south africa power protection results · 2017. 12. 12. · • trial background: » comparison...

©2016 Innovolt. All rights reserved

South Africa Power Protection Results

February 2017

Innovolt Confidential


Agenda

Trial Background

2 Innovolt Confidential

Results

Business Planning

Appendix- Comparative Studies

Competitive Review


3

Trial Background


Types of Electrical Overstress Examples of Impact

4

Electrical Overstresses (EOS) Cause Copy Quality Issues

• Inconsistent Light/Laser Source

• Motor Timing Errors

• Insufficient Fuser Temperatures

• Premature Component Failures

• Color Variations and Dropouts

• Image Distortion

• Paper Jams

• Inaccurate Color

• Unfinished Prints

Effects on MFP Subsystems


Test Sites- Significant Power Issues

• Disturbance date available for 20 sites.

• All experienced

significant Electrical Over Stress (EOS) disturbances.

• As expected, there

was a wide distribution of EOSs across the machines

5

1

10

100

1000

10000Voltage Surge

Voltage Sag

Over Voltage

Brownout

Power Outage

20 Different sites spread across South Africa


Electrical Over Stress (EOS) Disturbance Data

6

Voltage Sags

Power Outages

Brown Outs

Over Voltages

Voltage Surges

Totals

4455 2170 318 30 1 6974

Note: Shown on log scale due to large number of Sags and Outages

Source Voltage Sags

Power Outages

Brown Outs

Over Voltages

Voltage Surges

i-grid 74.5% 10.0% 10.0% 5.0% 0.5%

Innovolt 93.7% 5.1% 0.3% 0.2% 0.2%

Test Sites 63.88% 31.12% 4.56% 0.43% 0.01%

1

10

100

1000

10000

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

VoltageSag

PowerOutage Brownout Over

Voltage VoltageSurge

i-grid

Innovolt

NashuaTest Sites


Summary- Background


• History: » Large operator requested Innovolt technology evaluation;

• Trial Background:

» Comparison between basic surge protection (“Pre-Innovolt”) vs. Innovolt Protection (“Post-Innovolt”).

» 313 machines of varying types protected; 158 used for calculations after data scrub

» Focus on Business Metrics (comparison of service calls/ parts replacement / downtime) for pre-Innovolt vs. post Innovolt installations

» Representative Samples: Segment 1 through Segment 5 Black and White; Segment 3 through Segment 5 Color; Age of machines varied from 1 to 10 years old; Varying geographies, machine types

» Incorporated Click-Count Data for pre-post comparison » Focus on Problem/ Repair Codes that could be affected by power

8

• Innovolt used an objective, third-party data analytics firm for assistance • Innovolt provided the raw data to Aspirent who formatted, grouped, compiled and analyzed the data

• Aspirent spreadsheet is provided with this presentation

Proprietary & Confidential 9

Aspirent’s U.S. Based Clients


Data Assumptions: Problem/ Repair Codes

• Problem/ Repair codes- “All”

• Problem/ Repair codes- “Electrical Related” » Removed Problem Codes (Call Cycle, Check Toner, Courtesy Call, Disconnect/

Disable, Install, Install Relocation, Install New, Leaking Toner, Relocation, Toner, Uninstall, Upgrade)

» Removed Repair Codes (Cables, Customer Error, Oil, Staples, Paper, Springs, Stripper Fingers, Supplies, T/S belt, Toner, Toner transfer belt, Awaiting Parts, Bearings, Speaker)

» Maintained the rest of the problem/ repair codes to (i) allow for a more significant data set and (ii) lower inconsistency and human error through selecting out codes that may not have been properly input



Data Assumptions- Click Results


• Review of click-counts on a pre vs. post Innovolt as a factor in relation to the business metrics (service, part, downtime reduction)

» Click-counts were down by approximately 32M clicks for an 18% decrease from the pre- post Innovolt time period

• Results were adjusted for usage (click-counts): For every metric calculated, we

divided the metric result in both the pre/ post periods by the actual clicks (thousands) to adjust for usage

• Discussion regarding factors that could contribute to the decrease in clicks:

» Seasonality / vacations / holidays » Decrease in printer/ copier usage » Business/ Market decline


12

Results


Results- Summary


General*Adjusted Per 1k

clicks** GeneralAdjusted Per 1k

clicks GeneralAdjusted Per 1k

clicks

21% 3%

R 5,290 per machine/ year

R802per machine/ year

21% 2%

R 4,163 per machine/ year

R524 per machine/ year

158

41% 28%

Problem, Repair Codes - Electrical Related

(Included most codes, but removed install, courtesy call, toner codes, etc.)

