IoT Co-Innovation: Powering the Digital Transformation



[Applause] good morning just checking the energy level because we're not bribing you a popcorn this morning since it's too early one more time good morning yeah where are the Aussies this morning cause these are these where are all these you guys just came back from one tried in here I could tell so good morning I hope you guys are having a good time with yesterday's discussions and as well as you've got another full day today to go through a lot of talks so great to see all of you again my name is Chris bloom just in case you missed it yesterday and I'm the chief marketing officer of Schneider welcome back to day 2 of innovation summit yesterday jean-pascal talked about the exciting opportunities that digitization presents to all of us then we had the trio Manish Kevin and Ravi talk about how eco structure building eco structure IT and equal structure industrial software platform leverage digitization to take our enterprise to the next level and I know most of you have attended the booth tours in our innovation hubs strategy talks as well as expert discussions and of course was everybody here yesterday when animal logic show us all the movie magic we're you're here with the movie magic wasn't that amazing so we've got a long way to go to catch up to Great Gatsby that's what I think so that's amazing so today we're going to shift gears a little bit and talk about Co innovation now this is very central to Schneider's innovation DNA because we believe the power of a strong equal system unleashes infinite possibilities for all of us now to warm up day two gotta make you do a little bit of exercise without your precious mobile phone everybody's got your mobile with you take your mobile phone out all right stay with me they get more buff oh now open your app HK events 17 HK events 17 you got that click up what cloud and type in one word that represents your bowl idea thanks to digitization so one word from you that represents bowl idea so we can show the word cloud and see what's coming through IOT big data services speed how do we make customer ah destruction growth yes we want growth we do not want technology for technology's sake we need growth so one emerging trend I think that is very drawing is about disruption because the one thing we can count on that is going to be constant is change so with that I'm really glad to welcome to the stage to join me to talk about the exciting topic of co-innovation may I please welcome Sarah Paducah executive vice president of Schneider Electric's Internet of Things and visionary morning everyone and Norman Norman on Microsoft Word an enterprise got welcome Norman thank you so how are you doing this morning gentlemen thank you welcome we've got a lot of grounds to cover and we have an amazing crowd that have just thrown us some challenges and what is in their mind when it comes to IOT and Norman welcome we are honored to have Microsoft to be our technology Alliance where we built our eco structure platform on the Azure platform thank you and serial Internet of Things IOT that we talk about a lot so and yesterday we talked about the mega trends of urbanization industrialization and digitization so cereal in the face of all these megatrends daunting mega trends what is the value of IOT so I think before we speak about mega trends and value I think we have to look at what needs to be leveraged and all the advancements that are associated to IOT that we can leverage to progress this transformation think about mobility and the evolution of mobility sensing the cloud analytics cyber security a lot of those technologies is where we partner with Microsoft among other partners and when you are able to really leverage those different advancements then you can do incredible things think like if you can see and plan your energy consumption before it happens then you can be more efficient and more sustainable if you are able to automate a process with embedded intelligence in machines then you can make your plant and you operation more productive so that's fundamentally the value we see in IOT that this very important combination of operational efficiency and sustainability together operational efficiency and sustainability so that's a perfect combo so technology allows us to do amazing things but it also accelerates the pace of our lives sometimes I feel that you know it makes your heart beat goes even faster it really goes beyond our conventional capacity to keep up leaving many of us feeling the pressure of dropping IOT plan but not really knowing where do we begin how do I get started so cereal in your experience what has been the biggest challenge of addressing digital transformation so we spoke we spoke about technology but I think digital description is something that is omnipresent it affects all on every one of us whatever we speak about a small company a medium-sized company a large company and the question and I think you will agree with me is not about if we need to digitally transform its ear it's around us is how do we do it what is fundamentally the leverage that we have to do it and I think it's more than just trying to keep pace with others trying to be nice up to speed with technology it's really about being able to accelerate business activities and improve decision-making process it's about lowering your cost it's about improving the time-to-market of your products it's about improving your processes your people and their competencies augmenting the people of your team with with the advance of IOT and at Schneider Electric first of all we have been through this technology ourselves and we have learned through this journey and we have also established a very wide network of partners literally thousands of companies that are for customers because we partner or customers to solve their