Embracing Digital

Ecosystems to Deliver
Intelligent Power Solutions
• Implications for electrical infrastructure partners
• Transform your business for the future

SEPEMBER 2021

Authors:
Andrew Buss
Stuart Wilson
Andreas Storz

IDC #EUR148000221

An IDC InfoBrief, Sponsored by

IDC #EUR148000221 1 An IDC InfoBrief, Sponsored by

Executive summary
This IDC InfoBrief examines how increasing digitalization and electrification together create new opportunities for you to evolve your low-voltage electrical
distribution business to keep up with your customers’ needs and keep ahead of your competition. You will learn how and why to transform your role and develop
future-ready attributes for a new simplified, open, and digital world. Your success depends on leveraging innovation trends and pursuing business transformation
together with vendors that enable and complement your value proposition to customers.

INNOVATION TRENDS PARTNER TRANSFORMATION

• Open up new opportunities for you to add value • You need to prioritize relationships with
to your infrastructure offerings by embracing vendors that accelerate your evolution and
digital capabilities. provide the support and services required.

• Drive new customer interactions related to • Your transformation to become a partner

efficiency and sustainability goals with intelligent of the future builds a more resilient and
power infrastructure and IoT solutions. customer-centric business model.

Learn more about the innovation trends that are changing customer needs. Understand how these relate to your own
business transformation. Assess where you are today and find out how Schneider Electric can support and accelerate your
partner transformation.

IDC #EUR148000221 2 An IDC InfoBrief, Sponsored by

Open up new opportunities to add value to your traditional
infrastructure offerings by embracing digital

Top digital business priorities Digital businesses demand more

Digital transformation Connect workforce,

and software operations, and
development partners

Innovation Software Rapid time Collaboration Always

Customer Business centric driven to market centric on
experience resilience

$6.8 Companies are increasingly digitalizing all aspects of their operations and

trillion 65% of global

GDP will
be digitalized by 2022.
focusing on monitoring and managing all of them. While this is most visible
in areas such as outward-facing digital applications and services, the entire
company, including buildings and facilities, is also being transformed and
of direct digital
transformation investments digitally integrated.
from 2020 to 2023.

Source: IDC European Enterprise Infrastructure and Multicloud Survey, 2020 (n = 1,187); IDC COVID-19 Impact Survey Wave 3, April 2020; Wave 11, August 2020 IDC #EUR148000221 3 An IDC InfoBrief, Sponsored by
IoT is driving demand for smart digital infrastructure with
flexible architectures
IoT is a growth market with a high services requirement to drive 360-degree business outcomes

Desired business outcomes IoT investment by industry Complexity of IoT deployments

Energy
Better efficiency Q. Which of the following describes your
Government
organization’s current or planned IoT projects?
Retail and wholesale (Choose all that apply)
Healthcare HARDER
Improved customer experience
Manufacturing Part of core operations and fully integrated
Resources 53%
Increased product quality Business services Not part of the core operations, but partly integrated with them
Financial services
Telco and media
41%
Lowered costs Transport and logistics
Standalone system

Life science 12%

0% 20% 40% 60% 80% EASIER
Competitive differentiation 100%

Planning investments Deployed

Challenges to solve are similar across industries: Your opportunity lies in helping customers
overcome these challenges with integration
Complexity of Complexity of expertise combined with industry-leading
Cost Security
deployment process changes
partners and technologies.

Source: IDC’s European IoT Survey, 2020 IDC #EUR148000221 4 An IDC InfoBrief, Sponsored by
Your best growth strategy is to target customers based on
their advanced digital infrastructure needs
Digital capabilities engagement approach

#1 Opportunity: Personal services IT and telco service Media and • Digitally transformed
and leisure providers entertainment • Have a strategic data vision
Focus targets • Value improved business outcomes
Digital Leaders Retail and wholesale Education over cost cutting

Professional • Digitally transforming

#2 Opportunity: Banking Utilities
• Data approach is more tactical than strategic
services
Strategic targets • Receptive but need coaching and
Transportation
Digital Mainstream Insurance encouragement
and logistics

#3 Opportunity: Other financial • Digitally resisting

Manufacturing Construction
services • A lot to gain, but lack a data vision and
Opportunistic targets strategy
Digital Followers Communication Healthcare • Prioritize cost cutting

Digital Leaders
% seeing 53% Digital Leaders show the strongest revenue growth. Your best
revenue Digital Mainstream opportunity for account growth lies in understanding the digital
growth 40% capabilities of your customers in order to engage at the right level and
Digital Followers with the right message for their electrical infrastructure evolution.
30%

