Enabling Technology

Leadership Award
Battery Management Systems
GLOBAL

© Frost & Sullivan 2018 1

! "We Accelerate Growth"
 

BEST PRACTICES RESEARCH

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

Technology Leverage and Customer Impact ............................................................ 4

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

Significance of Enabling Technology Leadership ............................................................ 7

Understanding Enabling Technology Leadership .............................................................7

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

Technology Leverage .......................................................................................... 8

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Customer Impact ................................................................................................ 8

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Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best

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Practices .................................................................................................................9

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The Intersection between 360-Degree Research and Best Practices Awards .....................10

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Research Methodology ...................................................................................... 10
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About Frost & Sullivan.............................................................................................. 10
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Copyright ..............................................................................................................10
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Background and Company Performance

Industry Challenges

A battery management system (BMS) monitors, manages, and controls a rechargeable

battery pack to ensure safe and reliable operation. The BMS is the ’brains’ behind the
battery pack and monitors its state, calculates secondary data, reports that data, controls
its environment, and authenticates and/or balances the battery pack. In addition, the BMS
monitors individual cells in a battery pack, protects them from damage, and prolongs
battery life by maintaining the battery in a state in which it can fulfill the functional
requirements of the application for which it was specified.

The BMS provides a means of access for charging individual cells and can calculate a range

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of possible functionalities based on the remaining battery charge. Furthermore, the BMS

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prevents the battery pack from operating outside its safe operating area (SOA) by providing

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a fail-safe mechanism during uncontrolled extreme conditions. For example, in the event of

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an emergency, the BMS isolates the battery systematically, indicates the parameters in

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driver displays and alarm functions, and offers an emergency mode of operation.

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Because the demand for battery systems for multiple applications has soared in recent
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years, many battery manufacturers and system integrators that had previously outsourced
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their BMS solutions are now starting to develop them in-house. This shift makes sense
economically as most BMS companies charge significant margins on their off-the-shelf
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solutions and charge extra for any additional customization. However, manufacturing a BMS
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in-house from the ground up requires considerable time and monetary investments in
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research and development (R&D). In addition, current industrial capabilities cannot meet
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the high demand for battery packs with integrated BMS; therefore, many manufacturers are
unable to meet these demands on their own.
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Another issue in the BMS space is the lack of flexibility and adaptability in the design of off-
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the-shelf solutions. As the range of battery-powered applications expands, covering

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everything from stationary energy storage to drones to autonomous vehicles, off-the-shelf

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products that cater to multiple applications are often unable to meet the specific needs and
cost requirements of a particular battery system.
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India-based ION Energy Inc provides advanced, smart BMS offerings that cover a wide
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range of end-user applications and voltage specifications, and its BMS solutions provide
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superior flexibility, scalability, and customizability to meet customers’ changing needs. ION
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Energy’s BMS portfolio consists of FS-XT, FS-LT, Fusion Firmware, and Freeway (cloud fleet
management platform).

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Technology Leverage and Customer Impact

Commitment to Innovation

Both technical and business aspects make ION Energy’s BMS solutions unique in the off-the-
shelf BMS space. For example, the company’s chemistry-agnostic BMS has several unique
technical capabilities. The BMS is written in native C code, compared to masked code
generated from automated systems used by most BMS manufacturers, thus allowing for
superior flexibility and customization capabilities. ION Energy’s proprietary scaling
technology enables battery pack makers to use multiple boards in a master and slave
configuration dynamically, allowing them to scale a standard module in any direction to
address specific target applications. This flexibility and scalability can ultimately lead to
reduced time-to-market for battery pack makers as they have to design/build only one

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standard product according to the specific market they want to target.

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ION Energy’s unique and powerful software ecosystem, which includes the BMS and the

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embedded intelligence behind it, ensures the battery system’s optimal performance by

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enabling continued, real-time monitoring of over 130 battery parameters and active

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management through over-the-air updates. Deep integration in the cloud provides users
with complete data about the state of the battery, from the beginning to the end of its
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useful life. This comprehensive battery management ecosystem detects and prevents
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problems with individual battery cells and reveals design flaws. In this way, battery pack
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makers using ION Energy’s BMS can prevent the projection of flawed battery designs.
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Frost & Sullivan firmly believes that ION Energy’s unique technical capabilities and powerful
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software ecosystem differentiate it from other market competitors.

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Commercialization Success
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When ION Energy changed its business model from manufacturing and selling BMS units
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to licensing its BMS technology, the company secured several interesting projects, such as
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two big licensing projects in France and India, which will be announced publicly later in the
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year.
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ION Energy is collaborating with one of the biggest battery pack makers for electric
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scooters in India, and its technology will be featured in a battery pack, of which 80,000
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units will be manufactured in 2018. Additionally, ION Energy is working with RGM, a mid-
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sized French company, on a battery pack lineup. Other projects in the works for ION
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Energy include a big battery pack manufacturer in Poland and a US-based company that is
manufacturing a new cell technology battery pack.

