2016 Global Wireless Pressure Gauge Product Line Strategy ...€¦ · Feature-rich Product Line Based on Unmet Customer Needs Emerson envisioned the Wireless Pressure Gauge by listening
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2016 GlobalWireless Pressure Gauge
Product Line Strategy Leadership Award
2016
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 2 “We Accelerate Growth”
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 .................................................................................. 10
Best Practice Award Analysis ..................................................................................... 10
Product Line Strength ......................................................................................... 11
Customer Impact ............................................................................................... 11
Decision Support Matrix ...................................................................................... 12
The Intersection between 360-Degree Research and Best Practices Awards ..................... 13
Research Methodology ........................................................................................ 13
Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices ................................................................................................................. 14
About Frost & Sullivan .............................................................................................. 15
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 3 “We Accelerate Growth”
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.
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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 all-
encompassing 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
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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 2015. 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.
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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.
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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.”
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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.
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 9 “We Accelerate Growth”
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.
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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.
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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 10.0 10.0 10.0
Competitor 2 8.00 7.00 8.50
Competitor 3 7.00 6.00 6.50
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
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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
Low
Low High
Cu
sto
mer I
mp
act
Product Line Strength
Emerson
Competitor 2
Competitor 3
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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
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.
360-DEGREE RESEARCH: SEEING ORDER IN
THE CHAOS
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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 best-practice 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
BEST PRACTICES RESEARCH
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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
http://www.frost.com.
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