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WENZEL Group GmbH & Co. KG
1.
2018 Global Coordinate
Measurement Machine New Product Innovation Award 2018
2.
BEST PRACTICES RESEARCH ©
Frost & Sullivan 2018 2 “We Accelerate Growth” Contents Background and Company Performance ...................................................................... 3 Industry Challenges............................................................................................ 3 New Product Attributes and Customer Impact ........................................................ 3 Conclusion ........................................................................................................ 6 Significance of New Product Innovation ....................................................................... 7 Understanding New Product Innovation ....................................................................... 7 Key Benchmarking Criteria .................................................................................. 8 Best Practices Award Analysis for WENZEL Group GmbH & Co. KG .................................. 8 Decision Support Scorecard ................................................................................. 8 New Product Attributes ....................................................................................... 9 Customer Impact ............................................................................................... 9 Decision Support Matrix .................................................................................... 10 Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices............................................................................................................... 11 The Intersection between 360-Degree Research and Best Practices Awards.................... 12 Research Methodology ...................................................................................... 12 About Frost & Sullivan ............................................................................................ 12
3.
BEST PRACTICES RESEARCH ©
Frost & Sullivan 2018 3 “We Accelerate Growth” Background and Company Performance Industry Challenges The dimensional metrology market is undergoing a transformation, with the advent of the Industry 4.0 trend that accentuates data digitization across the value chain. This trend is moving inspection from measurement rooms to the shop floor. A shift in metrology from offline to inline facilitates data collection for the purpose of inspection and for process control and improvement. Performing inline inspection on the shop floor has many challenges, such as smaller available space, relatively higher ambient temperature, and the need for material handling. Because of these constraints, traditional coordinate measuring machines (CMM) are unsuitable for shop floor use. In addition, as component design becomes complex, more flexible and accurate instruments are needed that can effectively measure and inspect these components. To align with the Industry 4.0 vision, manufacturers are seeking a measurement software platform that is powerful in data collection and analytics yet easy to learn and use. To become an innovation leader and create the best value for customers, inspection solution vendors need to offer compact, flexible, accurate, and robust products that can tackle these challenges. New Product Attributes and Customer Impact Match to Needs—Innovative and Thoughtful Design Founded in 1968, Germany-based WENZEL Group is a leader in innovative metrology. The company’s comprehensive product portfolio includes solutions in 3D metrology, computed tomography (CT) and optical high speed scanning. According to WENZEL, its “technology solutions are installed throughout many industries such as Automotive, Aerospace, Power Generation and Medical. WENZEL has an installed base of more than 10,000 machines worldwide. Subsidiaries and agents in more than 50 countries take care of sales and provide after sales service support to our customers.” In May 2018, WENZEL launched the SF 87, its new shop floor CMM, which expands its product portfolio with an entry-level system for the production environment. According to WENZEL, its “brand new SF87 has all the attributes needed for a shop floor CMM, but benefits from an optimum measuring volume for this type of construction in relation to its footprint.” The SF 87 has a measuring volume of 800 x 700 x 700 millimeters (mm), which is three times the measuring volume for the given footprint of competing products. Further efficiency gains can be achieved by using more powerful probes and optical sensors.
4.