In the battery pack market and, consequently, the off-the-shelf BMS market, current
industrial capabilities cannot sustain the increasing demand for battery packs. Battery
pack companies usually have an original lineup of one or two baseline BMS solutions that
are not applicable for the wider range of present-day battery applications. ION Energy

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proposes to help these companies manufacture a BMS solution that is suitable for these
new applications so that customers can push their products out and meet the demand
faster.

Frost & Sullivan commends ION Energy for being the first company in the BMS space to
begin licensing its industry-leading technology, resulting in successfully expanding its
market presence.

Application Diversity

ION Energy’s customizable solutions with proprietary scaling technology produce a standard
BMS product that can be scaled for use in different industry verticals, such as automotive
and energy storage. The company’s BMS allows battery pack makers to create what they

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call power networks, allowing users to utilize plug-and-play batteries in parallel and in a

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series, without needing any technical background. Therefore, ION Energy plans to work with

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battery pack makers to create a single standard battery pack module. The battery pack

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maker can then put a certain number of these modules in parallel to address one market or

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in a series to address another market. This process allows for a significant amount of design

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flexibility and modularity, ultimately leading to reduced time-to-market for battery pack
makers and system integrators.
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ION Energy’s powerful software ecosystem provides an extensive log of battery parameters
over the useful life of the battery. This feature is particularly helpful for second battery life
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because of the availability of complete battery performance data, thus allowing the battery
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to be used accordingly.
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Frost & Sullivan believes the superior flexibility, customizability, and scalability offered by
ION Energy’s BMS enables the product to be used across a wide range of end-user
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applications, thus ensuring superior application diversity in the BMS space.

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Price/Performance Value
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ION Energy has a unique business model, wherein the company licenses its industry-leading
BMS technology to customers. The only commercial transaction taking place is the one-time
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licensing fee, which covers a complete technology transfer and unlimited access to ION
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Energy's manufacturing files, technology expertise, and customization services. Licensing

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allows battery manufacturers and system integrators to internalize their manufacturing and
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avoid dependency on third-party vendors for parts and customization, thus leading to
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significant time, effort, and cost savings for customers, with accelerated product launches
and shorter time-to-market. Customers can reduce their electronics cost by 40% and
improve their bottom line by 12 to 15% on a per-battery basis. In addition, licensee
companies pay only for battery deployment. For example, ION Energy earns revenue only
when the licensee company’s deployment is successful, thus ensuring good value for the
price.

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In addition, ION Energy provides certification services to its customers at a price that is at
least two times lower than the market price, through its own certification lab. The company
helps customers through the certification process, reviews the specificity of their systems,
and provides advice on any necessary revisions. This service is a high-value proposition for
the company because certification is a big concern for battery pack makers, especially if
they are working on a product that addresses multiple markets, which would mean
conducting the certification process each time for multiple battery packs.

Customer Experience

When a customer pays to license ION Energy’s BMS technology, they receive seven years of
R&D directly from the company and gain access to a deeply integrated support team to help
them integrate and customize the BMS solution to meet their specific needs at no additional

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cost.

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ION Energy dispatches engineers to customers to ensure round-the-clock technical support.

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To maximize productivity, ION Energy trains licensee companies to understand its products,

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technology, and platforms and reviews newly developed modules, systems, and projects

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before launch. Even after integration, customers have ready access to ION Energy’s
engineers to help them solve any problems they encounter, to prevent downtime.
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ION Energy basically forms partnerships with its customers that are high-growth companies
by meeting all their battery management needs. Based on Frost & Sullivan analysis, ION
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Energy excels at providing an excellent customer experience through its deeply integrated
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support team that continuously works with customers before, during, and after product
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launch.
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Conclusion
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A BMS is a crucial component in any battery system to ensure safe and reliable operation.
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In the off-the-shelf BMS space, ION Energy successfully differentiates itself from its
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competitors by licensing the services for its industry-leading BMS technology, in addition
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to providing customization and certification services.

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The licensing service in itself is revolutionary in the BMS space as it allows battery
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manufacturers and system integrators to save significantly on cost and time-to-market,

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while manufacturing customized BMS solutions to meet their unique needs. ION Energy’s
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ability to adapt to the changing market landscape, meet evolving customer needs, and
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help customers optimize their growth ensures the company will continue experiencing
market growth in the long term.

With its strong overall performance, ION Energy has earned Frost & Sullivan’s 2018
Enabling Technology Leadership Award in the global battery management system industry.

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Significance of Enabling Technology Leadership

Ultimately, growth in any organization depends upon customers purchasing from a
company and then making the decision to return time and again. In a sense, then,
everything is truly about the customer—and making those customers happy is the
cornerstone of any long-term successful growth strategy. To achieve these goals through
enabling technology leadership, an organization must be best-in-class in three key areas:
understanding demand, nurturing the brand, and differentiating from the competition.