Source: IDC Enterprise Infrastructure and Multicloud Survey Europe, May 2020 (n = 1,187) IDC #EUR148000221 5 An IDC InfoBrief, Sponsored by
Digitally advanced companies are asking for greener and
more resilient power infrastructure
Energy reduction, waste elimination, and increased Schneider Electric EcoStruxure Take this opportunity to help
resilience continue to be leading drivers for smart building solutions can help deliver these implement next-generation intelligent
technologies. efficiency gains with up to 20% approaches to power management
• Commercial buildings account for a significant proportion better: and help deliver the efficiencies that
of overall energy use and emissions production.
modern businesses need.
• Unexpected power supply failures can interrupt
company operations.
Smart power distribution systems with intelligent
optimization and predictive failure alerting can enable
Energy and
maintenance
CO2
emissions
Capex
savings
Typical enterprise datacenter
power usage effectiveness — 2.3
quantifiable cost and emissions reductions and increased costs reduction If $1,000,000 worth of power is spent on running
operational reliability and uptime. the infrastructure,

$1,300,000 extra
is needed to distribute the power and cool the
datacenter.
Proactive
maintenance A 20% improvement in datacenter efficiency through
intelligent power can reduce this overhead by
Electrical infrastructure
telemetry
Smart
analytics
Reduced operational
downtime and losses $260,000 .

Source: Digital Transformation Benefits Report; Schneider Electric IDC #EUR148000221 6 An IDC InfoBrief, Sponsored by
Digital power management keeps you informed, in control,
and adding value throughout the life cycle

A connected power management approach offers an OPTIMIZE DESIGN

effective solution for you to discover, categorize, track, OR SERVICE
and manage a digitally enabled smart power distribution
infrastructure.

A centralized, self-discovering cloud-based asset catalog

provides the ability for electrical equipment to register with
and communicate directly with a digital asset management
service in real time. This allows health and condition to be
tracked instantaneously in operational dashboards with INSTALLATION
CHANGE
remote monitoring and alerting. OR EXTEND

Automated life-cycle tracking and condition monitoring

enable you to proactively work with customers to refresh
or renew electrical infrastructure.

Dynamic power consumption can be monitored and

opportunities for energy efficiencies identified and
OPERATION
actioned.
Increased opportunities for engagement, upsell, and margin
rich services delivery at all parts of the solution life cycle

IDC #EUR148000221 7 An IDC InfoBrief, Sponsored by

Ecosystems and marketplaces are the cornerstone of the new digitally enabled enterprise. IDC
recommends that any partner working to implement advanced solutions as part of a stack of
technologies proactively engage with and become a certified member of relevant ecosystems.

Our partnership with Schneider Electric has allowed

Albesol to expand into new markets. It is important for
us to work in a partner ecosystem that enhances our
expertise and knowhow … Digitalization of Schneider
Electric’s portfolio is enabling us to meet changing
customer needs based on new technologies.
Artan Pulti, CEO, Albesol (Schneider Electric Partner)

Intelligent and digital solutions create new benefits for customers. They also enable you to benefit from operating in an
open and collaborative ecosystem of partners and customers. Your transformation drives increased relevance and more
opportunities with customers.

IDC #EUR148000221 8 An IDC InfoBrief, Sponsored by

Transforming your business model is critical as your
customers’ needs are becoming more demanding
Your success is driven by new metrics and an increased focus on long-term customer relationships based on mutual trust.

COVID-19 accelerated transformation New drivers of partner success

• Deep focus on customer experience (CX)

• Purposeful, trusted customer relationships
• Use-case driven, not technology driven

61% 54%
of partners of channel
believe partners • Marketing as an extension of sales
COVID-19 believe • Increased emphasis on industry solutions
has been a driver of digital digital transformation represents
transformation for most a challenge to their existing • Targeted outreach to specific stakeholders
customers, BUT … business. • Co-creation with customers and partners

SUMMARY: Partner transformation is accelerating. Your success in the next normal is based on targeted approaches,
focused propositions, and long-term customer relationships. With 71% of partners now selling via marketplaces, your
participation in ecosystems and your approach to collaboration is more important than ever.

Source: IDC Partner Survey, 2020 IDC #EUR148000221 9 An IDC InfoBrief, Sponsored by
Choose your vendors based on the value and support they
can provide to your transformation
Suppliers that have a strong ecosystem, provide a marketplace environment, and offer you compelling services opportunities
can assist your own business evolution.

