best practices award template - frost & sullivan...growth excellence leadership is about...

FROST & SULLIVAN BEST PRACTICES AWARD

Growth Excellence Leadership 2019VIDEOCONFERENCING DEVICES - GLOBAL

BEST PRACTICES RESEARCH

© Frost & Sullivan 2019 2 "We Accelerate Growth"

Contents

Background and Company Performance ...................................................................................... 3

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

Growth Performance and Customer Impact........................................................................... 4

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

Significance of Growth Excellence Leadership .............................................................................. 7

Understanding Growth Excellence Leadership .............................................................................. 7

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

Growth Performance .......................................................................................................... 8

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

Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices ...... 9

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

Research Methodology ......................................................................................................10

About Frost & Sullivan .............................................................................................................10



Background and Company Performance

Industry Challenges

Video meetings are on the rise. Businesses are looking for lower-cost, easy to use video

conferencing solutions that drive business performance. Innovative next-gen devices and

agile cloud services are enabling video meetings to move beyond the board room and into

huddle rooms, small and mid-sized meeting spaces, and on to desktops. Users are moving

away from clunky user experiences of yesterday’s video conferencing, to smart video

meetings that are hassle-free, user-friendly and affordable. Combined with superior audio

and easy content sharing, video is becoming the de facto mode for more and more

modern meetings; all while accommodating BYOD and best of breed environments so

users can bring their choice of software and cloud services into the meeting room.

As a result of the sweeping user behavior and technology changes, the near and long-term

structural growth opportunities in the video collaboration market are significant. According

to Frost & Sullivan’s most recent research, the overall video and web conferencing market

is on a high growth trajectory, with revenue forecasted to rise from $8.5 billion in 2017 to

$11.0 billion by 2023. Seat licenses are forecast to increase at a whopping 27.9%

compound annual growth rate from 2017 to 2023. Providing a level of user engagement

that far surpasses audio-only meetings, video communications is transforming businesses

and becoming the foundation for creating greater employee and customer satisfaction. In

a recent Frost & Sullivan global survey of C-level decision makers, heavy users of video

conferencing report that they have seen 6 times faster product innovation, 5 times

improved customer experience, and 6 times accelerated decision making over light users.

Next-gen cloud services, combined with sophisticated hardware and software, is making

the video calling experience as natural as possible, with an emphasis on user-friendly

interfaces and AI-enabled features for smart meetings.

While opportunities abound, the video conferencing market is not devoid of formidable

challenges. Given the buzz around video conferencing, many new device and cloud

vendors have entered the market with a wide range of solutions. At the same time

established communication providers, with strong end-to-end product portfolios and

economies of scale, are going down-market by introducing lower-priced devices for huddle

rooms. As a result, the market is getting increasingly crowded. It is a matter of time

before there is a shakeout leading to the emergence of a few strong players. It is clear

that a market leadership status in a market like this combined with continued growth

excellence is a sign of winning companies that focus on constant innovation, superior

execution and a keen focus on customer satisfaction.



Growth Performance and Customer Impact

Frost & Sullivan believes that Logitech’s approach is changing how video conferencing is

being used and perceived. Logitech’s core principle of simplicity and affordability is

eliminating the traditional barriers to adoption and successfully disrupting the market.

Transforming the Meeting Experience

BYOD and consumerization have shifted user expectations greatly. Business users want

the same user friendly communication experiences that they are accustomed to when

using consumer apps. In addition, the move to software and cloud has created an

exploding demand among users to bring their choice of software in the conference room

without getting tied into monolithic proprietary hardware. Logitech recognized this market

shift early on and launched a line of high-quality USB conference cams that fill the huge

white space between costly and complex video conferencing systems and PCs equipped

with webcams. Its plug and play, simple to use conference cameras are built and priced

for mass adoption and have created a new, fast growing market category that offers high-

quality yet affordable video conferencing for customers.

In recent years, Logitech has been stealing the show by selling thousands more video

conferencing devices than its nearest competitors. Logitech USB conference cams work

with virtually any UC or video collaboration software and are easy to use, eliminating the

need for IT support to get meetings started. This approach has created a growing installed

base of meeting rooms that are using Logitech devices, that allow users to bring their own

laptops and software to run video calls and share content.

Logitech recognizes that the DIY approach is great, yet there are several technology

elements that need to be considered including computer processing power, cabling, room

logistics and design etc. Logitech has recognized this challenge and has collaborated with

several technology partners to create the optimal conference room bundles for meeting

rooms of different sizes. Until now very few providers in video conferencing have been

able to match user expectations of easy to use, lightweight devices that offer frictionless

user experiences over connected cloud services. Logitech has been instrumental in making

video meetings simple, accessible, and affordable.

