Ecg Overview.May 2010

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Ecg Overview.May 2010

  1. 1. ECG Consulting Group Inc. Cover Page Overview of ECG Capabilities ECG Consulting Group Inc. Business Strategy & Development • Marketing, Sales and Operations Planning • Technology Commercialization Helping clients accelerate revenue growth, improve profitability and meet their business objectives May, 2010 The information contained in this report is privileged and confidential and intended only for the use of the recipient July, 2008 40 British American Boulevard, Latham, NY 12110 • 518-220-9100 • 518-220-9600 (Fax) • www.ecgconsulting.com www.ecgconsulting.com 1
  2. 2. ECG Consulting Group Inc. Summary FOR MORE THAN 30 YEARS, ECG HAS PROVIDED MANAGEMENT CONSULTING SERVICES TO ITS CLIENTS TO HELP THEM MEET THEIR BUSINESS OBJECTIVES…  “Boutique” management consulting firm founded in 1978  Consulting services include business strategy & development, marketing & sales planning and technology commercialization  Clients are Fortune 100 companies, emerging technology firms, venture-funded start-ups and research & development organizations  Expertise in advanced materials, communications, information technology, energy, environmental, instrumentation and transportation industries  Global experience in more than 100 market segments and 250 products & services in all stages of the value chain (e.g. materials & components to systems) and all stages of the product life cycle (e.g. R&D to mature/commodity markets to decommissioning)  Multi-disciplinary, team-oriented approach that utilizes a rigorous strategy & market development process  Officers and principals work closely with clients and leverage their senior management experience at world- class firms and their business networks  Highest quality work, using analytics and creativity to develop insightful conclusions and recommendations  Value proposition focuses on accelerating revenue growth, improving profitability and helping clients meet their business objectives sooner; client returns, in many cases, exceed 50 times the cost of our services May, 2010 www.ecgconsulting.com 2
  3. 3. ECG Consulting Group Inc. Clients ECG HAS HELPED MANY CLIENTS EXPAND THEIR BUSINESSES AND IMPROVE THEIR PROFITABILITY… May, 2010 www.ecgconsulting.com 3
  4. 4. ECG Consulting Group Inc. Clients WE WORK WITH BUSINESS LEADERS AT MANY LEVELS AND FUNCTIONS WITHIN ORGANIZATIONS…  Clients are at several levels in their organizations  Board of Directors  C-Level: CEOs, CFOs, COOs, CSOs, CTOs, CMOs & Division Presidents  Managerial-Level: Vice Presidents, Directors, Managers  Clients are usually in functions that are close to strategic market planning  Corporate Strategy  Corporate Business Development  Business Unit Strategy & Planning  Marketing & Sales  Research & Development  We emphasize building long-term relationships with clients May, 2010 www.ecgconsulting.com 4
  5. 5. ECG Consulting Group Inc. Industry Experience WE HAVE EXPERIENCE WITH PRODUCT AND SERVICE PROVIDERS IN A BROAD RANGE OF TECHNOLOGY- DRIVEN INDUSTRIES…  Advanced Materials  Aerospace & Defense and Automotive  Communications & Information Technology  Consumer & Media  Energy & Environmental  Industrial  Life Sciences  Services May, 2010 www.ecgconsulting.com 5
  6. 6. ECG Consulting Group Inc. Product & Service Experience ECG PROFESSIONALS HAVE WORKED IN MORE THAN 100 MARKET AND 250 PRODUCT & SERVICE SEGMENTS… IN STAGES OF DEVELOPMENT FROM EMERGING TO MATURE … IN STAGES OF THE VALUE CHAIN FROM MATERIALS TO COMPONENTS TO SYSTEMS TO AFTERMARKET SERVICES…  Advanced & Commodity Materials …e.g.  