2015 North American HVAC Technology Innovation Award · PDF fileinstallation, and design, ......

2015

2015 North American HVAC Technology Innovation Award

BEST PRACTICES RESEARCH

© Frost & Sullivan 2 “We Accelerate Growth”

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 ......................................................................................... 10

Future Business Value ......................................................................................... 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



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.



Technology Attributes and Future Business Value of enVerid

Systems

Industry Impact

enVerid Systems’ HVAC Load Reduction (HLRTM) 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.



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.


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.


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



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.


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.


enVerid Systems has 2 types of HLR systems: a weather-proof model for outdoor

installation and a model for indoor installation.

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.


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.



Conclusion

By significantly reducing outdoor air intake to reduce HVAC energy load using intelligent

air scrubbing technology, enVerid Systems’ HLRTM 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.



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.



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.



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 9.64 9.30 9.47

Competitor 2 8.66 8.70 8.68

Competitor 3 8.50 8.70 8.60


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



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

Low

Low High

Fu

ture B

usin

ess V

alu

e


enVerid

Systems

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

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 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

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



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.

http://www.frost.com/

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