2014 Software Global Client Conference

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2 GEN INT-10 Accelerating Industrial Energy Management Initiatives through Digital Services Michael MacKenzie Vice President, Digital Energy Services

3 Mobile App: Please take a moment Check into Session by: Select Detailed Schedule Select the specific session Click on Check in Take Session Survey by: Select Detailed Schedule Select the specific session Scroll Down to Survey and Provide Feedback

4 What s driving the need for Digital Services? 4

5 More organizations will to using the cloud for sensitive data More than half of survey respondents say their organization currently transfers sensitive or confidential data to the cloud Source:

6 Cloud computing growth outstrips on-site implementations Over the next five years, public cloud computing workload will increase 44% versus a 8.9% growth for on-premise workloads Source: Piper Jaffray Advantage of cloud hosted applications: Lower TCO: eliminate hardware ownership Move from CapEx IT to Opex Redundancy and disaster recovery Do more with your data using app model

7 Two Exabytes of data are now generated every day > 90% of the world s data created in the last 2 years > Traffic from the Internet of Things is expected to grow at 82% CAGR through 2017 Why does this matter? Source: Michael Enescu Cisco Systems + = Data Gravity Move your analytics to your data, not your data to your analytics.

8 What is the Schneider Electric Digital Services Platform ambition? 8

9 Our mission is to develop Digital Services to improve our customers productivity and efficiency Connect with you Devices & Applications Customer Data Supply Chain Ecosystem External Data Field Techs Connectivity enables our Services teams to help your business Transform data to information Big Data / Analytics in «The Schneider Cloud» Deliver Value Through Services Managed Services (with a Service Bureau) Digital Services Cloud Software (SaaS model, Mobile apps) Field Services Lasting relationships for your production lifecycle

10 Digital Services Platform vision for our partners Simplify two-way connection between cloud based services and on-premise data Easy to Connect Easy to Manage Easy to Consume Connecting your devices to the Internet cannot get any simpler. We offer ready-to-go client libraries for your embedded systems, mobile and desktop. A few clicks and your smart devices are smarter! The platform is built for scalability, as your business grows, the number of devices and data will also grow and our platform will scale transparently providing you all the tool to easily manage 1 or devices Using our Apps, you can rapidly develop your own service application, web and mobile, add any analytics, consume Schneider wide device data, Easy to Sell Bill your customers, manage subscription, renewal, upgrade, cancellation Start freemium and have a taste of premium Schneider Electric Global Solutions Digital Services Transformation

11 Our platform is open to local / global business and technology partnerships Others Service Delivery (Bureau + Apps) Vertical Applications (Asset Management, Energy Management, etc ) Analytics Engine (On line & Offline) Ecosystem of partners (Services + Analytics) Data Management Intercloud M2M (From Asset to Cloud) Device / Asset Connectivity Ecosystem of Partners (Assets & Installers) 11

12 Example : Digital Services in O&G Asset Lifecycle Management (MV, LV, Drives ) Cybersecurity Services Supply Chain and Risk Management Analytics for Process Optimisation Sustainability Management Remote Monitoring of Tank Farms Workforce Management EH&S Weather for offshore operations Analytics for Digital Oil Field

13 How can Digital Services help you meet your energy management goals? 13

14 Congratulations Industrial Customers are executing energy initiatives and delivering savings Energy Efficiency Potential IEA, World Energy Outlook However.. >50% Economic potential to improve energy efficiency remains untapped in the period to 2035 Confidential Property of Schneider Electric 14

15 What is special about an EPS for an Industrial customer? Industrial customers need to know how their energy consumption relates to production For many industrials overall energy consumption is not important; energy per unit produced is. They care about finding the root cause of energy inefficiency and waste to save cost. If a plant uses more energy overall, but reduces the energy consumption per unit of output, it means production is going up. It s a good thing. 15

16 Schneider Electric s Lifecycle Approach A holistic view of sustainability, energy supply and energy demand Methodology Quickly targets key strategic opportunities, based on a company s existing programs. Results Delivers best-in-class, comprehensive energy and sustainability strategies. Design Strategy Deliver Efficiency Sustain Results

