smu ee department seminar serieslyle.smu.edu/~rajand/eeseminars/tackett_jan05.pdfsmu ee department...

www . marketforceconsulting . com • Bob Tackett • Pr incipal Consultant • 972.403.1049

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SMU EE Department Seminar Series


Overview: Four Case Studies

Turbo-Generator

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Intelligent Building Controls

Ductless Split SystemsRegenerative Fuel Cell

1 2

43


Overview: Lessons Learned

1 2

43

• Channel Value Proposition• Channel Sales Plans

• Rapid Funding Approval• Integrating Financials,

Marketing & Sales Plans

• More than a Product• Marketing and Sales• Processes & Support

• Rapid Execution• Contingencies• Dealing with Unknowns


Allied-Signal Turbo-Generator

TURBO-GENERATOR SCHEMATIC

Fuel Compressor

Cooling System

Recuperator

Electrical SystemEngine Core

Combustor Muffler/Eductor



Product Specifications

Customer Value Proposition

Market Segmentation

Sales and GP Projections

Financial Pro Forma

Contingencies. What if …

• Product specs change• Product costs go up• Perceived value goes down• Market penetration slows• Overhead costs increase• Industry structure changes



The Great Unknowns. Economy? Technology? or … People and Politics?

Allied-SignalPartners

(So-Called)Specifiers &

RecommendersGatekeepers &

Roadblocks

• Keeping Secrets• Ignoring Input

• EDF• Engineering

Excellence• PSEG

• Pilot Customers• Design

Engineers

• Utilities• Government• Code Officials


Novar Controls IQ=SBS

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Interface Modules

Digital Thermostat Modules

HVAC Controllers and Thermostats

DTM-3,4

LightingControlModule

AccessControlModule

LCI-1 DS-1 ASM-1 DXU-1,2 AHU-1FCU-

1,2,3,4 HPU-1 LCU-1

DTM-3,4 DTM-3,4 DTM-3,4

ACU-1

Network Connection1 2

3 4 5

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arketforceconsulting. com

•B

ob Tackett •P

rincipal C

onsultant •972.403.1049

Novar

Controls IQ

=S

BS

Manufacturer

Application

Rem

ote C

onnect/Alarm

/Data

Interface/C

onfiguration

Carrier

Trane

Novar IQ

=SB

S

Johnson

Honeyw

ell

Siem

ens

TC

S B

asys

Wattm

aster

Lighting Controls

HVAC Control

Access Control

LONWORKS Open Protocol

Web Connectivity

Dumb Dial-up

E-mail Alarming to PDA or Phone

Dial in/out to Pro-prietary Software

Data Logging

Auto Discoveryand Configuration

No PC Engineering

Color TouchscreenInterface

Keypad Interface



Tem

pera

ture

C

ontr

ol

Net

wor

king

Rem

ote

Con

nect

Ope

n P

roto

col

Aut

o C

onfig

urat

ion

Web

C

onne

ctiv

ity

Ligh

ting

Con

trol

Acc

ess

Con

trol

Low

erNovar IQ=SBS with Lighting and Access Control

Novar IQ=SBS with Lighting Control

Carrier

Trane Veri-trac RTU Retrofit

Novar IQ=SBS with HVAC Only

Johnson Controls

Honeywell T7300

TCS Basys

Trane Veri-trac RTU Factory Install

Inclusive Features from Basic HVAC to Integrated Sy stems

Hig

her

Rel

ativ

e V

alue

to P

rice

Rat

io



Pro

posa

ls

Acq

uire

Dis

trib

utor

s an

d S

ervi

ce

Pro

vide

rs

Set

-up

& T

rain

Lead

Gen

erat

ion

Scr

een

&Q

ualif

y

Cus

tom

erM

anag

emen

t

Neg

otia

te&

Clo

se

Inst

alla

tion

&C

omm

issi

onin

g

Mai

nten

ance

& R

epai

r

Pro

ject

Man

agem

ent

Product and technical support is required throughout the entire marketing and sales process for the complete distribution and sales channel

“Product” includes everything needed to market, sell and support the product.


