2015 North American HVAC Technology Innovation Award

Transcription

1 North American HVAC Technology Innovation Award

2 Contents Background and Company Performance... 3 Industry Challenges... 3 Technology Attributes and Future Business Value of enverid Systems... 4 Conclusion... 7 Significance of Technology Innovation... 8 Understanding Technology Innovation... 8 Key Benchmarking Criteria... 9 Best Practice Award Analysis for enverid Systems... 9 Decision Support Scorecard... 9 Technology Attributes Future Business Value Decision Support Matrix The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices About Frost & Sullivan Frost & Sullivan 2 We Accelerate Growth

3 Background and Company Performance Industry Challenges According to the US Energy Information Administration, in 2013, residential and commercial buildings accounted for 40% of the total energy consumption in the United States. Energy for heating, ventilation, and air-conditioning (HVAC) makes up 39% of the energy usage in commercial buildings in the United States. Hence, there is great incentive to reduce HVAC energy consumption, especially for commercial buildings. However, the industry faces some challenges in implementing HVAC energy efficiency measures as outlined in the following. 1) Uniqueness of HVAC systems: Because HVAC systems can vary greatly in type, installation, and design, there is no single energy-saving solution that fits all HVAC systems. In some cases, replacing the entire HVAC system may be warranted to achieve substantial energy savings. This may also necessitate design changes, which complicate the HVAC energy efficiency effort and hence discourage building owners from taking action. 2) Complex interactions of parameters: Many factors affect the degree of heating, ventilation, and cooling required in a building to maintain a desirable comfort level for its occupants. These parameters include building occupancy, building services operations (which include HVAC components), outdoor air temperature, and airflow rates through the building. Any HVAC energy efficiency initiative to be implemented must ensure that the building s indoor air quality is not compromised and the building s comfort level is maintained. 3) Meeting local regulations and standard requirements: In buildings, carbon dioxide and volatile organic compounds (VOCs) invariably build up from the natural metabolism in any persons or living organisms, as well as other sources such as furniture, food and cleaning materials. To maintain a healthy indoor air quality, ventilation by replacing degraded indoor air with outdoor air drawn into the building has been the standard solution. In commercial buildings of high occupancy rates (such as cafeterias, supermarkets, bars, and clubhouses) or with intensive industrial or processing activities (such as bakeries, precision manufacturing workshops, mills, and dye houses), more air changes per hour are required. In most cases, ventilation requirements are specified by local regulations and building codes or ASHRAE guidelines. This places a limit on the degree of HVAC energy efficiency achievable. 4) Increased atmospheric air pollution: With the current level of air pollution in urban and industrial areas, air purification becomes necessary prior to circulation in a building, which will incur an additional energy requirement. Hence, any HVAC energy-saving option must be able to offset this additional requirement. Frost & Sullivan 3 We Accelerate Growth

4 Technology Attributes and Future Business Value of enverid Systems Industry Impact enverid Systems HVAC Load Reduction (HLR TM ) technology increases HVAC energy efficiency by decreasing the intake of outside air for ventilating a building without sacrificing indoor air quality and comfort level. The technology is essentially a smart air scrubbing technology that purifies indoor air so that it can be recirculated in the building, thus minimizing the HVAC system s air intake load and thereby decreasing its energy usage. This is an absolute thermodynamic energy saving, which is independent of HVAC mechanical factors such as Coefficient of Performance, system type and configuration, or capacity, and building occupancy density, unlike energy savings from advanced controlled operations offered by competitors in the field. The HLR technology lowers the HVAC system s baseline energy consumption. Hence, any energy savings from advanced control systems are additional savings. This will positively enhance the HVAC energy efficiency initiative at large, giving the industry a breakthrough capability to achieve its goals. Moreover, the HLR technology can be retrofitted into any existing HVAC infrastructure or incorporated into new installations, since it is designed as an add-on device that is fitted next to the HVAC system. Its flexibility will enable its widespread deployment and help realize energy efficiency objectives quickly. This will greatly enhance the effectiveness of the HVAC energy efficiency industry in attaining environmental sustainability in the face of the global energy crisis and climate change. Best Practices Example: The HLR Module has been tested and was able to achieve more than 40% energy savings for cooling alone in the summer, which corresponds to a peak-loading period that typically attracts the highest energy-saving payback incentives. Product Impact enverid Systems ingenuity in reducing the HVAC system s air intake load by cleaning and recirculating indoor air has produced a device that not only significantly reduces HVAC energy consumption but also purifies the air of contaminants. The HLR technology enables reduced air change rates without compromising indoor air quality because of its patented synthetic adsorbents and built-in proprietary operational algorithms and control software that intelligently control its air purification functions. The adsorbents, packed in relatively small amounts in cartridges in the HLR Module, are highly selective toward molecular contaminants that are predominantly found in indoor air, such as carbon dioxide and VOCs. The cartridges can also be customized to include germicides for air sterilization or other proprietary adsorbents and catalysts to remove contaminants that are inadequately captured by its standard option, such as formaldehyde. Frost & Sullivan 4 We Accelerate Growth

