SMART MOBILITY IN SMART CITIES

CINEV – Hong Kong (24 November 2015) © Sylvie Faucheux, Isabelle Nicolaï, Martin O’Connor — Smart Mobility in Smart Cities Presentation — Page 1
CINEV — China International New Energy
Vehicle Show
SMART MOBILITY IN SMART CITIES
24-25-26 November, Asia-World Expo Hong Kong
Round Table 2: Success stories of Urbanization & New Concepts of cities in Europe and
China
17:00 – 18:00pm, Tuesday 24 November 2015.

BUSINESS MODELS AND THE DIFFUSION OF INNOVATIONS
IN THE SMART-MOBILITY SECTOR

Sylvie Faucheux,
Professor of Economics, LIRSA, CNAM (Paris, France)


TABLE OF CONTENTS — BUSINESS MODELS AND THE DIFFUSION
OF INNOVATIONS IN THE SMART-MOBILITY SECTOR
1. Smart-Mobility : The Context and the Challenges
2. From Disruptive Innovation to New Business Models
3. The French Example of VEDECOM Institute
4. Conclusions


1. SMART-MOBILITY : THE CONTEXT AND THE CHALLENGES

• Smart-Mobility solutions are disruptive innovations involving paradigm shifts
because it is linked to radical technological innovations and to end-use
innovations.

One of the most striking features is the vision of the automobile
not as a possession but as simply an element in the mobility chain.
An illustration is the B2B model, where a mobility operator makes available to users
the means of transport adapted to their needs (e.g., a real-time multimodal service;
Peugeot’s Mu; the Orange fleet of ‘connected’ vehicles; Citroën with a high degree of
personalisation of the vehicle).
This combination of new technological possibilities and new conceptions of the
mobility “needs”, has the effect of completely reshuffling the deck as far as market
opportunity.

• Smart-Mobility impacts on the structure of supply and the patterns of
goods/service demand.
• Smart-Mobility is provoking substantial change to the existing “ecosystem” of
mobility markets.

For example, on the supply side: a pronounced shift in the mix of partners in the value
chain with, (1) integration of ‘new’ actors notably from the electrical, electronics and
information technology sectors; and, (2) modification of the roles (and in some cases
the disappearance altogether) of traditional partners (for example, the distributors of
refined petroleum products have a much reduced place in the production and
servicing of electric cars…).

THE EVOLVING ECOSYSTEM OF SMART-MOBILITY INNOVATION

The Questions….

- How innovation waves coming from different sectors can be linked or
melded?
- What are the impacts of the merging business models for the diffusion
of these innovations on the wider “ecosystem” of mobility ?


1. FROM DISRUPTIVE INNOVATION TO NEW BUSINESS MODELS
The business model for a disruptive innovation is a tool of creative destruction, it is
integrative in new ways of the factors and partners in value creation.
• These new partnerships involves a new cooperative economic governance :
ØA behavioural component: the actors should be united in a “win-win” logic,
with an attitude of shared or reciprocal confidence in.
ØA knowledge management component: procedures for information sharing.
ØAn organisational component: The partners has to seek to establish
frameworks such as joint projects or task forces requiring collaboration
between partners, in this way both promoting mutual understanding and
encouraging “fair play.
• To have the benefice of a Shared Value according to “open innovation” or “Open
business”:
ØPromoting the explicit alignment of the interests of business partners, so as
to provide a clear basis for cooperation.

ØEnsuring the coordination of joint work programs with a clear division of
labour agreed by all parties and accountability on terms of results.
ØEnsuring that the added-value created in collaboration of shared in an
equitable way and not appropriated by one partner in the commercial
relation.


3.The French Example of VEDECOM Institute
Véhicule Décarboné Communicant et sa Mobilité /Carbon-free, communicating vehicle and its mobility
• VEDECOM is one of a small number of national Institutes for Energy Transition set up
in France during the past five years as part of the Plan d’Investissement d’Avenir (the
French national long-term research and technology investment plan for the future).
• VEDECOM is based in Versailles and is supported logistically and financially by Mov’eo
(the French mobility business cluster) and by local governance communities.

•
•
• Urbanization plan of the park on
‘Mobilities of the future’ with VeDeCoM
("Charte paysagère et urbaine de Versailles Satory-Ouest", Etablissement Public Paris-Saclay, 2013)

• VEDECOM intends to become a leading European institute for Smart-Mobility .
As set up in 2012, the Institute comprises more than 40 members of industry and service
sectors (automotive, aeronautics, system engineering, electronic components, ITC,
numerical simulation, infrastructure management, transport operators, digital and energy
grid operators), plus research and higher education institutions, and of local communities.

• The VEDECOM partners have agreed to collaborate on a spectrum of
pre-competitive and pre-normative research subjects.

ØThe research and demonstration activities at VEDECOM are organized in two
programmes: "Vehicles" on the one-hand, "Eco-Mobility" on the other hand.
ØThe projects belong to three research domains on "Vehicle Electrification", "Driving
Delegation and Connectivity" (which cuts across the two domains), and "Shared
Mobility and Energy" in terms of infrastructure and services.
Each domain comprises several research projects on technology and service bricks and
associated demonstrators.

Source : http://vedecom.fr/en/.

THE VEDECOM COLLABORATIVE RESEARCH THEMES

• The VEDECOM Institute is based on a novel and unprecedented collaboration between
industries of the automotive sector, infrastructure and services operators in the
mobility eco-system, academic research institutions, and local communities.
• The institutional innovation has broken down old boundaries and built new
relationships at all levels, in order to engage an “open innovation” process in several
senses of the term: open to new ideas, open to new business models with consumers,
open to new working relationships with territorial authorities (mobility services,
networks and infrastructures).
• The VEDECOM partners identify explicitly the challenge of building a common
platform as a springboard for launching into an as-yet poorly defined future. Among
the mechanisms of collaboration, they have defined:
Á A domain of pre-competitive innovation and intellectual property (IP) .
Á A phase of pre-normative activity, prior to establishment of regulations, at local,
national and European levels.


4. CONCLUSIONS
The open innovation process is very much larger than simple sharing of technologies
and know-how. It extends to the “invention” and the governance of partner relations,
with the accent on ongoing team building in the search of new shared opportunities.
Á On the supply side: As in the VeDeCom consortium, the challenge taken up is for the
partners to be a “winner” collectively, not one to win against others in the team.
Á On the demand side: Infrastructure development in support of smart-mobility (e.g.,
frequent & accessible electric car charge points; cheap and reliable data services for
modal shifts, etc..) is a necessary condition for uptake of smart-mobility innovations.


Thank you

Sylvie Faucheux,
Professor of Economics, LIRSA, CNAM (Paris, France)
Isabelle Nicolaï,
Professor of Economics, Laboratoire Génie Industriel, CentraleSupélec, UPSay (France)
& Martin O’Connor,
Professor of Economics, REEDS, UPSay (France)

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