Can automation manufacturers and system integrators be true partners?

Can System Integrators and Automation Manufacturers be True Partners?

Greg BodenhamerApril 27, 2012CSIA Executive ForumScottsdale, AZ

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1999Groupe Schneider becomes Schneider Electric,focused on Power & Control

1975Merlin Gerin joins Groupe Schneider

1988Telemecanique joins Groupe Schneider

1991Square D joins Groupe Schneider

1996Modicon, historic leader in Automation, becomes a Schneider brand

2007Acquisition of APC corp. and Pelco

More than 175 years of history

1836Creation of Schneiderat Le Creusot, France

19th century 20th century 21st century

2000Acquisition ofMGE UPS Systems

2003Acquisition of T.A.C

2005Acquisition of Power Measurement Inc.

2003-2008Targeted acquisitions in wiring devices and home automation(Lexel, Clipsal, Merten, Ova, GET, etc.)

2008Acquisition of Xantrex

SteelIndustry

Power &Control

2010Acquisition of Areva’s distribution activity (in process)

Energy Management

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Schneider Electric – the global specialist in energy management

billion $ sales

of sales in new economies

people in 100+ countries

of sales devoted to R&DResidential 9%

Utilities & Infrastructure 24%Industrial & machines 22%Data centres 16%

Non-residential buildings 29%

Balanced geographies – FY 2011sales

Diversified end markets – FY 2011 sales

North America23% Asia

Pacific27%Rest of

World18%

WesternEurope32%

5Schneider Electric -- January 2012

How Big is the Solutions Market?

$8.2

$4.2

US Automation Services Sales in billions of US dollars

System Integrator ProvidedAutomation Supplier Provided

Plenty of room at the table for us all!!

Source: ARC Supplier Provided Services Outliook

Services Growth rate project at 7.6% CAGR

6Schneider Electric - Industry Business – Plant Solutions – Global SI team – Georges Ailloud

Country deploymentstatus in Sept 9th 2011

Registered

# of Countries

80037

Alliance Partners

Alliance Partners

# of Countries (*)

Engineers

216130

PlantStruxure Certified

Global Footprint of System Integrator Partners

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How can the System Integratorand the Automation Vendor be partners??

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Answer: Unite in our approach to put the customer first!!

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Solution Approach

●Customers want solutions

●To their business problems

●From reliable suppliers who bring real value

●Supported over the complete scope and lifetime of their projects

Typical Customer Questions

How can I increase my

return on investment?

How can I reduce my

Time to Market?

How can I apply my standards consistently?

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Customer Service Triangle

Offers

Logistics and SupportIntegration

End User

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Offers

●Market expectations

●Build a quality product that works and is available when needed

●Support for the product, solution, and the implementing partner

● Innovative and accepted offers and solutions

●Scale, financial viability, and geographic reach when customers demand

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Logistics and Support


●Material availability – innovative approaches to supply chain challenges

●Front line technical product support

● Intimate relationships with key End Users

●Help drive market acceptance of manufacturer solutions

●Financial buffering

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Integration


●Customer process (business) knowledge

● Localized, daily customer engagement

●Rapid deployment for emergency service or quick turn engineering needs

●Quality solutions with measurable benefits

●Continuous process improvement and ongoing support

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The Partnership Works

●We all need each other!

●SI needs an innovative, market accepted, and readily available solution to implement and solve his customer’s needs

●Manufacturer needs an experienced and qualified execution partner and market access to that partner and the End User

●Distributor needs to represent a high quality product that is widely accepted and has a network of solutions providers that will work with them to nurture the customer.

Manufacturer

DistributorSystem Integrator

End User

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●How do we make it work?●Openness●Transparency●Trust ●Respect●Communication

●Integrity!!

Manufacturer


End User

●Targeting and Cooperation

●Three strategies to tackle the market

1. Geographic 2. Vertical market3. Named account

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●The expectations must be…..●Simple●Self policing●Customer focused

Good fences make good neighbors!

Manufacturer


End User

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When the partnership works it can be worth its weight in GOLD!!!

Example: Geographic & Vertical Market

Gold Mine Hot Standby Controller & I/O Upgrade

PLC System Upgrade

A collaboration with Schneider Electric and George T. Hall Co., IncVertical Expertise Example.

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Who is George T. Hall Co.

• Founded in 1932, Headquartered in Anaheim, CA.

• Acquisition of Applied Industrial Controls (Nevada based System Integrator) in 2006.

• Employs 60 people.

• Offices in Nevada and Southern California.

• Core competencies include:

o Schneider Electric Automation Solutions

o Mining - Water / Wastewater

o Combustion Control Solutions

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Gold MineFounded in 1920s.Leading gold producer in the world (5.2 million oz in 2008).Equates to $6.2 billion in revenue, 2008.Employs over 30,000 worldwide.Operates some of the largest Open Pits in the US

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Synopsis of existing Processor Equipment

• 12 ea. Modicon 984-785E Hot Standby system on D908 communication network controlled Mill 6 processing plant. Managed all critical interlocks for the facility.

• Back in the 80’s, Mill 6 was one of the largest hot standby system in the US.

Major concerns with Hot Standby controller upgrade

• Unplanned downtime – Gold at the time was quickly rising in value, now it’s at $1,600+ per oz. Any unplanned down time wouldbe very visible and directly related to the conversion.

• The conversion required a switch in technology from D908 to Ethernet based hot standby.

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Synopsis of existing I/O equipment

• 20 racks of 800 series I/O

• 100 + I/O modules

• 1200 I/O points

• 4 days allotted for conversion to quantum hardware

.

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Responsibilities

Schneider Electric Scope – Hot Standby and CPU upgrade

• Develop Bill of Materials and scope of work for hot standby PLC upgrade

• Develop Factory Acceptance test for customer review at Schneider Electric facility

• Perform complete testing for customer approval

George T. Hall Scope – I/O upgrade • Site evaluation to determine field demo and installation

requirements• Develop final BOM for quantum I/O adapter cables and rack

conversion device• Develop Factory Acceptance test for customer review at GTH facility

24Schneider Electric - Industry Business – Plant Solutions – Global SI team – Georges Ailloud


So What Happened?

• Sucessful commissioning of all 12 Modicon Quantum Hot Standby nodes in two weeks.

• All 12 nodes executed with no issues.

• All I/O installed and operational in 4 days

• Completed startup successfully in alotted time.

Schneider Electric 25- Division - Name – Date

Really – the results of the upgrade were amazing. Here you will see the before and after pictures.

System Integrator / Vendor Teaming Advantage

Before After

Success:Customer required

Application Knowledge Schneider ElectricLocal Presence George T HallLogistics Support George T Hall and WedcoFinancial Scale Schneider Electric

26Schneider Electric - EU automation – Global SI team – David Orgaz

a winning combination

Your process know-how Schneider Electric Alliance that gives you a competitive advantage.