scott safety award write up

2016 North American Firefighter Respiratory Protective Equipment Competitive

Strategy Innovation and Leadership Award

2016

BEST PRACTICES RESEARCH

© Frost & Sullivan 2016 2 “We Accelerate Growth”

Contents

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

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

Conclusion........................................................................................................... 7

Significance of Competitive Strategy Innovation and Leadership ...................................... 8

Key Benchmarking Criteria .................................................................................... 9

Best Practice Award Analysis for Scott Safety ................................................................ 9

Decision Support Scorecard ................................................................................... 9

Strategy Innovation ............................................................................................ 10

Customer Impact ............................................................................................... 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

Firefighter respiratory protective equipment in North America is characterized by a “search

and rescue” approach to firefighting that involves entering the structure, extinguishing the

fire and rescuing victims. This search and rescue approach to firefighting obviously

necessitates a high level of protection for firefighters. It has become quite critical to equip

firefighters with technologies that break up the complexity of the search and rescue

process. For example, these include technologies that enable monitoring interior

conditions of the structure, available air supply and elapsed time. Firefighters rely on such

information to navigate smoke-filled areas.

Frost & Sullivan independent analysis reveals that the firefighter market has been less

than responsive to new technologies in the past, and high prices have resulted in less than

optimal adoption rates among end users. Thermal imaging technology has bucked this

trend—it has been readily accepted by firefighters, as its value proposition is clear and

well defined. The price of thermal imaging technology, however, has been a factor. In

addition, manufacturers report to Frost & Sullivan that they constantly face the challenge

of designing firefighter respiratory protective equipment that checks three boxes: form,

fit, and function.

Budgets in the firefighter industry frequently come under strain, putting pressure on

manufacturers to bring protective equipment to the market that has a high

price/performance value. Manufacturers have had to do away with the “bells and whistles”

of technology, particularly in the case of thermal imaging cameras. Thermal imaging

cameras were first introduced in the firefighter respiratory protective equipment market in

the early 1990s. These cameras help improve visibility for firefighters in smoke-filled

environments by creating crisp images of the vision field. The images are created based

on subtle temperature changes. In the early days, The National Institute for Occupational

Safety and Health (NIOSH) recognized that thermal imaging cameras, if introduced as an

add-on to firefighter respiratory protective equipment, could significantly reduce firefighter

injury and illness. When thermal imaging technology was still nascent, it was sold in a

hand-held form; fire service workers were slow to adopt them. Later, it was head mounted

as an add-on to the firefighter breathing apparatus. The uptake in the fireservices market

was poor, because the equipment was bulky. Manufacturers uncovered many challenges

that fireservices rescue workers were facing, including the weight of the camera, a high

ratio of cameras to rescue workers, and gaps in the translation of technical know-how into

effective end-user instructions.

Finally, thermal imaging cameras have to pass the National Fire Protection Association

(NFPA) standards for accessories. Firefighters frequently operate in rugged environments

and confined spaces - and their equipment is likely to be easily damaged. Because of this,

high impact resistance of the equipment becomes critical. Manufacturers need to make

significant investments to meet the appropriate requirements. To this end, they make use



of a selection process that takes into account life cycle costs.

Strategy Effectiveness

Scott Safety is a leading manufacturer of respiratory, personal protective, and safety

devices with a strong product portfolio in the firefighter respiratory protective equipment

space. The company has a strong track record of meeting the regulatory and operational

requirements of emergency management organizations such as Federal Emergency

Management Organization (FEMA), Department of Homeland Security, National Institute of

Justice (NIJ), and Federal Bureau of Investigation (FBI). Scott Safety is bringing a

technology to the market that has been around since the early 1990s, but in an exciting

new form: an in-mask thermal imaging system. The product empowers firefighters with

situational awareness in their search and rescue operations. Some of the critical functions

of Scott Sight include increased visibility that allows firefighters to easily navigate their

environment, reduced time for search and rescue operations, and easy identification of

escape routes.

Scott Safety successfully launched the Firefighter for Future Initiative in late 2014. In April

2016 at Fire Department Instructors Conference (FDIC), the company showcased Scott

Sight Thermal-Imaging Firefighter Mask. The Firefighter for Future Initiative provides a

strong framework for product development in the firefighter respiratory protective

equipment space. It sets the stage for innovation in a market which has been historically

been underserved. Scott Sight is the first offering to come out of the initiative - with more

offerings likely in the pipeline.

Scott Sight is clearly a critical milestone for Scott Safety; it pivots its efforts to the

Firefighter for Future Initiative. Rather than bring to the market a full suite of capabilities,

Scott Safety is focused on a phased innovation approach. Scott Sight requires little to no

training, as the end product is both user-friendly and intuitive. Scott Sight was initially

launched in FDIC 2015, where feedback was sought from firefighters and then integrated

into the product over a one-year period. The end result is a full-face breathing mask that

incorporates a camera and in-mask display. The camera generates 160x120 resolution

images at a rate of nine frames per second. The system has four-hour nominal run time

and various user configurations.

