & Lean
Manufacturing
Tailored Supply
Chain
Simplification
Footprint & Lean
Manufacturing
Tailored Supply
Chain 2.0
2005–2008
New 2
2009–2011
Connect
2012–2014
One
2015–2020
Schneider is On
Page 9Confidential Property of Schneider Electric |
Tailored Supply
Chain
Simplification
Footprint & Lean
Manufacturing
Tailored Supply
Chain 2.0
Our supply chain transformation journey has resulted in breakthroughs
towards customer centricity and cash efficiency, while delivering improved
performance on productivity
Best-in-class across industry

10. Page 10Confidential Property of Schneider Electric |
Tailored Sustainable Connected 4.0 Supply Chain
5
supply chain models
11
customer segments with
different buying behaviors
6
digital accelerators
• End-to-end customer lead times
• Special care units
• Customer process capabilities
• End-to-end flow and footprint
simplification
• End-to-end control tower
• ETO supply chain management
• Field services supply chain
• Supply base management
ć
8
key transformations(new)
Electrical distributors
IT distributors
Consumer retailers
Consumers
Small and medium installers
Panel builders
Repetitive OEMs
System integrators, large installers,
non-repetitive OEMs, EPC
Utilities
Other end users
Web giants
LEAN
AGILE
COLLABORATIVE
PROJECT-DRIVEN
FULLY FLEXIBLE
Plan
Care
Innovate
Source Make Deliver

11. What is CODI?What is ?
 the Schneider Electric Center of Digital Innovation, a collaborative effort
between Schneider Digital and GSC Transformation
 the vanguard of GSC Open Innovation, working with external companies,
startups, and educational institutions (as well as customers!)
 CODI runs a rotating portfolio of innovation programs, which mainly focus
on emerging technologies

12. A program to create an eXtended network of innovators & disruptors and to:
• Drive Innovation Culture, speed up the pace of POCs & support production deployments
• Provide centralized managed structure to handle contact and engagement with the global
Innovation ecosystems
2 Modes of execution
• Geography Specific Leaders support CODIx initiatives & the innovation ecosystem through
long term (multi-year) assignments + key selected representatives from Central Functions
• CODIx Teams of innovative/disruptive employees & interns leveraging agile project
methodologies and working with select vendors to develop rapid proof of concepts (POCs) to
test and evaluate the applicability of solutions to Supply Chain challenges.
What is ?

13. Current Scope
Primary
Focus
Gartner, Inc. (July 2019)
Hype Cycle for Emerging Technologies

14. % of portfolio by key trends
Identified
(210)
Tested/POC
(102)
Industrialization
(21)
Over 100 new technologies tested and 21 went into
industrialization phase last year
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15. Page 15Confidential Property of Schneider Electric |
Network Update
Strong start & great momentum, accelerating POCs globally
40
# Active Projects
18
# Global / Regional
Leaders Engaged
Europe
IMEA
NAM SAM
EAJP
China
20+
# Interns being
deployed globally
• Strong engagement IMEA,
EAJP, Europe, NAM, SAM
• China ramping up
• Selection of regional CODIX
Innovation Labs in progress
• Influx of interns will relieve
resource constraints and
speed up deployment in
NAM, China, and other
regions.
• Interns onboarded in EAJP
in May and in China in June.
• Six Sigma Training
completed in EAJP.
10
9
9
8
5
6
*
* Note: counts do not include “common” multi-zone POCs

16. 16
Typical POC/Pilot Structure
Days 1-30: Gap assessment between aspirations and
current performance. Harvest Ideas & analyze relative to
goals.
Days 20-50: Focus in on strategic areas of opportunity.
Meet with customers, conduct intra-BU workshops to
validate ideas. Eliminate projects with lower impact.
Days 20-70: Kickstart innovation engines – small, agile,
skilled, dedicated empowered teams of hackers.
Begin POC development.
Days 70-90: Evaluate pilot programs & expand Innovation
program. Prepare for second wave of potential innovation
projects.

17. Key Challenges Experienced
Change management in the Supply Chain of a nearly 200 year old
French industrial company
Operating in a business that has grown explosively through
acquisition
Balancing delivery of innovation today…and tomorrow
Developing Innovative Supply Chain Talent & culture
1
2
3
4

18. What I’ve learned
Key takeaway #1: Rip the Hood Off!
Key takeaway #2: On talent – Specialists will always have
value…but Generalists have the edge.
Key takeaway #3: Dedicated resources, and “safe spaces”.
Key takeaway #4: Innovation can be the bridge between
day to day operations & your company’s
massive transformative promise.

19. Observation:
The problem is a gift…
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Leverage the opportunity to
get creative!

20. The “Jack (or Jill) of
all trades is critical
Knowledge of many things is
critical to innovation
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Observation:

21. Challenge Conventions!
- New people
- New tools
- New environment
- New approach
- Tap the network
- Leverage other
connections
Page 21Confidential Property of Schneider Electric |

22. Thank you!
Brian.Tessier@se.com
www.linkedin.com/in/brian-tessier-Inn0v8
@Marvvin