Energy & Environmental … e.g. gas, steam, nuclear & nanomaterials, ceramics, coatings, composites, hydro turbines, reciprocating engines, fuel cells, engineered plastics, superconductivity, lead, concrete, microturbines, wind, solar, biomass, geothermal, paper, sealants, adhesives) transmission towers & cabling, distribution substations, meters, batteries, UPS, flywheels, SMES, generators, oil  Aerospace & Defense and Automotive … e.g. flight & gas compression equipment, subsea processing, systems, manned space vehicles, missile defense, naval fuels, particulate measurement & control, filtration, fleet support operations, aerospace engineering, emissions monitoring & diagnostics, water purification alternative fuel & electric vehicles, trucking, personal mobility vehicles  Industrial …e.g. instrumentation, automation & control systems, robotics, data acquisition, vibration monitoring,  Communications & Information Technology … e.g. diagnostics, predictive maintenance, electronic sensors, communications products, telecom & network equipment, process equipment, process optimization, motors, PBX, VOIP, back-up power, computer hardware & pumps, compressors, turbines, forklifts software, expert systems, imaging/mapping, data transmission, electronics, office products  Life Sciences … e.g. medical equipment, monitoring & diagnostics  Consumer & Media … e.g. appliances, furniture, home improvement, lawn & garden, shopping centers,  Services … e.g. electronic manufacturing services, manufactured housing, broadcast & cable, content, national laboratory, contract R&D, energy, engineering, publishing parts & repair, field, installation, finance, O&M, equipment rentals, power quality, fuel delivery, computer maintenance, oilfield, venture capital ECG LEVERAGES BEST PRACTICES ACROSS THIS BROAD BASE OF PRODUCT & SERVICE EXPERIENCE TO ENHANCE THE SCOPE AND QUALITY OF ITS RECOMMENDATIONS May, 2010 www.ecgconsulting.com 6
  7. 7. ECG Consulting Group Inc. Projects OUR PROJECTS RANGE FROM DEVELOPING BUSINESS PLANS AND PROCESSES TO ADDRESSING SPECIFIC STRATEGIC, MARKETING AND PRODUCT PLANNING ISSUES...  ECG projects are driven by the critical issues and needs of the client’s business…our services are customized to address the client’s specific issue or set of issues  Examples of developing comprehensive plans and processes include:  Prepare corporate strategy, business unit & marketing plans and financial projection pro formas  Develop growth and diversification strategies and plans  Prepare business case and plan for investment in new technology  Develop strategic and market planning systems and processes  Organize and train planning organizations, planning teams and establish links to operating organizations  Facilitate strategic planning, market planning and sales force effectiveness brainstorming sessions  Examples of specific marketing, strategy and business development issues include:  Identify, evaluate and screen new business and market growth opportunities  Develop compelling customer value proposition  Develop strategies and plans to accelerate product, service & emerging technology commercialization  Assess changing customer needs & buying processes and determine impact on marketing & sales  Conduct detailed company and technology competitive analysis  Determine reasons for market share loss & identify ways to reverse share decline  Determine why customers and/or channels are slow to adopt a new product/service/technology  Identify, screen and evaluate mergers, acquisitions and JV partnerships  Client engagements typically range in length from several weeks to several months depending on the scope of the project and the level of primary research required…in some cases, we have on-going service contract agreements  ECG typically prepares a client proposal that includes background situation, project objectives & key issues, methodology, work plan & deliverables, professional staffing and estimated fees & expenses May, 2010 www.ecgconsulting.com 7