What partners value from vendors Collaboration increases

Ease of doing business remains the most important, but you must now consider

67%
of partners are currently collaborating, or considering
other factors when deciding which vendors can truly support your transformation. collaborating, with other partners to offer more
complete solution and service offerings.
Ease of doing business
91%
Availability of engineering support
79%
Best-in-class technology/product
78%
Marketplace
73% Vendors that facilitate the process of partner-to-partner
Partner marketing support collaboration through ecosystem initiatives help partners
69%
Superior services opportunities deepen and extend their customer relationships. It also
67%
Training and certification allows you to access additional skills and expertise from
67% other partners.
Strong ecosystem
65%
Market-leading partner program SUMMARY: New ecosystem-based models are
65%
Percentage of partners that consider these attributes a high priority when considering which vendor to work with.
supporting an increase in partner-to-partner collaboration.

Source: IDC Partner Survey, 2020 IDC #EUR148000221 10 An IDC InfoBrief, Sponsored by
You need to increase your focus on customer experience to
build stronger relationships
Align your business development strategy with vendors that can help you build out your customer success and CX capabilities.

Tactics for customer retention Why CX matters?

More partners are focusing on the strength of their customer relationships. The Developing service-based propositions
following tactics and initiatives can help you to maintain a competitive edge. means you can benefit from strong recurring
revenue streams. Building new business skills
Offer training and enablement services to help customers and processes related to customer success
58% metrics and CX drives increased renewal
Leverage technology to analyze customer usage
56% and retention rates for your services. This
Incorporate new metrics into our business to monitor retention provides a strong underlying revenue base
54% for business development and investment in
Use data and analytics to predict expansion opportunities new activity areas that will form part of your
54%
transformation journey.
Percentage of partners that have deployed specific customer retention tactics/initiatives.

SUMMARY: CX is providing a foundation for deep and continuous customer engagement. Analyzing customer data and
analytics also provides visibility on upsell and cross-sell opportunities.

Source: IDC Partner Survey, 2020 IDC #EUR148000221 11 An IDC InfoBrief, Sponsored by
Your focus on new skills, new services, and new go-to-market
models will determine your future success
Building new attributes will create opportunities for you to collaborate, co-create, and become genuine trusted advisors for your
customers.
How your business evolves Changing how you sell and serve
Invest in your digital sales and marketing capabilities:
PAST PRESENT FUTURE
of customers expect you to view your ability to provide
TECHNOLOGY Traditional/on-prem Next-gen Digital use cases provide online content that virtual demos as a key
76% allows them to do their own 74% differentiator as they
FOCUS Broad Specialized Digital innovation
research of offerings. evaluate.
COMPETITION Traditional Non-traditional Co-opetition

ALLIANCES Do it ourselves Collaboration Ecosystems Develop digitally enabled service propositions:

APPROACH Deal focused Relationship Iterative, use case
of customers now view your of customers value partners
GO TO MARKET Traditional Digital CX and marketplace ability to provide remote that can offer predictive and
76% diagnostics and repair as a 75% preventative monitoring
key differentiator. and notification.

SUMMARY: Solutions that enable software-driven innovation are becoming a priority for customers. You need to sell and
serve in new ways that connect with customers’ ecosystems and align with their strategic business objectives.

Source: IDC EMEA, COVID-19 Impact Survey IDC #EUR148000221 12 An IDC InfoBrief, Sponsored by
Your commitment to sustainability will mean you are viewed
more favorably by customers
Your customers want to work with partners that can offer a strong sustainability vision in conjunction with the vendors they represent.

How important is your sustainability? Focus on sustainability grows

Your attitude toward sustainability is more important than ever Investment in your own sustainability credentials
in the eyes of customers. 45% of customers now rate your and offerings provides clear business benefits.
sustainability as very or critically important.

Critically important 7%
Very important 38% 41% of customers now
seek assistance
from their strategic IT partners to
60% of customers
now incorporate
sustainability metrics into their
Moderately important 43% incorporate sustainability targets RFPs when selecting which
Slightly important 11% into products, services, and partners to work with.
solutions they deliver to their
Not at all important 1% clients.
The level of importance that sustainability plays for customers and/or business
partners in their selection of channel partners. Source: IDC Services Survey, 2020

SUMMARY: Sustainability is increasing as a factor that customers use to assess both partners and vendors. By aligning with
a vendor with strong sustainability credentials, you can increase your customer win rate. More than 80% of partners have
already made investments to build more sustainable business practices.

