Reinventing the Car as a Service - Summary


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Provides a summary description of a proposal to redefine the car as a service by optimizing across the entire fleet rather than a single unit.

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Reinventing the Car as a Service - Summary

  1. 1. REINVENTING THE CAR AS A SERVICE Strategy to allow for sustainability in the Auto Industry
  2. 2. BACKGROUND  The automobile industry has suffered severely in the economic downturn  Part of the reason for this is that the auto makers failed to innovate and provide the type of cars market wants  BUT many trend-watchers state people are buying less cars in general  They are holding on to their current cars longer and looking for alternatives to buying new ones ©Mauro Forcolin 2009 Page 2
  3. 3. PROPOSITION  Rather than selling cars, auto-makers should provide “personal transport service” to it’s customers  Customers would not have to buy and “own” cars, to make use of the car “service” and other related services  Customer will have control of a car, but not necessarily the identical one over time.  Cars will be interchanged to optimise efficiency across the entire fleet ©Mauro Forcolin 2009 Page 3
  4. 4. CURRENT STATE  There are many options to have ascess to a car service without ownership  Leasing  Greenwheels   Etc.  BUT the car is always manufactured as an item to be owned and then replaced for a new one  Efficiency is geared towards individual cars, not across the designmanufactureservice process  Devaluation is still a hurdle to investment ©Mauro Forcolin 2009 Page 4
  5. 5. BUSINESS CHANGE  Cars no longer have to built and maintained as individual items  Rather than repair, they can be replaced  Component parts are reused where most needed  Efficiency strategy across entire fleet rather than single car  “New” loses its meaning; cars can be “built” from parts taken from those brought in for servicing  Auto-makers become “auto-assemblers”  Jobs will remain in both assembling and disassembling cars ©Mauro Forcolin 2009 Page 5
  6. 6. DESIGN FACTORS 1  Focus on inter-changeability and processes to optimise assembly and disassembly  “assembly” & “disassembly” lines working together in factories  No need for entirely new models as changes can be introduced gradually across the field  Engineers can accurately determine the lifetime of particular parts  Cars can be assembled so that chance of failure across all car is consistent  Lowers risk/cost of performing repairs when 1 thing fail while the rest works fine ©Mauro Forcolin 2009 Page 6
  7. 7. DESIGN FACTORS 2  Particular cars/parts can be phased out prior to their failing  Once the statistical chance of failure is high enough, they can be removed from the fleet  Knowing extent of component use and in which environment are necessary to create an efficient system  Accurate and robust lifecycle of components must be maintained ©Mauro Forcolin 2009 Page 7
  8. 8. DESIGN FACTORS 3  Make as few things as possible distinguishable between “new” & “used”  Interiors: as that is where users interact with the car & leave their personal marks  Exterior paint/colour schemes – especially for government orgs & companies  Keep “feels like new” sensation across all cars  Customers will not be attached to an “individual” car, so as long as key features seem new, the rest won’t matter ©Mauro Forcolin 2009 Page 8
  9. 9. KEY TECHNOLOGY - RFID  RFID tags on each component allow it to be tracked and it’s history viewed  Can be used to recombine parts of equal age/wear  Keep track of parts needed vs. available in all cars in fleet  Determine if certain environments abuse cars by the level of damage over time  Customers can see the various configurations their car has been in before they had it  A source to build communities & sense of continuity  For a premium, customers can request specific configurations  Integration with services using same technology ©Mauro Forcolin 2009 Page 9
  10. 10. PROCESS EVOLUTION 1. All components are new ©Mauro Forcolin 2009 Page 10 2. Most components come from fleet • Manufacturing becomes interconnected
  11. 11. KEY MARKETS  Local, State & Federal Governments  Have a requirement to reduce carbon footprint yet still need large number of vehicles  No interest in maintaining fleets themselves  Environmentally-conscious consumers  Interested in the service quality & renewability rather than ownership  Rental & car-share schemes  Can focus providing service rather than fleet maintenance ©Mauro Forcolin 2009 Page 11
  12. 12. BUSINESS MODEL  Subscription payments which change depending on extras  customisation: pay to keep exact interior or request a particular car part (i.e. engine that belonged to a celebrity)  Leverage RFID technology imbedded in cars  Buy services in bulk to resell to customers  Parking, road tolls/reserved lanes, theft tracking, car insurance, etc.  Collect & sell customer habits for targeted advertising & services  Benefits & subsidies by reduced CO2 fleet & using “green” manufacturing methods  Reduce number of “new” replacement parts that have to be made ©Mauro Forcolin 2009 Page 12
  13. 13. BRANDING  A car that is constantly re-invented from it’s previous existences  Symbolic of cyclical renewal & sustainability  Yet each incarnation can be special  Driven by a particular person or was part of a specific event can add value/desire  Removable “car bling” you can take with you  More than just a car; rich services provide for all those hassles associated to car driving  Focus is NOT on making having a car pleasurable, but on forgetting one has a car at all ©Mauro Forcolin 2009 Page 13
  14. 14. THE END Or the beginning… if these ideas are put into practice