17 How do we deliver Energy Efficiency projects? What is happening? Why is that happening? How can we sustain it? Energy Control & Monitoring Energy Improvement & Optimization Continuous Improvement & Sustainability Strategies Step 1: Site Energy Assessment Step 2: Become energy aware. Get a detailed view of the energy used in the process using energy aware infrastructures. Step 3: Look for improvements. Discover the root cause of energy over-consumption in order to improve energy efficiency. Energy Improvement Step 4: Plan for sustainability. Track opportunities and identify projects for continuous improvement. Energy Performance Energy Awareness 17

18 Challenge: How do I achieve Enterprise wide energy optimization?

19 Challenge: How do I maintain gains/savings over time? Baseline Performance Savings maintained with ongoing supervision and maintenance Implement Energy Conservation Measure Declining results without ongoing supervision and maintenance 19

20 Enterprises need to consider top to bottom. Corporate Meet standards, goals, compliance Enterprise Level Digital Energy Services Platform Regional Management Integration of energy and sustainability information for decision making Individual Plants Monitor KPIs, Optimize Energy Usage Plant-level Energy Efficiency

21 How can technology help deliver more effective operations? Operational energy efficiency trends Need to reduce operational expenses: reducing energy intensity increases production margins and has a net positive impact on EBIT. Lack of dedicated efficiency resources: 60% of firms experienced difficulty identifying EM resources; +1 million energy engineer jobs by Need to connect data silos for energy context: Better understanding external and production factors can help reduce energy consumption and demand Key technology trends that can help Infrastructure, platforms and applications as a service enable new levels of scalability, flexibility and responsiveness Analytics and Big Data allow for use of rapidly increasing amount of data from multiple sources to generate new insights and decision making Connected devices and accessible sensors enables new ways of automated and personal interaction with experts who can provide insight for improvement. Social media and collaboration technologies drive new ways of interaction, personalization and relationship building within and beyond organizations Confidential Property of Schneider Electric Mobile devices impact all areas of business and personal live by transforming how people interact, consume information and services, collaborate & work 21

22 Digital Service Platform Vision for our Clients: Energy and Asset Management as a Service Using our connected systems to provide our clients remote energy & asset management services. 22

23 Example: Digital Energy Management Services Our expert client energy advisors will help identify savings, areas of concern and opportunities for improvement. Bench-marking CHALLENGE Alarms management Client Energy Advisor CONNECT Hosted Dashboards Analysis Carbon Certification Digital Energy Services Connector Data Quality Guarantee Performance follow-up Periodical Report Supply & Procurement Services

24 Expected savings from Energy Efficiency projects Visualization Optimization Improved awareness, identification of O&M improvements 15% to 30% Improved awareness Increased employee awareness 10% 2% 3% Benchmarking, project improvements, continuous attention Installation of meters Bill allocation only Facility tune-up Continuous improvement Action plans Source: Schneider best practices, US Department of Energy Metering Guide, Feb 2006

25 For more information Christian-Marc Pouyez Kim Custeau Michael MacKenzie Peter Hogg

26 Other related presentations Date/Time Title Description Presenter Location Tuesday 2:30PM IND-02 The Schneider Electric approach to Energy Management This session will introduce Schneider Electric's energy management philosophy and discuss how we satisfy customer's energy management needs from the control level to the enterprise, and from the supply-side through demand. Michael MacKenzie Peter Hogg Gatlin A/B Wednesday 10:00AM WW INFO-03 Energy Performance Solutions for Plants. Choose the Right Solution For Your Application. Schneider-Electric Energy Performance solutions put energy in the context of the process, allowing industrial customers to analyze, control and optimize their energy intensity, from top floor to shop floor. This enables multi-site benchmarking, managing energy as a variable cost, and relating energy use with production performance. Wonderware CEM and Power Monitor Expert products complement each other to satisfy those goals. Christian-Marc Pouyez Michael Munro Panzacola F-2 Thursday 1:30PM GEN INT-10 Accelerating Industrial Energy Management Initiatives through Digital Services This session will explore Schneider Electric's integrated Energy Management solutions for industrial applications. Learn how System Integrators, Distributors and OEMs can better support manufacturers across several industries in their quest for energy efficiency and process optimization using the Schneider Electric Digital Services Platform. Michael MacKenzie Wekiwa 5

27 2014 Schneider Electric. All Rights Reserved. All trademarks are owned by Schneider Electric Industries SAS or its affiliated companies or their respective owners.

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