Upload
others
View
4
Download
0
Embed Size (px)
Citation preview
INSERT COMPANY LOGO HERE
2015
2015 North American RFID Tags in Manufacturing Customer Value Leadership Award
BEST PRACTICES RESEARCH
© 2015 Frost & Sullivan 2 “We Accelerate Growth”
Contents
Background and Company Performance ........................................................................ 3
Industry Challenges .............................................................................................. 3
Customer Impact and Business Impact of Omni-ID ................................................... 3
Conclusion........................................................................................................... 6
Understanding Customer Value Leadership .................................................................... 7
Key Benchmarking Criteria .................................................................................... 8
Best Practice Award Analysis for Omni-ID ...................................................................... 8
Decision Support Scorecard ................................................................................... 8
Customer Impact ................................................................................................. 9
Business Impact ................................................................................................... 9
Decision Support Matrix ...................................................................................... 10
Research Methodology ........................................................................................ 11
About Frost & Sullivan .............................................................................................. 13
BEST PRACTICES RESEARCH
© 2015 Frost & Sullivan 3 “We Accelerate Growth”
Background and Company Performance
Industry Challenges
With the changing landscape of the manufacturing industry, materials flow management
has been growing increasingly complex over the years. This complexity is primarily caused
by 3 main forces. Firstly, a growing number of manufacturing companies are consolidating
their factories, which has led to growth in material flows in a smaller number of factories.
Secondly, more and more companies are focusing on outsourcing their manufacturing
capabilities to develop products and components for third-party companies. Lastly, driven
by the growing competition, companies have significantly diversified their product lines
over the years to cater to the different needs of individual customer segments.
Driven by these factors, manufacturing companies face a vital need for cost-effective RFID
solutions that will be able to efficiently control materials flow management. In such a
scenario, RFID solution providers who are able to introduce innovative as well as cost-
effective solutions with an aim to address the market challenges find themselves better
positioned to differentiate themselves specifically in the North American RFID tags market
in manufacturing.
Customer Impact and Business Impact of Omni-ID
Focus on Value-addition
Omni ID, which started its operations as the research and development (R&D) team of
QinetiQ (a technology provider for the defense and security sectors), has consistently
displayed a commitment toward developing some of the industry’s most innovative RFID
solutions. With a concentrated focus on materials flow management, the company
develops industry-leading RFID solutions for large capital goods environments.
Omni-ID has carved a distinct position for itself in the North American RFID market
specifically in manufacturing backed by one of the industry’s broadest portfolios of active
and passive RFID tags. As the first to introduce on-metal RFID tags, the company has
displayed an unmatched capability to identify and address unmet market requirements.
One of the primary examples to establish this fact is the company’s introduction of the
visual tags, which are equipped with an electronically rewritable display. Designed to
replace paper tags in supply chain applications, these tags offer a much more cost-
effective alternative to paper tags, which require regular replacements, leading to high
paper, printing, and labor costs.
In addition to offering such a comprehensive and innovative product line, Omni-ID also
offers consultation services through which it works closely with its customers to identify
their requirements and suggest the optimum solution to address their specific
applications.
BEST PRACTICES RESEARCH
© 2015 Frost & Sullivan 4 “We Accelerate Growth”
Comprehensive Tag Portfolio
One of the key factors differentiating Omni-ID is its comprehensive product line. These
include the Adept tags, which have robust, specialty designs for harsh industrial
environments; the Dura tags, which are designed to be highly durable with an ability to
sustain extreme environmental conditions, especially in oil and gas, construction, and
military applications; Exo tags designed primarily for manufacturing and RTI applications
and Fit tags, which are small form factor ceramic tags designed for embedding and high
temperature tool-tracking applications; IQ tags, which are comprised of ultra-thin on-
metal labels and low profile tags designed to high value IT , office and laboratory assets;
and Power tags, which are specialized active tags built for applications in extreme and
vast outdoor environments such as yard management
In addition to these tags, the company offers its flagship solution, ProVIEW. Comprised of
the View, or e-label tags, which are equipped with an electronically re-writable display and
software, ProVIEW provides a complete solution for materials flow management with
hardware, software and tags. Designed to replace paper tags in WIP manufacturing
applications such as asset tracking, parts replenishment, work instructions and container
management, the View tags can be used to display information and instructions
throughout the process, which can be repeatable or changed at any time. And in addition,
ProVIEW provides the capability of tracking materials throughout the process, end to end,
with enhanced process reporting and quality assurance measurability. In addition to its 3
and 4-inch tags introduced in 2013, in May 2014, Omni-ID introduced the latest version of
its visual tags, the View 10. Which is a 10-inch, page-sized, lightweight display, especially
designed to replace the “build book” in large capital goods manufacturing environments.
