Best Practices Award Template - Frost & Sullivan

BEST PRACTICES RESEARCH

© Frost & Sullivan 2015

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“We Accelerate Growth”


Contents Background and Company Performance ........................................................................ 3 Industry Challenges .............................................................................................. 3 Application Convergence Impact and Customer Impact ............................................. 3 Best Practice Visual .............................................................................................. 7 Conclusion........................................................................................................... 7 Significance of Growth Excellence through Application Convergence ................................. 8 Understanding Growth Excellence through Application Convergence ................................. 8 Key Benchmarking Criteria .................................................................................... 9 Best Practice Award Analysis for GE Predix .................................................................... 9 Decision Support Scorecard ................................................................................... 9 Application Convergence Impact .......................................................................... 10 Customer Impact ............................................................................................... 10 Decision Support Matrix ...................................................................................... 11 The Intersection between 360-Degree Research and Best Practices Awards ..................... 12 Research Methodology ........................................................................................ 12 Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices ................................................................................................................. 13 About Frost & Sullivan .............................................................................................. 14


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Background and Company Performance Industry Challenges A new form of industrial revolution is currently being experienced: the shift from traditional analogous operations to digitalized processes. As industries find themselves at the cusp of this digital makeover, they must seek answers to the challenges they face in this constantly changing business environment. As all industries depend on fixed and variable resources to function, directly or indirectly they are impacted by the volatility of the prices of these resources. While a fall in prices may be detrimental to the business of oil and gas companies, it is a boon for consumers. It, however, remains a challenge for companies to align their operations with the fluctuating nature of prices. As an enterprise becomes increasingly digitalized, large amounts of data are generated across the operations. However, as these operations are often disparate, Frost & Sullivan points out that the data thus generated is siloed and not integrated.

As such, creating

holistic insights significantly becomes a challenge as the data is incongruent. The aspect of siloed data collection, data transparency, integration and visualization makes analytics a complex process. Another challenge faced by companies is the increasing vulnerability of data. As more and more devices and machines get connected, each becomes a point of vulnerability. Cybersecurity is a growing concern for digitalizing industries, especially due to the sensitive nature of the data generated. Ensuring the safety of software platforms and applications to enable secure operations, while saving on money, time, and resources, remains a daunting task ahead of the complete digitalization of enterprises.

Application Convergence Impact and Customer Impact Completeness of Vision Companies and industries embracing digitalization are increasingly moving towards the vision of a totally integrated digital enterprise. To achieve this vision, Frost & Sullivan notes that companies must look at ways to incorporate not only the Internet of Things (IoT), but also connect machines and people through a common platform. GE’s software platform – Predix - provides industries with an innovative software technology platform that optimizes industrial processes, assets, and operations. Predix can be deployed on machines, in situ or in cloud, to connect the devices and machines on the floor. Apart from device integration, data assimilation and management, data analytics, and mobility are also provided with the help of the same platform. Predix


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connects machines with people and generates insights based on the data created through the

enterprise.

The

platform

supports

the

development

of

cloud-based

analytics

applications that take into consideration the operational data to generate targeted action points for better decision-making. Frost & Sullivan appreciates the fact that a major challenge overcome by GE Predix is the integration of disparate data sources. Predix brings together the operational technology end of the business and the information technology end. This marriage of formerly distinct ends of the spectrum creates synergies that impact the complete organizational structure through insights that can be generated with it. Applications like SCADA, PLC, and Gateways from the operational end of the enterprise are brought in conjunction with supply chain management, enterprise resource planning, and other such applications from the traditional information technology domain. The scale of the Predix platform extends across a spectrum of industry verticals ranging from

power,

transmission,

smart

cities,

healthcare,

manufacturing,

aviation,

transportation, energy management and oil and gas. GE also pioneered the development of platform-based approach in the market to drive an integrated ecosystem of industryspecific applications. The organization aims to deliver secure connected assets and total data management and to drive the flexibility of mobile and cloud solutions. The ability to merge the platform effectiveness to create an integrated responsive enterprise properly reflects on the platform’s superior capabilities. The convergence of social, mobile, cloud, big data, machines and applications, all enabled by Predix, results in improved operational and asset efficiencies, while reducing the downtime and driving profitability. Growth Potential Industries (oil and gas, power, mining, etc.) are progressively transforming and adopting digital technologies. End-users who are progressive in nature are looking at cloudbased/hosted/hybrid data models to leverage the best synergies of both worlds. However, the degree of market adoption is still low. As industrial processes are yet to be completely digitalized, there is a significant growth potential for software processes that enable the digitalization. GE’s cross-industry experience and the capability to understand the requirement of industries to be able to connect a wide variety of machines, sensors, systems, processes, devices, and personnel instills a sense of confidence in the end-users mind as a trusted partner. Furthermore, Predix’s ecosystem partners (Intel, AT&T, Cisco, among others) have all developed several cutting-edge hardware solutions to drive incremental value to customers. As the transformation of industries is an ongoing process, Predix takes into account old er machines that may still be a part of the operation, along with newer, sophisticated machinery. The platform thus enables the connection of all machines in the domain, old and new, on a large industrial scale through its various applications that synthesize protocols to procure the data from the devices - irrespective of their age or make. Predix’s