real problems it's important we could fill in the trap of IP technology and develop solutions that are looking for problem to solve but here we partner with your customers because we want to solve real customer problems we also partner with technology leaders like our friends at Microsoft and many others but also many companies innovation system integrators startups panel builders so all different type of companies that add value to all different systems and of course we partner with universities to develop research to embark students in this process and that this full shell of players around us and with us we call co-innovation because IOT is a so big wide important topic that it's not something that you can succeed in doing alone and we bring to you customers and partners this network of peers that helps us to advance and super market trends and technology disruptions and it goes beyond technology because we ultimately want to be able to expose our customers to business opportunities to leverage all this technology and transform this technology into real tangible business value for you is that the most important not the technology not the nice piece of technology but really the business impact it has on your operation the ability it has to solve your strategic problems and in order to enable all these to have really a solid foundation on which all this is built for ourselves and for our partners we have developed a cost structure a cost structure as an architecture a constructor as a platform and let's have a look Chris to a video that detail what this is this echo structure IOT platform great at Schneider Electric the heart of our IOT system architecture is the Eco structure platform connecting everything in your enterprise from the shop floor to the top floor collecting critical data from sensors to the cloud analyzing data to discover meaningful insights enabling you to take action by closing the loop through real-time information and business logic the eco structure platform is the key to tapping into the true potential of the Internet of Things that's great so if I summarize what you're saying is you can lower your costs increase your time to market and improve processes and capabilities of the people by tapping onto the platform so this is fantastic so shifting to you Norman Schneider has been working with Microsoft on our IOT platform how would you describe the role of Co innovation in an IOT digital transformation journey like Siri indicated digital transformation can be a little threatening sometimes it might even cannibalize your core business but all you know is that you need to change you need to transform your own business because if you don't somebody else would and we all know that how disruptive innovation can lead to unprecedented opportunities like Schneider at Microsoft our view of IOT is that we don't see it as a technology revolution we see it more as a business evolution enabled by technology so what's great about this is if I might think of it as we partner we really innovate which each and every customer so that we make sure that they can scale the business to the needs mm-hm let me give you an example by talking about IOT cloud deployment customers can choose to leave all their applications running happily in a private cloud they can also keep a hybrid mix of on-prem and public cloud deployment we'll simply use like a you know public cloud Azure platform to do their business and plow transformation at the end of the day what Microsoft things that is that just like Schneider we just want to bear things to pair things down make it simple so that for IOT you really kind of get to the business outcome and the business benefits quicker yeah no man I totally agree and you mentioned two very important to our simplicity how do we make all this power easily available and business opportunity how do we capture business opportunities that some studies that I read recently mentioned that people driving digital transformation in the right way see an improved F of the approach by 26% on average which is a big number who will not want a 26% increase in profitability so really the key for us to accelerate these digital opportunities is to build and leverage or dynamic development ecosystem with customer needs and I really want to insist on that at the core of all this we want a generic turret with the cost structure we want to be focused on solving real customer problems and customers driving those missions every day with every device on every of their development as a result leveraging the second system leveraging the across truck tech technology we are able to do this with orchestras much more quickly than any player will be able to do because we have the power of our technology with our partners and we have the power of ecosystem that is associated to that and that amplifies those capabilities Soko innovation really allows us to add to to leverage those advanced that I have mentioned again mobility sensing cloud analytics cyber security and he really catch the time between avión idea about an offer consuming those technologies and bring it an offer to the market that has a real impact yeah I think that's a true benefit of co-innovation Snider's operating technology and Microsoft's trusted open an intelligent cloud platform really makes for a great partnership I think we're seeing you know our customers are all seeing the benefits of that exactly customers are feeling the benefits I'm meeting customers almost every day and really where we hit the mark and where we get very positive feedback is when we are able to help them achieve their goals and those goals always come back to those two things that have to be matched together this combination of operational efficiency and sustainability that could be perceive as contradictory some time but having the right technology and