SCH2017_DRF_EN_Livre.indb

1 Overview of the Group’s strategy, markets and businesses Organizational simplicity and efficiency

6. Organizational simplicity and efficiency

Schneider Electric is leading the digital transformation of energy management and automation. We make it possible for IoT-enabled solutions to seamlessly connect, collect, analyze and act on data in real-time, delivering enhanced safety, efficiency, reliability and sustainability. Schneider Electrichas transformed their organization tobest serve its customers’ which has accelerated its journey as anestablishedglobal leader over thepast decade. Under thecurrent organization, with the focus of EcoStruxure solutions at the core and the launch of Schneider Digital, Schneider has a strong foundation to transform the digital landscape towards growth for both the company and its customers.

A customer-focused organization

6.1

Dual orientation – technologies and end-markets

Each of these business units manages its R&D, marketing and sales teams and is responsible for its global results. Several back-office functions such as Finance, Human Resources, IT systems and Global Marketing are handled by the Global Functions, which have a governance role and provide services internally.

Schneider Electric is organized into 3 business units. Each business unit is responsible for specific technologies and addresses targeted end-markets. The organization was designed to support our business models: transactional, equipment, projects, and services with strong technological leadership and close customer relationship. E Low Voltage & Secure Power business scope includes low voltage, building automation and renewable technologies as well as critical power and cooling technologies for data centers and non-IT applications. E Medium Voltage business scope includes medium voltage and grid automation technologies. E Industrial Automation business scope covers industrial automation, control and sensors technologies.

Rationalization and optimization of synergies

The organization is deployed in accordance with 3 key concepts: specialization, mutualization and globalization . Specialization mainly concerns sales and front-office operations. Mutualization covers local back-office operations at the country and regional level. Globalization concerns the 7 support functions, now known as Global Functions.

Our Organization is structured around 3 Core Principles...

Specialize

Mutualize

Globalize

Because this is how we bring value to our Customers

To maximize Cross-Selling across Businesses

Whenever the approach is Global and must be ONE

3 Global Businesses

1 Zone or Country President

1 Global Supply Chain

Tailor, Optimize, Deliver

Global P&L ownership Focus on Offer Creation & Business Models Drive Services, Segments, Solutions & Software

Market Coverage engine to maximize cross-sell across Businesses 1 Face to SE employees and authorities Mutualized Back Office for cost and Quality

6 Global Functions

Leverage our scale and ensure efficiency

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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