BUSINESS METRICS

Service Call Reduction Parts Cost Reduction Downtime Reduction

All Problem, Repair Codes

57% 48%

# of Machines

50% 39%

* General: pre/ post comparison reduction without factoring in click-count reduction

**Click-Adjusted (1k clicks): adjustied by taking pre/post reduction amounts for service, parts, downtime and dividing by the number of clicks in each period (pre/ post) to eliminate the click-count decrease variable

37% 24%

155 of 158


Results: Service Call Reductions


0

1000

2000

3000

4000

5000

All Repair Codes NarrowedElectrical Codes

General

Surge Protector Innovolt

37%

41%

Serv

ice

Calls

0.0000

0.0050

0.0100

0.0150

0.0200

0.0250

0.0300

All Repair Codes Narrowed ElectricalCodes

Click-Adjusted

Surge Protector InnovoltSe

rvic

e Ca

lls

(per

1k

clic

ks)

28%

24%

*1858 service calls saved on 158 machines normalized for one year. Average of over 11 service calls saved per machine per year, (Over 9 service calls saved per machine per year if you remove the top 5 worst machines with the most calls.)


Results: Down Time Reductions


0

10000

20000

30000

40000

50000


General


50%

57%

Dow

ntim

e –H

rs.

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

All Repair Codes Narrowed ElectricalCodes

Click-Adjusted


Dow

ntim

e- H

rs

(per

1k

clic

ks)

48%

39%


Results: Part Cost Reductions


Cost

in R

and

0500000

10000001500000200000025000003000000350000040000004500000


General

Surge Protector InnovoltCo

st in

Ran

d (p

er 1

k cl

icks

)

0.0000

5.0000

10.0000

15.0000

20.0000

25.0000


Click-Adjusted


21%

2%

R5,290 reduction/ per machine

3%

R802 reduction/ per machine

R524 reduction/ per machine

21%

R4,163 reduction/ per machine


17

Competitive Review


Not About Noise Anymore…

Modern Electronics Contain Switch Mode Power Supplies (SMPS) SMPS are required to utilize Power Filters and often contain Surge Suppression External Power Protection products that ONLY provide Power Filtration and Surge Suppression (Like the ESP Digital QC) are REDUNDANT and do not provide additional protection needed for maximizing Up-Time.

Typical Switch Mode Power Supply


Power Filter


Innovolt is the ONLY power protection product that protects your electronic assets from ALL 5 Electrical Overstresses (EOS)



Innovolt SmartProtect- PM16

ESP NextGen

ESP Digital QC

Voltage Sag • Patented circuit prevents component damage from Current Inrush at the recovery of a Voltage Sag and whenever voltage is reconnected.

• Lets Current Inrushes due to Voltage Sags pass through to the asset. “ICE” current inrush limiting circuit does not respond to Voltage Sags.

• No Protection

Over Voltage/ Brownout

• Fastest disconnection speed in the industry for Catastrophic OV

• Uses Voltage Level and Time to determine appropriate disconnection speed for voltages outside the standard range. – AVOIDS NUISANCE SHUTDOWNS

• Rudimentary system uses the same cut-off speed for all voltages outside the standard operating range, resulting in unnecessary NUISANCE SHUTDOWNS and pointless downtime.

• No Protection

Reclose Sequence • Monitors voltage closely when power is turned ON to confirm stable power before engaging the connected equipment, ensuring a “soft” start with a clean power up sequence.

• Immediately connects equipment to main power upon recovery from a power outage. Standard power company procedure after an outage is to perform a “reclose sequence” – several short burst of power to clear the power lines of debris – which can inflict multiple severe voltage transients and current inrushes which is detrimental to the life of the connected equipment.

Innovolt Differentiation – Advanced Power Protection



Voltage Sag Premature Failure and Phantom Errors

Standard MFP presented with a Voltage Sag

protected by ESP NextGen

Lets 98A through to the MFP

Standard MFP presented with a Voltage Sag

protected by Innovolt

Allows only 22A through to the MFP

Voltage

Current

Current Inrush

Voltage

Current

Current Inrush



Competitive Summary

(1) SURGE PROTECTORS- ALL SIMILAR • Surge Protectors w/ filters = all use very similar components • Generally provide the same protection (i.e. that which is already contained

in the vast majority of power supplies, for noise and lightning)

(2) TRIAL RESULTS – INNOVOLT VS. SURGE PROTECTOR • Innovolt went head to head with basic surge protector in the study

reference herein • the results are based on that comparison with Innovolt saving over 11

service calls/ machine/ year vs. basic surge protection

(3) INNOVOLT PROVIDES SUPERIOR PROTECTION • No power protection in the marketplace (sans expensive double conversion

UPS systems) protect against all of the power anomalies like Innovolt



Business Planning

23


Discussion/ Decision Process

1. Compelling Results Comparative results where basic surge protector was bundled on all machines vs. Innovolt

protection on the evaluation group. Innovolt significantly lower service calls, increase in uptime and significant part costs

reduction vs. basic surge protection even with decrease in click-counts Innovolt provides the ability to differentiate from competition and create stickiness and

growth with its customers.