the right capabilities it is possible to reach your operational efficiency goals while being more sustainable at the same time serial I think what you have just described is schneider's mission so at Schneider we have a bow idea we want to ensure life is on everywhere for everyone at every moment and I want to take this opportunity to share one customers bow idea from an O so they're one of the world's largest utility company out of Italy that made a bow commitment they want to be carbon neutral providing resilient green energy to millions of customers let's take a look at how Anna's gonna do this any circuit renton wa minna de NT in italian yo so no christian no che mi Aqaba the innovative network technology Congrats ayuda leads you the solution management system see in greater potential meant a new rail apparently the technical equal Angelina Jia consumer Dada chika chika want a Miele casa italiana monasticism isn't that great so Norman the training aspect of digitization is we never stop so could you talk about how Schneider and Microsoft are partnering on next generation of technologies I love to for the past 30 years we've been on this journey together with Schneider Electric so over this partnership with creative many transformative technology with mobility sensing cyber security and AI first IOT solutions now by merging ot and IT we believe that we can really accelerate the digital transformation at scale so you may ask like what does it do how does like Microsoft fit in more than 90 percent of Fortune 500 companies use Microsoft Azure as their cloud platform you know and why you rendered why would they do so it's because Microsoft's you know being global trust it and compliant and just imagine if you're a customer trying to move all your applications up to the plow you probably want to make sure that your data it's safe and cyber secure not only that with Microsoft's Gobel footprint of we have 42 regions right now it makes it easier for you to reach your customers more effectively and efficiently and now with Schneider we can partner to really kind of meet more unique needs from our customers so that's really exciting so today what I want to show here is like two examples you know we mentioned that sustainability and all that good stuff so two examples once the example is that most recently we actually take IOT to the field in New Zealand and by doing so we're partnering to innovate and transform farming with a company called water force this is a company that actually focused on irrigation and water management systems what we do is that we allow water force to be able to harness the true power of IOT efficiencies by cutting down the use of water and energy a lot through a mobile cloud-based and software and SCADA based solution let's see your first hand from our customer farming has changed dramatically over the last 20 30 40 years scatter farm is a software solution that's been used by farmers in New Zealand the software servers are connected to the organism to the pumps it allows us to adjust the amount of water we apply to the land and it can integrate with the weather forecasts that are coming and make adjustments on the fly to the irrigator the machine might be saving up to 50% of its allocated reuse and I could contribute that to the efficient use of Scouter farm I wouldn't go back without him built on azure IOT Schneider Electric allows us to collect and analyze the data needed to deliver the insights our customers require to stay competitive to transform the way we farm we need a trusted cloud platform that is as global and local as our own industry and that's why we went with Schneider Electric and Microsoft so ladies and gentlemen yesterday ravi spoke to you about how our eco structure industrial software platform allows you to build your biz pakka plication so scatter farm which is an application you saw on the video just now for water falls customer in New Zealand was built on eco structure industrial software platform so that's just one example okay Norman you have more examples yes thanks for you know giving us more context about this case yes I do have another example and this one really underscores our joint company's commitment to driving innovative solutions to address the energy prayer dogs one where we try to balance the planets carbon footprint with the right for people to enjoy quality energy so this is especially important to Microsoft because we also share a commitment to sustainability by doing so like we are transforming health care clinics as well as schools in Nigeria and Africa so consider this what we did was we brought clean reliable solar power electricity to a lot of schools and medical clinics in Africa and by doing so both our companies are really empowering a lot of life-changing solutions and our lightning you know the lives of millions this is really an incredible story and I would like to you know for us to you know check out the video that's the great story about 1.2 billion people in the world live without electricity another billion have unreliable power energy is critical for powering basic social services like health care and education today Schneider Electric is transforming the lives of millions of people in Nigeria by partnering with Microsoft and the Lagos State Electricity Board to provide sustainable solar power to over 200 schools and Clinics now computer labs operate all day the students are able to charge devices extending learning opportunities after sundown clinics are able to properly refrigerate vaccines and medications and medical care is available around the clock with the Internet of Things and cloud connected energy solutions reliable access to power is no longer a dream today Microsoft and Schneider Electric are empowering life-changing solutions worldwide and enlightening the future for millions so from New Zealand