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
BEST PRACTICES RESEARCH
© Frost & Sullivan 3 “We Accelerate Growth”
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.
BEST PRACTICES RESEARCH
© Frost & Sullivan 4 “We Accelerate Growth”
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.
BEST PRACTICES RESEARCH
© Frost & Sullivan 5 “We Accelerate Growth”
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
BEST PRACTICES RESEARCH
© Frost & Sullivan 6 “We Accelerate Growth”
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 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.
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.
BEST PRACTICES RESEARCH
© Frost & Sullivan 7 “We Accelerate Growth”
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.
BEST PRACTICES RESEARCH
© Frost & Sullivan 8 “We Accelerate Growth”
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.
BEST PRACTICES RESEARCH
© Frost & Sullivan 9 “We Accelerate Growth”
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.
BEST PRACTICES RESEARCH
© Frost & Sullivan 10 “We Accelerate Growth”
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
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
BEST PRACTICES RESEARCH
© Frost & Sullivan 11 “We Accelerate Growth”
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
Technology Attributes
enVerid
Systems
Competitor 2 Competitor 3
BEST PRACTICES RESEARCH
© Frost & Sullivan 12 “We Accelerate Growth”
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 RESEARCH
© Frost & Sullivan 13 “We Accelerate Growth”
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
BEST PRACTICES RESEARCH
© Frost & Sullivan 14 “We Accelerate Growth”
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.
Top Related