BEST PRACTICES RESEARCH ©
Frost & Sullivan 2018 4 “We Accelerate Growth” WENZEL’s SF 87 can be operated in temperatures up to 30 degree Celsius, which is important because traditional CMMs need an environment of 20 degrees Celsius, with plus or minus 2 degrees for accurate measurements, and are thus unsuitable for working in shop floor environments. WENZEL’s SF 87 shop floor CMM achieves less than 4 microns at 30 degrees Celsius and less than 2.5 microns at less than 20 degrees Celsius, thus making it suitable for operations on the shop floor. The SF 87 is a directly usable production line and automation solution and can be integrated through the optional WENZEL Automation Interface (WAI) for material handling, without losing any footprint. Positioning—Driving Productivity and Efficiency in Shop Floor Inspection SF 87’s bionic structure and unique low center of gravity design make it efficient, ergonomic, productive, and insensitive to shop floor vibrations. In addition, SF 87 has a robust, universal sunken rotary table. Frost & Sullivan believes that with these value propositions, WENZEL’s SF 87 will resonate well with global manufacturers. The 800 x 700 x 700 mm measurement volume is in line with the common sizes of most metal cutting and forming machines. According to metrology.news, “SF87 is flexible when it comes to sensors. SF87 is multi-sensor capable and supports both optical and Renishaw tactile sensors including the PH10MQ PLUS that can be equipped with extensions and SP25M analogue scanning probes. In combination with WENZEL optical sensors SHAPETRACER and PHOENIX, components can be digitized quickly with high resolution. SF 87 can be configured with a tool-change rack to switch probes and extensions automatically, without need for time consuming requalification.”1 In addition, the seamless integration with WAI for material handling and the WENZEL Metrology SYS Analyzer software solution increase SF 87’s productivity and efficiency on the shop floor. Price/Performance Value—Significantly Large Measurement Volume with Small Footprint Frost & Sullivan believes that by offering three times the measurement volume as competing products with a similar footprint, WENZEL’s SF 87 provides high value and performance to customers. SF 87 has a price range from €79,000 to €99,000, compared to the price range of its closest competing products from €55,000 to €65,000 for one-third the measurement volume, thus essentially making SF 87 half the price for the unit measuring volume. In addition, SF 87 uses an active damping system and does not use air bearing technology, which helps customers avoid using expensive clean air and operate with only a 230V power supply, all achieved without compromising measurement accuracy. 1 Metrology.news (2018), “Wenzel Launch Shop Floor CMM“
5.
BEST PRACTICES RESEARCH ©
Frost & Sullivan 2018 5 “We Accelerate Growth” Customer Purchase Experience—Strong and Technically Adept Sales Network WENZEL has a strong sales and support network, with a large installation base of over 10,000 machines worldwide and operations in over 50 countries through direct sales or through subsidiaries. Based on Frost & Sullivan analysis, as a mid-sized company in this market, WENZEL’s flexibility and bandwidth allow it to employ a consultative selling approach, with the help of its technically adept sales force that has an application engineering background. The SF 87 shop floor CMM was launched in May 2018 at the Control Show in Stuttgart, and the North American was launched in September 2018 at the International Manufacturing Technology Show (IMTS) in Chicago. Commercial sales are expected to start in November 2018 in Europe and North America, followed by sales in the Asian market in April 2019. Currently, various internal lab personnel and customers have been enrolled as pilot users and have been sharing positive feedback on WENZEL’s SF 87. Customer Service Experience—Comprehensive Power-Full-Service Package In addition to its strong sales and support network, WENZEL offers a comprehensive service package, including the new SF 87 Shop floor CMM. This service is branded as Power-Full-Service, meaning customers receive up to 60 months maintenance, calibration, and inspection. In addition, this service package includes preventative replacement of wear parts, insurance machine coverage, exchange service (24 hours in Germany and 48 hours in other European Union countries), and online support service with webcam and monitoring options through the WENZEL Metrology SYS Analyzer software solution. Frost & Sullivan strongly believes that with such a unique and comprehensive service package, WENZEL provides the best customer service and value to its customers. Brand Equity—Driving Thought Leadership with Metrology 4.0 Over the last 50 years, WENZEL has built a strong presence and credibility among customers in various end-user markets, such as automotive, aerospace, plastics, power train, and medical devices, and is expected to increase its presence in additive manufacturing as well. Industries such as automotive and plastics focus on large volumes and higher productivity, and WENZEL’s value proposition fits well in these industries. As part of its 50-year completion and Metrology 4.0 campaign, WENZEL has actively rebranded its corporate identity and strengthened its thought leadership in the current digital transformation trend.
6.
