Friost & Sullivan - Eltek (hybrid power systems) award write up

2013
INSERT COMPANY LOGO HERE
2013 North American SSL Certificate
Product Leadership Award
2014
2014 Global Hybrid Power Systems
Customer Value Leadership Award

BEST PRACTICES RESEARCH
Background and Company Performance
Industry Challenges
Alternative energy solutions seek to minimize fuel costs and greenhouse gas footprint by
generating power from renewable energy sources. A hybrid power system, which is a
power generator using at least one renewable source of energy, is one such alternative
solution deployed, especially in remote off-grid areas
This solution is utilized in order to address the following challenges:
Underdeveloped Grid Network:
Most developing countries and some parts of the developed world have underdeveloped
grid network, which renders millions of people around the world without electricity.
Economically emerging countries such as India and South Africa have only about 75% grid
connectivity, and considering the high population density, a large number of people do not
have access to this basic necessity. Even in developed regions of North America and
Europe, remote and faraway places have no access to grid electricity and have to generate
their own power through various means. Both households and industries in these areas
need power to function. The telecom industry is penetrating the most remote regions and
setting up towers and booster stations to provide people with better connectivity. Lack of
grid electricity in these areas acts as a deterrent for this, as the cost of generating
indigenous electricity could be quite high when using the traditional means of a diesel
gen-set.
Hybrid power systems can be set up in these remote areas to generate electricity to power
the households, the community, the villages, the telecom towers, or almost any other
application. Since most of these places traditionally use diesel gen-sets, hybrid power
systems serve as the best solution, as only the renewable component has to be added to
the existing system to generate power, while the diesel component can be used as a
backup.
High Operational Expenditure and Low Efficiency of Existing Technology:
The remote areas which do not have grid connectivity are often powered by diesel gen-sets.
This is certainly expensive due to high diesel costs, and the systems are often not
optimally efficient. Both of these factors are a burden on a household or a community
residing in remote areas. In addition, it increases operational costs significantly for a
company with an establishment in such an area. For example, a telecom company
installing a tower in remote areas will have to bear considerable operational expenses in
order to power its station and ensure continuous operation. A diesel generator has only
55-60% efficiency, which leads to high running costs.
© Frost & Sullivan 2 “We Accelerate Growth”

Logistical Issues Associated With Diesel Gen-sets for Telecom Applications:
Telecom services have penetrated to remote parts of the world. As most of these areas
are not grid connected, telecom companies often have to rely on diesel gen-sets for power
generation to provide electricity to the towers. Even though the low capital cost may make
it seem like a suitable option for telecom companies, the operating expenses are
significantly high. Also, Frost & Sullivan notes that there are various logistical issues
related to the operation of the gen-set, the foremost challenge being procurement and
storage of fuel. Transporting diesel to the remote site of power generation can be a
daunting task, which has to be done at regular intervals to keep the system running. The
transportation and procurement increases the costs of running the gen-set considerably.
Maintenance and repair poses as another issue for gen-sets in remote regions. With the
gen-set running for continuously for 24 hours every day, the wear and tear is substantial
which can, after a period of time, hinder the power generation. The time taken to respond
to the problem can be long, considering the remote location, for which period the system
will have to remain shut, providing no power to the tower and leading to obvious losses
for telecom companies.
Employing a hybrid power system can bypass most of these logistical challenges. Since
the system runs primarily on renewable energy, fuel procurement issues and costs
effectively become negligible after the commissioning of the power system. Also, a hybrid
power system employs two or more sources of energy, one of which acts as a backup in
case the other encounters an issue. Hybrid power system ensures uninterrupted power
supply to the tower for continuous services with minimum downtime, which, for a telecom
company, is of prime importance.
Environmental Damage Caused by Diesel Generators:
While power generation from diesel gen-sets in remote areas is a necessity, it releases
harmful emissions, thus causing concern for the global climate. The polluted emissions
from the burnt fuel are released directly into the atmosphere, thereby polluting the
environment. Thousands of telecom towers are currently being run on diesel generators,
which emit millions of tonnes of carbon dioxide and sulfur and other harmful gases that
can significantly and irreversibly harm the environment. In addition, these remote areas
are mostly in ecologically rich and sensitive zones, and pollution from burning diesel for
power generation can lead to damaging effects to the flora and fauna of the area.
Since hybrid power systems do not use fossil fuels and are primarily run on renewable
energy, there are no harmful emissions. Abundant solar, wind, hydro or any other source
of energy is being used to generate clean and green energy. The diesel component in
many hybrid power systems is used only as a backup, for the rare instance when the
primary source isn’t able to provide enough energy to generate the power required. Frost
& Sullivan points out that using a hybrid power system can add value to the company and
the customer’s image and help cut costs - while also caring for the environment.