Exponential Business Growth and Customer Acquisition

Logitech has seen tremendous growth in recent years. It is not only the dominant vendor

in the webcam market but is also the number one vendor for business use video

conferencing devices. In 2018, its ongoing growth included many successes:

Logitech’s net sales of video collaboration products increased 42 percent in the six

months ended September 30, 2018 compared to the same period of the prior fiscal

year.



A fast growing customer base includes 50 percent of the Fortune 500 that buy

Logitech video collaboration including 10 of the top 10 US health systems, 8 of the

top 10 US banks, 6 of the top 10 global auto makers, 10 of the top 10 global

pharmaceutical companies, and 9 of the top 10 global manufacturing companies.

Annual shipments of Logitech business use of USB conference cams has grown 22

percent+ over the prior year. This growth rate is twice as high as the rest of the

industry for video conferencing device shipments.

Logitech is the number one video conferencing devices vendor and held nearly 35

percent market share in unit shipments for the 9 months ending September 2018,

up from 27 percent two years ago. The company leads its nearest competitor’s

market share in units by more than 15 percentage points.

Logitech customers are making video a key part of their meeting experience and their

enterprise communications culture. Prominent customers include Autodesk, Delta Air

Lines, King County, Shutterfly, University of Michigan, and Zendesk.

Market Leading Innovation and a Comprehensive Product Portfolio

Logitech’s end-to-end portfolio of conference cams is ideal for meeting rooms of all sizes

as well as desktop and mobile users. The company has focused on a design-centric

approach for innovation and growth with an acute focus on delivering a superior user

experience.

In Q2 2018, the company announced an intelligent software suite for its video

collaboration portfolio, Logitech RightSense™ technologies. This suite of technologies

leverages the latest developments in AI to automate light, color, sound, and camera

control to deliver a more natural and engaging video conferencing experience. These new

technologies are integrated into Logitech’s video collaboration devices, including Logitech

Rally - Logitech’s newest conference camera that offers a high performance modular

solution for large spaces with industry leading features such as advanced optics, a 4K

sensor with mechanical PTZ, ultra-HD video at 30 fps, and 15x zoom.

Logitech RightSense consists of three automation technologies:

Logitech RightSight™ camera control leverages computer vision to automatically

frame meeting participants in the room so that users don’t need to manually adjust

the camera angle.

Logitech RightLight™ optimizes light balance and color to prioritize the appearance

of faces and render natural-looking skin tones, even in dim or backlit conditions.

Logitech RightSound™ improves vocal clarity by suppressing background noise and

echo, auto-leveling voices, and focusing on active speakers so that everyone in the

meeting can hear and be heard.



Strong Partner Ecosystem

Logitech’s success is in large part due to its strong go-to-market strategy of partnering

with the best distribution and technology partners in the industry. The Logitech

Collaboration Program (LCP) is a fast growing ecosystem of leading technology providers,

including Microsoft, Google, and Zoom, which ensures that customers get access to open

solutions that work with leading SaaS providers and other technology companies. With

40+ partners that provide complete solutions, Logitech’s goal is simple – to make every

meeting ‘video-enabled.’

LCP features two tracks — one for cloud video conferencing providers and one for

complementary solutions. The members include a broad ecosystem of offerings that

enable third-party companies to integrate and optimize product functionality with Logitech

products to ensure to enhance core workflows and business processes.

As a result, Logitech has benefitted from significant customer acquisition by becoming the

device of choice for video conferencing.

Conclusion

Logitech has become synonymous with easy and affordable video conferencing. It has

helped grow the reach of rich video communications to the masses and has broken the

long standing hurdles that have traditionally marred video conferencing adoption. For its

strong performance, broad vision and superior execution, Frost & Sullivan is proud to

present the 2019 Growth Excellence Award in the video conferencing devices market to

Logitech.



Significance of Growth Excellence Leadership

Growth Excellence Leadership is about inspiring customers to purchase from your

company, and then 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. Companies that excel in driving growth strive to be best-in-

class in three key areas: meeting customer demand, fostering brand loyalty, and carving

out a unique, sustainable market niche.

Understanding Growth Excellence Leadership

Companies that creatively and profitably deliver value to customers ultimately set up their

businesses for long-term, rapid growth. This is what Growth Excellence Leadership is all

about: growth through customer focus, fostering a virtuous cycle of improvement and

success.



Key Benchmarking Criteria

For the Growth Excellence Leadership Award, Frost & Sullivan analysts independently

evaluated two key factors—Growth Performance and Customer Impact—according to the

criteria identified below.

Growth Performance

Criterion 1: Growth Strategy

Requirement: Executive team has a shared vision for the organization’s future growth and

has created and implemented a strategy that is consistent with that vision.

