Schneider Electric reorganizes

Henri Lachmann, chairman and ceo of Schneider Electric, recently outlined his company’s “New2004” program, which alters some company functions and gives more responsibility to the directors of each division. The program’s targets and paths for action apply to Schneider Electric as a whole, but he explained that it’s up to each unit, country and function to integrate New2004 into everyday operations through tangible action plans.

Mr. Lachmann added that an overall convergence is occurring in electricity, automation and communication as a result of integrating Internet technologies. He stated that only Schneider Electric and Siemens AG (Erlangen, Germany) were capable of addressing this convergence.

“Electricity, no matter how it’s generated, is critical to the production of virtually every product and service we use,” says Mr. Lachman. “We’re in the business of making electricity available to users under the best possible conditions. Estimates show that spending on power generation over the next 20 years will exceed the entire amount invested in the 20th Century. Just think about what that will mean in terms of demand for distribution and control!”

Consequently, he adds, that Schneider Electric will continue to sell through partners that add value, and cited this strategy as one of the reasons for the firm’s success in Eastern Europe and China. Schneider’s products are designed, not only for end-users, but also for partners, offering ease of installation and multi-use products that reduce stocking needs.

Schneider’s services will follow a similar model. Services offered will be highly specialized, with Schneider functioning as the main contractor, and using partners onsite. However, he emphasized that Schneider will not do facilities management, but instead offer services to increase productivity via automatic systems, connecting automation, supervision and SAP systems, as well as offer remote monitoring via the Web for traceability and diagnostics.

Mr. Lachmann expects sales growth of EUR 9.8 billion in 2001 to EUR 12 billion by 2004. “With the products and services we have today, we could serve a potential available market worth around EUR 100 billion worldwide,” says Mr. Lachman. “By expanding our lineup with new specialties and services, i.e. by covering demand in our key markets more extensively, we believe we can increase our potential accessible market to EUR 210 billion by 2004 and to EUR 500 billion in 10 to 12 years.”

Author Information

Katherine Tyrka, Control Engineering Europe; ktyrka@compuserv.com

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