2013
2014
INSERT COMPANY LOGO HERE
2013 North 2014
American
SSL
Certificate
EMEA
UPS
Product Leadership
Award
Technology
Leadership
Award
BEST PRACTICES RESEARCH
Contents
Background and Company Performance ........................................................................ 3
Industry Challenges .............................................................................................. 3
Technology Leverage and Business Impact ..............................................................3
Conclusion........................................................................................................... 6
Significance of Technology Leadership .......................................................................... 7
Understanding Technology Leadership .......................................................................... 7
Key Benchmarking Criteria .................................................................................... 8
Best Practice Award Analysis for Emerson Network Power ...............................................8
Decision Support Scorecard ................................................................................... 8
Technology Leverage ............................................................................................ 9
Business Impact................................................................................................... 9
Decision Support Matrix ...................................................................................... 10
The Intersection between 360-Degree Research and Best Practices Awards ..................... 11
Research Methodology ........................................................................................ 11
Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best
Practices ................................................................................................................. 12
About Frost & Sullivan .............................................................................................. 13
© Frost & Sullivan 2014
2
“We Accelerate Growth”
BEST PRACTICES RESEARCH
Background and Company Performance
Industry Challenges
One of the key industry challenges, especially in the data center vertical, is reliable backup power that evolves with growing business demands. End users are finding it
challenging to estimate their future power requirements, which makes procuring
uninterruptible
power
supply (UPS)
systems
difficult.
From
a
capital
expenditure
perspective, end users would gain an advantage if their UPS system is modular and
scalable, allowing them to add UPS modules as and when they expand. The other
challenge is from the installation perspective. End users are on a constant lookout for UPS
solutions that provide installation flexibility, which would allow them to configure a UPS
system independently of possible space constraints and therefore allowing for alternative
layouts to straight row such as L-shape and back to back. For a UPS manufacturer to gain
a competitive edge in the market, it is essential to address these challenges and deliver
products that employ cutting-edge technology.
Technology Leverage and Business Impact
Commitment to Innovation
One of the key strength of Emerson Network Power is its technological capabilities. It can
leverage its broad technology base and global expertise. The company has been
constantly delivering UPS products that match the current needs of end users. Its
commitment to innovation is highly commendable and is proven by its evolving product
line, featuring cutting-edge technology. In Q2 2014, Emerson introduced its innovative
TrinergyTM Cube UPS, the first static UPS capable of hot-scaling up to 3MW in a single unit
and up to 24MW when connected in parallel—a power capacity that was previously
achieved only by rotary UPS solutions. Frost & Sullivan believes that the growing need for
highly reliable power in big multi-megawatt datacenters will be effectively addressed by
this innovative product. It features the highest average operating efficiency in the industry
(98.5%), based on the enhanced version of the Trinergy Control algorithm. It combines
three standard modes of operation (VFI, VI, and VFD, according to IEC 62040-3 standard)
in one solution. With an adaptive algorithm, it is able to choose the best mode of
operation to save energy based on the history and actual situation of the mains and load.
The Trinergy Cube is a big leap forward in the Trinergy UPS product platform and is
expected to gain heavy traction in the market.
In 2013, the company launched the Liebert® APS UPS powered by its FlexPower™
Technology. The solution features a modular design with a scalable architecture
specifically designed to meet end users’ immediate load requirements as well as efficiently
adapt to future needs. It allows expansion in increments of 5 kVA up to a total of 20 kVA
with the simple installation of additional power modules. The innovative FlexPower
technology ensures that such power expansions can be carried out without the need for
© Frost & Sullivan 2014
3
“We Accelerate Growth”
BEST PRACTICES RESEARCH
transferring the load to bypass (hot swap), thus enhancing load protection and system
availability during service and upgrade operations.
The technology enables the hot swap of both power and battery modules. The Liebert®
APS also has an extra battery charger module and battery monitoring with a self-isolating
feature.
Commitment to Creativity
At the end of 2013, Emerson Network Power opened a new state-of-the-art Customer
Experience Center (CEC) in Castel Guelfo (Bologna), Italy. It is the largest power system
testing facility in Europe. It is also the only facility in Europe that was built for planning
and validating the data center infrastructure. This facility provides first-hand experience to
its customers on a wide variety of technologies, supported by constant consultation from
R&D and engineering specialists. The current test capacity of this facility is 4 testing
stations that can run contemporarily for a total 2.5MW, which is planned to increase up to
5MW in the next few years. As a part of the tests, the center also runs dynamic tests, so
customers can witness the actual capabilities of all the new technologies, including the
dynamic behavior of the TrinergyTM Cube UPS. Emerson Network Power has invested €5m
in this CEC, which reflects its commitment to addressing the complex nature of customer
infrastructures by offering creative solutions.