Customer Value and Implementation Excellence of Eltek
Turnkey Hybrid Power Solutions Provide Total Customer Experience
Eltek provides its customers with holistic hybrid power solutions. While its other
competitors provide hybrid power systems containing power generation equipment, Eltek
believes in providing a solution that not only includes power generation system, but also
highly efficient power conversion equipment. The company's indigenous technology helps
convert power without any considerable loss, at 96.5% efficiency, which is so far
unmatched in the hybrid power industry. Although its competitors may provide a
readymade system, Eltek specifically tailors its hybrid power solutions based on the
customer’s requirements, demonstrating the agility of the company’s process. The
company customizes the design of its hybrid power system especially for a specific
customer in order to provide them with optimum electricity from the system. Also, its
hybrid power solutions are so designed that the usage of the fossil fuel component is the
least, with almost all the power generated only from the renewable component.
Eltek's turnkey solutions include the following: site survey; planning and project
management; installation and commissioning; preventive maintenance; and on-site
services. Initially, Eltek sends its professionals to the client site for surveys, according to
which a plan and a design of the suitable hybrid power solution is developed. From this
point, Eltek is responsible for the complete management of the project with periodic
consultations with the customer. The installation and commissioning services start post
the design phase, where Eltek provides the customer with an appropriate size of the
system that will provide optimum power. After the go-ahead, it procures, installs and
commissions the hybrid power plant.
Eltek has a strong network of local partner companies that provide services to its
customers. These companies have highly skilled employees to match and maintain Eltek’s
service standards. While most other competitors provide reactive maintenance services,
Eltek believes in preventive maintenance, which helps prevent an issue in the power
system - instead of waiting for the incident to happen. This usually helps customers save
much time and money, as the downtime of the plant is considerably reduced. Lastly, in
the modern day when support services are being provided from off-site locations, Eltek
follows the traditional method of providing on-site services, which help it reach the source
of the problem and rectify it immediately.
Hybrid Power Solutions to Ensure Operational Efficiency
Diesel generators have only about 50-60% efficiency, while most hybrid power systems
are about 85% efficient, which means that nearly 20-30% of the energy in diesel
generators is wasted without being converted into power. This loss is often written off as
a limitation to the system by other hybrid power system companies, while the customers
ultimately bear the loss. Eltek provides a hybrid power solution which has an in-built high
efficiency converter that provides an unprecedented efficiency rate of 96.5%. This helps

minimize the power generation losses and delivers maximum value to the customers.
Eltek’s solution is designed to achieve maximum efficiency at all times. It also includes
advanced battery monitoring routines, gen-set optimization programs, fuel level, and
consumption pattern monitoring, as well as data logging.
Eltek caters primarily to the telecom applications in the industrial segment of the hybrid
power market. Since the telecommunications sector has expanded deeply into the remote
parts of the world with no electricity, telecom towers and boosters often have to run on
diesel generators. These are increasingly being replaced by hybrid power systems, with
Eltek being one of the largest solution providers in this market. Its expertise, gathered
through about four decades of experience in the industry, has been translated into high-quality
solutions and components, which have been continuously improved over a long
period of time in order to provide customers with optimum value for money.
Reduced Operational Expenditure Gives Optimum Product Value
A considerably big part of the world’s population still isn’t fully connected to the electricity
grid. People living in these regions rely on diesel generators for electricity, which, even
with lower capital costs, become considerably expensive in the long run due to the high
operational costs, especially with fossil fuel prices rising constantly. A hybrid power
system helps reduce the operational costs considerably. However, due to the low
efficiency of the systems, the cost reduction is not optimal.
Frost & Sullivan appreciates the fact that Eltek’s hybrid power solutions help reduce the
operational cost by up to 80%. While its competitors are able to reduce this cost by only
50% or so in varied cases, Eltek has been able to achieve higher cost-efficiency due to its
technologically advanced systems. The approach Eltek uses in its hybrid power systems
strives to accomplish minimum operational costs on diesel consumption and
transportation, through the combination of optimized gen-sets and efficient power
generated by renewable sources of energy. Even if the environmental conditions do not
permit the complete replacement of the fossil fuel component, the highly efficient solution
by Eltek will ensure optimum utilization of the system, thereby reducing operational costs
quite considerably for the customer.
Eltek has a robust research & development (R&D) team, through which its solutions are
constantly bettered, both technically and financially, and made more affordable for the
costumers. Rapid development of the product and its better versions help Eltek counter
the competition from other manufacturers and consistently stay ahead in the market.
Technological Sophistication Ensures Minimum Maintenance Required
Diesel generators require high amount of maintenance to function efficiently. Even though
the maintenance may be less for a typical hybrid power system when compared to a diesel
generator, it still depends on the kind of components used. Many customers face the issue
of maintenance in remote areas, ranging from the accessibility of technical assistance, to

