2016 Global Wireless Pressure Gauge Product Line Strategy Leadership Award
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1 2016 Global Wireless Pressure Gauge Product Line Strategy Leadership Award 2016
2 Contents Background and Company Performance... 3 Industry Challenges... 3 Product Line Strength and Customer Impact... 4 Conclusion... 8 Significance of Product Line Strategy... 9 Understanding Product Line Strategy Leadership... 9 Key Benchmarking Criteria Best Practice Award Analysis Product Line Strength Customer Impact Decision Support Matrix The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices About Frost & Sullivan Frost & Sullivan We Accelerate Growth
3 Background and Company Performance Industry Challenges Pressure gauges are typically based on mechanical principles and use the bourdon tube technology. These gauges have been used for several decades in process and discrete industries; heating, ventilation, and air conditioning (HVAC); test and measurement; and other such applications. The demand for such gauges has been steady, but Frost & Sullivan ongoing analysis confirms that the technology has not had any changes or major improvements in the past. Regular mechanical gauges came with specific inherent advantages; they are lower cost, do not require a power supply, and enable simple reading of the display at the local point. In addition, these gauges ability to operate in a wide range of ambient temperatures eliminates the requirement/cost for additional housing. Frost & Sullivan notes that the passage of time and technology advancements in other fields are exposing the disadvantages of extensive use of mechanical pressure gauges in critical and increasingly hazardous environments (at the factory floor or out in the field). Touted as highly fail safe, newer technologies are several times more reliable. Traditional bourdon tube-based gauges are limited by their display of process and pressure conditions, but only when the operator is present. In addition, these gauges have several moving parts; they frequently break down or wear over time due to environmental conditions. This leads to inaccurate readings. Until now, local display and measurement readings were considered a merit of mechanical pressure gauges. However, with increasing focus on personnel safety and calculations of the best use of their time and expertise, the need for local display is increasingly being replaced by the demand for multiple displays (at the local and main control unit levels) and the reading of multiple gauge measurements at one point. The time taken to make the rounds and sending personnel out into possibly hazardous conditions have led to the need for fewer trips to the field and remote monitoring of these measurements. In addition, mechanical gauges lack the ability to communicate their condition and predict and prevent problems, making them simple reading devices. Frost & Sullivan points out that they are simply not in line with the future demand of actionable data and measurements that can be analyzed and acted upon remotely. Frost & Sullivan We Accelerate Growth
4 Product Line Strength and Customer Impact Pervasive Strategy to Enable and Improve Customer Experience Frost & Sullivan ongoing analysis monitors how Emerson has been on the forefront of offering advanced technologies, products, and services to different customers and applications in the process industry landscape worldwide. Emerson is among the market leaders that deliver high-quality sensors and transmitters to multi-national, multi-project customers for several decades. Always on the cutting edge of providing the best and newest technology in electronic sensors and transmitters to its process control customers, the Emerson team conferred to solve unattended issues of its customers using mechanical gauges. As a holistic solution provider to all process customers, the company looked at the following key challenges faced by its clients: How to reduce maintenance costs How to improve safety conditions of its personnel How to access and use data from the gauges continuously, without having to send personnel into the field every time a measurement or analysis is required To answer these key questions posed by its customers, Emerson tapped into its allencompassing Pervasive Sensing strategy, the first IIoT strategy deployed in the industry. Emerson pioneered this concept to enable the use of wireless technologies in sensing to offer advanced sensing capabilities, improve strategic implementation of data generated by those sensors, and enable actionable information for future strategy and planning. This concept of Pervasive Sensing Strategies is built with the goal of providing customers with the following: Higher reliability more accurate and real-time processing of data, quick identification and resolution of challenges, and reduced errors Increased safety maintain high safety standards for employees, the plant, and the environment; predict and prevent possible problems; and enable remote monitoring critical applications Frost & Sullivan We Accelerate Growth