BEST PRACTICES RESEARCH ©
Frost & Sullivan 2018 6 “We Accelerate Growth” WENZEL provides online portals where partners and customers can meet and interact on best practices. In addition, the company organizes in-house events, such as Automotive Days, Additive Days, and Innovation Days, where customers are invited to interact with WENZEL’s research and development team and communicate their critical feedback, which the company actively considers when developing products and solutions. Furthermore, WENZEL participates in leading quality and manufacturing industry conferences, such as Control Show and IMTS events, to enforce its brand presence and awareness. Conclusion As an innovator and thought leader in the dimensional metrology industry, WENZEL has disrupted the CMM market with its groundbreaking SF 87 shop floor CMM. By offering more measuring volume, smaller footprint, larger operating temperature range, and seamless integration with material handling solutions, SF 87 successfully tackles key industry challenges in shop floor inspections. With this innovative product, WENZEL helps customers across industries seamlessly shift from offline to inline inspections. Driven by its commitment to innovate and offer the best customer value, WENZEL is poised to become a disruptor and global innovation leader in the CMM industry. For its strong overall performance, WENZEL Group has earned Frost & Sullivan’s 2018 New Product Innovation Award.
7.
BEST PRACTICES RESEARCH ©
Frost & Sullivan 2018 7 “We Accelerate Growth” Significance of New Product Innovation Ultimately, growth in any organization depends upon continually introducing new products to the market and successfully commercializing those products. For these dual goals to occur, a company must be best-in-class in three key areas: understanding demand, nurturing the brand, and differentiating from the competition. Understanding New Product Innovation Innovation is about finding a productive outlet for creativity—for consistently translating ideas into high-quality products that have a profound impact on the customer.
8.
BEST PRACTICES RESEARCH ©
Frost & Sullivan 2018 8 “We Accelerate Growth” Key Benchmarking Criteria For the New Product Innovation Award, Frost & Sullivan analysts independently evaluated two key factors—New Product Attributes and Customer Impact—according to the criteria identified below. New Product Attributes Criterion 1: Match to Needs Criterion 2: Reliability Criterion 3: Quality Criterion 4: Positioning Criterion 5: Design 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 Practices Award Analysis for Wenzel Group GmbH & Co. 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 New Product Attributes and Customer Impact (i.e., These are the overarching categories for all 10 benchmarking criteria; the definitions for each criterion are provided beneath the scorecard.). The research team confirms the veracity of this weighted scorecard through sensitivity analysis, which
9.
BEST PRACTICES RESEARCH ©
Frost & Sullivan 2018 9 “We Accelerate Growth” 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 participants as Competitor 2 and Competitor 3. Measurement of 1–10 (1 = poor; 10 = excellent) New Product Innovation New Product Attributes Customer Impact Average Rating Wenzel Group GmbH & Co. 9.6 9.0 9.3 Competitor 2 8.0 8.0 8.0 Competitor 3 7.8 7.8 7.8 New Product Attributes Criterion 1: Match to Needs Requirement: Customer needs directly influence and inspire the product’s design and positioning. Criterion 2: Reliability Requirement: The product consistently meets or exceeds customer expectations for consistent performance during its entire life cycle. Criterion 3: Quality Requirement: Product offers best-in-class quality, with a full complement of features and functionalities. Criterion 4: Positioning Requirement: The product serves a unique, unmet need that competitors cannot easily replicate. Criterion 5: Design Requirement: The product features an innovative design, enhancing both visual appeal and ease of use. 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 they are buying the most optimal solution that addresses both their unique needs and their unique constraints.
10.
BEST PRACTICES RESEARCH ©
Frost & Sullivan 2018 10 “We Accelerate Growth” 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 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 CustomerImpact New Product Attributes Wenzel Group GmbH & Co.Competitor 2 Competitor 3
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BEST PRACTICES RESEARCH ©
Frost & Sullivan 2018 11 “We Accelerate Growth” Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices Frost & Sullivan analysts 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 of 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 recipient Decision on which company performs best against all best-practice criteria 9 Communicate recognition Inform Award recipient of Award recognition Announce 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 is able to 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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BEST PRACTICES RESEARCH ©
Frost & Sullivan 2018 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 participants and for identifying those performing at best-in-class levels. 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 more than 50 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from 45 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com. 360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS
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