Excellence in Technology Incubation
Emerson Network Power has an industry-leading reputation for technology development,
whereby it consistently delivers products with novel concepts, especially in the larger
power ranges. It has witnessed tremendous success with its Trinergy UPS product, which
was conceived six years ago. Since then, it has been upgrading its product with valueadded features and functionality. As a part of this development, it came up with the
improvement of its synergy with a Remote Diagnostic and Preventive Monitoring Service
called LIFETM that allows effective proactive maintenance, fast incident response, and
remote troubleshooting. Emerson Network Power has been the first in the industry to have
more than 11,000 UPS connected to a remote diagnostic system.
The company relies heavily on past product experience and customer feedback for
technology incubation. This, combined with its technical expertise in R&D, has resulted in
new technologies and innovations that ultimately enhance the overall customer value.
Commercialization Success
Emerson Network Power has an extensive UPS product portfolio covering small, medium,
large, and very large power ranges. It caters to all end-user verticals, including niche
industrial application. Its UPS products have witnessed a high rate of success in terms of
commercialization. The Trinergy UPS, which was launched six years ago, has created a
© Frost & Sullivan 2014
4
“We Accelerate Growth”
BEST PRACTICES RESEARCH
strong position for the company. One of the key factors that has led to the company’s
success is its customer-centric approach in product development. It has gone to great
lengths to study and understand the needs, requirements, and pain points of the end
users. This has enabled it to come up with products that resonate extremely well with the
end users.
The Trinergy™ Cube is a great example as it offers reliability of the highest magnitude
(even improved on 99.999998% measured on-field availability on actual Trinergy installed
base of over 700MW of UPS). This makes the UPS solution’s availability higher than that of
the required levels of a Tier IV data center.
Furthermore,
it
delivers
unprecedented
levels
of installation
flexibility
that
allow
configurations in a vast range of layouts—a straight row, L-shape, or back-to-back
arrangement—all easily adaptable to the available floor space. It is the first UPS in the
industry in the above 500kVA range that is capable of true HOT scalability. The Trinergy
Cube also intelligently adapts to the load power supply and responds to the environment
conditions at the installation site. Its smart capacity ensures the best possible usage of
physical infrastructure, providing maximized power to the load and optimizing each
individual configuration based on the specific site conditions.
Application Diversity
Emerson Network Power serves various end-user verticals with product offerings specific
to each vertical and application. Its excellence in product diversification is unmatched.
Some of the key applications it specializes in are data centers, industrial, healthcare,
commercial, and telecom. It has a high focus on the data center application as it is one of
the fastest-growing segments. The Trinergy Cube has been specifically designed to meet
the needs of the large data center applications. With this product, Emerson Network Power
will pose strong competition to the rotary UPS manufacturers as it is capable of addressing
the power capacity issues that were previously only possible with rotary UPS systems. In
fact, its potential for success in this space is higher because it offers added benefits such
as modularity, scalability, installation flexibility, and easy maintenance.
Operational Efficiency
Emerson Network Power uses an Execution Lean Design that provides a framework for the
product lifecycle management. This novel approach employs a process (which is
continuously tracked and improved) that enables the development of innovative new
products, services, and solutions. This not only creates customer value but also ultimately
enhances it. The methodology consists of four elements: customer value, innovation
pipeline, new product portfolio management, and new product development.
Apart from this, the company also employs a highly structured process called New Product
Development Process (NPDP), a seven-step, phase-gate process that enables the design,
© Frost & Sullivan 2014
5
“We Accelerate Growth”
BEST PRACTICES RESEARCH
development, and launch of new products, services, and solutions to the market. The
company gathers customer feedback throughout the process to ensure that the unmet
needs of the customers are addressed while continually improving time to market.
Conclusion
Emerson Network Power has excellent technology know-how and vast experience in the
field of UPS. Its focus and dedication to new product development and innovation are
highly commendable. Its pursuit for creativity is unmatched and is proven by its latest
innovative product: the Trinergy™ Cube. Frost & Sullivan believes that Emerson Network
Power has an excellent growth potential in the UPS industry, which will be driven by its
customer-centric approach.
With its strong overall performance, Emerson Network Power has earned Frost & Sullivan’s
2014 Technology Leadership Award.
© Frost & Sullivan 2014
6
“We Accelerate Growth”
BEST PRACTICES RESEARCH
Significance of Technology Leadership
Technology-rich companies with strong commercialization strategies benefit from the
increased demand for high-quality, technologically innovative products.
Those products
help shape the brand, leading to a strong differentiated market position. The intersection
of demand, brand, and competitive positioning is explored further below.
Understanding Technology Leadership
Technology Leadership recognizes companies that lead the development and successful
introduction of high-tech solutions to customers’ most pressing needs, altering the
industry or business landscape in the process. These companies shape the future of
technology and its uses. Ultimately, success is measured by the degree to which a
technology is leveraged, and the impact that technology has on growing the business.
© Frost & Sullivan 2014
7
“We Accelerate Growth”
BEST PRACTICES RESEARCH
Key Benchmarking Criteria
For the Technology Leadership Award, we evaluated two key factors—Technology
Leverage and Business Impact—according to the criteria identified below.