to Nigeria that's just two examples but normally what's clear is that when two companies have shared innovation values and making a difference to our customers our communities our planet I think we can create magic together so thank you for sharing these two fantastic stories serial in our audience today we have a lot of business leaders who are keen to know how does this technology going to provide concrete business impact can you comment on this so definitely as as you as the audience knows and we have presented this already a cost structure is in simple terms were open interoperable IOT animal architect on platform so that's really the foundation of all the different solutions that you are seeing around here and that you have seen since this morning but the critical one that I think is absolutely important here is interoperable it's a major difference cater a lot of the solutions that we build action Electric through a constructor they were across systems and product from cert parties models as well they not only work across all the portfolio of Selectric and the diversity of the porphyrin electric but the work also with sub active and us as well and in business interoperability is really what will make or break digital transformation open system which is really a fundamental cultural element much Schneider Electric is really a differentiator here when when systems can talk to each other then you can maximize you can really amplify value and when I speak and when we speak to industrial analysts they notice the McKinsey Global Institute for example is saying that 2/3 of the IOT value that we can create with with IOT application will be based on is based on interoperability without interoperability you have disconnection between those different system you cannot really capture the data and the information that is that is key so fortune Electric interoperability is some things that exist you know for and markets building data center industry infrastructure but it also applies to six very specific domains of expertise so those are the application expertise building blocks of a co structure building management power management IT white space management machine management plants and green management those six domains of expertise as what we are as something together you need interoperability to be able to do this so that we can deliver by associating one two or more of these domains together think about a data center where you put together building management IT what space management and power management together and think about the combined value of office so this is really thanks to interoperability that we are able to embed this by design interoperability has been a key for national principle of the design of the constructor so serial let's just be very clear with the audience do you mean to say because we all know we have legacy capex that is on primacy that's already been built right so do you mean to say our audience our customers do not need to rip and replace all the legacy infrastructure that they have in order to take advantage to leap forward with digital transformation to use eco structure to do this and that eco structure can turn data from mix of devices regardless of from which manufacturer into meaningful business insights is that what you're proposing exactly Andrew Pascal touch that point yesterday when he presented the echo structure stack I want to focus here on how we can associate those three layers that imagine in order to create that value and yes at least was said you don't need to rip and replace anything you have invested in building management system from Selectric SCADA system from directly but also for many different reasons from our competitors it's because we are able to connect and associate information that come from those systems that we can help you extract the value that is associated to IOT so this this tag that we have is really about our restructure and any ball co-innovation at those three levels that I'm going to explain so first as a foundation or connected products so all the great fantastic products of electric that you have learned who to use and to value over the years but they are just connected and they are smarter they are smarter because they are aware of the environment they can sense everything they can capture information they can process some of those information locally so they ask matters is it can be aware of the environment and act accordingly and this is really the senses at the level of the operational layer then the second layer is about the edge and then and let me post at the edge so some people will tend to see the edge just as a gateway okay just some things that sits between the operational reality of a shop floor and the cloud for us the edge is more than that the edge is about control it's about intelligence because all customers run many mission critical application think about hospitals think about power plants yeah so this ability to control locally to have the right level of safety rely on reliability near real-time real time or out real time microsecond type of decision is absolutely critical so we have combined the edge which is an IT concept with control which is an OT concept and this is really where this I Tod conversions happen really really at the edge sir layer of offer of a stack ups analytics and digital services they can be on premise they can be on the cloud as it can be a combination of boss what is really important here is that where we deliver concrete business outcome and how do we deliver concrete business outcome it's because we are able to turn data onto information and information into actionable actionable business insight and that's what we call close the loop that what allows to take better business decisions because that what matters for your business and by closing the loop we go from