As our product growth teams and value streams illustrate, the power arises when our growth and operational excellence strategies merge together in one value stream, leading to increased market share and margins for Ingersoll Rand through an improved customer experience. We make our technology choices based on findings from our market and customer tools and analytics.
Data-driven customer insights and a proven process enable us to answer key strategic growth questions: which customer needs represent our biggest market opportunities, which of these markets should we serve, who are our target customers, how can Ingersoll Rand serve them most effectively, and what capabilities and systems must we have to win?
Our people and innovation process have enabled us to launch or improve more than 190 products over the past three years, accelerating our performance on key portfolio metrics. These include on-time delivery, product quality, revenue and share growth, margin expansion and sales from new products. Our ability to get high-quality products to market on time and within budget has improved 69 percent since 2012. The percentage of revenue that Ingersoll Rand generates from the more than 144 new offerings has improved 35 percent since 2012.
Executing on our growth strategy in 2015, each of our strategic business units developed critical strategies using market analytics to identify clear, bold decisions leading to growth opportunities aligned with enterprise strategies. We have targeted several of these programs for investment and resourcing.
Things work better when they’re smarter and more connected, and our product portfolio is proof. In addition to Trane Building Advantage and the Ingersoll Rand MR150, Club Car’s Precedent i3 golf car features a cloud-based system that streams location, condition and diagnostics information 24/7 to customers about their fleet. For homeowners, our Nexia™ smart home system delivers the convenience to monitor and control temperature, locks, lights and even garage doors from virtually anywhere. Nexia diagnostics provide residential HVAC dealers with real-time data about how systems are performing and can prompt action to keep comfort on track. Nexia diagnostics dashboard provides residential HVAC dealers with real-time data about how systems are performing, prompting action to help keep comfort on track. Thermo King SLXe™ trailer refrigeration products sold in Europe have a patented geo-fencing controller that automatically switches the unit into low-noise mode when entering a controlled zone.
Among these programs is a new solution for optimizing industrial compressed air systems. Companies around the world spend billions of dollars annually operating their compressed air systems. It is estimated, however, that 30 to 50 percent of a typical system’s compressed air goes to waste. We have developed a new, proprietary software tool that unveils hidden inefficiencies caused by leaks, artificial demand and improper uses. The tool then models alternative system configurations before they are installed. Testing potential solutions virtually – before lifting a wrench – eliminates guesswork and reduces risk for our customers.
As another example, we have established a presence for Ingersoll Rand in the global variable refrigerant flow (VRF) market. A popular alternative to traditional ducted HVAC technologies, VRF systems are compact, flexible and capable of simultaneously heating and cooling different areas within a building. By combining innovations related to controls, drives and heat exchanger technologies, Trane is redefining the VRF space.
Our digital offerings are smarter and more connected than ever before. Over the past several years we have introduced a growing portfolio of energy-efficient products, energy management services and industrial productivity solutions. For example, American businesses spend more than $24 billion (USD) annually on energy costs in commercial buildings. Trane Building Advantage™, a portfolio of energy solutions provided by Trane, uses data and analytics to guide building owners through a journey to operating the most efficient and sustainable buildings.
Trane Intelligent Services, a building energy management solution, is used by our energy professionals to turn building data into energy reduction solutions. Additionally, our team uses renewables and power generation, energy storage, supply side consulting, financial tools and turnkey services to help customers deliver business outcomes that matter. Trane Building Advantage energy solutions are helping building owners earn bottom-line results and maximize their return on investment.
As our portfolio migrates toward smart, connected solutions, we are working to adopt a services mindset across the organization. Serving as trusted advisors, our people are applying their knowledge and experience to help customers select the solution that best meets their business goals. In addition, we are leveraging our global service footprint and the exceptional technical skills of our people to provide reliable support for our customers over the lives of their Ingersoll Rand products and applications.
In addition, our customers expect us to provide them with products with a smaller environmental footprint throughout its life. We are working to identify the attributes that make a product environmentally superior from initial design until its removal from service. Our product development teams are deploying this knowledge to ensure that product lifecycle impacts are minimized across the portfolio.
Thermo King’s Kolin, Czech Republic, team ended a two-year journey when it passed Europe’s International Railway Industry Standard (IRIS) 2.1 certification audit. Based on ISO 9001, IRIS certification adds more demanding requirements specific to heating, ventilation and air conditioning equipment for the rail industry. “To pass the audit we had to meet arduous requirements in production, purchasing, internal audits, design and development. Having this certificate provides us with a real competitive advantage and we expect to see project growth due to this accomplishment,” says Miroslav Platenka, Thermo King quality manager in Kolin.
Plant Engineering magazine named the Ingersoll Rand KL Kinetic Lever Hoist its product of the year for 2014 in the material handling systems category. It is a lightweight, compact hoist built to minimize the manual effort required by the user, which makes for an overall smoother operation. The KL Kinetic Lever Hoist is ideal for industrial and manufacturing applications in refineries and in the construction, power generation, ship building and workboat markets. The lifting capacity of the lever chain hoist ranges from .75 to 9 metric tons (1,653 to 19,841 pounds).
“This is great recognition and an important third-party endorsement for the Kinetic Lever Hoist,” says Cleve Pechuekonis, global product leader for industrial lifting, Power Tools business unit of Ingersoll Rand. “Not only is Plant Engineering magazine a respected source of information and influence in the industry, but the winners of these awards are chosen by the readers of the magazine themselves. Being rated above the many other fine products in competition in the category is a real tribute to the talents of our product development team.”
Acquiring the assets of Cameron International Corporation’s Centrifugal Compression division early in 2015 enabled us to enhance our offering in air separation, process gas and highly-specified engineered air markets. During the year we launched a range of new centrifugal, rotary compressors and air treatment products designed to advance the reliability, productivity and energy efficiency of compressed air and gas systems. They include:
- RS-Series Contact-Cooled Rotary Screw Air compressors.
- A line of three new dryers, including the Ingersoll Rand Sub-Freezing Air Dryer (SFD), XL series refrigeration air dryers and Ingersoll Rand D1800IB – ABV advanced heated blower.
- The TURBO-AIR NX 12000 Centrifugal Compressor.
- TURBO-DRI Air Treatment portfolio.
“We’ve invested in broadening our portfolio, enhancing our energy-efficient solutions and building on our proven record of reliability, and the results of these efforts are evident in the new compressors and air treatment products we launched this year,” says Todd Wyman, Ingersoll Rand senior vice president and president, Compression Technologies and Services. “These new products are engineered to excel with digital connectivity and next-generation materials that deliver our customers top-tier performance, reliability and energy efficiency.”