Home : Innovation : Environmental Technologies : Case Studies of Successful Environmental Technology Companies in Western Canada
Case Study #2
Ground Effects Environmental Services Inc.
Regina, Saskatchewan
Phone: (306) 352-1400
Website: www.groundeffects.org
CEO: Sean Frisky
Company facts:
Year founded: 1998
Employees: 23
Revenue growth: double sales every year (over $1 million in 2003)
Sean Frisky incorporated Ground Effects Environmental Services(Ground Effects), a company that develops vapour extraction units at gas stations to remove petroleum products from the surrounding soil and groundwater. Before Ground Effects entered the market, these units were notoriously unreliable. He began experimenting with different technologies to improve the reliability of the unit and proposed the new system to his employer. Impressed with his innovative approach, his employer decided to give the new technology a try and Ground Effects had its first customer.
Ground Effects has developed technologies to remove oil and other volatile organic compounds from contaminated soil and ground water. Until recently, contaminated sites were excavated and contaminated material was landfilled. Ground Effect has developed a product line that tackles underground contamination on-site. The company's products measure the contamination and its impact, and remove this contamination through vaporization, oxygenation, liquid suspension, filter, and vacuum technologies. The resulting solutions provide an effective, economical, and low maintenance clean-up solution to customers.
Systems engineering approach solves a business problem
"Traditional engineering takes a stovepipe approach. Sean is a new kind of engineer," explains Dennis Belliveau, the Industrial Research Assistance Program (IRAP) advisor who worked with the young company to develop their product. Belliveau is referring to environmental systems engineering. "The systems engineer looks to the source of the business problem and can see the complex network of factors that cause and can solve the problem." For Ground Effects, this capability translates into elegant product design. "Our systems use 30% fewer moving parts than the competitor which means fewer breakdowns and greater reliability for the customers," explains Sean Frisky. With little to choose from, customers had become used to poor reliability from vapour extraction units. "It was not uncommon for these units to operate only 20% of the time," explains Dennis Belliveau. The improved and streamlined design introduced by Ground Effects has improved the reliability of these systems to 99%.
Customer relationships pay off
Ground Effects epitomizes a market-driven company. Constant communication with product users provides the company with direction to expand their product line. "Sean has great contacts with some of the largest oil and gas companies in Alberta, such as Shell. He is able to sit down with these companies and talk about their long-term needs," says Peter Beaulieu, the IRAP advisor who has worked with the company most recently. The company stays just ahead of the demand curve, minimizing research efforts in favour of rapid commercialization. Ground Effects began expansion with add-ons to their existing products. Soon, the company was developing entire systems for their customers. "Sean is able to see what customers need, and present a solution they had never imagined," explains Beaulieu. For example, some of the solutions Ground Effects have produced are entirely self-sustaining, using the contaminants removed from the environment to fuel the extraction units. Customers are so impressed with the company's ability to innovate that they have now started to partner with Ground Effects to fund joint research and development projects. "These companies have a great need for new technology but nowhere to turn for development services. They have partnered with us because innovative development is our specialty," says Sean Frisky.
Product design and manufacturing capability facilitate rapid response
Ground Effects is able to take an idea generated in a customer meeting and develop it into a new add-on product or system in a matter of weeks. The key to this speed to market is a combination of product design and manufacturing capabilities. The company is able to anticipate the future needs of customers and incorporate these features into product design. "It is not uncommon to see flanges on the product that allow easy interchange of add-on parts or different power sources. The product can be easily modified rather than starting from scratch with an entirely new part," explains Peter Beaulieu. Innovation at Ground Effects is prolific. The company has developed over 100 products, some of which are not available anywhere else in the world. "We have just completed our first comprehensive catalogue. Customers are used to working with us to develop a specific solution to their problem. They are shocked when we hand them the catalogue and they see the scope of our operations," says Sean Frisky.
Branding Excellence
"The products Ground Effects produces are first class quality. The company does their own manufacturing – it is a work of art," says Dennis Belliveau. When IRAP and Ground Effects investigated introducing the practice of lean manufacturing to the firm, they realized that the basic components were already in place. The company keeps a small inventory of frequently used components, is based on quick delivery to market, and minimizes processing requirements. The high quality of Ground Effects' products can be seen in every aspect of the company. With just 23 employees, the company is in the process of becoming ISO certified. "There are only about 25 ISO certified companies in Saskatchewan and very few of these are environmental technology companies," says Dennis Belliveau.
The Results
Since its inception five years ago, Ground Effects Environmental Services has doubled the company's revenue each year, expanded sales internationally, and grown to a staff of 23 people. Increasing their product line at an astonishing rate, the company has surpassed their competition to claim the position of market leader in Canada and provide products that are known as the "Mercedes" of the industry.
Analysis of Company Success Factors
- The company entered a market primed for innovation. Incumbent products were unreliable and customers had nowhere to turn for improvements. Ground Effects product performance results in a clear strategy for product differentiation.
- Simple but robust product design has improved product performance, increased innovation capacity, decreased time to market, and reduced ongoing development and manufacturing costs.
- The company expanded product offerings in many directions including add-on products, business solutions, "turnkey" projects, and joint research and development. This multi-faceted expansion has improved product performance, increased revenue streams, and developed ongoing customer relationships.
- Maintaining control of manufacturing capabilities has enabled the company to brand excellence and increase speed to market.
- Vigilant attention to customer needs maintains viability of market-driven approach.