Scott Sight is quite effective, as it focuses on making thermal imaging technology more

affordable to firefighters. While thermal imaging technology has been available for some

time, a number of incremental add-ons have been made to the technology. It remains

lightweight at 8.5 ounces, comes equipped with an adjustable in-mask display, and has an

infinity lens. It also integrates seamlessly with the AV-3000 HT facepiece, with the camera

attached to the right side of the facepiece. This design aligns well with the fact that most

users are right-eye dominant. Firefighters are able to perform with continuous, hands-free

situational awareness.



Strategy Execution

Historically, execution has been a true challenge for manufacturers of thermal imaging

cameras in the firefighter respiratory protective equipment market. Scott Safety took a

measured approach to the launch of Scott Sight. They first conducted a VOC (voice of

customer) session at FDIC and Interschutz in 2015 and Intersec in 2016. Then, they

successfully launched Scott Sight at FDIC in 2016. At the FDIC 2016 launch, the company

sold over 200 Scott Sight cameras, making it a very successful launch. Customers paid

out-of-pocket for Scott Sight, which sent a signal to the market that the product

significantly exceeds end user expectations. Scott Safety expects a 20% to 25%

attachment rate to new facepieces (AV-3000 HT). The sales conversion rate is likely to

improve going forward as the product proves its effectiveness in the market. Customers

are likely to perceive the product positively if the initial response is strong. This will nicely

bode well for future sales as the market integrates the positive feedback loop into the

system. Additionally, Scott Sight can be retrofitted to a large installed base of AV-3000HT

respirator face pieces, significantly boosting penetration rates.

The Firefighter for Future Initiative was launched in 2014 as an internal lean start-up,

operating in a technology garage. The focus of the initiative has been to make thermal

imaging accessible, and Scott Sight has truly delivered on that front. All of the basic

functionalities of thermal imaging cameras have been integrated into the mask at a price

that is affordable to end users, and Scott Safety has successfully delivered on making the

product accessible to a large end-user base. The company has also successfully set the

stage for further innovation in the market — for example, the introduction of advanced

technologies similar to Microsoft Hololens, which embraces virtual reality and augmented

reality. This is particularly significant, as end users are likely to embrace newer

technologies that can be seamlessly integrated into their existing breathing masks.

Competitive Differentiation

Scott Safety has integrated Scott Sight into the AV-3000 HT mask, making it lightweight

and allowing firefighters to use their hands for important search and rescue purposes. End

users are cognizant of the benefits of thermal imaging cameras - and rather than reinvent

the thermal imaging camera, Scott Safety has focused on making tweaks to the product.

For example, Scott Sight mounts on the right side of the AV-3000 HT facepiece, as the

majority of the population is right-eye dominant, and the audio equipment mounts on the

left side of the facepiece. In-mask display enables the firefighters to get a continuous

image of their surroundings.

There is also room for further innovation; Scott Safety can integrate evolving capabilities

such as enhanced accountability features, telemetry data, evacuation alarms, radio

interfaces, and enhancements to the audio equipment in the future. Frost & Sullivan

firmly believes that it is noteworthy that these features are being offered at an economical

price to an industry that is constantly under a budget constraint. Scott Sight meets the

stringent requirements of ingress protection (IP) 66 and IP 67 as well as electrical



approval standards UL 913 Class 1, Division 1, and ATEX Zone 0. Thermal imaging

cameras provide information to firefighters about fire hazards and potential fire hazard s—

areas that are generating abnormally high temperatures. The heat energy from the area is

reflected on the display through a colorization process that can identify the hottest 1% of

the image. The user can choose among multiple color modes (black and white, hybrid,

yellow/orange/red). The image scales in color (yellow/orange/red) along temperature

extremes of 200/500/800 degrees. Scott Sight also provides a 50 degree field of view,

which is at the high end of the range provided by thermal imaging cameras in the market.

Finally, Scott Sight sets the stage for a proprietary learning curve for Scott Safety. A

proprietary learning curve raises the barriers to entry and affords patent protection for

specific time periods.

Stakeholder Integration

Scott Sight brings together members of the growth initiatives team at Scott Safety. The

stakeholder integration has been seamless, as shown by the work the company has done

at FDIC 2015, where it set up an information booth to hear from firefighters exactly what

they are looking for. The company conducted a Voice of Customer (VOC) survey, analyzed

the data, and came to the conclusion that firefighters were looking for respiratory

protective equipment that provides situational awareness.

At the macro level, Scott Safety has successfully responded to a tight budget

environment. It has gone back to the drawing board and re-envisioned its growth strategy

for the future. The outcome of this exercise is the Firefighter for Future initiative - and

just a year into the program, Scott Sight has been successfully developed.

Price/Performance Value

About a decade ago, thermal imaging cameras were considered one of the most

innovative technologies in the market, but were considered out of reach for most end

users. The technology was initially developed for the military segment, providing visibility

in battlefields that were covered with smoke. Prices ranged upwards of $10,000.