  8. 8. ECG Consulting Group Inc. Consulting Approach ECG’S APPROACH LEVERAGES PRIMARY AND SECONDARY RESEARCH TO PROVIDE CLIENTS WITH IN-DEPTH MARKET, CUSTOMER AND COMPETITIVE INTELLIGENCE... Types Of Projects/Research  Market & Customer Assessment: market drivers, growth opportunities, segments, sizing, forecasting  Product & Technology Assessment: competing technologies, cost structure analysis, positioning, R&D current and future plans, R&D portfolio optimization, commercialization, valuation, licensing, royalties  Competitor Assessment: strategies, positioning, performance, benchmarking, competitive response  Business/Market Strategy: strategic assessments, target markets, target customers, channels, market Business Strategy & penetration, pricing Development,  Business Development: new opportunities, joint ventures, strategic alliances, mergers & acquisitions Market/Sales/Operations Planning and Technology  Sales: customer value proposition, sales force effectiveness, account coverage, performance benchmarking, sales acceleration Commercialization Projects  Channels of Distribution: mix, economics, dynamics, channel management  Pricing: pricing awareness, elasticity of demand, forward pricing, strategy & tactics  Promotion: advertising, media mix, resource allocation, strategy & tactics  Operations Strategy: global sourcing, manufacturing, information technology, finance, human resources  Cost reduction: process restructuring & redesign, work activity analysis, economies of scale, technology implementation, reporting requirements  Secondary Research: identify and leverage industry databases, internet, library resources, periodicals, Types of trade associations, government, other Market Research  Primary Research: conduct interviews with competitors, customers (e.g. buyer behavior focus groups), Required suppliers, channel participants, industry participants, regulators and other  Client & Customer Brainstorming: facilitate group meetings, customer focus groups, KJ analysis May, 2010 www.ecgconsulting.com 8
  9. 9. ECG Consulting Group Inc. Consulting Approach ECG ADVOCATES A DISCIPLINED STRATEGIC PLANNING PROCESS… WE HELP CLIENTS PRIORITIZE MARKETS/SEGMENTS, ASSESS COMPETING TECHNOLOGIES, DEVELOP COMPELLING VALUE PROPOSITIONS AND FORMULATE EFFECTIVE IMPLEMENTATION STRATEGIES... Situation Analysis Assess current business plan, technology development status Implementation Plan and internal skills & capabilities Market Assessment Develop implementation plan, to determine “gaps” Segment market & determine market form management team, size, growth, drivers, trends and organize resources, develop regulatory environment impacting 1 strategic alliances and new technology implement recommendations 8 2 Business Plan & Pro Formas Customer Assessment Develop technology 7 Determine customer needs, commercialization plan with Strategy & Technology decision-making process and financial pro formas and Commercialization buying behavior by segment Planning Process 3 identify strategic alliances 6 Market Customer Value Proposition/Business Model 4 “Go/No Go” Decision Formulate competitive customer value 5 proposition and determine business model Competitive Analysis approach Evaluate competing technologies, products and service offerings by segment; conduct Competitive Market Demand & Share Forecast “Go/No Go” competitive analysis, identify sources of Forecast potential available market competitive advantage Decision demand and determine market share penetration of new technology May, 2010 www.ecgconsulting.com 9
  10. 10. ECG Consulting Group Inc. Consulting Approach JOINT VENTURES, STRATEGIC ALLIANCES AND ACQUISITIONS ARE CRITICAL TO QUICKLY BUILD MARKET PRESENCE AND COMPETITIVE ADVANTAGE…WE HELP CLIENTS IDENTIFY, SCREEN & SELECT THE RIGHT PARTNERS, PERFORM “DUE DILIGENCE” AND ASSIST WITH IMPLEMENTATION… Implementation Plan Develop and implement JV/strategic alliance plan with partners and monitor results Situation Analysis Develop/review business Start strategies, plans & Business Agreement objectives Negotiate and sign agreement, including royalties and equity interest Capabilities & “Gap” Analysis Assess internal skills & capabilities