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Understanding Enabling Technology Leadership

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Product quality (driven by innovative technology) is the foundation of delivering customer

value. When complemented by an equally rigorous focus on the customer, companies can
begin to differentiate themselves from the competition. From awareness, to consideration,
to purchase, to follow-up support, best-practice organizations deliver a unique and
enjoyable experience that gives customers confidence in the company, its products, and
its integrity.
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Key Benchmarking Criteria

For the Enabling Technology Leadership Award, Frost & Sullivan analysts independently
evaluated two key factors—Technology Leverage and Customer Impact—according to the
criteria identified below.

Technology Leverage
Criterion 1: Commitment to Innovation
Requirement: Conscious, ongoing adoption of emerging technologies that enables new
product development and enhances product performance
Criterion 2: Commitment to Creativity
Requirement: Technology leveraged to push the limits of form and function in the pursuit
of “white space” innovation

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Criterion 3: Stage Gate Efficiency

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Requirement: Adoption of technology to enhance the stage gate process for launching new

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products and solutions
Criterion 4: Commercialization Success

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Requirement: A proven track record of taking new technologies to market with a high rate

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of success
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Criterion 5: Application Diversity
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Requirement: The development and/or integration of technologies that serve multiple

applications and can be embraced in multiple environments
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Customer Impact
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Criterion 1: Price/Performance Value

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Requirement: Products or services offer the best value for the price, compared to similar
offerings in the market.
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Criterion 2: Customer Purchase Experience

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Requirement: Customers feel they are buying the most optimal solution that addresses
both their unique needs and their unique constraints.
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Criterion 3: Customer Ownership Experience

Requirement: Customers are proud to own the company’s product or service and have a
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positive experience throughout the life of the product or service.

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Criterion 4: Customer Service Experience

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Requirement: Customer service is accessible, fast, stress-free, and of high quality.

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Criterion 5: Brand Equity

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

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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

Identify Award recipient • Conduct in-depth industry Pipeline of candidates who

Monitor,
candidates from around the research potentially meet all best-
1 target, and
globe • Identify emerging sectors practice criteria
screen • Scan multiple geographies

Perform comprehensive, • Interview thought leaders Matrix positioning of all

Perform 
 360-degree research on all and industry practitioners candidates’ performance

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2 360-degree candidates in the pipeline • Assess candidates’ fit with relative to one another
research best-practice criteria

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• Rank all candidates

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Perform in-depth • Confirm best-practice Detailed profiles of all

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Invite
examination of all criteria ranked candidates
thought
candidates • Examine eligibility of all

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3 leadership in
candidates
best • Identify any information

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Initiate Conduct an unbiased • Brainstorm ranking options Final prioritization of all
research evaluation of all candidate • Invite multiple perspectives eligible candidates and
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4 director profiles on candidates’ performance companion best-practice

review • Update candidate profiles positioning paper
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Assemble Present findings to an • Share findings Refined list of prioritized

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panel of expert panel of industry • Strengthen cases for Award candidates

5 industry thought leaders candidate eligibility
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experts • Prioritize candidates

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Build consensus on Award • Hold global team meeting to Final list of eligible Award
Conduct
candidates’ eligibility review all candidates candidates, representing
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global
6 • Pressure-test fit with criteria success stories worldwide
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industry • Confirm inclusion of all

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eligible candidates
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Develop official Award • Perform final performance High-quality, accurate, and

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Perform consideration materials benchmarking activities creative presentation of

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quality check • Write nominations nominees’ successes

• Perform quality review
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Reconnect Finalize the selection of the • Review analysis with panel Decision on which company
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with panel of best-practice Award • Build consensus performs best against all
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experts
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Inform Award recipient of • Present Award to the CEO Announcement of Award

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Award recognition • Inspire the organization for and plan for how recipient
Communicat
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continued success can use the Award to
• Celebrate the recipient’s enhance the brand
performance

Upon licensing, company is • Coordinate media outreach Widespread awareness of

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able to share Award news • Design a marketing plan recipient’s Award status
10 strategic
with stakeholders and • Assess Award’s role in future among investors, media
action
customers strategic planning personnel, and employees

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The Intersection between 360-Degree Research and Best

Practices Awards
Research Methodology
Frost & Sullivan’s 360-degree research
methodology represents the analytical 360-DEGREE RESEARCH: SEEING ORDER IN
THE CHAOS
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,

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leading to errors of both omission and

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commission. Successful growth strategies

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are founded on a thorough understanding
of market, technical, economic, financial,

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customer, best practices, and demographic

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analyses. The integration of these research
disciplines into the 360-degree research
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methodology provides an evaluation
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platform for benchmarking industry

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participants and for identifying those

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performing at best-in-class levels.

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About Frost & Sullivan

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and achieve best-in-class positions in growth, innovation and leadership. The company's
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Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined
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research and best practice models to drive the generation, evaluation and implementation
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experience in partnering with Global 1000 companies, emerging businesses, and the
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investment community from 45 offices on six continents. To join our Growth Partnership,
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please visit http://www.frost.com.

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Copyright
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This research is owned by Frost & Sullivan. No part of this research may be disclosed to
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