Josu Ugarte Zone President Iberia - Viateclastatic.viatecla.com/apdc/share/2018-12/2018-12-04130055_f667a14… · n) Confidential Property of Schneider Electric 0 10 20 30 40 50 60

Complexity turned into an opportunity

Josu Ugarte

Zone President Iberia

Confidential Property of Schneider Electric

We are immersed in the 4th wave of globalization

2nd wave1980- 2001

IT and specially improve in

transportations

3rd wave2001 -2011

China joins the World Trade

Organization

1st wave1944 – 1980

Bretton Woods agreements

FMI, WTO

4th wave2011- 2017

We move into a VUCA world

Pole | US, Canada,

Europe, Japan

Pole | world starts to

become flat

Pole | fragmentation of the

value chain, investment in

emerging markets, R+D

starts moving Occident –

Orient, North-South“I open my barriers if you

open yours”

“I will open my barriers so

that you can invest”

“We are in the era of

multilocalizations”


What will happen in the coming years

The different waves will succeed

faster due to IoT and Data &

Technology Democratization.

Globalization is over we are

moving towards the progressive

de-conglomeration of

economies


Increasing interdependence of geopolitics and companies

)

+ Protectionism

+ Commercialduties

New rules are defining our relation

GEOPOLITICS MIDDLE CLASS

Middle class and demography is what defines the markets

In cities by 2050

+2.5B people

X6 Asiain 20 years Asia has multiplied x6 its middle class

The Emerging Technologies Hype Cycle of Gartner

All these technologies have finally

converged over time, they feed back

on each other. Today anyone,

anywhere can access to new

technological offers that can have a

brutal impact on businesses.

We are living the democratization of technology.


The new complexity: Never before have companies been as vulnerable to disruption as today

Avera

ge L

ifeS

pan

(years

)


0

10

20

30

40

50

60

70

80

90

100

75 years

18 years

1937 2011

Source: Foster, R.N. (Winter 2012) Executive briefing. Innosight

50 million new businesses

formed globally

(137,000 per day)

How many “startups” were formed in 2015?

S&P 500 Life Expectancy

Faced by many companies in many industriesExecutives who anticipate moderate or massive digital disruption in the next 12 months


Industrial

Source: “Digital Pulse 2015” Russell Reynolds Associates

Harvard Business Review

72%

64%

61%

57%

57%

53%

52%

52%

51%

50%

47%

43%

39%

Media

Telecom

Consumer financial services

Retail

Technology

Insurance

Consumer products

Nonprofit

Business & professional services

Education

Health care

Asset wealth management


An opportunity for

Portugal

Why Industries? Why mid-market?

Initial considerationsThe importance of industries & the reality of the companies in Portugal

X1,6 to 5

Multiplying effect

depending on the

technological

level of

companies

67%

of people

employed in

industry stays

for more than 6

years.

1,33%

of PIB invested

in R&D

Industries create and maintain employment, it’s a

strong source of exportation and has a strong

multiplier effect in all the economy

Source: “Enrico Moretti, Estudio para el fortalecimiento y el desarrollo del

sector industrial, BCG

of national

companies are

Small & Medium

79%

of employment

99,9%

Everything we do has to take into consideration

the reality of the market. Digitization is pervasive.

By focusing in mid-market we will digitize all

economy.

Source: “PME geram 31,2 mil milhões de euros”, Dinheiro Vivo, 22/12/2017



The 3 keys of the tsunamiIntelligent products, data & analytics

Add value with

The new oil

From Unconnected to Increased value for customer 24/7 relationship

Digitized data enables us to create

models and patterns, improve operations

& processes

We can now predict the future optimize

assets performance, improve our results and

make better decisions

Analytics & Services

Data

Intelligent &

Integrated Assets


The process of converting the

entire business environment of

your company into data that

can be processed and analyzed

What do we mean by Digital Transformation?