and conduct “gap” analysis CA - Joint Ventures, Alliances Joint Venture, Strategic Alliance & Acquisition Process Strategy & Business Plan Formulate business model alternatives, develop go-to- market strategy, determine revenue profitability and select organizational structure Setting of Objectives Formulate venture & alliance objectives to address “gaps” Partner Selection Screen and select potential partners based upon Partner Identification selection criteria and framework (e.g. competitive Identify, contact and evaluate potential partners to positioning, skills & capabilities, etc.) assess their capabilities and interest based on in- depth market intelligence and meetings May, 2010 www.ecgconsulting.com 10
  11. 11. ECG Consulting Group Inc. ECG Value Proposition IN SUMMARY, WE PROVIDE OUR CLIENTS WITH PROFESSIONAL CONSULTING SERVICES TO HELP THEM ACCELERATE REVENUE GROWTH, IMPROVE PROFITABILITY AND MEET THEIR BUSINESS OBJECTIVES… WITH BILLING RATES 30% - 50% LOWER THAN OUR COMPETITION…  We use an experienced senior-level team who is very responsive to clients needs  Our team members have extensive business strategy, market planning and management consulting experience with Fortune 100 and emerging technology companies  We serve clients in the advanced materials, communications & information technology, energy, environmental, instrumentation, transportation and services industries  We have strong client relationships & a global contact network to assist in primary research, secondary research and business development  We leverage our experience, expertise, relationships and “best practices” to address our clients’ strategy, market and technology commercialization issues faster so that they achieve their business objectives sooner  Our recommendations are based on rigorous analysis of in-depth market, competitive & customer intelligence to generate the most useful and objective insights, conclusions and recommendations; our recommendations, reports and presentations are “board level” quality  We are committed to helping our clients grow their business and shareholder value by delivering objective recommendations that help them speed project implementation, enhance revenue, and reduce/avoid cost  We believe that our value, in many cases, exceed 50x the cost of our professional fees… billing rates are 30% - 50% lower than our competition May, 2010 www.ecgconsulting.com 11
  12. 12. ECG Consulting Group Inc. ECG Work Samples ECG Work Samples Summary May, 2010 www.ecgconsulting.com 12
  13. 13. ECG Consulting Group Inc. ECG Work Samples ECG CAN HELP YOU IDENTIFY THE MOST ATTRACTIVE GROWTH OPPORTUNITIES FOR YOUR BUSINESS… New Growth Opportunities • North America • Materials • Europe & ME • Components • BRIC • Systems • Manufacturers Reps Core • Structure: JVs, Acquisitions New New • Direct Sales Channels Served Business Models • Sales: Direct, Indirect • Strategic Distribution • Pricing: Lifecycle, Bundled Markets • Adjacent markets • Next gen product development • Adjacent channels • Adjacent technologies • New type & size profile • Finance or service extensions May, 2010 www.ecgconsulting.com 13
  14. 14. ECG Consulting Group Inc. ECG Work Samples WE CAN PROVIDE CUSTOMER, MARKET AND COMPETITIVE INTELLIGENCE TO IDENTIFY, SCREEN AND PRIORITIZE MARKET GROWTH OPPORTUNITIES… Commercial & Industrial Instrumentation & Control Market Growth Opportunities Segment A $2,100 M Segment E $900 M Segment B $259 M Segment D $175 M Segment E $142 M Segment C $115 M Segment B $30 M Segment B Segment B $35 M Segment B $27 M $25 M * Potential ability of any competitor to build competitive advantage through a differentiated product offering May, 2010 www.ecgconsulting.com 14