repair requirements in challenging weather conditions (such as in case of high rise telecom
towers) and general wear and tear due to the location.
Eltek provides its customers with a highly advanced hybrid power solution, which requires
minimal maintenance services. These systems are specifically designed to withstand harsh
weather conditions and are built to endure high operational wear, which makes it
maintenance free. Also, for systems using diesel gen-sets as the secondary power source,
Eltek’s gen-set optimization mechanisms ensure that the generator runs at optimal loads
of about 80 to 90%, thereby reducing soot and the consequent maintenance. Eltek's other
competitors use traditional components, which require relatively higher and frequent
maintenance schedules, making the systems more expensive and troublesome for the
customer.
Eltek uses galvanic isolation in its equipment, which provides extended surge protection.
Surge protection is essentially required for telecom towers - especially in windy and rainy
areas, where lightning is frequent. The external surge protection, connected to the
converter, helps suppress the over-voltage pulse caused by lightning. This helps reduce
the need for maintenance and the resultant downtime quite significantly.
Strong Commitment to Customer’s Service Experience through Technologically
Customized Designs and Installations
A hybrid power system typically generates power from one or more renewable sources of
energy, a fossil fuel secondary power generator, or a battery bank that acts as a storage
system for low power generation requirements from the renewable component in case of
unfavorable weather conditions. All of these need to be monitored constantly to generate
power optimally at all times. While all the components are located in the same area, their
monitoring is typically done separately. Also, the controllers are traditionally used
separately for all of these components, which, further increases the workload for the
operator, as well as the customer.
Eltek’s hybrid power solution is fully integrated, i.e. all of the components are controlled
and monitored by a single controller. This helps the company and the project engineers to
get a complete overview of the installed power system with a single point of management
for all the power sources being used. While it immensely reduces the work for the
engineers, it also ensures that the customers get an integrated view of the power
performance delivered by the systems.
The hybrid power systems installed by Eltek can be monitored and controlled remotely
with the help of the company’s highly advanced software, known as the MultiSite Monitor.
The software provides constant view the system’s performance and helps analyse the data
for any errors or underperforming sites. Consolidated performance reports can be
generated easily, which provide a better insight into the system, not only to the
engineers, but also to the customers.

