2016 global wireless pressure gauge product line strategy ...€¦ · feature-rich product line...

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



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.



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



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.



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.



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.”



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.



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.



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.



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


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



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


Emerson

Competitor 2

Competitor 3



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



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



About Frost & Sullivan

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2016 global wireless pressure gauge product line strategy ...€¦ · feature-rich product line...

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