Contactless IC Vendor Matrix

ABI Research evaluates vendors on the basis of Innovation and Implementation by selecting multiple criteria related to product/company characteristics that serve as proxies for the vendors' performance in these two areas. Vendors are assigned numerical scores that are aggregated and analyzed to provide overall rankings of each vendor on the Innovation and Implementation axes.

For the evaluation of contactless payment IC vendors, relevant criteria included: product and manufacturing innovation and feature set; key roles in developing and expanding the market through industry leadership and knowledge transfer; global capacity; reach and support; vertical market focus and product adoption, as well as cross-regional delivery and adoption.

Vendors receive a ‘rating score’ for each ABI defined criterion under Implementation and Innovation. These scores range from 0-9 and are based on available information as well as ABI assumptions. The number of criteria for Implementation and Innovation may vary; however, this does not impact vendor ranking.

The rating scores assigned for each criterion are added to determine a ‘raw total score’ for Implementation and Innovation. A mathematical formula is then applied to adjust for the 0-9 rating system and the number of criteria so that vendors can be positioned along the x- and y-axes (with a maximum score of 100 for Implementation and Innovation). The mathematical formula does not impact vendor ranking. Please also be aware that no weighting system is used, as each criterion carries equal weight.

Top 10 Listing:


Rankings



After individual scores are established for Innovation and Implementation using the above criteria, an overall company score is established using the Root Mean Square (RMS) method:




The resulting overall scores are then ranked and used for percentile comparisons.

The RMS method, in comparison with a straight summation or average of individual innovation and implementation values, rewards companies for standout performance.

For example, using this method a company with an innovation score of 9 and an implementation score of 1 would score considerably higher than a company with a score of 5 in both areas, despite the mean score being the same. ABI Research believes this is appropriate as the goal of these matrices is to highlight those companies that stand out from the others.