acting collecting analyzing and transform this on to actions that what is really absolutely critical if I can jump in their serial I really agree I mean in fact I see that it's a credible piece I recall reading one of the studies saying that about forty percent of customers nowadays actually use data to derive timely and informed decisions now that's why I see us a really competitive differentiator I would say that each and every company should really take advantage of every bit of data that they collect exactly good so see real I want to emphasize your phrase you use close the loop so like interoperable this is the core value of eco structure and our IOT strategy can you can you be precise to show some concrete example how this works so absolutely there are very many many to list than you are you have seen some this morning in videos some examples that are shown next next to ear if I can take one that I think is very interesting because of the ambition it represents let's take building so we work and we are helping the Shedd Aquarium in Chicago to use data analytics to strive to realize 50 percent energy saving by 2020 so 2020 is tomorrow okay it's really a very short-term ambition and when you think about a very large-scale acronym it's a lot of eating it's a lot of cooling it's a lot of pumping it's a lot of energy that is consumed so what is the value of showing nature if you show nature in a non sustainable way yeah so the ambition of of this of this question of roles and partner is really to save this this amount of energy by 50% and be much more sustainable I want you to take this example to highlight that a cost structure is also delivering value because we have multiple partners for integration and an integration is a matter of customer proximity understanding your specific needs and requirements and it's also the ability to scale to deploy something across multiple multiple geographies multiple plants with people data centers as we have mentioned before Schneider Creek globally as 9,000 system integrators and counting and growing and they work in tandem with our customers and ourselves in order to build a UT ready solutions IOT enable infrastructure so so if I if I pause here and I try to summarize three points that I would like you to take away listen to this to this conversation this morning so first echo structure is the way we bring together the best portfolio of smart connected products to allow you to transform data into actionable insights so that's idea number one the second is that we innovate because we have a talk on openness and interoperability we build from existing technology and and we want to safeguard your confidence to expand you expand on the foundation of investments that you have already made we amplify the value of investments that you have already done that's very important to us you are business owners we are a business company business is important it's about growth profitability expansion and third idea all this is supported by what we believe is the most extensive ecosystem of partners and developer in the industry to create really relevant business focused solutions that support customers with integration on scales and it's really as I have stated several times this morning is about solving real life customer problems the problems that really matters to you the problems that are important for your own business goals Thank You Cyril and Norman inspiring and exciting projects and I think we are just scratching the surface of echo structure now some of you who's been partners with us for many years know that we launched echo structure about 10 years ago exactly and and we don't stop what you are seeing yesterday was a war premiere of how we continue to innovate and build upon it so we're that's that's what we want to do nothing is static everything is evolving so we are continuing to evolve echo structure to ensure life is on everywhere for everyone at every moment so in closing I have three bow echo structure ideas for you members of the audience for you to take full advantage of everything you have heard of all the booths that you've been visiting and all the amazing technologies we have the first thing that you have to do is simple ensure your assets are connected ensure your assets are connected make me unconnected connected that's the step one you have to do once you have done that you have just turned your assets into a magical data generating machine at your premise your assets that are connected become a data generating machine once you have done that all you need to do is to connect to the echo structure platform then finally once you're connected to the platform you can take advantage of full portfolio of applications and services from Schneider or you can build a bespoke application on there we have 22,000 developers and system great integrators around the world already working with us scalar farm is one example of how the developers are building a bespoke application for a particular customer and that's what we like to invite you to jump on the platform and take full advantage of so ladies and gentlemen this is not a vision this is here and now available today whether you are starting your digital transformation journey or you are accelerating it I'll leave you with a final thought what's your bow idea with Eco structure with that I want to thank my panelists serial you keep Norman thank you very much [Applause] [Applause]

2 Comments

  1. Koshy Samuel said:

    Enterprises today must focus on digital transformation to remain competitive or disrupt their industries.

    June 28, 2019
    Reply
  2. Koshy Samuel said:

    Looking at a business through the lens of data instead of the lens of business processes enables a company to see what really matters.

    June 28, 2019
    Reply

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