Smart Cities Smart Partnering Alistair Pim Smart Cities, VP Business Development & Alliances

Thought Leader Global Conference

Geneva

13 – 14 November, 2014

Confidential Property of Schneider Electric 2

> €24 billion sales (last 12 months)

> 41% of sales in new economies (last 12 months)

> 140 000+ employees in 100+ countries

> 4-5% of sales dedicated to R&D

> Alliance Organization > Journey from products to solutions

> New alliance organization in development

> SVP in Global Solutions > Alliance professionals in Businesses, segments, &

countries

> Virtual team united by common process • A large company, with a balanced geographical

footprint and a commitment to sustainability

The global specialist in energy management

3 Mega Trends

3

2

1

Our cities are growing.

80% of carbon emissions

75% of the Earth’s

Energy consuption

50% of the Earth’s population

2% of the Earth’s surface

Urbanization as a megatrend

Confidential Property of Schneider Electric 5

How can we ensure we won’t cook the

planet?

• Consume Green

– Change your energy mix by utilising renewable resource fuels to replace fossil fuels whenever possible.

• Consume Low Carbon – Replace high carbon fuels with lower

carbon alternatives such as shale gas.

More Mobile More Social More Connected

More than 1 million apps

Source : Salesforce.com, dreamforce 2011, Intel.com, NY Times.com, IBM

By 2013

in 2012 in 2012

in 2012

Digitization as a megatrend

Implications “The metaphor is so obvious. Easter Island isolated in the Pacific Ocean —

once the island got into trouble, there was no way they could get free. There was no other people from whom they could get help. In the same way that we on Planet Earth, if we ruin our own [world], we won't be able to get help.” ― Jared Diamond, Collapse: How Societies Choose to Fail or Succeed

OPERATIONAL TECHNOLOGY

INFORMATION TECHNOLOGY

ENERGY

What is the role of

Schneider-Electric’s portfolio for cities

● Solutions to cities' immediate challenges,

● Integration for increased efficiency,

● Collaboration to make it happen,

● Innovation to transform our world.

Smart Energy

Smart Mobility

Smart Water

Smart Public

Services

Smart Buildings & Homes

Smart Integration

Smart Collaboration

What needs to change

• Urban Planning • Building design • Utility Grid Modernization • Funding models • Business Models • Standards • Ecosystem

City process

Master Planning Design & Engineering

Construction & Implementation

Operations City Strategy & Policy

Industry suppliers Includes ICT, energy, transportation & infrastructure vendors & service providers

Planning, development Includes real estate developers, urban planners, & property managers

Governments Includes National, regional as well as local city officials

Utilities Includes city and private electric, water, & gas utilities

Private Investors Includes international development banks and private organizations

NGO’s & Associations Includes all local city residents - individuals, businesses & NGOs

Ecosystem needed for Smart Cities

Academia

Traditional Alliance best practices

• Follow a process

• Start with Strategy and get alignment

• Select a partner

• Unique Joint value prop

• Governance. Plan, Sponsorship, review KPIs

• Step and Repeat…

Ecosystem best practices

• Follow a process

• Start with Strategy and get alignment (With more players)

• Often partners are chosen for you by a City

• Complex multi-partner value prop

• Complex Governance

• Follow a process

• Start with Strategy and get alignment

• Select a partner

• Unique Joint value prop

• Governance. Plan, Sponsorship, review KPIs

BOSTON

BU NSF SCOPE

IssyGrid

District Energy

Management

Smart Cities Collaboration Examples

WiseCity

HongKong

EU Horizon 2020

Checklist of best practices for Ecosystem success

Alliance Best practices • Purpose of network • Value • Opportunity • Organization, roles and responsibilities • Collaboration principles • Network Scope • Network Governance • Stakeholder alignment-kick off event to

create guidelines • Value Creation-plan activities to catalyze

creativity • Network risks -mitigation plan

Source: Rhythm of Business

Rugby or Ultimate frisbee?

Why create a community of certified alliance professionals?

Certified alliance management professionals:

• Are recognized leaders and serve as role models within the alliance management profession.

• Teach the rest of Schneider Electric the language of alliances and collaboration

• Bring credibility to the individual and the company

Developing Alliance management skills Alliance Certification

Take-away: Get everyone “SINGING” from the same sheet of music

Take-aways

• Critical success factors for building alliances in Smart Cities

– Understand your entities role in the ecosystem

– Platform to enable collaborative innovation

– Developing a Common Vision

– Organization of the Ecosystem

– Building Executive support

– Alliance management education.

Make the most of your energy™