In addition, Eltek’s hybrid power system has an innovative modular design that can be
adapted to support various power input sources. This helps especially in harsh weather
conditions, when the power source can be switched to one that is more conducive to the
environment. The modularity also helps meet higher load requirements.
Through such highly innovative technological attributes, Eltek keeps up with its
commitment to address the needs of its customers constantly. Also, the company takes
annual feedback from all its customers on the services availed by them in the year. The
positive feedback encourages and strengthens the company’s resolve to deliver better to
its customers, while the suggestions are incorporated within its processes to ensure
constant customer satisfaction.
Increased Ownership Experience and Brand Value through Highly Efficient Hybrid
Power Systems
There are nearly half a million telecom installations all over the globe that are being
powered by diesel generators, producing greenhouse and other toxic gases. Such high
amounts of emissions could potentially be extremely harmful to the environment. Using
hybrid power systems helps the environment by reducing the power generation from fossil
fuels. However, in a system that uses a diesel power generator as the secondary source,
the reduced damage depends on the efficiency of the primary renewable energy system.
Eltek’s highly efficient converters ensure that the power produced by the renewable
energy component is always at an optimum level, reducing the need to utilize the diesel
power generator. Also, with technologically advanced components in the system, the wear
and tear is much less, which further increases the efficiency of the system. Converting to
Eltek’s hybrid power system can help reduce the carbon footprint of the customers and
enhance both their brand value and ownership experience.
Most of Eltek’s customers are telecom companies, so they contribute significantly to brand
value through Eltek's products and the achievements associated with them. Eltek has sold
more than 1 million of its flagship FlatPack2 High Efficiency (HE) modules, an
unprecedented accomplishment in the energy saving market. The cumulative effect of the
installation of these HE modules across the globe has helped save $149 million in
operational expenses over the years and cut carbon dioxide levels by nearly 900,000
tonnes. The number of these modules installed is a testimonial to Eltek’s performance in
the market and a witness to its unmatched technological capabilities.
Vision Alignment through Business Transformation for Better Customer
Satisfaction
Eltek has recently launched the One Eltek programme, aimed at improved internal
operational efficiency, better customer satisfaction, and consequently improved margins
for the company. The program is focused on aligning the company’s vision towards cutting
costs not only for the company, but also its customers. The program will be running

through 2014-17 in order to ensure harmonization of processes in various regions and
improved quality of its products and services, while increasing supply chain agility and
efficiency.
The company aspires to further intensify its competitiveness in the market by ensuring a
higher quality driven performance of its services and products through a streamlined and
more efficient process.
Conclusion
Eltek is one of the largest providers of hybrid power systems in the global telecom sector.
Its hybrid power system solutions are some of the most technologically advanced in the
market, delivering high value-for-money to its customers. The company offers the highest
efficiency in its power converters, which helps reduce operational expenses drastically. It
also utilizes galvanized components that require minimum maintenance. Moreover, Eltek’s
hybrid power systems are fully integrated, which allows remote monitoring and control,
consequently delivering optimum performance to the customers.
The company has recently announced the shipment of over 1 million high efficiency
modules, an unprecedented achievement in the industry. The One Eltek vision alignment
program is aimed at harmonizing the internal process to cut costs and provide better
customer satisfaction. In a highly fragmented hybrid power systems market, Eltek delivers
significant value to its customers through its high-quality solutions by providing effective
and efficient off-grid hybrid power generation systems. Based on the aforementioned
factors as benchmarked through Frost & Sullivan competitive analysis, Eltek is the
recipient of the 2014 Global Customer Value Leadership Award.

Significance of Customer Value Leadership
Ultimately, growth in any organization depends upon customers purchasing from your
company, and then making the decision to return time and again. 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 dual goals
(customer engagement and growth), an organization must be best-in-class in three key
areas: understanding demand, nurturing the brand, differentiating from the competition.
This three-fold approach to delivering customer value is explored further below.

Understanding the Total Customer Experience
Demand forecasting, branding, and differentiation all play a critical role in delivering
unique value to customers. This three-fold focus, however, is only the beginning of the
journey and must be complemented by an equally rigorous focus on the customer
experience. Best-practice organizations therefore commit to the customer at each stage
of the buying cycle and continue to nurture the relationship once the customer has made a
purchase.
During the buying cycle, successful companies identify prospects, engage them through
resonant communications, and manage to a successful close through superior service and
targeted incentives to buy. Once the purchase is complete, customer-focused
organizations continue to nurture relationships with ongoing service, transparency, and
integrity. In this way, they build a loyal customer base with low attrition rates and high
lifetime value. This ongoing, cyclical dynamic is further illustrated below.