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hardware agnostic software platform enables it to be applied across industries, thereby offering immense growth potential for the platform in the industrial IoT sector. GE's vision is to truly build an industrial application ecosystem of the future. The company is inviting system integrators and value-added resellers to build applications on its platform and open up a collaborative innovation system. Instead of being constrained by internal development, GE Predix is looking to leverage global experts in the field and develop cutting-edge solutions for emerging customer challenges. A case in point is that of SoftBank licensing the GE Predix platform to leverage the extensibility of the platform and subsequently build out industry-class applications. Disruptive Capability of the Application The digitalization drive is rapidly becoming a competitive edge for companies as they increasingly invest in the adoption of software platforms. GE Predix has enabled technology disruption in the industry with its innovative software platform that su pports hardware agnostically. Predix is bringing about the revolution in the industrial IoT by allowing applications to converge all of the elements of an enterprise in a single platform. With more than 40 applications already released by GE using the Predix platform in 2015, the disruption of technology used traditionally by industries has gained significant traction. Unlike its other competitors, Predix enables the convergence of the infrastructural and digital domains, viewed as the new core competency by industries. The application of Predix in industries is bringing about a true disruption in technology by enabling newer ways of operating machines. For example, the application of Predix to a digital wind farm allows the operators to alter the angle of the blades in real time, adding up to 10% in energy output and drive significant value-delivery to a wind farm in the scale of 100 megawatts. Predix has been implemented by leading companies and cities such as TransCanada, Impala Platinum, AirAsia, San Diego and Israel National Water Company as part of its customer portfolio. In addition, GE Predix has been implemented in over 200+ Electrical Submersible Pumps (ESP) wells to drive reduction in performance variability by using its analytics platform. Recently, GE Predix introduced its purpose-built ‘Predix Cloud’ specifically for industrial data and analytics across several industries. The cloud’s unique differentiation is fivefold: 1. Specifically built to accommodate scale for industrial assets. The Predix Cloud builds on best-in-class partnerships with Intel, Pivotal, Cisco, AT&T, Vodafone, and Softbank. 2. The offering of a Platform-as-a-service (PaaS) analyzes and stores data in real-time with a closed-community secure model. 3. Easy to access through on-demand and pay-as-you-use pricing models. 4. Platform agnosticity helps in working across a wide range of industries and industry specific applications. 5. Rapid data and service provisioning. This is quite critical to operations, as companies compete on speed of service and scale.


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To address security concerns, applications are monitored and reviewed in isolation before implementation to reduce extent of damage. Furthermore, GE has incorporated ‘softwaredefined mortar’, which isolates each application layer to customize the amount of data that each layer can access. This ensures a differentiated approach in threat detection, isolation and data loss prevention. Business Value to Customers Industrial data can be challenging to handle, given the scale of enterprise and the large volume of data generated.

GE Predix clearly tackles this challenge by providing prompt

access to data and analytics for real-time decision making, while creating real business value in terms of time and costs for its customers through the analytics and resulting actionable insights. The enterprise- and industry-wide scalability to provide real-time information to the organization for efficient operations delivers business value that is unmatched by other systems in the market. Customer Ownership Experience The digitalization and all-encompassing platform for industries is a fledgling concept, one that is yet to be scaled across industries. GE Predix can be used by diverse industries ranging from oil and gas and power to healthcare and aviation, in order to enable operations and asset optimization using the machine and network architecture. Predix has invested and placed a significant emphasis on user experience (UX). The UX strategy is comprehensive and instilled across GE Software and design. Frost & Sullivan agrees that the meticulous steps GE has taken to bring a true visually enriching and businessimpacting experience is truly commendable. The single purpose mission was to standardize its software experience (look and feel) and provide support and resources for the company’s designers. As described in Frost & Sullivan surveys about end-user requirements, it's not just about the technology, but rather the perceptive vision of how the technology will be used. GE’s well-thought out methodologies to deliver a complex technology in a compelling way speaks quite well about the company's closeness to its customers. The investment in UX has enabled GE to deliver rapid turnarounds and new product introductions in record time when compared to industry norms. Some of the key product examples include myFleet and myEngine, which were aimed at remote monitoring and diagnostics. Customer Service Experience Predix provides services to not only customers, but also to developers to install wideranging analytics for industrial purposes. The software platform offers pre-packaged services for machine learning, exploratory analysis, and engineering-based modeling. These services are expected to create accurate insights and provide predictive anal ysis in the processes to save time and cost. Through years of software experience, Predix has enabled analytics of futuristic machines and IoT applications. The comprehensive approach