5 Unlike typical adsorption-based air purification technologies that cannot address carbon dioxide or formaldehyde and require expensive adsorbent replacement, the HLR Module s adsorbents address all known indoor contaminants and can be easily regenerated in situ by flushing them with moderately heated (to 45 to 50 degrees Celsius) outside air. By implementing a hybrid Temperature/Concentration Swing Adsorption (TCSA) cycle, enverid s algorithm determines when to regenerate the adsorbents and how much regeneration is required. This is made possible by carbon dioxide and VOC sensors located at the inlets and outlets, which send readings to a central processor to monitor adsorbent performance and determine when regeneration is needed. Thus, the regeneration is carried out cost effectively and energy efficiently. It allows repeated reuse of the adsorbents, bringing down consumables cost in addition to operational and maintenance costs. The HLR Module s compact design gives it a small footprint that enables it to be easily installed anywhere, whether in enclosed spaces or on open rooftops. This feature complements the technology s flexibility to be installed alongside any air handling unit. Best Practices Example: enverid Systems has endeavored to ensure the reliability of its HLR Module by using patented materials and technologies. It has 24 filed patents covering various aspects of the technology, and has secured other exclusive licenses from universities and government institutions for the technologies it uses. The unique adsorbents were licensed from the National Energy Technology Laboratory under the US Department of Energy. The company also strives to make its technology easy to install, compact, light, portable, and affordable. Scalability The HLR system is a modular unit that can cater to air handling units of various capacities and buildings of various sizes. This is possible due to the modular cartridges that house its unique adsorbents. The technology s functional scalability is also reflected in its ability to cater to additional specific air contaminants as required by specific customers, as previously described. Best Practices Example: Besides addressing larger systems by scaling up their capacities, enverid Systems is able to put together several units of HLR Modules to increase their overall capacity. For very large buildings, each air handling unit can be attached with corresponding HLR units. Visionary Innovation The intelligence incorporated into enverid Systems HVAC energy-efficient technology realizes the future trend of Smart is the New Green, which Frost & Sullivan defines as Frost & Sullivan 5 We Accelerate Growth

6 the scenario in which smart products with intelligent sensing technologies provide energy and efficiency savings of up to 30%, and generally a 2- to 3-year return on investment. The technology also assists in realizing zero-emissions and net zero-energy buildings by significantly reducing the carbon footprint and carbon dioxide capture from treated air. With reduced outdoor air intake into buildings, it provides zero-pollutant indoor air. Hence Frost & Sullivan rates it as an infrastructure of the future that caters to health, wellness and well-being, as well as environmental sustainability. Best Practices Example: The HLR solution gives the highest energy savings during peak loads or in extreme climatic conditions. Even based on a non-incentivized economy, the system is able to realize a 2- to 3-year payback period. Application Diversity The HLR system s compatibility with any air handling unit renders it applicable in unlimited HVAC markets. The technology can most profitably be employed in commercial buildings, which typically draw in outside air to ventilate indoor air, and in heavily polluted air environments from which it is unsafe to draw in ventilation air. Due to its high energy efficiency, it can be economically used in conventionally highly loaded HVAC systems, such as in hospitals and schools. Best Practices Example: enverid Systems has 2 types of HLR systems: a weather-proof model installation and a model for indoor installation. for outdoor Customer Acquisition enverid Systems unique technology has earned positive comments from customers, who recognize the revolutionary nature of the technology on HVAC energy efficiency. Such positive feedback serves as good references for the expansion of its customer base. Hence, Frost & Sullivan believes the company has great potential to acquire new customers. Best Practices Example: The US Department of Energy (DOE) recently awarded enverid Systems $2.4 million through a cooperative agreement to expedite the deployment of the HLR technology in buildings and to raise market awareness. This recognition will increase existing customers regard of the company and attract new customers. Frost & Sullivan 6 We Accelerate Growth