Ideal for displaying work instructions and build manuals which can be hundreds of pages,
the View 10 combines various communication technologies, such as RFID, infrared, and
Wi-Fi, that helps transmit instructions and information in real time and to precisely locate
on the factory floor. These hardware features work with Omni-ID’s ProVIEW software to
automatically display the correct image based on the tag location in the process or user
interaction with the tag such as a button press. This thereby eliminates the need for paper
labels or multi-paged instruction manuals and reduces manual error along with labor and
paper costs.
Dedication to Improve Ownership Experience
As 95% of process and material flows in manufacturing are currently tracked using paper
labels and barcodes today, Omni-ID identified a vital gap in the market driven by the cost
of paper, human errors, and low visibility in the flow of materials all the way through the
manufacturing process associated with using paper tags, particularly in the wake of the
changing and dynamic nature of today’s manufacturing environments. Because paper tags
are required to be regularly replaced, the total cost of paper tags including ink, paper and
human resources can amount to approximately $72 a year for a single rack or container1.
1 Based on independent cost analysis by a tier 1 automotive manufacturer.
BEST PRACTICES RESEARCH
© 2015 Frost & Sullivan 5 “We Accelerate Growth”
With an aim to reduce the high cost of using paper labels and to provide the visibility that
manufacturers need throughout every stage of the process, Omni-ID developed its visual
tags, which are integrated in its ProVIEW system. These visual tags, which are equipped
with an electronically rewritable display, and have an ROI of 12-18 months or less vs
paper in most applications.
Vision Alignment
Omni-ID’s vision is to emerge as the number-one solutions provider for material flow
management applications in large capital goods manufacturing environments by utilizing
technologies including active and passive RFID, sensors, large scale data acquisition, and
e-paper displays. By defining a niche but important sector as its target market, Omni-ID
displays a concentrated focus on efficiently catering to the needs of its target customers,
rather than serving a broad and diversified customer base. With a strong history in
developing on-metal passive tags for manufacturing applications, the company boasts
superior domain skills along with extensive industry and manufacturing expertise with
facilities located in North America, UK, and China. This assures very efficient, high volume
manufacturing. It strongly emphasizes recruiting the right personnel with superior
industry and technological skills as a part of its efforts to achieve its vision. Additionally, it
also encourages its employees to work in close contact with its customers with an aim to
gain specialized knowledge about their workflows. This further strengthens the company’s
expertise in its chosen sector, placing it a step ahead in attaining its vision.
The company’s growing success in manufacturing can be established by the fact that it
currently serves 4 of the 10 largest automotive manufacturers in the world. It also expects
2 of the remaining 6 companies to select its RFID tags in their applications in the coming
months. Omni-ID recorded 100% growth in revenues in the first quarter of 2014 over that
of the first quarter of 2013. And 63% growth in revenue YoY (2013/2014).
Superior Process Design
One of the key value propositions offered by Omni-ID is its focus on offering a superior
process of deploying its IoT solutions at customer premises. Given the innovative nature
of its solutions, the company realizes the vital need to interact directly with its customers.
Ensuring such direct contact allows customers to get their queries addressed immediately.
Omni-ID follows a process that starts with understanding and capturing customer
requirements. Once it identifies the customer need, it works closely with its customers to
come up with the optimum solution in line with the specific customer application. The
company ensures that there exists a single point of contact that addresses all queries and
issues of a customer. This leads to improved transparency, better flow of communication,
and faster addressing of customer queries.
Additionally, the company also offers professional consultation services along with its
products. In such cases, it works with its customers to identify the best possible solution
BEST PRACTICES RESEARCH
© 2015 Frost & Sullivan 6 “We Accelerate Growth”
for their specific application and then can recommend a tag solution from Omni-ID’s broad
industrial product portfolio. Because of its in house engineering and manufacturing
capabilities, it often designs custom tags, which are tailor-made to address the individual
needs of the customers.
With a current focus on materials flow management, Omni-ID plans to expand its
presence in other application areas, such as healthcare and semiconductors through OEM
relationships with large, credible firms well established in each area of application
expansion. Additionally, it also plans to continue to introduce new and innovative products
in the near future, with a long-term goal to develop products packaged with plug-and-play
hardware and software capabilities that bring the power of the IoT and its benefits such as
improved data acquisition/business analytics and highly dynamic process flows to factory
floors globally.