Technology Leverage
Criterion 1: Commitment to Innovation
Criterion 2: Commitment to Creativity
Criterion 3: Technology Incubation
Criterion 4: Commercialization Success
Criterion 5: Application Diversity
Business Impact
Criterion 1: Financial Performance
Criterion 2: Customer Acquisition
Criterion 3: Operational Efficiency
Criterion 4: Growth Potential
Criterion 5: Human Capital
Best Practice Award Analysis for Emerson Network Power
Decision Support Scorecard
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 Technology Leverage and Business 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 2014
8
“We Accelerate Growth”
BEST PRACTICES RESEARCH
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 in
as Competitor 2 and Competitor 3.
Measurement of 1–10 (1 = poor; 10 = excellent)
Technology
Leverage
Technology Leadership
Business
Impact
Average
Rating
Emerson Network Power
9
9
9.0
Competitor 2
7
6
6.5
Competitor 3
6
6
6.0
Technology Leverage
Criterion 1: Commitment to Innovation
Requirement: Conscious, ongoing development of an organization culture that supports
the pursuit of groundbreaking ideas through the leverage of technology
Criterion 2: Commitment to Creativity
Requirement: Employees rewarded for pushing the limits of form and function, by
integrating the latest technologies to enhance products
Criterion 3: Technology Incubation
Requirement:
A
structured
process
with
adequate
investment
to
incubate
new
technologies developed internally or through strategic partnerships
Criterion 4: Commercialization Success
Requirement: A proven track record of successfully commercializing new technologies, by
enabling new products and/or through licensing strategies
Criterion 5: Application Diversity
Requirement: The development of technologies that serve multiple products, multiple
applications, and multiple user environments
Business Impact
Criterion 1: Financial Performance
Requirement: Strong overall financial performance in terms of revenues, revenue growth,
operating margin and other key financial metrics
Criterion 2: Customer Acquisition
Requirement: Overall technology strength enables acquisition of new customers, even as
it enhances retention of current customers
Criterion 3: Operational Efficiency
© Frost & Sullivan 2014
9
“We Accelerate Growth”
BEST PRACTICES RESEARCH
Requirement: Staff is able to perform assigned tasks productively, quickly, and to a high
quality standard
Criterion 4: Growth Potential
Requirements: Technology focus strengthens brand, reinforces customer loyalty and
enhances growth potential
Criterion 5: Human Capital
Requirement: Company culture is characterized by a strong commitment to customer
impact through technology leverage, which in turn enhances employee morale and
retention
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.
High
Emerson
Network
Power
Business Impact
Competitor 3
Competitor 2
Low
Low
© Frost & Sullivan 2014
Technology Leverage
10
High
“We Accelerate Growth”
BEST PRACTICES RESEARCH
The Intersection between 360-Degree Research and Best
Practices Awards
Research Methodology
Frost & Sullivan’s 360-degree research
methodology
represents
the
360-DEGREE RESEARCH: SEEING ORDER IN
THE CHAOS
analytical
rigor of our research process. It offers a
Emerging
Technologies
360-degree-view of industry challenges,
Industry
Evolution
Smart Cities
trends, and issues by integrating all 7 of
Frost & Sullivan's research methodologies.
Too
often,
growth
companies
decisions
understanding
of
make
based
on
their
Technology
Obsolescence
New Business
Cultures
Demographics
Crowd
Sourcing
Career
Development
Industry
Expansion
important
a
narrow
Country
Risk
Competitive
Benchmarking
Buying
Behavior
New Vertical
Markets
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
Capital
Investments
Competitive
Strategy
CEO
Availability
of
Capital
Emerging
Competition
New
Applications
Economic
Trends
Growth
Strategies
Growth
Implementation
Branding
and
Positioning
Segmentation
Needs
and
Perceptions
Sustainability
GeoPolitical
Stability
Industry
Convergence
Disruptive
Technologies
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 bestin-class levels.
© Frost & Sullivan 2014
11
“We Accelerate Growth”
BEST PRACTICES RESEARCH
Best Practices Recognition: 10 Steps to
Identifying, and Recognizing Best Practices
Researching,
Frost & Sullivan Awards follow a 10-step process to evaluate Award candidates and assess
their fit to best practice criteria. The reputation and integrity of the Awards are based on
close adherence to this process.
STEP
Monitor,
1 target, and
screen
OBJECTIVE
KEY ACTIVITIES
OUTPUT
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
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
2
Perform
360-degree
research
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
3
Invite
thought
leadership in
best
practices
Initiate
research
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
Build consensus on award
candidates’ eligibility
6
Conduct
global
industry
review
• 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
Inform award recipient of
award recognition
9
Communicate
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
The award recipient may
license the award for use in
external communication and
outreach to 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
4 director
review
10
Take
strategic
action
© Frost & Sullivan 2014
12
“We Accelerate Growth”
BEST PRACTICES RESEARCH
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.
© Frost & Sullivan 2014
13
“We Accelerate Growth”