20 15 north american rfid tags in manufacturing customer ... · omni-id has carved a distinct...

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2015

2015 North American RFID Tags in Manufacturing Customer Value Leadership Award

BEST PRACTICES RESEARCH

© 2015 Frost & Sullivan 2 “We Accelerate Growth”

Contents

Background and Company Performance ........................................................................ 3

Industry Challenges .............................................................................................. 3

Customer Impact and Business Impact of Omni-ID ................................................... 3

Conclusion........................................................................................................... 6

Understanding Customer Value Leadership .................................................................... 7

Key Benchmarking Criteria .................................................................................... 8

Best Practice Award Analysis for Omni-ID ...................................................................... 8

Decision Support Scorecard ................................................................................... 8

Customer Impact ................................................................................................. 9

Business Impact ................................................................................................... 9

Decision Support Matrix ...................................................................................... 10

Research Methodology ........................................................................................ 11

About Frost & Sullivan .............................................................................................. 13



Background and Company Performance

Industry Challenges

With the changing landscape of the manufacturing industry, materials flow management

has been growing increasingly complex over the years. This complexity is primarily caused

by 3 main forces. Firstly, a growing number of manufacturing companies are consolidating

their factories, which has led to growth in material flows in a smaller number of factories.

Secondly, more and more companies are focusing on outsourcing their manufacturing

capabilities to develop products and components for third-party companies. Lastly, driven

by the growing competition, companies have significantly diversified their product lines

over the years to cater to the different needs of individual customer segments.

Driven by these factors, manufacturing companies face a vital need for cost-effective RFID

solutions that will be able to efficiently control materials flow management. In such a

scenario, RFID solution providers who are able to introduce innovative as well as cost-

effective solutions with an aim to address the market challenges find themselves better

positioned to differentiate themselves specifically in the North American RFID tags market

in manufacturing.

Customer Impact and Business Impact of Omni-ID

Focus on Value-addition

Omni ID, which started its operations as the research and development (R&D) team of

QinetiQ (a technology provider for the defense and security sectors), has consistently

displayed a commitment toward developing some of the industry’s most innovative RFID

solutions. With a concentrated focus on materials flow management, the company

develops industry-leading RFID solutions for large capital goods environments.

Omni-ID has carved a distinct position for itself in the North American RFID market

specifically in manufacturing backed by one of the industry’s broadest portfolios of active

and passive RFID tags. As the first to introduce on-metal RFID tags, the company has

displayed an unmatched capability to identify and address unmet market requirements.

One of the primary examples to establish this fact is the company’s introduction of the

visual tags, which are equipped with an electronically rewritable display. Designed to

replace paper tags in supply chain applications, these tags offer a much more cost-

effective alternative to paper tags, which require regular replacements, leading to high

paper, printing, and labor costs.

In addition to offering such a comprehensive and innovative product line, Omni-ID also

offers consultation services through which it works closely with its customers to identify

their requirements and suggest the optimum solution to address their specific

applications.



Comprehensive Tag Portfolio

One of the key factors differentiating Omni-ID is its comprehensive product line. These

include the Adept tags, which have robust, specialty designs for harsh industrial

environments; the Dura tags, which are designed to be highly durable with an ability to

sustain extreme environmental conditions, especially in oil and gas, construction, and

military applications; Exo tags designed primarily for manufacturing and RTI applications

and Fit tags, which are small form factor ceramic tags designed for embedding and high

temperature tool-tracking applications; IQ tags, which are comprised of ultra-thin on-

metal labels and low profile tags designed to high value IT , office and laboratory assets;

and Power tags, which are specialized active tags built for applications in extreme and

vast outdoor environments such as yard management

In addition to these tags, the company offers its flagship solution, ProVIEW. Comprised of

the View, or e-label tags, which are equipped with an electronically re-writable display and

software, ProVIEW provides a complete solution for materials flow management with

hardware, software and tags. Designed to replace paper tags in WIP manufacturing

applications such as asset tracking, parts replenishment, work instructions and container

management, the View tags can be used to display information and instructions

throughout the process, which can be repeatable or changed at any time. And in addition,

ProVIEW provides the capability of tracking materials throughout the process, end to end,

with enhanced process reporting and quality assurance measurability. In addition to its 3

and 4-inch tags introduced in 2013, in May 2014, Omni-ID introduced the latest version of

its visual tags, the View 10. Which is a 10-inch, page-sized, lightweight display, especially

designed to replace the “build book” in large capital goods manufacturing environments.