5 Technology and Industry Experience Leveraged to Anticipate Customer Demand Understanding there is a gap in availability of pressure gauges that can effectively eliminate the challenges of high failure rates, frequent replacement costs, and additional time taken by personnel in making regular measurements, Emerson launched the industry s first WirelessHART pressure gauge in late Unlike many of its other competitors, Emerson focused on first testing this new product in a long line of pressure transmitters and gauges, with selected customers before launching it officially worldwide. Initial and key customer feedback ensured the quality of the emerging product line and its potential success with other customers. Frost & Sullivan research confirms that the Rosemount Wireless Pressure Gauge overcomes several of the challenges faced by regular mechanical pressure gauges, including vibration, overpressure, extreme temperatures, corrosion, and accidental damage. This new wireless pressure gauge enables remote collection of data, which ensures personnel safety as they do not have to go into the field each time they need to collect data and enables better return-on-investment (ROI) - as their time can be better utilized on higher priority issues. Based on the proven piezoresistive sensor technology, the Rosemount Wireless Pressure Gauge is built to provide 150x overpressure protection in comparison to conventional pressure gauges, and its double layer of process isolation provides additional protection and, therefore, a safer field environment. The Rosemount Wireless Pressure Gauge has few to no moving parts, eliminating several mechanical gauge demerits as it is not susceptible to breakage and wear and tear from environmental conditions and has a guaranteed life of at least 10 years. As part of our Pervasive Sensing portfolio, this new gauge design fundamentally changes how customers use pressure gauges by helping them make better business decisions, said Bob Karschnia, vice president and general manager of wireless products at Emerson. Real-time insights provide actionable information that improves personnel safety while reducing facilities costs and time. Feature-rich Product Line Based on Unmet Customer Needs Emerson envisioned the Wireless Pressure Gauge by listening quite closely to its customers requirements and accurately assessing their unmet needs. Until the launch of this product line, Emerson s process control customers needed to work with multiple sensor and gauge vendors. These customers would have been working with Emerson for their sensing needs, but they needed to purchase traditional pressure gauges from other vendors that focus on mechanical pressure gauge products as their mainstay. Frost & Sullivan We Accelerate Growth
6 With the introduction of this new line of pressure gauges, Emerson s customers have expressed their satisfaction in anticipation of working with the company for more of their sensor needs going forward. As expressed by a key customer of the company, I ve been waiting for Rosemount to get into the gauge business. a global oil pipeline company. In relation to this sentiment, the Rosemount Wireless Pressure Gauge is an improvement over many mechanical pressure gauges as well as some electronic ones in the following aspects: Gauge life span The Rosemount Wireless Pressure Gauge should last for at least 10 years with few issues of breakage and wear, compared to mechanical gauges that need to be replaced every 4 to 5 years. Emerson is confident that some of these gauges could outlast the lifespan of the plant itself. Overpressure rating The new wirelesshart-based pressure gauge is touted to have overpressure rates up to 150x the full scale pressure. Device status indication and pressure readings This aspect enables local device health reading, and the wireless capability enables remote pressure measurement monitoring. Analog display Emerson intentionally kept the display of this gauge as analog, based on key customer feedback. Some customers require the ability to read the measurement locally at a pace of 40 feet from the gauge, which is not easily achievable with digital displays. Scalability of the Wireless Pressure Gauge in Emerson s Larger Offerings Meant to fit neatly into Emerson s Pervasive Sensing portfolio, the Rosemount Wireless Pressure Gauge is among the innovative sensing technologies the company is evangelizing, especially with its process control customers and automation customers. The Pervasive Sensing strategy is focused on a four-fold impact: process, safety, reliability, and energy. Because operators must be present physically to make measurements on traditional mechanical gauges, human errors are possible in measurement readings as well as interpretation of data. Physical measurement readings are not possible more than once a day in certain plants and field locations, and several problems could arise during the interim period between measurement readings. With such gauges, employees may be sent into possibly hazardous conditions, severely impacting their safety. Eliminating the need to go out to make measurements will enable better use of employees time in troubleshooting high-priority problems elsewhere. Frost & Sullivan We Accelerate Growth