“Manufacturing is the sector where we will see a greater impact of IoT”,

Consequences of the Digital TransformationCisco, McKinsey & Roland Berger predictions

48% reduction of unexpected downtime

49% reduction of failures (from 4,9% to 2,5%)

30-50% Improve-ment of stocks-management (reduce of security stocks + higher rotation of inventories)

18% reduction of energy consumption

reduction of operational costs due to robotics, cobotics and greater efficiency

10-20%


Consequences of the Digital Transformationthe short term view: massive impact on operations

Up to

~65%Average (30%)

Up to

-50%CapEx (integration)

-30%OpEx

Up to

50%fewer incidents

Aiming at

Zero emissions

Energy efficiency Productivity Reliability Sustainability

Results based on 10 years of customer project data*


Consequences of the Digital TransformationFrom a retrospective analysis to being able to predict the future

BIG

DA

TA

Data

Analytics

DESCRIBES

DIAGNOSIS

PREDICTS

PRESCRIPTS

HUMAN INPUT

HUMAN INPUT

HUMAN INPUT

SUPPORTS DECISSION MAKING

AUTOMATIZE DECISSION MAKING

DE

CIS

SIO

N

AC

TIO

N

Low Past Easy

High Future Complex

Value Time Technology

Proof of ConceptSimulate the solution with a competitive cost

Common doubts

Too many technologies unknown

Promises of improvements that

nobody is able to concrete

Risk of doing important investments that

don’t provide improvements and become

obsolete

Urgent need to improve efficiency due to

the increasing competitiveness of

markets

Lack of trust in front of suppliers that

promise important improvements but do

not know at all their business

Benefits of the proof of concept

CUSTOMIZED

NOT INVASIVE

NON INFLACTIONARY

GRADUAL


Technology will

change the way we

monetize our value

proposition

We are moving to new business

models

The truth behind the tsunamithe mid-term vision

“In short term, everyone is conscious of the massive impact digital

transformation will have in operations. But in less than 3 years, it

will impact our strategy, the way we do business”

With a huge impact in the property of the

assets

What if the business is not anymore selling the machine?From Machine to Machine as a Service

Transformations are lead by

People


Digital Transformation must be lead by CEOs The Agenda of the CEO

Look for new business opportunities

Review digital transformation opportunity in your business model

Shorter windows of opportunity

Models of organic and non-organic growth

Management and structures in XXI century

Networks and managing the ecosystem

Learn to engage talent

Critical for success | Open innovation

Brand Value

Trust generation

1

4

5

2

3


Digital Transformation must be lead by CEOs

“We are living times of exponential changes. We need leaders with

holistic view of their business. Digital transformation is not only

launching AI, blockchain, or automatization projects. We are facing a

total transformation that will change the way we do

businesses. And this, is the job of a CEO.”

FlexibleEnthusiastic, resistant to failure, be able to work for projects

HybridMultidisciplinary, multi-skilled IT-OT

COCapable of Cooperating, Co-working, Co-Creating, Coordinating

FasLFailure as a learning.Agile vs Waterfall

Self-trainingAble to lead its own learning and development. Permanent & transversal Learning and able to unlearn in a natural way

Generate ValueTransforms information into knowledge, generates value and differentiation. Transform ideas into actions.

…and will require a new kind of professional


…with strong soft skills

COMPETITORS COMPETITORS

CO

-CR

EA

TIO

N A

ND

CO

LLA

BO

RA

TIO

N

GO

OD

S

EcosystemDynamic communities with multiple and diverse actors that work together following models of collaboration and cooperation to create strong value proposition offers

…a new competitive environment based on ecosystemswith new labour relations and new definitions of the supply chain


The Impact of Technological Revolution for Portugal

The technological revolution is changing the status quo,

and Small & Medium sized companies are specially vulnerable

to this time of disruptions and uncertainty.

© 2018 Schneider Electric. All Rights Reserved |

Technological Disruptions

Scarcity of Talent

Merging and acquisitions

Increasing global competitiveness

Confidential Property of Schneider Electric |


Being small is a

competitive

advantage….


“A thrilling revolution. Time is now. No country is

adopting fast enough the new digital technologies.

We could be the first. Small & Medium

companies have a great opportunity. Take advantage

of it. We play our future as society.”

© 2018 Schneider Electric. All Rights Reserved |

Thank you

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Josu Ugarte Zone President Iberia - Viateclastatic.viatecla.com/apdc/share/2018-12/2018-12-04130055_f667a14… · n) Confidential Property of Schneider Electric 0 10 20 30 40 50 60