The digital transformation of the real economy has become a significant focal point for various sectors in recent yearsThis transformation is particularly crucial now as technologies like generative AI, big data, and the Internet of Things (IoT) rapidly develop, marking a pivotal moment for industries striving for modernization and advancement.

Among those leading the charge is Schneider Electric, an expert in digital transformation within the global energy management and automation landscapeOperating across over 100 countries and regions, Schneider Electric boasts a workforce of more than 80,000 supply chain employees and five "lighthouse" factories demonstrating their commitment to advanced technologiesIn China, their factories in locations such as Beijing and Wuxi are embracing cloud computing and artificial intelligence (AI), with ambitious plans to create zero-carbon factories, serving as a striking example for the transformation of the real economy.

So, how does Schneider Electric perceive the concept of digital transformation? As a multinational corporation with a rich history spanning 187 years, it has adopted a multi-faceted approach to this transformative journey

According to Peter Weckesser, Schneider Electric’s Executive Vice President and Chief Digital Officer, the company provides a vivid example of being diversified, global, yet very localized in its understanding of digital transformation through three primary dimensions.

The first dimension revolves around continually empowering industries and advancing digital transformationSchneider Electric strives to actualize its digital vision by enabling its clients and pushing them forward in their digital journeysThe emphasis here is on facilitating progress; every technological advancement made is seen as a way to enhance client capabilities.

Collaboration is pivotal in Schneider Electric's digital approachWeckesser highlights the second dimension involving partnerships with various entities, asserting that a shared goal of mutual benefit drives this collaborationSoftware serves as a fundamental building block to construct a digital ecosystem that includes solutions like AVEVA and ETAP among others

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These partnerships are key to empowering stakeholders and building a robust digital ecosystem across industries.

The third dimension focuses on internal transformation concerning the company’s workforce and business processesSchneider Electric firmly believes that cultivating employee skills is vital to the overall success of its digital initiativesWeckesser explains that an array of emerging digital technologies calls for continuous investment in enhancing the competencies of employees, both in business and technical aspectsCurrently, Schneider Electric’s revenues largely stem from providing digital solutions across various industries.

Throughout recent years, the company has delved into sectors such as the Industrial Internet of Things, AI, and digital twinsThis exploration not only solidifies its foundation for transformation but also sets a benchmark for numerous industries in the market today.

It might be surprising, yet Schneider Electric is aggressively expanding its presence in software, services, and AI, amidst the backdrop of its established manufacturing roots

Since 2013, they formed a team specializing in digital services, and by 2015, they accelerated exploration in smart manufacturing and the Industrial Internet of ThingsBy 2017, they began consolidating their proven digital capabilities into comprehensive solutions aimed explicitly at sectors like energy and electrical, introducing consulting services to enhance their offeringsBy 2023, the AI team at Schneider Electric expanded to 300 personnel, accompanied by the establishment of an AI laboratory in China, aimed at infusing AI technology across its product range.

Through over a decade of strategic positioning and persistent exploration, Schneider has transformed into a leading digital entity with integrated hardware and software capabilitiesAccording to Zhang Lei, Vice President and Head of Digital Services for Schneider Electric in China, the growth of their software services has been remarkable, suggesting substantial potential for future expansion.

The launch of the EcoStruxure AI engine exemplifies Schneider Electric's dedication to leveraging AI

This initiative aims to harness computational power and data supply and innovate algorithms while focusing on practical applications to develop a vibrant ecosystem of AI-driven innovationsThe 300-member strong AI team is primarily focused on utilizing AI to optimize financial processes, human resources, and supply chain operations within Schneider itself while embedding AI into numerous products to enhance customer experiences through features like microgrid optimization and predictive maintenance.

Weckesser emphasizes that achieving a “zero-carbon factory” is paramount, beginning with managing existing energy consumption and boosting efficiency while integrating cleaner energy sourcesSchneider Electric has employed digital technology to implement these methods successfully, leading to tangible results in carbon-neutrality objectives.

The tangible results of Schneider Electric’s “zero-carbon” initiatives in the Chinese market have established a golden standard for sustainable development within manufacturing

The company has committed to achieving carbon neutrality in its operations by 2025, being prepared for zero carbon status by 2030, achieving end-to-end carbon neutrality in the value chain by 2040, and finally establishing net-zero carbon emissions by 2050.

Take Schneider Electric’s Beijing-based low-voltage electrical equipment facility, for instanceThis plant has pioneered sustainable practices by incorporating the EcoStruxure suite of integrated solutions into its production and operational processes, successfully enhancing production efficiency, product quality, and reducing energy consumption—making it the first zero-carbon factory for Schneider Electric in China.

Weckesser reiterates that to realize a "zero-carbon factory," it is vital first to control existing energy consumption effectively and increase the efficiency of energy use, subsequently integrating an increased share of renewable energy sources into operations.

Additionally, Schneider Electric has utilized its experiences to empower partners, helping them achieve energy savings and reduce carbon footprints in their operations

In an age where internet penetration has reached approximately 76% by 2023, the acceptance of digital solutions is expected, yet many factories still rely on outdated methods such as printed electrical diagrams, which are not only inefficient but often outdatedLiu Huatao, General Manager of Schneider Electric SEE Software China, notes that their SEE electrical design solutions provide a digital transformation throughout the entire lifecycle of electrical systems ranging from principle design to three-dimensional cabinet design, streamlining data management and potentially guiding the industry toward heightened efficiency and expedited digital advancement.

As we look toward the future, the acceleration of digital technology—including AI, big data, the Industrial Internet, and digital twins—this digital transformation and intelligent upgrade loom larger than everIt's clear that Schneider Electric has positioned itself at the forefront of digital advancements in the industry, and as they continue this journey, they will undoubtedly create fresh chapters in the evolving narrative of transformation in industrial practices.