Regenesys Fuel Cell Battery



Off Peak On Peak

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CHARGINGDISCHARGING

50 MW

30 MW

40 MW

Input Variables

• Load Profiles• Demand Charges• Energy Charges• Tariff Riders• Reliability &

Availability• Charge/Discharge

Rates• Efficiency Profiles• Discount Rates• Project Life

Financial Output Table

Scenario Variables Value

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UTILITY A

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UTILITY A

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UTILITY A

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UTILITY A

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UTILITY A

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UTILITY A

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UTILITY A

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UTILITY A

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UTILITY A

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UTILITY A

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UTILITY A

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UTILITY A

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UTILITY A

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UTILITY A

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UTILITY A

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UTILITY A

Financial Summaries

Scenario Variables ValuesUtility

CO

MP

UTE

R S

IMU

LAT

ION

SU

SIN

G V

ALU

E A

NA

LYS

IS M

OD

EL

SENSITIVITY ANALYSIS

$-600 / kW $600 / kW

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VALUE per KW by UTILITY/RATE

$2,000 KW

$1,000 KW

DEMAND PRICE DIFFERENTIAL

EN

ER

GY

PR

ICE

DIF

FE

RE

NT

IAL



AN

NU

AL

SA

LES

FO

RE

CA

STS

1 2 3 4 5Year

Required Targets

Projected TargetsVALUE per KW by UTILITY/RATE

$2,000 KW

$1,000 KW

DEMAND PRICE DIFFERENTIALE

NE

RG

Y P

RIC

E D

IFF

ER

EN

TIA

L1

2

3


Company

Regional Distributors

Local InstallingContractors

Final Customers

Mitsubishi Electric


GENERIC VALUE

Mr. Slim Installations DeliverMore Gross Profits per Man-Hour

SPECIFIC BUSINESS VALUE PROPOSITION

One Man Installing Mr. Slim UnitsDelivers More Gross Profits Annually

Than 10 Men Installing Standard AC Units

Mitsubishi Electric


Unit Variables Mr. SlimStandard AC Unit

Price

Costs

Profits

Labor Hours

Profit per Man-hour

Service Costs

Customer Satisfaction

10-20% Lower

30-40% Lower

20-30% Higher

60-70% Lower

2x - 3x Higher

Much Lower

Higher

Base

Base

Base

Base

Base

Base

Base

VALUE PER UNIT: SEGMENT “A”

Mitsubishi Electric



Price

Costs

Profits

Labor Hours

Profit per Man-hour

Service Costs


10-20% Lower

30-40% Lower

20-30% Higher

60-70% Lower

2x - 3x Higher

Much Lower

Higher

Base

Base

Base

Base

Base

Base

Base

SEGMENT “D” VALUE PER UNIT


Price

Costs

Profits

Labor Hours

Profit per Man-hour

Service Costs


10-20% Lower

30-40% Lower

20-30% Higher

60-70% Lower

2x - 3x Higher

Much Lower

Higher

Base

Base

Base

Base

Base

Base

Base

SEGMENT “C” VALUE PER UNIT


Price

Costs

Profits

Labor Hours

Profit per Man-hour

Service Costs


10-20% Lower

30-40% Lower

20-30% Higher

60-70% Lower

2x - 3x Higher

Much Lower

Higher

Base

Base

Base

Base

Base

Base

Base

SEGMENT “B” VALUE PER UNIT


Price

Costs

Profits

Labor Hours

Profit per Man-hour

Service Costs


10-20% Lower

30-40% Lower

20-30% Higher

60-70% Lower

2x - 3x Higher

Much Lower

Higher

Base

Base

Base

Base

Base

Base

Base

SEGMENT “A” VALUE PER UNIT

Mitsubishi Electric


Target Segment by Application

Target Sales

Monthly

Leads FoundMonthly

Sources for Sales

Leads

Customers Qualified Monthly

SalesContracts Monthly

Commercial Remodeling

Residential Remodeling

Sunroom Additions

Others

SALES PLANNING

3

5

7

1

Mitsubishi Electric


No. Units Sold

MonthlyProfit per

Unit

Monthly Man-Hours

Monthly Profits

Annual Profits

Commercial Remodeling

Residential Remodeling

Sunroom Additions

Others

ANNUAL PROFIT POTENTIALTarget

Segment by Application

3

5

7

1

Mitsubishi Electric


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SMU EE Department Seminar Series

smu ee department seminar serieslyle.smu.edu/~rajand/eeseminars/tackett_jan05.pdfsmu ee department...

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