Entry Details

Organization:Rheem Manufacturing
Login ID:imran.master@rheem.com
Category applied for:IoT INTEGRATION INITIATIVE OF THE YEAR
Submission date:28-Oct-2024
Submission Entry:
1.) Given that buildings consume 40% of global energy, within which at least 40% is consumed by HVAC systems, how has the goal of 1.5 C additionally impacted your project opportunities? What specific products have you supplied or incorporated to support the 1.5 goal? (213)

Answer: Rheem is committed and leading with actions on limiting global warming to 1.5 deg.C and reduce odds of initiating most dangerous effects on climate change. We understand this is possible by introducing more efficient and smart products into the market. We have seen more projects in GCC region call for products with new technologies such as Inverter Air Conditioners and Heat Pump Water Heaters. Moreover, another common theme observed is having a product which has Smart Controller and its IoT enabled.

Hence, in last one year, we have introduced new range of VRF Systems(40%-Higher-Efficiency), Hybrid-Heat-Pump Water Heaters (Odin/ProTerra®)(440%-Higher-Efficiencies), Inverter Air Conditioners(25%-Higher-Efficiencies), Smart Thermostats, and Smart AC+WH Switch which all work on Rheem Smart Connect Ecosystem and Rheem EcoNet® platforms. These two IoT enabling control platforms allow users to monitor critical components health, schedule operation of AC/WH, and build energy saving automation scenarios which all help in optimum energy consumption(Attachments1-4).

2.) Describe the bigger picture you see as an IoT service provider. How do socio-economic and sustainable development initiatives in the country, or countries, you are operating impact/influence you as a manufacturer, supplier or service-provider? (214)

Answer: Rheem’s three main global sustainability goals set from 2019 are:

1-Degrees of Innovation: Rheem aims to launch products with 50% reduction in GHG footprint by 2025, supporting SDG7:Affordable-and-Clean-Energy. Our IoT platforms like EcoNet® are one of the key components that lead to energy savings up to 440% of our ProTerra® Hybrid-Heat-Pump-Water-Heaters. IoT also enabled our users to do energy saving automation scenarios leading to more optimized energy usage.

2-Degrees of Efficiency: Our goal is to reduce GHG emissions by 50% and achieve Zero-Waste-to-Landfill(ZWTL) across our global manufacturing operations by 2025 aligned with SDG12:Responsible-Consumption-and-Production. This progress was mainly possible by utilization of IoT in our manufacturing facilities which would have provided real-time data to our Rheem-Energy-Management-Program.

3-Degrees of Leadership: We will train 250,000 plumbers/contractors on sustainable products and installation, along with recycling best practices by 2025.
Rheem’s dedicated global sustainability team publishes progress reports every year for above mentioned goals(Attachments5&6).

3.) How has the global drive towards AI impacted your business in terms of sales cycles, conversion rates of prospects to contracts and improved profitability? (215)

Answer: Global movement toward Aritificial Intelligence has definitely had an impact on the way we conduct the business. Rheem, same as other major manufacturers, is investing in Artificial Intelligence to enhance the sales cycles and profitability.

Some areas that Rheem is looking currently at for AI integration are as follow. First is utilization of AI to see sales trends and predict the customer and market behavior. This is a very powerful tool for us since it can assist us in developing product roadmaps which are more accurate than before.

Another area is integration of AI is in our online chatbots which can assist our customers by providing quick and accurate responses. We also believe AI can assist in providing useful insights to our sales and service team on what are the most commonly inquiries raised by our customers in the chat box.

4.) To what extent do you believe you have the scope to feel concerned about, and to contribute to, the socio-economic and sustainable development of the country, or countries, you are operating in? How frequently are you able to precisely meet the specific needs of consultants and of developers/builders (clients)? (216)

Answer: Rheem places a strong emphasis on contributing to the SDG. We have established a Product Excellence Panel (PEP) consisting of consultants, contractors, regulators. This collaborative approach ensures that our products align with the specific needs of market and clients. Our product development journey emphasized collating Voice-of-Customer (VOC). We engage with stakeholders, from project inception to completion, and actively incorporate their feedback (Attachments7&8).

Based on the VOC, a growing demand has been observed for smart and IoT enabled products and control platforms. That is why Rheem introduced EcoNet® and Smart Connect Ecosystem for its products which allows more sustainable operation and energy consumption of different Rheem’s air conditioning and water heating units.