3. Next Steps: Roll-Out Planning, Pro-Active Corporate Decision Understand current fleet make-up (volume by segment of deployed machines and new

machines)

Understand Ricoh SA economics o Cost of service call (by segment) o Average number of service calls per machine o Average annual parts costs per machine (by segment) o Average revenue per machine (click-counts)

Decision process for bundling (i.e. swapping basic surge protection with Innovolt) and retro-

fits on current deployed machines



Hypothetical Business Case- Bundling


Customer Satisfaction- technology provides for better working, lower service machines (vs. competitive basic surge protector)

Economics- part savings alone result in ROI of approximately 1 year, without factoring in other savings

Compounding Profits- the part savings are per year, so such savings should be cumulative

*Information provided solely for illustrative purposes. Confirm Assumptions

Yr. 1 Yr. 2 Yr. 3

Total Available Machines for Retro-Fit (Seg 2-6)(1)

10,000 7,000 4,000

New Machines Bundled with Innovolt(2) 3,000 3,000 3,000Retro-fit on Machines Deployed(3) 3,000 3,000 4,000

Revenue Per Innovolt Appliance Sold to Customers (4)

1795 1795 1795

Part Savings Per Machine/ year (5)

Uptime Profit Increase / year (6) ____ ____ _____Service Savings/ year (7) ____

Total Profit/ Savings for Bundling (excluding uptime profit increase)

ZAR 10,770,000 ZAR 10,770,000 ZAR 12,565,000

Cost of Innovolt Appliance per machine (8) 1795 1795 1795Total Cost ZAR 10,770,000 ZAR 10,770,000 ZAR 12,565,000

Profit Per Yearly Rollout: Cumulative Rolling Profit(8)

5 To Populate for ful l bus iness case- s tudy shows savings ranging from 800 - 5600 rand per machine per year 6 To Populate for ful l bus iness case

9 Assumes same parts savings profi ts in years 2 and 3 for the uni ts deployed the previous years , with 3 year warranty/ protection plan

8 Based on current pricing, discounted volume pricing ava i lable 7 To Populate for ful l bus iness case; assumed 40% savings of service ca l l s (determine volume and cost of each ca l l )

RICOH SA- ROLLOUT OF INNOVOLT- EXAMPLE(New Machines & Retro-fit on Machines Deployed)

Assumptions:

1 ______ segment 2-6 machines deployed each year; (SLA question on segment 1 machine), decl ining each year with ful l bundl ing of Innovolt and attacking retro-fi t machines from year 1

4 Based on current pricing with an individual sa le to the franchisees at Cost to Ricoh.

2 Based on bundl ing with Innovolt of a l l new Segment 2-6 machines

3 Assumes 3 year lease period on a l l new deployed machines with a s table base of 10k machines per year for three years and ful l penetration on a l l deployed machines after three years , so year 3 new machines would finish the remaining 4k



Proposed Timeline for Decision

Next Steps Proposed Timeline

(1) Meeting with Ricoh • Review Innovolt technology and results in South

Africa and USA • Determine Ricoh metrics, purchase considerations

(bundling, value in saved calls/ part reduction, etc.)

February 8

(2) Follow-up review • Analyze relevant Ricoh information for comparative

purposes • ROI determination

Week of February 20

(3) Decision on Purchase Program First week in March


27

Appendix- Comparative Results



INNOVOLT’S SOLUTIONS WORK- RESULTS ACROSS SEGMENTS

• Over 20

evaluations

• Ranging from 60 days to multi-year

• Protecting various distributed electronics

• Significant savings and increased uptime across the board


Comparative Results South Africa Savings – Consistent with Innovolt N.A. Office Equipment Customer


2.59

1.36

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Control Group Innovolt

Total Emergency Service Calls

47%

• Aspirent studied 10,000 MFPs over an 8 year period from a major imaging OEM in North America

» 4 years with a competitive power protection solution and then 4 years with Innovolt

» Study covered over 71,000 service calls

• Innovolt provided a 52% reduction in emergency service calls (non-scheduled service calls) in the three most common problem segments

» 47% reduction across all emergency service calls

• The impact of Innovolt was

immediate, with significant reductions showing up in the first year and continuing through the study

• This includes critical customer satisfaction areas like copy quality, where Innovolt demonstrated a 51% reduction in service calls


Comparative Results South Africa Savings- Consistent to other U.S. segments


$333.33

$223.74

0.0

100.0

200.0

300.0

400.0

Pre Innovolt Post Innovolt

Parts Replacement Costs / Lane / Year

33%

In the PARC segment, the Innovolt protected machines experienced a

42% reduction in overall service calls and a 33% reduction in parts

replacement costs.

In the ATM segment, The Innovolt protected machines

experienced a 55% reduction in down time, along with a 46%

reduction in overall service calls.

PARC (Parking Access & revenue Control)

ATM Vending/ Point of Sale

8.9

4.0

0.0

5.0

10.0


Hours Down / machine/ month

48%

In the Vending segment, The Innovolt protected machines

experienced a 48% reduction in overall service calls.

11.2

5.8

0.0

5.0

10.0

15.0


Service Calls / Machine / Year

south africa power protection results · 2017. 12. 12. · • trial background: » comparison...

Documents