7 Conclusion By significantly reducing outdoor air intake to reduce HVAC energy load using intelligent air scrubbing technology, enverid Systems HLR TM technology has innovatively addressed the main challenges in the HVAC energy efficiency industry. The technology, which is completely compatible with any air handling infrastructure, is able to achieve significant HVAC energy efficiency in unlimited applications and sectors, achieving thermodynamic energy savings independent of external factors and hence providing efficient heating, ventilation and cooling for buildings, while maintaining a healthy indoor air quality in compliance with regulations and standards. With its strong overall performance, enverid Systems has earned Frost & Sullivan s 2015 Technology Innovation Award. Frost & Sullivan 7 We Accelerate Growth

8 Significance of Technology Innovation Ultimately, growth in any organization depends upon finding new ways to excite the market, and upon maintaining a long-term commitment to innovation. At its core, technology innovation or any other type of innovation can only be sustained with leadership in three key areas: understanding demand, nurturing the brand, differentiating from the competition. This three-fold approach to nurturing innovation is explored further below. Understanding Technology Innovation Technology innovation begins with a spark of creativity that is systematically pursued, developed, and commercialized. That spark can result from a successful partnership, a productive in-house innovation group, or the mind of a singular individual. Regardless of the source, the success of any new technology is ultimately determined by its innovativeness and its impact on the business as a whole. Frost & Sullivan 8 We Accelerate Growth

9 Key Benchmarking Criteria For the Technology Innovation Award, we evaluated two key factors Technology Attributes and Future Business Value according to the criteria identified below. Technology Attributes Criterion 1: Industry Impact Criterion 2: Product Impact Criterion 3: Scalability Criterion 4: Visionary Innovation Criterion 5: Application Diversity Future Business Value Criterion 1: Financial Performance Criterion 2: Customer Acquisition Criterion 3: Technology Licensing Criterion 4: Brand Loyalty Criterion 5: Human Capital Best Practice Award Analysis for enverid Systems 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 Technology Attributes and Future Business Value (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. Frost & Sullivan 9 We Accelerate Growth

10 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 in as Company 2 and Company 3. DECISION SUPPORT SCORECARD FOR TECHNOLOGY INNOVATION AWARD (ILLUSTRATIVE) Measurement of 1 10 (1 = poor; 10 = excellent) Technology Innovation Technology Attributes Future Business Value Average Rating enverid Systems Competitor Competitor Technology Attributes Criterion 1: Industry Impact Requirement: Technology enables the pursuit of groundbreaking new ideas, contributing to the betterment of the entire industry Criterion 2: Product Impact Requirement: Specific technology helps enhance features and functionality of the entire product line for the company Criterion 3: Scalability Requirement: Technology is scalable, enabling new generations of products over time, with increasing levels of quality and functionality Criterion 4: Visionary Innovation Requirement: Specific new technology represents true innovation based on a deep understanding of future needs and applications Criterion 5: Application Diversity Requirement: New technology serves multiple products, multiple applications, and multiple user environments Future Business Value Criterion 1: Financial Performance Requirement: High potential for strong financial performance in terms of revenues, operating margins and other relevant financial metrics Criterion 2: Customer Acquisition Requirement: Specific technology enables acquisition of new customers, even as it enhances value to current customers Frost & Sullivan 10 We Accelerate Growth

11 Criterion 3: Technology Licensing Requirement: New technology displays great potential to be licensed across many sectors and applications, thereby driving incremental revenue streams Criterion 4: Brand Loyalty Requirement: New technology enhances the company s brand, creating and/or nurturing brand loyalty Criterion 5: Human Capital Requirement: Customer impact is enhanced through the leverage of specific technology, translating into positive impact on 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 TECHNOLOGY INNOVATION AWARD (ILLUSTRATIVE) High Competitor 3 Competitor 2 enverid Systems Future Business Value Low Low Technology Attributes High Frost & Sullivan 11 We Accelerate Growth

12 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 bestin-class levels. 360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS Frost & Sullivan 12 We Accelerate Growth

13 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 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 Once licensed, 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 13 We Accelerate Growth

14 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 14 We Accelerate Growth