Frost & Sullivan’s Global Research Platform
Frost & Sullivan maintains more than 50 years in business and is a global research
organization of 1,800 analysts and consultants who monitor more than 300 industries and
250,000 companies. The Company’s research philosophy originates with the CEO’s 360
Degree Perspective, a holistic research methodology that encourages us to consider
growth challenges, and the solutions companies employ to solve them, from every angle.
This unique approach enables us to determine how best-in-class companies worldwide
manage growth, innovation and leadership. Based on the results of our research in
customer value leadership, Frost & Sullivan is proud to present the 2014 Global Customer
Value Leadership Award in Hybrid Power Systems to Eltek.
Key Benchmarking Criteria
For the Customer Value Leadership Award, Frost & Sullivan analysts evaluated the total
client experience and strategy implementation excellence according to the criteria detailed
below.
Customer Value Excellence
Criterion 1: Total Customer Experience
Criterion 2: Product/Service Value
Criterion 3: Purchase Experience
Criterion 4: Ownership Experience
Criterion 5: Service Experience
Implementation Excellence
Criterion 1: Vision Alignment
Criterion 2: Process Design
Criterion 3: Operational Efficiency
Criterion 4: Technological Sophistication
Criterion 5: Company Culture
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.
Decision Support Scorecard and Matrix
To support its evaluation of best practices across multiple business performance
categories, Frost & Sullivan employs a customized Decision Support Scorecard and Matrix.
This analytical tool compares companies’ performance relative to each other. It features
criteria unique to each award category and ranks importance by assigning weights to each
criterion. The relative weighting reflects current market conditions and illustrates the
associated importance of each criterion according to Frost & Sullivan. This tool allows our
research and consulting teams to objectively analyze performance, according to each
criterion, 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.
Best Practice Award Analysis for Eltek
Decision Support Scorecard: Customer Value Excellence
The Decision Support Scorecard the relative importance of each criterion and the ratings
for each company under evaluation for the Customer Value Leadership Award. The
research team confirms the veracity of the model by ensuring 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.
Finally, to remain unbiased and to protect the interests of all organizations reviewed, we
have chosen to refer to the other key players in as Company 2 and Company 3.

DECISION SUPPORT SCORECARD FOR CUSTOMER VALUE LEADERSHIP AWARD
(ILLUSTRATIVE): CUSTOMER VALUE EXCELLENCE
Measurement of 1–10 (1 = poor;
10 = excellent)
Award Criteria
Customer Value Excellence
Total Customer
Experience
Product/Service
Value
Purchase
Experience
Ownership
Experience
Service Experience
Weighted Rating
Relative Weight (%) 20% 20% 20% 20% 20% 100%
Eltek 9.0 9.5 9.0 8.0 9.5 9.0
Company 2 7.5 8.0 8.0 8.0 7.5 7.8
Company 3 7.0 7.0 8.0 7.0 6.5 7.1
Criterion 1: Total Customer Experience
Requirement: Customers receive exceptional impression at every stage of the purchase
cycle
Criterion 2: Product/Service Value
Requirement: Products or services offer the best value for the price, compared to similar
offerings in the market
Criterion 3: Purchase Experience
Requirement: It is as simple for salespeople to sell the product or service as it is for the
customer to buy the product or service
Criterion 4: Ownership Experience
Requirement: Customers are proud to own and use the company’s product or service
Criterion 5: Service Experience
Requirement: Customer service is accessible, fast, and stress-free

Decision Support Scorecard: Implementation Excellence
DECISION SUPPORT SCORECARD FOR CUSTOMER VALUE LEADERSHIP AWARD
(ILLUSTRATIVE): IMPLEMENTATION EXCELLENCE
Measurement of 1–10 (1 = poor;
10 = excellent)
Award Criteria
Implementation Excellence
Vision Alignment
Process Design
Operational
Efficiency
Technological
Sophistication
Company Culture
Weighted Rating
Relative Weight (%) 20% 20% 20% 20% 20% 100%
Eltek 9.0 9.0 9.5 9.5 9.0 9.2
Company 2 8.5 8.0 8.0 8.5 8.5 8.3
Company 3 7.0 7.5 8.0 7.5 8.0 7.6
Criterion 1: Vision Alignment
Requirement: The executive team is aligned on the organization’s mission and vision
Criterion 2: Process Design
Requirement: Processes support the efficient and consistent implementation of tactics
designed to implement the strategy
Criterion 3: Operational Efficiency
Requirement: Staff performs assigned tactics seamlessly, quickly, and to a high quality
standard
Criterion 4: Technological Sophistication
Requirements: Systems enable companywide transparency, communication, and efficiency
Criterion 5: Company Culture
Requirement: The executive team sets the standard for commitment to customers,
quality, and staff, which translates directly into front-line performance excellence

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 are not yet operating at best-in-
class levels.

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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http://www.frost.com.
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to fluctuation. Frost & Sullivan is not responsible for incorrect information supplied to us
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