7 As such, the wireless pressure gauge delivers on all the strategies of Pervasive Sensing and ensures customer satisfaction by bringing better reliability, safety, and ROI on personnel, along with more accurate and frequent readings of pressure conditions in the plant or field. Price versus Performance Value Proposition Emerson s wireless capabilities and its brand name are among the aspects that indicate the Rosemount Wireless Pressure Gauge is a relatively more expensive proposition than traditional mechanical pressure gauges at the point of purchase. However, during the lifetime of the gauge, the value proposition of the Rosemount Wireless Pressure Gauge is certainly realized; this solution is 4 to 1 times more fail safe than the other available products, indicating that a different gauge would need to be repaired or replaced at least 3 to 4 times more often than the Emerson product. Taking these aspects into consideration, Frost & Sullivan firmly believes that the Rosemount Wireless Pressure Gauge provides a better price-to-performance ratio than its competition, and the total cost of ownership of this gauge is more effective than traditional mechanical gauges available in the market today. Customer Service Experience Emerson is a name to reckon with in all types of automation and process control applications and markets worldwide. Apart from offering a range of automation services and products, as well as getting into data analytics and other enterprise management solutions, Emerson has become an important supplier of high-quality sensors. Since the launch of the Rosemount Wireless Pressure Gauge, the company has received positive feedback from its customers. Client sentiments on the new product line ensure its success with the company s current customers and will be important decision points for potential partners. Bourdon tubes are very problematic and unreliable, Rosemount sensor technology will be a huge improvement. I ve been waiting for Rosemount to get into the gauge business. We are placing our 1st order immediately for a 23 unit installation. We hope the Rosemount Wireless Gage becomes our standard for PI s (pressure indicators) on all capital projects. Frost & Sullivan We Accelerate Growth
8 Conclusion Servicing global industries where customers are under constant pressure to cut costs, increase output, reduce energy consumption and emissions, and improve safety and reliability, Emerson is always on the forefront of providing the highest quality of automation and process control products and services. The Rosemount Wireless Pressure Gauge is among the latest in a long line of products the company offers and enables its customers to realize all the above mentioned points. This product line goes beyond being a simple pressure gauge and provides its users with higher reliability, measurement accuracy, adherence to higher safety standards, and a better ROI. With its strong overall performance, Emerson has earned the 2016 Frost & Sullivan Global Product Line Strategy Leadership Award. Frost & Sullivan We Accelerate Growth
9 Significance of Product Line Strategy Ultimately, growth in any organization depends upon customers purchasing from a company, and then making the decision to return time and again. A full, comprehensive product line that addresses numerous customer needs and preferences is therefore a critical ingredient to any company s long-term retention efforts. To achieve these dual goals (customer value and product line strength), an organization must be best-in-class in three key areas: understanding demand, nurturing the brand, and differentiating from the competition. Understanding Product Line Strategy Leadership Demand, brand strength, and competitive differentiation all play a critical role in delivering unique value to customers. This three-fold focus, however, must ideally be complemented by an equally rigorous focus on building a superior and comprehensive product line. Frost & Sullivan We Accelerate Growth
10 Key Benchmarking Criteria For the Global Product Line Strategy Leadership Award, Frost & Sullivan analysts independently evaluated two key factors Product Line Strength and Customer Impact according to the criteria identified below. Product Line Strength Criterion 1: Breadth Criterion 2: Scalability Criterion 3: Technology Leverage Criterion 4: Features Criterion 5: Supply Chain Reliability Customer Impact Criterion 1: Price/Performance Value Criterion 2: Customer Purchase Experience Criterion 3: Customer Ownership Experience Criterion 4: Customer Service Experience Criterion 5: Brand Equity Best Practice Award Analysis for Emerson To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool allows our research and consulting teams to objectively analyze performance, according to the key benchmarking criteria listed in the previous section, and to assign ratings on that basis. The tool follows a 10-point scale that allows for nuances in performance evaluation; ratings guidelines are illustrated below. RATINGS GUIDELINES The Decision Support Scorecard is organized by Product Line Strength and Customer Impact (i.e., the overarching categories for all 10 benchmarking criteria; the definitions for each criteria are provided beneath the scorecard). The research team confirms the veracity of this weighted scorecard through sensitivity analysis, which confirms that small changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies. Frost & Sullivan We Accelerate Growth
11 The results of this analysis are shown below. To remain unbiased and to protect the interests of all organizations reviewed, we have chosen to refer to the other key players as Competitor 2 and Competitor 3. DECISION SUPPORT SCORECARD FOR PRODUCT LINE STRATEGY LEADERSHIP AWARD Measurement of 1 10 (1 = poor; 10 = excellent) Product Line Strategy Leadership Product Line Strength Customer Impact Average Rating Emerson Competitor Competitor Product Line Strength Criterion 1: Breadth Requirement: Product line addresses the full range of customer needs and applications Criterion 2: Scalability Requirement: Product line offers products at a variety of price points and functionality levels Criterion 3: Technology Leverage Requirement: Demonstrated commitment to incorporating leading edge technologies into product offerings, for greater product performance and value Criterion 4: Features Requirement: Products offer a comprehensive suite of features to serve customers at multiple levels of functionality, ease of use and applications Criterion 5: Supply Chain Reliability Requirement: There is sufficient control over the supply chain to ensure availability of key components and thereby the availability of products in the product line Customer Impact Criterion 1: Price/Performance Value Requirement: Products or services offer the best value for the price, compared to similar offerings in the market Criterion 2: Customer Purchase Experience Requirement: Customers feel like they are buying the most optimal solution that addresses both their unique needs and their unique constraints Frost & Sullivan We Accelerate Growth
