New study by Schneider Electric reveals tangible benefits for businesses and organizations globally when they lead with Digital Transformation in Energy Management and Automation

February 7, 2019

Schneider Electric, a global leader in digital transformation of energy management and automation, has released the Global Digital Transformation Benefits Report 2019, presenting concrete evidence of the power of digitization across the spectrum of global industry, commerce and the public sector. This evidence takes the form of deep, quantifiable, business benefits derived from a repository of 230 customer projects Schneider Electric completed in the last five years across 41 countries – all employing the company’s architecture and platform, EcoStruxure.

The goal for this report is to provide readers with a useful and realistic benchmark on digital transformation’s potential in energy management and automation. At the core of this report are 12 key business benefits of digital transformation. These benefits are divided into three categories, each essential to effective marketplace competition: capital expenditure (CapEx), operational expenditure (OpEx), as well as sustainability, speed, and performance. The Report focuses on four key sectors of the economy — buildings, data centers, industry, and infrastructure — all undergoing transformations that will fundamentally change the way people will live, work, and play.

Significant CapEx and OpEx savings

The evidence presented by the Report puts to rest concerns in the market that digital transformation is an expensive Capital Expenditure proposition involving new systems and difficult integration into existing processes. The customer projects studied in the Report demonstrate the opposite.

The study shows that digitization of engineering processes, for instance, can save businesses and organizations an average of 35% in CapEx costs and time optimization. Further, commissioning costs of new systems and assets can be reduced by an average of 29%.

The study also reveals that digitization, by harnessing IoT, can result in significant savings in Operational Expenditure – leading to step change improvements in efficiency, reliability, safety, and sustainability. Businesses and organizations report an average savings of 24% in energy consumption, as a result of digitization.

In Industrial applications, digital transformation allows businesses to do more with less — more yield with less energy, fewer materials, and fewer labor hours. Increased productivity, up to 50%, results from energy management and automation efficiencies across the value chain, from IoT-enabled tracking to automated production lines.

Decades of Experience in Digital Transformation

Schneider Electric has started its digital transformation journey years ago. In 2009, Schneider Electric launched EcoStruxure™, its IoT-enabled, plug and play, open, interoperable, architecture and platform.

Now boosted for cloud and digital services, EcoStruxure™ delivers enhanced value around safety, reliability, efficiency, sustainability, and connectivity. EcoStruxure™ leverages advancements in IoT, mobility, sensing, cloud, analytics and cybersecurity to deliver innovation at every level, from connected products; edge control; and apps, analytics & services. EcoStruxure™ has been deployed in 480,000+ sites, with the support of 20,000+ system integrators and developers, connecting more than 1.6 million assets under management through 40+ digital services. Building on EcoStruxure™, 45% of Schneider Electric sales in 2017 were IoTrelated.

A larger story emerges from this report about the power of digital transformation in energy management and automation: when businesses digitize both energy management and automation, the two work in concert to drive even greater, unprecedented, value.

“Digital transformation is the only way of delivering consistency and efficiency across a company. Technologies such as the Internet of things (IoT), artificial intelligence and big data analytics are making companies more efficient and innovative, boosting their competitive advantage,” said Jean-Pascal Tricoire, Chairman and CEO of Schneider Electric. “Our report indicates that many businesses and organizations need a trusted authority to manage this complexity to unlock the full potential of digital transformation. Our technologies, built on EcoStruxure™, harness the power of digitization, enabling our customers to become more efficient, safe, reliable, connected and sustainable – leaders in the New Digital Economy.”