2016 Year in Review

BUILDING ON INNOVATION AND DIGITAL TRANSFORMATION

The future of business, even for diversified industrials, is digital. And we are making digital pervasive throughout our global enterprise—in our products, in our business models, in our marketing and other supporting functions, and in our manufacturing execution systems and supply chain. As “Industry 4.0” begins to transform the industrial landscape worldwide, as leaders learn to harness Big Data and the Internet of Things to revolutionize the value chain, Stanley Black & Decker is determined to be a leader.

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Digital
Excellence

Becoming a Digital Industrial Company

“Industry 4.0” refers to the creation of the smart factory through automation and data exchange in manufacturing technologies, comprising cyber-physical systems, the Internet of Things and cloud computing. Our vision is to integrate the transformative power of automation, additive manufacturing, lean and digital excellence into our manufacturing processes as enablers to optimize end-to-end productivity, efficiency, quality, safety and ergonomics to harvest value and bring the best products and services to our customers.

We see industrial companies breaking into two categories, the digitally informed and those that are not. Choosing digitization sooner rather than later is how leading companies will forge continuing resilience and relevance. Digital Excellence is a pillar of our SFS 2.0 strategy. Our definition of digital is broad, encompassing new ways of marketing and engaging customers and employees, transforming our business models, embedding advanced technology into our back offices and within our products, and enabling core and breakthrough innovation that transforms the marketplace. We see it as a powerful accelerant to growth.

This is a core strength of our commercial electronic security business, and its digital capabilities and awareness have augmented our capabilities in our durable goods businesses. The opportunities get even larger when you consider IoT and data analytics. The successful launch of breakthroughs like FLEXVOLT would not have happened without our full embrace of digital. Concepts and specific product ideas born in applied digital commerce have catalyzed and enhanced our processes of innovation in tools, storage, hydraulics and fastening—businesses that, not so long ago, did not seem digital in the least.

Now, digital is integral to not just the future of every business and brand at Stanley Black & Decker, but also to the trusted and transformative solutions we offer today.

“Our enterprise-wide commitment to digital excellence is truly ambitious. And it’s already generating results with great new digital products like DIYZ and STANLEY Measure, and the digitally-enhanced launch of DEWALT FLEXVOLT. Meanwhile, we’re working to leverage Big Data and the Internet of Things to transform how work gets done, and pushing the boundaries of ‘Industry 4.0’ across our global manufacturing network. The digital industrial era is upon us, and we’re making our mark.”

John H. Wyatt
President, STANLEY Engineered Fastening,
Executive Sponsor of Digital Excellence

STANLEY Healthcare Leading with Digital Excellence

In an industry that is rapidly changing, STANLEY Healthcare provides innovative technology solutions that create better patient experiences, provide higher levels of safety and security, and optimize workflows. The business sees digital excellence as its way to connect with the customer and, with devices, apps and real-time and retrospective analytics, become part of the solutions ecosystem for hospitals and senior living organizations worldwide. For example, our AeroScout Patient Flow solution and MobileView Analytics are helping Florida Hospital’s state-of-the-art Celebration Health Campus to improve operating room patient flow and efficiency.

SECURITY

Episcopal Senior Communities uses STANLEY Healthcare’s technology to enable residents to call for help whenever they need; it can literally be a matter of life and death. We put our trust in STANLEY Healthcare.”

Karen Kemp
STANLEY Healthcare Customer

Florida Hospital

240

Minutes

reduction in post-op wait times
 

750%

Reduction

in staff communications through clarity and visibility solutions

Global Emerging Markets Mapping a Digital Future

Our emerging markets organization is being more innovative in terms of products and its business model, and is leveraging digital to do so. Focused on serving the needs of tradespeople, whose priorities include capacity, durability and repair-ability, the business is looking to improve marketing efficiency and foster the sharing of best practices internally by building a global platform for market communications and market intelligence—an ambitious effort, involving numerous regions, countries and languages. This will enable greater collaboration among the organization’s various teams around the globe while helping us know our end users better, both within and across specific markets.

Our Digital
Accelerator

In the innovation hub of Atlanta, Georgia, we have created a facility dedicated to catalyzing digital excellence throughout our global enterprise, the Digital Accelerator. From a single employee in 2015, it grew to 60 in 2016 and is expected to have a diverse and energetic set of about a hundred digital experts by the end of 2017—all focused on how digital solutions and physical products come together to solve real-world problems. Its mission is to accelerate progress in four areas: new digital products; solutions for the connected workplace; leveraging Big Data; and enhanced end user engagement, building one-to-one relationships with our customers’ customers. Once the Accelerator helps a business develop a product or application, and perhaps helps it go to market in collaboration with our Commercial Excellence teams, the solution goes back into the business and the Accelerator starts afresh on the next innovation or problem to solve.

600+

Technologists

at our Digital Accelerator in Atlanta, Georgia

DIYZ App

In its first six months on the market, DIYZ—a purely digital product developed by Tools & Storage with input from the Digital Accelerator—had nearly half a million downloads and has built a thriving community online. Recognized by Apple as a “New App We Love,” DIYZ made it as high as the fifth most popular app in the iOS store in the lifestyles section. Users spend an average of 7.5 minutes on the DIYZ app, an astounding metric of user engagement. DIYZ is its own, original brand. DIYZ’s objective is to be a standalone resource to the average homeowner looking for guidance, plans, video how-to demonstrations and “Ask a Pro” tips on how to do an improvement project at home, as well as shopping assistance through retail partners.

~500K

Downloads

of DIYZ since launch in July 2016

7.5

minutes

average user engagement on DIYZ

1M+

video views

of DIYZ on YouTube

TOOLS & STORAGE

You have to download this app. It gets my five star gold stamp seal of approval.”

Mandi Gubler
DIYZ Customer

Digital Marketing – 1-to-1 End User Engagement

Our Digital Accelerator is focused on supporting the 300+ digital marketing specialists across the company. It acts as an internal consultant and catalyst rather than a de facto marketing hub. It has played an integral role in the FLEXVOLT launch, which has leveraged various digital environments, including a dedicated microsite, globally coordinated webcasts and strategic engagement with relevant online communities. The Digital Accelerator has helped create apps for various brands, ranging from the new DIYZ branded app to products such as STANLEY Measure and BLACK+DECKER Smartech. These apps are gaining traction in the marketplace and are a sign of more to come.

Leveraging
Big Data

Our Digital Accelerator’s team of data architects and data scientists are focused on three strategic initiatives at the intersection of Big Data and the rapidly evolving “Internet of Things”: developing go-to-market Big Data products; improving our understanding of customers; and, enhancing internal efficiencies through meaningful, data-driven insights. Currently, we are harnessing Big Data to predict machine downtimes in our manufacturing environment, help our commercial electronic security organization optimize how technicians are deployed, and target the right customers and end users for our tools franchise, among others.

TOOLS & STORAGE

It’s my new best real estate friend! As a real estate agent I tend to work alone. This app allows me to easily capture measurements and in less time.”

Shannon
STANLEY Measure Customer

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