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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Customer Service Triangle
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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Customer Service Triangle
Logistics and Support
●Market expectations
●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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Customer Service Triangle
Integration
●Market expectations
●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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The Partnership Works
●How do we make it work?●Openness●Transparency●Trust ●Respect●Communication
●Integrity!!
Manufacturer
DistributorSystem Integrator
End User
●Targeting and Cooperation
●Three strategies to tackle the market
1. Geographic 2. Vertical market3. Named account
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The Partnership Works
●The expectations must be…..●Simple●Self policing●Customer focused
Good fences make good neighbors!
Manufacturer
DistributorSystem Integrator
End User
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The Partnership Works
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 Mine Hot Standby Controller & I/O Upgrade
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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Gold Mine Hot Standby Controller & I/O Upgrade
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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Gold Mine Hot Standby Controller & I/O Upgrade
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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Gold Mine Hot Standby Controller & I/O Upgrade
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
Gold Mine Hot Standby Controller & I/O Upgrade
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.