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demonstrated by Predix speaks volumes of its customer-centricity towards the needs of all stakeholders in the industrial software market space. The stewardship displayed by GE Predix in building out the industrial cloud with layered provisioning and security has a strong potential to become the industry standard for connecting people, processes and technologies.

Best-practice Visual

Conclusion GE’s Predix is an innovative and disruptive software platform that enables the futuristic vision of totally integrated digital enterprise. Predix is able to connect machines of any vintage from any vendor,helping customers connect all the available assets for centralized and optimized operations. Through partnerships with companies such as Intel , AT&T, Vodafone, Verizon, Amazon, Pivotal, SoftBank and Cisco, Predix creates a comprehensive ownership experience, while its pre-packaged services give its customers a holistic service experience. With its strong overall performance, GE’s Predix has earned the 2015 Frost & Sullivan Global Growth Excellence through Application Convergence Award.


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Significance of Growth Excellence through Application Convergence Application convergence drives a spectrum of opportunities for value-enhancement as new applications and ecosystems get created. A case in point is that of the convergence of information technology and operational technology through the application of software in the industrial markets. Further, application convergence leads to the extension of customer value and unique points of differentiation. At its core, application convergence can only be sustained with leadership in three key areas: customer demand, business value, and competitive positioning.

Understanding Convergence

Growth

Excellence

through

Application

Application convergence leads to opportunities for new value creation in undiscovered ways, resulting in

solutions which outperform existing approaches and drive superior

performance by utilizing multiple system inputs.


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Key Benchmarking Criteria For the Global Growth Excellence in Application Convergence Award, Frost & Sullivan analysts independently evaluated two key factors — Application Convergence Impact and Customer Impact — according to the criteria identified below. Application Convergence Impact Criterion 1: Completeness of vision Criterion 2: Growth potential Criterion 3: Ability to drive application ecosystem interest Criterion 4: Disruptive capability of the application Criterion 5: Impact of applications over legacy approaches Customer Impact Criterion 1: Business value to customers Criterion 2: Customer's perception of value Criterion 3: Customer ownership experience Criterion 4: Customer service experience Criterion 5: Brand Equity

Best Practice Award Analysis for GE Predix 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 application convergence attributes 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 GROWTH EXCELLENCE THROUGH APPLICATION CONVERGENCE AWARD Measurement of 1–10 (1 = poor; 10 = excellent)

Growth Excellence through Application Convergence

Application Convergence Impact

Customer Impact

Average Rating

GE Predix

9

9

9.0

Competitor 2

7

8

7.5

Competitor 3

6

6

6.0

Application Convergence Impact Criterion 1: Completeness of Vision Requirement: Ability to showcase a long-term vision and pioneer industry transformation. Criterion 2: Growth Potential Requirement: Ability to leverage the benefits of converging technologies and drive growth. Criterion 3: Ability to Drive Application Ecosystem Interest Success of application convergence depends on the ecosystem maturity, its partners and strategy to build-out industry-specific solution Criterion 4: Disruptive capability of the application Requirement: The new application’s capability to replace existing market incumbents and provide a path to long-term sustenance. Criterion 5: Impact of applications over legacy approaches Requirement: Capability of applications to deliver a set of superior solutions is key to win support from customers.

Customer Impact Criterion 1: Business Value to Customers Requirement: Capability to deliver superior business value instead of simple substitution.


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Criterion 2: Customer's Perception of Value Requirement: Customer view-points on blurring of application and its potential to create new revenue streams. 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: New application enhances the company’s brand, creating and/or nurturing 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 GROWTH EXCELLENCE THROUGH APPLICATION CONVERGENCE AWARD High

GE Predix

Customer Impact

Competitor 2

Competitor 3

Low Low


Application Convergence Impact

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High



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 360-degree-view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Too

often,

growth

companies

decisions

understanding

of

make

based

on

their

important a

narrow

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 bestin-class levels.


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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 with select 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

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

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

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

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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

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

4 director review

10

Take strategic action


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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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