2016 Global Factory Control Solutions Customer Value Leadership Award

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1 2016 Global Factory Control Solutions Customer Value Leadership Award 2016

2 Contents Background and Company Performance... 3 Industry Challenges... 3 Customer Impact and Business Impact of Cogiscan... 4 Conclusion... 6 Significance of Customer Value Leadership... 7 Understanding Customer Value Leadership... 7 Key Benchmarking Criteria... 8 The Intersection between 360-Degree Research and Best Practices Awards... 8 Research Methodology... 8 Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices... 9 About Frost & Sullivan Frost & Sullivan We Accelerate Growth

3 Background and Company Performance Industry Challenges The manufacturing world is on the brink of transformation, with smart factories and an emphasis on automation coming to the forefront; these trends aim towards efficient quality-control processes. 1 The quality-control process is extremely crucial in a manufacturing plant, as it enables high-quality products for end users while ensuring the highest customer satisfaction rates balanced with the reduction in production cost. Thus, an appropriate quality-control process benefits a company in both reputation and revenue. The growing need to improve the quality-control process in manufacturing plants and facilities across the globe, and the demand to minimize costs associated with the downtime of production operations have led end users to adopt cost-effective, off-theshelf manufacturing execution systems (MES). This solution helps tackle complex environments and increase overall production efficiency, productivity, and visibility. MES is a control system for managing and monitoring work-in-progress on a factory floor. It provides standardized workflows to operators to provide the highest possible production quality as well as regulatory compliance. It ensures standard application library suites for common functions in different industries. MES analyzes and reports resource availability, schedules and updates orders, collects detailed execution data such as material and labor usage, process parameters, order and equipment status, and other crucial information. 2 Today, the demand for real-time data acquisition and improved visibility on the shop floor strengthens MES adoption. The evolution of this discrete industry requires an MES solution that handles huge volumes of generated data. The complex production environment in a process and discrete industries increases the need for better visibility of the entire production arena. Frost & Sullivan research states that the global manufacturing execution systems MES market generated $4,588 million in revenue for 2013; it is expected to grow at a compound annual growth rate (CAGR) of 9.5% from 2013 to 2020 with an estimated $8,648.0 million in revenue for Another challenge in the factory control solutions market is the enormous pressure with the concept of Industry 4.0 and its supplemental technologies, which has a positive influence on the MES market. The Internet of things concept, and technologies such as industry mobility and cloud computing being included in the MES solution, encourage end users to connect all assets and improve operational productivity through a single framework. However, it causes some level of uncertainty when the equipment and 1 See, Frost & Sullivan, Keep Pace with the Smart Factories of Tomorrow 2 See, Frost & Sullivan, ND See, Frost & Sullivan, ND75-01 Frost & Sullivan We Accelerate Growth

4 software vendors in factory control solutions are trying to position themselves under Industry 4.0 and the Factory of the Future vision. Frost & Sullivan believes introducing industrial mobility, cloud computing, and Big Data processing will result in visible development in MES solutions, further transforming the overall industrial manufacturing value chain. Customer Impact and Business Impact of Cogiscan Leading the Way in the Factory Control Solutions Market Founded in 1999 and headquartered in Bromont, Quebec, Cogiscan is the leading global track, trace, and control solutions provider for the electronics manufacturing industry. The company offers a complete range of specialized hardware and software modules that enable effective factory control solutions. The basis of Cogiscan s global performance is the concept of using the information technology to integrate all the various stages of the manufacturing process, such as machines, materials, people, and enterprise systems. The company s goal is to optimize the electronic assembly process with the intent to eliminate potential product failures. Cogiscan concentrates on material control for practical and cost-effective solutions that ensure reliability. While maintaining a strong market position, Cogiscan distillates on positioning itself to stand between the machines and enterprise software vendors and to provide Track, Trace and Control (TTC) solutions most critical applications for electronics assembly. TTC Middleware Effective Performance The TTC Middleware is the foundation for the company s overall applications. This robust connectivity layer extracts high-quality real-time data from customers shop floor as well as enables the foundation for the Factory of the Future concept. Its open architecture readies multiple options for future development instead of limiting its customers roadmap to a single vendor solution. Cogiscan TTC Performance Cogiscan provides value for customers through different application modules that depend on specific requirements and actual needs a customer can choose any of TTC applications modules: Material Control These modules include a range of options, such as inventory, kitting, and Source: Cogiscan Frost & Sullivan We Accelerate Growth