  15. 15. ECG Consulting Group Inc. Confidential ECG Work Samples WE CAN HELP DETERMINE WHICH GLOBAL MARKETS ARE MOST ATTRACTIVE, POSITIONING YOU TO PRIORITIZE YOUR RESOURCE ALLOCATIONS TO DIFFERENT REGIONS… Ethylene Capacity Growth by Country (2007-2012) Tonnes 30,000 in 000s 0.0% Growth 2007E 2012F 25,000 51.6% 62.6% 20,000 15,000 73.6% 10,000 1.3% 9.8% 5.2% 40.4% 78.3% 2.7% 5,000 0 United China Saudi Iran Japan Germany South Brazil Qatar Canada States Arabia Korea Source: Business Monitor International, ECG Analysis May, 2010 www.ecgconsulting.com 15
  16. 16. ECG Consulting Group Inc. ECG Work Samples WE HELP SCREEN AND RANK NEW MARKETS, PRODUCTS/SERVICES AND ACQUISITION CANDIDATES BASED ON A CUSTOMIZED SCORING METHODOLOGY… Acquisition Screening Model A on n nt r) h tio t as ea t ia uc s l m illio ize l m s e re tio e /y row ty iti nd la nm re g nt d lo ne co ity n ni is ba b s re (> ark ) in re pro tre (> ar s y n x% et g lo $x ket tu u ns gu er lit im co G si to or or cq bi re ov gy te ba s ffe e tT bu cy lS ct ita pp l A di bl in g lo Se n ke na of ta of no ce &D O tia Pr ar To ai ct ch ja en R M st pa Ad Te Su t Po Im G Screening Criteria Weight x% x% x% x% x% x% x% x% x% Energy Water Desalination Energy Subsea Oil & Gas Energy Smart Grid Energy Renewable Energy Energy Advanced Energy Storage Industrial Remote Monitoring & Diagnostics Industrial Manufacturing Robotics Industrial Advanced Sensors Industrial Pollution Control Equipment Industrial Industrial Separation Technology IT Wireless Communications IT HMI Devices IT High Speed Transmission Systems IT Energy Efficient Data Storage Devices IT Internet Security Healthcare Medical Robotics Healthcare Ophthalmic Equipment Healthcare Cardiovascular Equipment Healthcare Medical Imaging Healthcare Medical Record Systems May, 2010 www.ecgconsulting.com 16
  17. 17. ECG Consulting Group Inc. ECG Work Samples UNDERSTANDING THE INDUSTRY STRUCTURE, VALUE CHAIN AND MARKET DYNAMICS ARE CRITICAL TO IDENTIFYING STRATEGIC ISSUES AND ASSESSING NEW BUSINESS GROWTH OPPORTUNITIES… Industry Structure (Example: Energy) Energy Sources Energy Production, Transmission & Distribution Energy Consumption Fuel Gasoline, Oil & Gas Transportation/ Distribution Propane Exploration & Petroleum Storage Retail (Oil Production Refining (Pipelines, Consumers Marketing & (Integrated Oils) Tankers) Distribution Coal Natural Gas Industrial Consumers Electricity Coal Exploration & Transportation/ Extraction Storage (Coal Producers) Electricity Electricity Natural Gas Transmission Commercial Distribution (IOUs, Consumers Electricity (IOUs, Electricity Uranium Independent Production Cooperatives Exploration & Refining & Transportation/ Transmission (IOUs, , Municipals) Extraction Conversion, Storage Cos., ISOs) Cooperatives, (Mining Cos.) Enrichment, Municipals, Fuel Fabrication IPPs, Public) Electricity Natural Gas Residential Hydro (Public Uilities, etc) Consumers Electricity Renewables Electricity (e.g. Wind, Biomass, Solar) Gasoline etc. Governemen t Consumers Electricity Equipment & Service Suppliers Smart Grid, Commodity Trading, Energy Storage, Regulations May, 2010 www.ecgconsulting.com 17
  18. 18. ECG Consulting Group Inc. ECG Work Samples WE HELP CLIENTS UNDERSTAND THEIR STRATEGIC OPTIONS AND THE MOST ATTRACTIVE ROLE THAT THEY CAN PLAY IN THE VALUE CHAIN… Tier 1  Tier 3: Specialty Equipment/Service Cos. Subsea IRM Value Chain  Manufacture plugs, ROVs, other innovative OPERATORS equipment for subsea intervention  Charter vessels to smaller Tier 2 firms  Provide IRM, well intervention for Tier 2s ARE RESPONSIBLE FOR THE MANITENANCE OF: who are at capacity or lack a specific ability Fixed Platforms Asset Integrity Tier 2 Subsea IRM Contractors Tier 3 Pipelines Pipeline IRM  Tier 4: Vessel Yards Specialist provide base goods to Sub-Contractors support vessel owners Subsea Wells Subsea Field Inspection Tier 3 Tier 2 ROV Manufacturers Subsea Well Intervention Contractors Subsea Well Tier 3 Tier 4 Company Type Intervention Vessel Owners Vessel Yards Infrastructure (Key Market Driver) IRM Market Segment  Tier 1: Operators … Maintain fixed platforms, pipelines, subsea wells  Western companies, e.g. BP, … outsource specialty services Tier 3  NOCs, e.g. PEMEX, may have internal capabilities, contract directly w Tier 3 Well Intervention Equipment Providers  Tier 2: Subsea IRM Contractors and Well Intervention Providers  IRMs own or charter vessels, provide a range of IRM services  Most Subsea Well Intervention Providers can also provide IRM services Source: Douglas-Westwood, ECG Analysis May, 2010 www.ecgconsulting.com 18
