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Embracing Endogenous Sources of
 Innovation: eMobility in Poland

          TEAM NAME: PARAGON
     TEAM MEMBER/LEADER: JAMES YAN
           MASSACHUSETTS, USA
  HARVARD UNIVERSITY EXTENSION SCHOOL
Recap: First Round

 To maintain economic competitiveness in the next decade, Eastern
  Europe must progress toward an innovation-driven, knowledge-based
  economy
 Envisioned future companies in EE must develop innovative business
  models and create products with clearly identifiable unique selling
  propositions (eliminate the stereotype that EE is merely an
  “outsourcing backyard”)
 EE countries should change in the following ways: strive for at least 3%
  of national GDP devoted to R&D, raise tertiary enrollment rates to at
  least 40% of the population, promote greater market competition,
  encourage the growth of venture capital to finance new business
  ventures
 Most promising EE industries identified in Round 1 include: energy
  and clean-tech, IT and telecoms, pharmaceuticals and healthcare (all
  are considered high-tech industries)
My Vision - Establish a specialized electric vehicle (EV )
                        company in Poland
Why eMobility (electric mobility)?
• Scarcity of fossil fuels and rising oil prices signal that before
  long eMobility will become a strategic necessity
• Positive externalities: reduction in greenhouse gas
  emissions, reduced noise pollution, less oil dependency
• Frost and Sullivan predicts that the increasing demand for
  convenient, eco-efficient EV’s will prompt the EV market in
  EE to grow by 151% between now and 2017 and even more
  after that.
• A conspicuous absence of domestic EV producers                 in
  Poland means that my visionary company will benefit from
  first-mover advantage; currently, foreign-produced EV
  imports are very expensive (exceeding $30,000 USD) and
  are beyond the reach of the average Polish citizen
Why Poland?
• The establishment of an EV company makes full use of Poland’s
  strengths – allowing well-educated scientists to innovate in the
  clean-tech industry while preserving the country’s cost-
  competitive manufacturing base. The product is a high-quality       PISA Education Rankings: Poland
  EV at an affordable price.                                          ranks above Germany and the United
• Large domestic market with a population of nearly 40 million        States (indicating a very well-educated
                                                                      Polish labor force)
Multistakeholder Analysis

The stakeholders are the relevant individuals, companies, or organizations that play a pivotal role
in determining the outcome of my vision. I have identified three major stakeholders. Engagement
with each of these stakeholders is paramount for my vision to come to fruition.
 Charging station providers: From the perspective of an EV manufacturer, the availability of
   charging stations is of the utmost importance. The presence of a dense charging point
   infrastructure is absolutely critical. EV drivers need to feel secure that they will not be left out in
   the cold when their battery is low – they want to see as many charging stations as possible in
   both public spaces and residential areas. The greater the number of charging stations, the
   higher the demand for EV’s in Poland.

   Government/municipalities: National and local governments can support EV companies
    by outlining a clear long term eMobility strategy. Actions from the government include
    subsidies for EV buyers and tax breaks for EV companies. EV companies are likely to thrive in
    an environment where the government co-finances private R&D. For example, in 2011, the
    Polish government provided 5 million EUR to the Mielec Regional Development Agency for
    R&D in battery technology.

   EV buyers: The key is to develop an effective marketing and sales strategy that will generate
    greater public awareness for EV’s in Poland. Public awareness is critical, especially among the
    young, eco-conscious, urban population. After all, it is the consumers who ultimately determine
    the success or failure of a company. If consumers are not aware of the benefits of EV’s, they are
    unlikely to buy one. An aggressive promotional “pull strategy” must be implemented to
    stimulate buyer demand. Leveraging social media sites as an advertising platform may prove to
    be a useful marketing strategy.
(My interviews with these stakeholders are described in detail in my project report.)
Timeline of Vision

 Between 2013 – 2017, the main focus should be on R&D and generating public interest. A
  strategic partnership with charging station providers should be formed. Senior company
  executives should politely pressure government officials to implement eMobility-friendly
  legislation as soon as possible. Marketing and Sales must also leverage the online platform
  to develop an omni-channel sales strategy. At this point, battery technology is not yet
  mature enough to allow for a dramatic reduction in selling price – the limited number of
  EV’s is therefore geared toward affluent urban residents in Poland’s largest cities.
  Attracting a few “lighthouse customers,” such as mayors or prominent politicians, would
  greatly enhance the company’s image.
 Between 2018 – 2022, the main focus should be on rapidly gaining and consolidating
  market share. At this stage, battery technology will have likely matured to the point where
  large reductions in selling price would be possible, enabling the EV to reach the general
  public. Depending on market demand, limited quantities may be exported to neighboring
  countries with relatively high purchasing power: Czech Republic, Slovakia. Economies of
  scale are achieved.
 After 2022, the main focus should be on profit maximization and continuous optimization.
  By this stage the company will be a thriving business. Even though new competitors may
  emerge, they will be put at a significant disadvantage since it is extremely difficult to win
  market shares over established players at later stages.