Scott Sight leverages this technology at an affordable price and provides all of the basic

functionalities, such as visibility in a smoke-filled environment and locating hot spots - all

under an umbrella group of functions called situational awareness. Situational awareness

is a highly integral feature of Scott Sight, improving hot zone accountability and enabling

communication between firefighters.

Frost & Sullivan exhaustive analysis confirms that Scott Sight’s situational awareness

capabilities go well beyond other competing products. The camera and in-mask display

provides just enough data so as to not overwhelm the firefighter. The integration of the

camera into the masks frees up the firefighters’ hands, giving him more flexibility in his

search operation. Scott Sight is designed in a sleek manner, so that the in-mask display

does not interfere with the firefighters’ field of vision. Finally, there is still room to add



more capabilities into Scott Sight, setting the stage for future growth and further

innovation.

Brand Equity

Headquartered in North Carolina, Scott Safety is a leading manufacturer of respiratory

equipment, personal protective equipment, and safety devices for firefighters, industrial

workers, police squads, militaries, and rescue teams. As a well-known manufacturer in the

firefighter space, Scott Safety does not have to invest heavily in brand awareness exercise

every time it brings a new product in the market. The initial reception for Scott Sight at

FDIC 2016 was very encouraging; firefighters have tried the product, increasing the

likelihood that they will purchase this solution in the market.

Conclusion

Scott Safety has been a reliable provider of firefighter respiratory protective equipment for

decades. The main focus of Scott Sight has been situational awareness in a form that is

quite useful to the firefighter. Also, Scott Sight is one of the first products developed by

Scott Safety with a consumer mentality. Most, if not all, respiratory protective equipment

requires end users to go through a grant process — this is time-consuming and requires

investment. Scott Sight addresses this pain point by making products more affordable.

Thermal imaging technologies significantly add to the capabilities of firefighter respiratory

protective equipment by providing increased visibility in smoke-filled environments.

Through the introduction of Scott Sight, Scott Safety has demonstrated its commitment to

bringing innovative technologies to the firefighter respiratory protective equipment

market.

With its strong overall performance, Scott Safety has earned the 2016 Frost & Sullivan

Competitive Strategy Innovation and Leadership Award.



Significance of Competitive Strategy Innovation and Leadership Any successful approach to achieving top-line growth must (1) take into account what

competitors are, and are not, doing; (2) meet customer demand with a comprehensive,

value-driven product or service portfolio; and (3) establish a brand that resonates deeply

with customers and stands apart from other providers. Companies must succeed at these

three things — brand, demand, and positioning — to achieve best-practice levels in

competitive strategy.



Key Benchmarking Criteria

For the Competitive Strategy Innovation and Leadership Award, Frost & Sullivan analysts

independently evaluated two key factors—Strategy Innovation and Customer Impact—

according to the criteria identified below.

Strategy Innovation

Criterion 1: Strategy Effectiveness

Criterion 2: Strategy Execution

Criterion 3: Competitive Differentiation

Criterion 4: Executive Team Alignment

Criterion 5: Stakeholder Integration

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

Best Practice Award Analysis for Scott Safety

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 Strategy Innovation and Customer 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 1 and Competitor 2.

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

Competitive Strategy Innovation and

Leadership

Strategy Innovation

Customer Impact Average Rating

Scott Safety 9.5 9.0 9.25

Competitor 1 8.0 9.0 8.50

Competitor 2 7.0 8.0 7.50

Strategy Innovation

Criterion 1: Strategy Effectiveness

Requirement: Strategy effectively balances short term performance needs with long-term

aspirations and vision for the company

Criterion 2: Strategy Execution

Requirement: Adoption of best-in-class processes to support the efficient and consistent

implementation of business strategy

Criterion 3: Competitive Differentiation

Requirement: Unique competitive advantages with regard to solution or product are

clearly articulated and well accepted within the industry

Criterion 4: Executive Team Alignment

Requirement: The executive team is aligned on the organization’s mission, vision, strategy

and execution

Criterion 5: Stakeholder Integration

Requirement: Strategy reflects the needs or circumstances of all industry stakeholders,

including competitors, customers, investors, and employees

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

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.

High

Low

Low High

Customer Impact

Strategy Innovation

Scott

Safety

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 Frost & Sullivan Awards follow a 10-step process to evaluate Award candidates and assess

their fit with select best practice criteria. The reputation and integrity of the Awards are

based on close adherence to this process.

STEP OBJECTIVE KEY ACTIVITIES OUTPUT

1 Monitor, target, and screen

Identify Award recipient candidates from around the globe

• Conduct in-depth industry research

• Identify emerging sectors • Scan multiple geographies

Pipeline of candidates who potentially meet all 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

Upon licensing, company may share Award news with stakeholders and customers

• Coordinate media outreach • Design a marketing plan • Assess Award’s role in future strategic planning

Widespread awareness of recipient’s Award status among investors, media personnel, and employees



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scott safety award write up

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