Ideal for displaying work instructions and build manuals which can be hundreds of pages,

the View 10 combines various communication technologies, such as RFID, infrared, and

Wi-Fi, that helps transmit instructions and information in real time and to precisely locate

on the factory floor. These hardware features work with Omni-ID’s ProVIEW software to

automatically display the correct image based on the tag location in the process or user

interaction with the tag such as a button press. This thereby eliminates the need for paper

labels or multi-paged instruction manuals and reduces manual error along with labor and

paper costs.

Dedication to Improve Ownership Experience

As 95% of process and material flows in manufacturing are currently tracked using paper

labels and barcodes today, Omni-ID identified a vital gap in the market driven by the cost

of paper, human errors, and low visibility in the flow of materials all the way through the

manufacturing process associated with using paper tags, particularly in the wake of the

changing and dynamic nature of today’s manufacturing environments. Because paper tags

are required to be regularly replaced, the total cost of paper tags including ink, paper and

human resources can amount to approximately $72 a year for a single rack or container1.

1 Based on independent cost analysis by a tier 1 automotive manufacturer.



With an aim to reduce the high cost of using paper labels and to provide the visibility that

manufacturers need throughout every stage of the process, Omni-ID developed its visual

tags, which are integrated in its ProVIEW system. These visual tags, which are equipped

with an electronically rewritable display, and have an ROI of 12-18 months or less vs

paper in most applications.

Vision Alignment

Omni-ID’s vision is to emerge as the number-one solutions provider for material flow

management applications in large capital goods manufacturing environments by utilizing

technologies including active and passive RFID, sensors, large scale data acquisition, and

e-paper displays. By defining a niche but important sector as its target market, Omni-ID

displays a concentrated focus on efficiently catering to the needs of its target customers,

rather than serving a broad and diversified customer base. With a strong history in

developing on-metal passive tags for manufacturing applications, the company boasts

superior domain skills along with extensive industry and manufacturing expertise with

facilities located in North America, UK, and China. This assures very efficient, high volume

manufacturing. It strongly emphasizes recruiting the right personnel with superior

industry and technological skills as a part of its efforts to achieve its vision. Additionally, it

also encourages its employees to work in close contact with its customers with an aim to

gain specialized knowledge about their workflows. This further strengthens the company’s

expertise in its chosen sector, placing it a step ahead in attaining its vision.

The company’s growing success in manufacturing can be established by the fact that it

currently serves 4 of the 10 largest automotive manufacturers in the world. It also expects

2 of the remaining 6 companies to select its RFID tags in their applications in the coming

months. Omni-ID recorded 100% growth in revenues in the first quarter of 2014 over that

of the first quarter of 2013. And 63% growth in revenue YoY (2013/2014).

Superior Process Design

One of the key value propositions offered by Omni-ID is its focus on offering a superior

process of deploying its IoT solutions at customer premises. Given the innovative nature

of its solutions, the company realizes the vital need to interact directly with its customers.

Ensuring such direct contact allows customers to get their queries addressed immediately.

Omni-ID follows a process that starts with understanding and capturing customer

requirements. Once it identifies the customer need, it works closely with its customers to

come up with the optimum solution in line with the specific customer application. The

company ensures that there exists a single point of contact that addresses all queries and

issues of a customer. This leads to improved transparency, better flow of communication,

and faster addressing of customer queries.

Additionally, the company also offers professional consultation services along with its

products. In such cases, it works with its customers to identify the best possible solution



for their specific application and then can recommend a tag solution from Omni-ID’s broad

industrial product portfolio. Because of its in house engineering and manufacturing

capabilities, it often designs custom tags, which are tailor-made to address the individual

needs of the customers.