5.) What steps have you taken to ensure cyber security, so that customers’ personal or business data are not compromised? (217)

Answer: Cyber security has been always Rheem’s major focus area. That is why we have dedicated global IT team consisted of Vice President, Directors, and Senior Managers. There is a specific Cyber Security team within this Global IT team. Apart from the global team, each of Rheem’s regional headquarters have their own dedicated IT teams to ensure IT and Cyber Security matters in the specific region are responded to immediately.

We follow strong measures on keeping privacy of data. For example, our mobile applications comply with all GCC data acquisition compliances.

Rheem provides mandatory IT and Cyber Security training for all its employees every quarter of the year which topics like phishing emails, phone calls, etc. are covered (Attachment9).

All Rheem folders are only accessible via Rheem VPN which restricts unknown users access to them.

6.) As manufacturer, supplier or service-provider, what specific actions do you take in terms of handholding on installation and training on operation, plus ensuring availability of aftersales support? (218)

Answer: In August-2020, Rheem opened its Innovation-&-Learning-Centre(ILC) in Dubai. In there, different ranges of Rheem’s products are shown in running conditions where service teams from different companies get hand-on training on products. Till date +2000 people are trained in this Centre. Furthermore, in February-2024, Rheem opened its biggest ILC in Riyadh to further upskill different individuals’ knowledge in sustainable commissioning and maintenance of products throughout the years(Attachment10).

We have introduced North-American-Technician-Excellence(NATE) certification program in GCC which guarantees quality of knowledge acquired by technical staff responsible for product installation and commissioning. Currently Rheem is training 100 NATE-certified technicians across GCC.

For our products, we have structured training modules that focus on installation, operation, and features/specifications. We also provide after-sales training on service/maintenance, which are crucial for optimal performance(Attachment11).

We offer access to Rheem Academy platform, where our service team, pro-partners, and customers can enroll in more than 500 online training courses.

7.) What pricing policy do you follow as a manufacturer, supplier or service-provider of IoT products or services? What are you doing to attract customers - innovative commercial contracts, project financing, etc.? (219)

Answer: Our existing pricing structure comprises of Material, Labor, Overhead, and Margin. To maintain competitiveness, we regularly conduct pricing checks with our competitors' rates to ensure that we offer our customers the best value for our products.

We also extend additional benefits such as cashback offers, which ensures that they reap financial rewards for orders.

We also provide comprehensive support services, including help desk assistance, complimentary NATE certification and Rheem Academy training, free branding materials, water heater selection software, and dealer incentive programs for our sales channels.

Our dedication continues throughout the project lifecycle, offering onsite and off-site technical support during installation, T&C and warranty period. We also have swift warranty claim processing, with most claims approved within just 30 minutes. In certain cases, we offer warranty extensions free of charge, tailoring our support to meet our customers' specific needs (Attachment12).

8.) What management strategies and guidelines have you established to counter payment delays and other such instances, which are affecting your cashflow as a manufacturer, supplier or service-provider, and are preventing an ideal building construction eco-system (involving all stakeholders) from forming? What creative strategies are you utilising to circumvent/overcome cash flow challenges? (220)

Answer: Rheem has established a framework of guidelines, internal controls, policies, and processes to ensure the effective management of cash flow within the organization.

To safeguard receivables, we have employed an approach that includes securing transactions with letters of credit, facilitating advance payments, and implementing credit insurance measures.

On the payables front, we always offer favorable payment terms for our distributors and customers. Furthermore, our regular cash flow forecasting plays a pivotal role in our financial strategy. Not only does it assist in predicting future expenditures for the business, but it also serves as a valuable tool for optimizing cash flow management throughout the organization.

9.) What do you envisage the future of IoT to be? What futuristic scenario are you working towards the supply of IoT devices and software? Are you providing completely cloud-based solutions on a recurring revenue model or on-premises installation of software for a one-time fee? (221)

Answer: We believe Artificial Intelligence will play a massive role in future of IoT. Real time operational data of the unit conditions and performance can be obtained and then analyzed with help of AI so that then unit can adjust parameters automatically to deliver optimum performance. Another use of AI is in enhancing end user experience by providing them with automation scenarios based on patterns that AI has been observed from the end user consumption and setting setups.

Our current cloud-based solutions for our users are all free of cost with software updates being readily available for free for our end clients and partners. For future, we are developing advanced controllers that make equipment operation and servicing easier, streamlining maintenance processes, and enhancing overall reliability. We are also working toward integration of AI into our products and control logics to improve system performance and reliability more than before.

Supporting documents:
References:CCAUAE2426 || imran.master@rheem.com

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