  19. 19. ECG Consulting Group Inc. ECG Work Samples OUR STRATEGY AND MARKET PLANNING WORK REQUIRES AN UNDERSTANDING OF THE KEY MARKET TRENDS AND DRIVERS OF DEMAND… Global Primary Energy Demand (MBOE/Day) Global Oil Supply 1930-2025 (MB/Day) 250 Africa 120 Asia GTL Oil Shales Australasia Oil Sands Eastern Europe & FSU 100 Refinery Gain 200 Offshore Deep Latin America Million barrels of oil equivalent a Day Middle East Offshore Shallow Onshore Millions of Barrels a Day North America 80 150 Western Europe 60 100 40 50 Actual Actual Projection 20 0 0 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 Global Oil Supply Mix 2030-2025 (MB/Day) Global Gas Supply Mix 1930-2025 (MBOE/Day) 100 100 Offshore Offshore Onshore 90 Onshore 90 million barrels of oil equivalent per day 80 80 million barrels of oil per day 70 70 60 60 50 50 40 40 30 30 20 20 Actual Projection 10 10 Actual Projection 0 0 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 Source: BP Review of World Energy 2009, Douglas-Westwood, ECG Analysis May, 2010 www.ecgconsulting.com 19
  20. 20. ECG Consulting Group Inc. ECG Work Samples ANALYZING TRENDS IS KEY TO IDENTIFYING GROWTH OPPORTUNITIES…E.G. IN COMMUNICATIONS, NETWORK CONVERGENCE, HYPERCONNECTIVITY AND NEW APPLICATIONS ARE CREATING CHALLENGES AND OPPORTUNITIES FOR ALL COMPETITORS… Average Revenue per User For Triple-Play Services Projected Information Technology Usage (1990-2010) HDTV Geographic Region 1990 1995 2000 2005 2010 $200 Percent of population $180 DVR Cellular subscribing to cellular service $160 USA 2% 13% 39% 68% 95% VoD W. Europe 1% 6% 63% 93% 101% $140 Asia-Pacific 0% 1% 7% 23% 38% $120 Premium Worldwide 0% 2% 12% 32% 48% $100 Video Percent of population Digital PC Users with regular access to a computer $80 Video USA 19% 32% 63% 78% 93% $60 Basic W. Europe 7% 16% 33% 54% 76% $40 Video Asia-Pacific 0% 1% 4% 8% 12% Broadband Worldwide 2% 4% 9% 14% 20% $20 Percent of population Internet Users $0 Long with regular access to internet connection Voice Voice & Voice, Distance USA 1% 11% 48% 67% 84% Only Data Video & Local W. Europe 0% 2% 24% 54% 79% Asia-Pacific 0% 0% 3% 12% 19% Data Worldwide 0% 1% 7% 17% 26% Source: IEC Annual Review of Broadband Communications, Computer Industry Almanac, ECG Analysis May, 2010 www.ecgconsulting.com 20
  21. 21. ECG Consulting Group Inc. Confidential Elliott Embedded Samples ECG Work Base WE HELP CLIENTS UNDERSTAND THE LOCATION AND DYNAMICS OF THEIR EMBEDDED EQUIPMENT BASE, RELATE IT TO THE COMPETITION AND USE IT TO ASSESS POTENTIAL BUSINESS OPPORTUNITIES… Equipment Installed Base by Region Equipment Installed Base by Country (2008) (2008) North America 42% USA EMA ROW 29% 12% 34% Asia/Pacific Saudi Arabi Indonesia 22% 2% 7% Russia Mexico 3% 5% India Canada South America 3% Taiwan China 5% 24% Brazil 3% 5% 4% Note: Asian installed base provided by Region May, 2010 www.ecgconsulting.com 21
  22. 22. ECG Consulting Group Inc. ECG Work Samples COMPETITOR MARKET SHARE IS CRITICAL TO DEVELOPING A DEEPER UNDERSTANDING OF COMPETITOR BEHAVIOR AND STRATEGY… Top 5 Water & Wastewater Top 5 Water & Wastewater Equipment & Chemicals Companies Service Companies Other 18.2% GE Water (incl. Ionics) Other Severn Trent 19.1% 24.9% 5.7% Vivendi 45.1% ITT Industries 17.6% Hercules Pentaire 7.1% 11.7% Nalco Ebara US Filter ONDEO (Suez) 13.7% 9.4% (Siemens) 14.5% 12.9% Revenues Revenues Company Country Company Country ($ billions) ($ billions) GE Water (incl. Ionics) USA $2.0 Vivendi France $21.5 ITT Industries USA $1.8 ONDEO (Suez) France $6.9 Nalco USA $1.4 Ebara Japan $4.5 US Filter (Siemens) Germany $1.4 Hercules USA $3.4 Pentaire USA $1.2 Severn Trent UK $2.7 Source: BCC Research, Growing Markets for Water & Wastewater Technologies, June 2007 May, 2010 www.ecgconsulting.com 22