5 set-up line control, enabling its customers to sustain a competitive edge. Traceability Includes product, process, component, and material traceability; these modules are the powerful tool for effective troubleshooting and product quality improvement. TTC Analytics Cogiscan s Factory Intelligence establishes objective and measurable key performance indicators (KPIs) while monitoring productivity per machine/workstation and per line, in real-time. Cogiscan is also the only company in the global market that provides a connectivity layer of software as a stand-alone solution. Other companies, such as big MES vendors, also provide their connectivity software, but it performs only with their MES application. As a company with a great knowledge and experience, as well as the biggest library of interfaces already available, Cogiscan decided to break that rule and set connectivity layer as an actual product for sale. Cogiscan s Customer-oriented Approach For achieving a leadership position in the factory control solutions market, a company must be cognizant of the industry challenges, as well as the customers challenges. Through exceptional customer service and product quality, Cogiscan meets these challenges for optimal customer value. An issue in the MES industry is the lack of reliability of companies claiming competence in all solutions regarding software. It leads to the problem of unrealistic expectations and project delivery failures. After spending millions of dollars and years of effort, the customers are not satisfied with the unsuccessful implementation of MES systems. Cogiscan believes that the ability to meet customers expectations is the first quality measurement. Thus, Cogiscan focuses on providing excellent TTC solutions. As a result, Cogiscan s products show best-in-class quality and high reliability strengthening the company s expertise and resulting in higher customer satisfaction rates. When you are trying to do too much, the effective operation becomes extremely difficult. Cogiscan s approach is not to tell our customers we can do everything. We are experts in our area with the years of expertise; we know exactly what a customer needs and then we deliver that. Customers are satisfied in the end as they receive the project they exactly need. - Francois Monette, VP Sales and Marketing, Cogiscan When launching a new solution, Cogiscan always pays attention to its clients feedback with optimal integrity, aiming to improve the product development process, both from technical and market-entry aspects. The company commits to maintaining highest quality Frost & Sullivan We Accelerate Growth

6 standards with its products and providing excellent service. This commitment to innovation enables Cogiscan to satisfy customers demands and anticipate future expectations. Achieving De Facto Standard Maker Position in the Market Today, Cogiscan creates the conditions for the mutually beneficial cooperation of all market participants from global companies to private partners. With attention on the final product development, Cogiscan s new strategy within the Industry 4.0 concept focuses on equipment and software partners. The company continuously communicates with its partners to better understand and meet industry needs. A prominent example of Cogiscan s effective cooperation with partners is the partnership with Juki Automation Systems in 2015, which developed and released the latest version of the Factory Intelligence Software. The software provides a real-time automated feedback on the factory operations and drives continuous improvements in operational efficiency. A new Cogiscan s business model demonstrated proven value for the company and perfectly responds to the challenge of Industry 4.0, and enabled continuous growth in the challenging market. Building strong brand recognition is a key goal for Cogiscan. The company builds its global brand equity among the equipment and software manufacturers with the goal of being recognized as the expert and de facto standard-maker for connectivity. Cogiscan s commitment to success and innovation focuses on providing excellent service to each customer and partner: experienced staff, reliable technical advice, and quality products and solutions all of these elements let the company take an appropriate approach to each partner. Conclusion With an increasing demand for improved quality control processes while maintaining costefficiency, Cogiscan s Trace and Control (TTC) solutions hold the potential to provide new standards and quality for the electronics manufacturing industry. The company promptly responds to the challenging development of Industry 4.0, through its continual innovative development, providing best-in-class quality, and effective and successful customer relations. With its commitment to innovation and deep concentration on building long-lasting relations with partners and customers, Cogiscan earns Frost & Sullivan s 2016 Global Customer Value Leadership Award in factory control solutions market. Frost & Sullivan We Accelerate Growth

7 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, and differentiating from the competition. 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. Frost & Sullivan We Accelerate Growth

8 Key Benchmarking Criteria For the Customer Value Leadership Award, Frost & Sullivan analysts independently 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 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 Frost & Sullivan We Accelerate Growth

9 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 bestpractice 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 Frost & Sullivan We Accelerate Growth

10 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 Frost & Sullivan We Accelerate Growth

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