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[Challenge:Future] Embracing Endogenous Sources of Innovation: eMobility in Poland

  • 1. Embracing Endogenous Sources of Innovation: eMobility in Poland TEAM NAME: PARAGON TEAM MEMBER/LEADER: JAMES YAN MASSACHUSETTS, USA HARVARD UNIVERSITY EXTENSION SCHOOL
  • 2. Recap: First Round  To maintain economic competitiveness in the next decade, Eastern Europe must progress toward an innovation-driven, knowledge-based economy  Envisioned future companies in EE must develop innovative business models and create products with clearly identifiable unique selling propositions (eliminate the stereotype that EE is merely an “outsourcing backyard”)  EE countries should change in the following ways: strive for at least 3% of national GDP devoted to R&D, raise tertiary enrollment rates to at least 40% of the population, promote greater market competition, encourage the growth of venture capital to finance new business ventures  Most promising EE industries identified in Round 1 include: energy and clean-tech, IT and telecoms, pharmaceuticals and healthcare (all are considered high-tech industries)
  • 3. My Vision - Establish a specialized electric vehicle (EV ) company in Poland Why eMobility (electric mobility)? • Scarcity of fossil fuels and rising oil prices signal that before long eMobility will become a strategic necessity • Positive externalities: reduction in greenhouse gas emissions, reduced noise pollution, less oil dependency • Frost and Sullivan predicts that the increasing demand for convenient, eco-efficient EV’s will prompt the EV market in EE to grow by 151% between now and 2017 and even more after that. • A conspicuous absence of domestic EV producers in Poland means that my visionary company will benefit from first-mover advantage; currently, foreign-produced EV imports are very expensive (exceeding $30,000 USD) and are beyond the reach of the average Polish citizen Why Poland? • The establishment of an EV company makes full use of Poland’s strengths – allowing well-educated scientists to innovate in the clean-tech industry while preserving the country’s cost- competitive manufacturing base. The product is a high-quality PISA Education Rankings: Poland EV at an affordable price. ranks above Germany and the United • Large domestic market with a population of nearly 40 million States (indicating a very well-educated Polish labor force)
  • 4. Multistakeholder Analysis The stakeholders are the relevant individuals, companies, or organizations that play a pivotal role in determining the outcome of my vision. I have identified three major stakeholders. Engagement with each of these stakeholders is paramount for my vision to come to fruition.  Charging station providers: From the perspective of an EV manufacturer, the availability of charging stations is of the utmost importance. The presence of a dense charging point infrastructure is absolutely critical. EV drivers need to feel secure that they will not be left out in the cold when their battery is low – they want to see as many charging stations as possible in both public spaces and residential areas. The greater the number of charging stations, the higher the demand for EV’s in Poland.  Government/municipalities: National and local governments can support EV companies by outlining a clear long term eMobility strategy. Actions from the government include subsidies for EV buyers and tax breaks for EV companies. EV companies are likely to thrive in an environment where the government co-finances private R&D. For example, in 2011, the Polish government provided 5 million EUR to the Mielec Regional Development Agency for R&D in battery technology.  EV buyers: The key is to develop an effective marketing and sales strategy that will generate greater public awareness for EV’s in Poland. Public awareness is critical, especially among the young, eco-conscious, urban population. After all, it is the consumers who ultimately determine the success or failure of a company. If consumers are not aware of the benefits of EV’s, they are unlikely to buy one. An aggressive promotional “pull strategy” must be implemented to stimulate buyer demand. Leveraging social media sites as an advertising platform may prove to be a useful marketing strategy. (My interviews with these stakeholders are described in detail in my project report.)
  • 5. Timeline of Vision  Between 2013 – 2017, the main focus should be on R&D and generating public interest. A strategic partnership with charging station providers should be formed. Senior company executives should politely pressure government officials to implement eMobility-friendly legislation as soon as possible. Marketing and Sales must also leverage the online platform to develop an omni-channel sales strategy. At this point, battery technology is not yet mature enough to allow for a dramatic reduction in selling price – the limited number of EV’s is therefore geared toward affluent urban residents in Poland’s largest cities. Attracting a few “lighthouse customers,” such as mayors or prominent politicians, would greatly enhance the company’s image.  Between 2018 – 2022, the main focus should be on rapidly gaining and consolidating market share. At this stage, battery technology will have likely matured to the point where large reductions in selling price would be possible, enabling the EV to reach the general public. Depending on market demand, limited quantities may be exported to neighboring countries with relatively high purchasing power: Czech Republic, Slovakia. Economies of scale are achieved.  After 2022, the main focus should be on profit maximization and continuous optimization. By this stage the company will be a thriving business. Even though new competitors may emerge, they will be put at a significant disadvantage since it is extremely difficult to win market shares over established players at later stages.