  23. 23. ECG Consulting Group Inc. ECG Work Samples DEVELOPING A DEEPER UNDERSTANDING OF KEY COMPETITORS IS AN IMPORTANT ASPECT OF OUR COMPETITIVE ANALYSIS… Subsea Company Revenue Subsea Company ROS (2004-2008, $ in millions) (2004-2008, %) 12000 16% 10000 14% 12% 8000 10% 6000 8% 6% 4000 4% 2000 2% 0% 0 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 Company A Company B Company C Company A Company B Company C Revenue CAGR Net Income CAGR NI Company Name Company Name (2008, $ in millions) (2004-2008) (2008, $ in millions) (2004-2008) Company A 11,093 9.8% Company A 673.6 41.2% Company B 7,832 32.3% Company B 1,070 65.4% Company C 2,373 30.7% Company C 264 70.8% Source: Company SEC Financial Data, ECG Analysis May, 2010 www.ecgconsulting.com 23
  24. 24. ECG Consulting Group Inc. ECG Work Samples WE PROVIDE OBJECTIVE PRIMARY END-USER CUSTOMER RESEARCH TO ENSURE THAT PRODUCT DEVELOPMENT IS TIGHTLY ALLIGNED WITH CUSTOMER NEEDS AND RESULTS IN A COMPELLING “COMPETITIVE” CUSTOMER VALUE PROPOSITION… Factors Driving Willingness to Consider Price Demand Curve New Telecommunications Infrastructure Technology New Telecommunications Power Technology $14,000 Smaller Footprint $12,000 Lower Capital Cost Improved Reliability $10,000 Extended Run Time $8,000 Price [$] Lower Maintenance $6,000 Extended Lifetime Lower Operating Cost $4,000 Lower Life Cycle Cost $2,000 Environment Higher Power Density $0 0% 20% 40% 60% 80% 0% 10% 20% 30% 40% 50% 60% 70% 80% Market Share % Respondents Source: ECG Interviews Source: ECG Interviews  Primary reasons for failure of new technology ventures and declining market share of current products and services are inaccurate assumptions about customer needs/wants  We usually base our primary research on “blind” interviews to ensure objective results  We base our market share projections on comparing customer wants and needs with competitor value propositions May, 2010 www.ecgconsulting.com 24
  25. 25. ECG Consulting Group Inc. ECG Work Samples WE MAP THE CUSTOMER BUYING PROCESS, BEHAVIOR AND TIMING TO DEVELOP MORE ACCURATE MARKET PENETRATION/TIMING FORECASTS AND IMPROVE SALES FORCE EFFECTIVENESS… Energy Infrastructure Upgrade Decision-Making Process Develop 5-Year Plan & Select Specific Preliminary Design & Identify Immediate Projects for Internal Review Specification Needs Implementation Perform network systems studies Balance needs with capital buget Evaluate technology alternatives Review by senior management Review load flows Trade-off long-term with short-term needs Design and engineer line upgrade upper management. Identify deficiencies Prioritize and select projects Prepare detailed cost estimates Identify list of projects Specify technology solutions Prepare long-term plan New materials specified by Standards Dep't On-going process 3 months 6 - 9 months 3 months Transmission Planning Planning/Eng./R&D Transmission Eng. Senior Management Finalize Design, External Review Specification & Project Starts Purchase Materials Obtain construction permits Many utilities will Conduct environmental impact studies specify and place orders Obtain regulatory approval to proceed while in design phase Requirements are project specific < 2 years w/o public opposition; 4+ years w/ 3 - 12 months public opposition; Eng./Construction PUC/RTO/ISO/Courts Total Decision-Making Process: 1 to 4+ years May, 2010 www.ecgconsulting.com 25
  26. 26. ECG Consulting Group Inc. Helping clients accelerate revenue growth, improve profitability and meet their business objectives July, 2008 40 British American Boulevard, Latham, NY 12110 www.ecgconsulting.com 26

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