With a current focus on materials flow management, Omni-ID plans to expand its

presence in other application areas, such as healthcare and semiconductors through OEM

relationships with large, credible firms well established in each area of application

expansion. Additionally, it also plans to continue to introduce new and innovative products

in the near future, with a long-term goal to develop products packaged with plug-and-play

hardware and software capabilities that bring the power of the IoT and its benefits such as

improved data acquisition/business analytics and highly dynamic process flows to factory

floors globally.

Company Culture

Originally the R&D division of a technology provider, Omni-ID has consistently nurtured a

work culture that encourages innovation. With a vision to emerge as the number-one

provider of RFID solutions for applications in materials flow management, the company

significantly invests in employing highly skilled personnel with strong industry and domain

expertise. Backed by such a strong global resource pool, and a wholly-owned factory, Omni-

ID has displayed a consistent capability to develop some of the industry’s most innovative

solutions in the RFID space. For example, it was the first company to develop on-metal tags

as well as visual tags with electronic displays and is today the #1 provider and producer of

industrial RFID tags in the market. Such product innovations show the company’s dedication

to address the unmet requirements of customers for efficient and cost-effective RFID

solutions.

Conclusion

Backed by a vision to emerge as the number-one IoT solutions provider in the

manufacturing sector, Omni-ID currently offers one of the industry’s most comprehensive

portfolios of RFID tags and labels. The company has established a distinct position for

itself in the market by developing some of the industry’s most innovative RFID tags. As

the first to introduce visual tags with an electronic display, the company has set new

standards for RFID solutions in manufacturing applications. Considering its ability to

design such innovative solutions in line with unmet customer requirements, Omni-ID has

been chosen as the worthy recipient of 2015 Frost & Sullivan Customer Value Leadership

Award in the North American RFID tags market in Manufacturing.



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, differentiating from the competition. This

three-fold approach to delivering customer value is explored further below.

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.



Key Benchmarking Criteria

For the Customer Value Leadership Award, we 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

Best Practice Award Analysis for Omni-ID

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 Customer Impact and Business 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.



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 CUSTOMER VALUE LEADERSHIP AWARD (ILLUSTRATIVE)

Measurement of 1–10 (1 = poor; 10 = excellent)

Customer Value Leadership Customer Impact

Business Impact

Average Rating

Omni-ID 9 9 9

Competitor 2 8.5 9 8.75

Competitor 3 8 8 8

Customer Impact

Criterion 1: Price/Performance Value

Requirement: Products or services offer the best value for the price, compared to similar

offerings in the market

Criterion 2: Customer Purchase Experience

Requirement: Customers feel like they are buying the most optimal solution that

addresses both their unique needs and their unique constraints

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: Customers have a positive view of the brand and exhibit high brand loyalty

Business Impact

Criterion 1: Financial Performance

Requirement: Strong overall financial performance in terms of revenues, revenue growth,

operating margin and other key financial metrics

Criterion 2: Customer Acquisition

Requirement: Customer facing processes support the efficient and consistent acquisition of

new customers, even as it enhances retention of current customers

Criterion 3: Operational Efficiency

Requirement: Staff is able to perform assigned tasks productively, quickly, and to a high

quality standard



Criterion 4: Growth Potential

Requirements: Customer focus strengthens brand, reinforces customer loyalty and

enhances growth potential

Criterion 5: Human Capital

Requirement: Company culture is characterized by a strong commitment to quality and

customers, which in turn enhances 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 CUSTOMER VALUE LEADERSHIP AWARD (ILLUSTRATIVE)

High

Low

Low High

Business Impact

Customer Impact

Competitor 2

Competitor 3

Omni-ID



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

Technology

Obsolescence

Disruptive

Technologies

New

Applications

CEO

Demographics

Needs

and

PerceptionsSegmentation

Buying

Behavior

Branding

and

Positioning

Competitive

Benchmarking

Emerging

Competition

Competitive

Strategy

Capital

Investments

Availability

of

Capital

Country

Risk

Economic

Trends

Crowd

Sourcing

Growth

Strategies

Career

Development

Growth

Implementation

Industry

Evolution

New Vertical

Markets

Industry

Expansion

Industry

Convergence

Emerging

Technologies

Smart Cities

Sustainability

New Business

Cultures

GeoPolitical

Stability



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

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.

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