Criterion 2: Above-market Growth

Requirement: Company’s growth rate exceeds the industry’s year-over-year growth rate.

Criterion 3: Share of Wallet

Requirement: Customers allocate a greater percentage of their total spend to purchasing

products or services produced by the company.

Criterion 4: Growth Diversification

Requirements: Company is equally able to pursue organic (e.g., distribution channel

optimization, new product innovation) or inorganic (e.g., acquisitions, partnerships)

growth opportunities consistent with the long-term objectives of the organization.

Criterion 5: Growth Sustainability

Requirement: Company has consistently sought out opportunities for new growth,

enabling the organization to build on its base and sustain growth over the long-term.

Customer Impact

Criterion 1: Price/Performance Value

Requirement: Products or services offer the best value for the price, compared to similar

offerings in the market.

Criterion 2: Customer Purchase Experience

Requirement: Customers feel they are buying the most optimal solution that addresses

both their unique needs and their unique constraints.

Criterion 3: Customer Ownership Experience

Requirement: Customers are proud to own the company’s product or service and have a

positive experience throughout the life of the product or service.

Criterion 4: Customer Service Experience

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

Criterion 5: Brand Equity

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



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

Frost & Sullivan analysts follow a 10-step process to evaluate Award candidates and

assess their fit with select best practice criteria. The reputation and integrity of the

Awards are based on close adherence to this process.

STEP OBJECTIVE KEY ACTIVITIES OUTPUT

1 Monitor, target, and screen

Identify Award recipient candidates from around the globe

Conduct in-depth industry research

Identify emerging sectors

Scan multiple geographies

Pipeline of candidates who potentially meet all best-practice criteria

2 Perform 360-degree research

Perform comprehensive, 360-degree research on all candidates in the pipeline

Interview thought leaders and industry practitioners

Assess candidates’ fit with best-practice criteria

Rank all candidates

Matrix positioning of all candidates’ performance relative to one another

3

Invite thought leadership in best practices

Perform in-depth examination of all candidates

Confirm best-practice criteria Examine eligibility of all

candidates Identify any information gaps

Detailed profiles of all ranked candidates

4

Initiate research director review

Conduct an unbiased evaluation of all candidate profiles

Brainstorm ranking options Invite multiple perspectives

on candidates’ performance Update candidate profiles

Final prioritization of all eligible candidates and companion best-practice positioning paper

5

Assemble panel of industry experts

Present findings to an expert panel of industry thought leaders

Share findings Strengthen cases for

candidate eligibility Prioritize candidates

Refined list of prioritized Award candidates

6

Conduct global industry review

Build consensus on Award candidates’ eligibility

Hold global team meeting to review all candidates

Pressure-test fit with criteria Confirm inclusion of all

eligible candidates

Final list of eligible Award candidates, representing success stories worldwide

7 Perform quality check

Develop official Award consideration materials

Perform final performance benchmarking activities

Write nominations Perform quality review

High-quality, accurate, and creative presentation of nominees’ successes

8

Reconnect with panel of industry experts

Finalize the selection of the best-practice Award recipient

Review analysis with panel Build consensus Select recipient

Decision on which company performs best against all best-practice criteria

9 Communicate recognition

Inform Award recipient of Award recognition

Present Award to the CEO Inspire the organization for

continued success Celebrate the recipient’s

performance

Announcement of Award and plan for how recipient can use the Award to enhance the brand

10 Take strategic action

Upon licensing, company is able to share Award news with stakeholders and customers

Coordinate media outreach Design a marketing plan Assess Award’s role in future

strategic planning

Widespread awareness of recipient’s Award status among investors, media personnel, and employees



The Intersection between 360-Degree Research and Best Practices Awards

Research Methodology

Frost & Sullivan’s 360-degree research

methodology represents the analytical

rigor of our research process. It offers a

360-degree-view of industry challenges,

trends, and issues by integrating all 7 of

Frost & Sullivan's research methodologies.

Too often companies make important

growth decisions based on a narrow

understanding of their environment,

leading to errors of both omission and

commission. Successful growth strategies

are founded on a thorough understanding

of market, technical, economic, financial,

customer, best practices, and demographic

analyses. The integration of these research

disciplines into the 360-degree research

methodology provides an evaluation

platform for benchmarking industry

participants and for identifying those performing at best-in-class levels.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth

and achieve best-in-class positions in growth, innovation and leadership. The company's

Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined

research and best practice models to drive the generation, evaluation and implementation

of powerful growth strategies. Frost & Sullivan leverages more than 50 years of

experience in partnering with Global 1000 companies, emerging businesses, and the

investment community from 45 offices on six continents. To join our Growth Partnership,

please visit http://www.frost.com.

360-DEGREE RESEARCH: SEEING ORDER IN

THE CHAOS

http://www.frost.com/

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