12 Customer Impact BEST PRACTICES RESEARCH Criterion 3: Customer Ownership Experience Requirement: Customers are proud to own the company s product or service, and have a positive experience throughout the life of the product or service Criterion 4: Customer Service Experience Requirement: Customer service is accessible, fast, stress-free, and of high quality Criterion 5: Brand Equity Requirement: Customers have a positive view of the brand and exhibit high brand loyalty Decision Support Matrix Once all companies have been evaluated according to the Decision Support Scorecard, analysts can then position the candidates on the matrix shown below, enabling them to visualize which companies are truly breakthrough and which ones are not yet operating at best-in-class levels. DECISION SUPPORT MATRIX FOR PRODUCT LINE STRATEGY LEADERSHIP AWARD High Emerson Competitor 2 Competitor 3 Low Low Product Line Strength High Frost & Sullivan We Accelerate Growth
13 The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Frost & Sullivan s 360-degree research methodology represents the analytical rigor of our research process. It offers a 360-degree-view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Too often, companies make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. The integration of these research 360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS disciplines into the 360-degree research methodology provides an evaluation platform for benchmarking industry players and for identifying those performing at best-in-class levels. Frost & Sullivan We Accelerate Growth
14 Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices Frost & Sullivan Awards follow a 10-step process to evaluate Award candidates and assess their fit with select best practice criteria. The reputation and integrity of the Awards are based on close adherence to this process. STEP OBJECTIVE KEY ACTIVITIES OUTPUT 1 Monitor, target, and screen Identify Award recipient candidates from around the globe Conduct in-depth industry research Identify emerging sectors Scan multiple geographies Pipeline of candidates who potentially meet all bestpractice criteria 2 Perform 360-degree research Perform comprehensive, 360-degree research on all candidates in the pipeline Interview thought leaders and industry practitioners Assess candidates fit with best-practice criteria Rank all candidates Matrix positioning all candidates performance relative to one another 3 Invite thought leadership in best practices Perform in-depth examination of all candidates Confirm best-practice criteria Examine eligibility of all candidates Identify any information gaps Detailed profiles of all ranked candidates 4 Initiate research director review Conduct an unbiased evaluation of all candidate profiles Brainstorm ranking options Invite multiple perspectives on candidates performance Update candidate profiles Final prioritization of all eligible candidates and companion best-practice positioning paper 5 Assemble panel of industry experts Present findings to an expert panel of industry thought leaders Share findings Strengthen cases for candidate eligibility Prioritize candidates Refined list of prioritized Award candidates 6 Conduct global industry review Build consensus on Award candidates eligibility Hold global team meeting to review all candidates Pressure-test fit with criteria Confirm inclusion of all eligible candidates Final list of eligible Award candidates, representing success stories worldwide 7 Perform quality check Develop official Award consideration materials Perform final performance benchmarking activities Write nominations Perform quality review High-quality, accurate, and creative presentation of nominees successes 8 Reconnect with panel of industry experts Finalize the selection of the best-practice Award recipient Review analysis with panel Build consensus Select winner Decision on which company performs best against all best-practice criteria 9 Communicate recognition Inform Award recipient of Award recognition Present Award to the CEO Inspire the organization for continued success Celebrate the recipient s performance Announcement of Award and plan for how recipient can use the Award to enhance the brand 10 Take strategic action Upon licensing, company may share Award news with stakeholders and customers Coordinate media outreach Design a marketing plan Assess Award s role in future strategic planning Widespread awareness of recipient s Award status among investors, media personnel, and employees Frost & Sullivan We Accelerate Growth
15 About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages almost 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit Frost & Sullivan We Accelerate Growth
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