Schneider Electric’s India Smart Factory: Creating a Sustainable Value Chain
By Chandan Chowdhury
ISB (distributed by Harvard Publishing, IVY Publishing, DARDEN Business Publishing, and the Case Centre) | March 2024
ISB (distributed by Harvard Publishing, IVY Publishing, DARDEN Business Publishing, and the Case Centre) | March 2024
Citation
Chowdhury, Chandan. (2024). Schneider Electric’s India Smart Factory: Creating a Sustainable Value Chain ISB (distributed by Harvard Publishing, IVY Publishing, DARDEN Business Publishing, and the Case Centre) .
Copyright
ISB (distributed by Harvard Publishing, IVY Publishing, DARDEN Business Publishing, and the Case Centre), 2024
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Abstract
CASE SYNOPSIS
The French industrial giant Schneider Electric (SE) was a market leader in energy management and automation. SE had a strong global presence in over 100 countries across Europe, America, Asia, and the rest of the world.
India was one of the four hubs of SE for technology, manufacturing, innovation, and talent. SE increased its global presence through organic growth, alliances, and acquisitions. Over the years, SE served customers and transformed itself from a product-only supplier to serving customers in three distinct segments: SE’s energy management solutions, products in the energy management space, and services in energy management.
The case titled “Schneider Electric’s India Smart Factory: Creating a Sustainable Value Chain" showcases the digital transformation journey at Schneider Electric India Pvt Ltd (SEIPL), the Indian subsidiary of SE. SEIPL converted a brownfield factory in Hyderabad (the capital city of Telangana) into a smart factory in 2019. This factory was also recognized as an Advanced Lighthouse by the World Economic Forum in 2021.
With market dynamics changing and customers seeking energy-efficient solutions, there was a pressing need for manufacturers and suppliers to offer products and design services with low carbon emissions. SEIPL leveraged the Industry-4.0 enabled technology infrastructure called EcoStruxure. This platform accelerated digital transformation. SE established this end-to-end digitally enabled supply chain for business continuity at their premises, serving as a use case for their customers worldwide.
The case highlights the perspective of Anil Chaudhry, Zone President, and Managing Director of SEIPL, who led the smart factory digital transformation for SE in India. The case reflects upon the learnings and takeaways from the success of the implementation at an existing facility, which was a challenging task compared to a greenfield factory. The case prompts the reader to think about how companies could create awareness in their ecosystem about the need to adopt a digital mindset. What aspects do companies focus on while planning for digital transformation? Could factories that were not Internet of Things (IoT)-enabled be converted into smart factories? Further, what could other organizations learn from SEIPL’s experience of converting a brownfield facility to a smart factory?
LEARNING OBJECTIVES
This case study would help achieve the following teaching and learning objectives:
(1) Study the role of digital transformation in transitioning from a fragmented value chain to an extended enterprise, enhancing data-driven decision-making.
(2) Establish the importance of leveraging Industry 4.0, focusing on decarbonization and sustainability.
(3) Understand how different members in the value chain derive business benefits by deploying Industry 4.0.
(4) Observe how organizations have adapted their business models to digital-led agile working practices.
(5) Identify organizational capabilities that act as enablers of the digital transformation of a business.
(6) Understand what other organizations in the ecosystem can learn from a globally recognized success story about reducing the carbon footprint by implementing sustainable business practices.
The French industrial giant Schneider Electric (SE) was a market leader in energy management and automation. SE had a strong global presence in over 100 countries across Europe, America, Asia, and the rest of the world.
India was one of the four hubs of SE for technology, manufacturing, innovation, and talent. SE increased its global presence through organic growth, alliances, and acquisitions. Over the years, SE served customers and transformed itself from a product-only supplier to serving customers in three distinct segments: SE’s energy management solutions, products in the energy management space, and services in energy management.
The case titled “Schneider Electric’s India Smart Factory: Creating a Sustainable Value Chain" showcases the digital transformation journey at Schneider Electric India Pvt Ltd (SEIPL), the Indian subsidiary of SE. SEIPL converted a brownfield factory in Hyderabad (the capital city of Telangana) into a smart factory in 2019. This factory was also recognized as an Advanced Lighthouse by the World Economic Forum in 2021.
With market dynamics changing and customers seeking energy-efficient solutions, there was a pressing need for manufacturers and suppliers to offer products and design services with low carbon emissions. SEIPL leveraged the Industry-4.0 enabled technology infrastructure called EcoStruxure. This platform accelerated digital transformation. SE established this end-to-end digitally enabled supply chain for business continuity at their premises, serving as a use case for their customers worldwide.
The case highlights the perspective of Anil Chaudhry, Zone President, and Managing Director of SEIPL, who led the smart factory digital transformation for SE in India. The case reflects upon the learnings and takeaways from the success of the implementation at an existing facility, which was a challenging task compared to a greenfield factory. The case prompts the reader to think about how companies could create awareness in their ecosystem about the need to adopt a digital mindset. What aspects do companies focus on while planning for digital transformation? Could factories that were not Internet of Things (IoT)-enabled be converted into smart factories? Further, what could other organizations learn from SEIPL’s experience of converting a brownfield facility to a smart factory?
LEARNING OBJECTIVES
This case study would help achieve the following teaching and learning objectives:
(1) Study the role of digital transformation in transitioning from a fragmented value chain to an extended enterprise, enhancing data-driven decision-making.
(2) Establish the importance of leveraging Industry 4.0, focusing on decarbonization and sustainability.
(3) Understand how different members in the value chain derive business benefits by deploying Industry 4.0.
(4) Observe how organizations have adapted their business models to digital-led agile working practices.
(5) Identify organizational capabilities that act as enablers of the digital transformation of a business.
(6) Understand what other organizations in the ecosystem can learn from a globally recognized success story about reducing the carbon footprint by implementing sustainable business practices.