Company Culture
Originally the R&D division of a technology provider, Omni-ID has consistently nurtured a
work culture that encourages innovation. With a vision to emerge as the number-one
provider of RFID solutions for applications in materials flow management, the company
significantly invests in employing highly skilled personnel with strong industry and domain
expertise. Backed by such a strong global resource pool, and a wholly-owned factory, Omni-
ID has displayed a consistent capability to develop some of the industry’s most innovative
solutions in the RFID space. For example, it was the first company to develop on-metal tags
as well as visual tags with electronic displays and is today the #1 provider and producer of
industrial RFID tags in the market. Such product innovations show the company’s dedication
to address the unmet requirements of customers for efficient and cost-effective RFID
solutions.
Conclusion
Backed by a vision to emerge as the number-one IoT solutions provider in the
manufacturing sector, Omni-ID currently offers one of the industry’s most comprehensive
portfolios of RFID tags and labels. The company has established a distinct position for
itself in the market by developing some of the industry’s most innovative RFID tags. As
the first to introduce visual tags with an electronic display, the company has set new
standards for RFID solutions in manufacturing applications. Considering its ability to
design such innovative solutions in line with unmet customer requirements, Omni-ID has
been chosen as the worthy recipient of 2015 Frost & Sullivan Customer Value Leadership
Award in the North American RFID tags market in Manufacturing.
BEST PRACTICES RESEARCH
© 2015 Frost & Sullivan 7 “We Accelerate Growth”
Significance of Customer Value Leadership Ultimately, growth in any organization depends upon customers purchasing from your
company, and then making the decision to return time and again. Delighting customers is
therefore the cornerstone of any successful growth strategy. To achieve these dual goals
(growth and customer delight), an organization must be best-in-class in three key areas:
understanding demand, nurturing the brand, differentiating from the competition. This
three-fold approach to delivering customer value is explored further below.
Understanding Customer Value Leadership Customer Value Leadership is defined and measured by two macro-level categories:
customer impact and business impact. These two sides work together to make customers
feel valued, and confident in their products’ quality and long shelf life. This dual
satisfaction translates into repeat purchases and a high lifetime customer value.
BEST PRACTICES RESEARCH
© 2015 Frost & Sullivan 8 “We Accelerate Growth”
Key Benchmarking Criteria
For the Customer Value Leadership Award, we evaluated two key factors—Customer
Impact and Business Impact—according to the criteria identified below.
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
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 Omni-ID
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 Customer Impact 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.
BEST PRACTICES RESEARCH
© 2015 Frost & Sullivan 9 “We Accelerate Growth”
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 CUSTOMER VALUE LEADERSHIP AWARD (ILLUSTRATIVE)
Measurement of 1–10 (1 = poor; 10 = excellent)
Customer Value Leadership Customer Impact
Business Impact
Average Rating
Omni-ID 9 9 9
Competitor 2 8.5 9 8.75
Competitor 3 8 8 8
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
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
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: Customer facing processes support the efficient and consistent acquisition of
new customers, even as it enhances retention of current customers
Criterion 3: Operational Efficiency
Requirement: Staff is able to perform assigned tasks productively, quickly, and to a high
quality standard
BEST PRACTICES RESEARCH
© 2015 Frost & Sullivan 10 “We Accelerate Growth”
Criterion 4: Growth Potential
Requirements: Customer focus strengthens brand, reinforces customer loyalty and
enhances growth potential
Criterion 5: Human Capital
Requirement: Company culture is characterized by a strong commitment to quality and
customers, 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.
DECISION SUPPORT MATRIX FOR CUSTOMER VALUE LEADERSHIP AWARD (ILLUSTRATIVE)
High
Low
Low High
Business Impact
Customer Impact
Competitor 2
Competitor 3
Omni-ID
BEST PRACTICES RESEARCH
© 2015 Frost & Sullivan 11 “We Accelerate Growth”
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
Technology
Obsolescence
Disruptive
Technologies
New
Applications
CEO
Demographics
Needs
and
PerceptionsSegmentation
Buying
Behavior
Branding
and
Positioning
Competitive
Benchmarking
Emerging
Competition
Competitive
Strategy
Capital
Investments
Availability
of
Capital
Country
Risk
Economic
Trends
Crowd
Sourcing
Growth
Strategies
Career
Development
Growth
Implementation
Industry
Evolution
New Vertical
Markets
Industry
Expansion
Industry
Convergence
Emerging
Technologies
Smart Cities
Sustainability
New Business
Cultures
GeoPolitical
Stability
BEST PRACTICES RESEARCH
© 2015 Frost & Sullivan 12 “We Accelerate Growth”
Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices
Our awards team follows a 10-step process (illustrated below) to evaluate award
candidates and assess their fit with our best practice criteria. The reputation and integrity
of our awards process 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
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
© 2015 Frost & Sullivan 13 “We Accelerate Growth”
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.