Source: IDC Partner Survey, 2020 IDC #EUR148000221 13 An IDC InfoBrief, Sponsored by
Your strategic vendors can play a major role as you enhance
your business resilience
Close relationships with key suppliers, building new skills, and developing recurring revenue streams enable you to build a stronger
and more dynamic business.

Co-create and invest for success Strengthen your business

64% of partners already co-create with vendor partners to develop

new products and services. You also need to invest in developing
new skills within your organization to support your transformation.
The strength of your business model can increase if you focus on capturing
more opex spend from customers and align your offerings with their digital
transformation goals. Assess your own business resilience around four core
areas:

• Your activity mix and current revenue streams

• Your digital maturity and strength of portfolio
37% 39% 39% 39% • Your financial position and outlook
Cloud Security Digital Digital • Your customer base, plus vertical and geographic coverage
technical skills transformation transformation
skills sales skills consulting skills Think carefully about the potential for “pivotability” within your organization.
Percentage of partners investing in specific skills areas within the next 12 months.
Build processes that support rapid transformation.

SUMMARY: Building up your focus on new service-based activities, increasing recurring revenues, and adopting a more
agile approach to transformation will boost your business resilience.

Source: IDC Partner Survey, 2020 IDC #EUR148000221 14 An IDC InfoBrief, Sponsored by
Four core pillars will drive your transformation process

Services Value-added expertise Specialization Collaboration

These four pillars are value accelerators that enhance your traction and revenue opportunity with customers, and keep you ahead of the competition.

FOCUS ON CORE OBJECTIVES TO SUPPORT DIFFERENTIATION AND DRIVE YOUR TRANSFORMATION

• Build a differentiation strategy and proposition that aligns with the changing needs of your customers
• Focus on the development of service-based propositions that drive continuous customer engagement
• Leverage the training, support, and resources offered by suppliers to drive partner transformation
• Create a plan to build and commercialize your unique capabilities and intellectual property (IP)
• Make collaboration a strategic business objective incorporating customers, partners, and suppliers
• Shift from project-based customer engagements toward business-case-driven solution selling

IDC #EUR148000221 15 An IDC InfoBrief, Sponsored by

What should you be doing? Where to start?
The five key action points to start or accelerate your business evolution

Talk to your primary vendors (e.g., Schneider Electric) Identify and build new revenue streams such as
to understand how they can help you accelerate the new services and unique IP to monetize alongside
process of partner transformation. your core solution portfolio.

Create a customer success focus internally. The Focus on a culture that values accelerated and
biggest challenge will be bringing a services mindset continuous transformation. This is your platform
to sales and vice versa. for partner success and enhanced CX.

Collaborate with Schneider Electric to develop sales

playbooks based on “use cases” and long-term benefits
that can be baked into your customer propositions.

SUMMARY: Assess where you currently stand in relation to these points and create a plan of action. Your process of transformation
will enable you to build a future-proof business model. The evolution of your business will enable you to thrive, not just survive.

IDC #EUR148000221 16 An IDC InfoBrief, Sponsored by

MESSAGE FROM THE SPONSOR

Pathways to partner Ready for a new

transformation
In the new electric world, customer journeys, priorities, and expectations
are all changing.
That means the way technology providers and their partners support
customers is changing too.
As a global specialist in energy management and automation, we stand
ready to help you transform your business for future success with solutions
that are simplified, open, and digital.
• Simplify how you work: speed up projects at every stage, from design/
build through installation and commissioning, with easy-to-use
integrated products that meet regulatory compliance
• Join an open, global community: access new resources and
opportunities as part of a worldwide partner ecosystem that embraces
collaboration and interoperability
• Deliver digital intelligence: provide connectivity for all the right reasons
— to create resilient operations, to provide valuable new services, and
to increase efficiency in your day-to-day work
electric world?
Transform your business today
We envision an all-digital, all-electric world where we go
beyond solutions, technologies, and trainings. We provide
you with future-facing opportunities to better navigate in the
new electric world and collaborate to help you win more
business.
Schneider is the leader in energy management and industrial
automation. Schneider’s purpose is to empower all to make
the most of our energy and resources, bridging progress and
sustainability for all.
Recently crowned as the most sustainable corporation in
the world, our key mission is to be your digital partner for
sustainability and efficiency.

Find out more.

IDC #EUR148000221 17 An IDC InfoBrief, Sponsored by

About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology
markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,100 IDC analysts provide
global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For 50 years, IDC has provided strategic insights to help our clients achieve their
key business objectives. IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company.

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IDC #EUR148000221 18 An IDC InfoBrief, Sponsored by