“The world is moving from car ownership to car usership”
A BBC News article provides a great insight into the revolution in the making that the car industry is about to go through. KPMG sums it up in their annual survey of the auomotive industry: “The world is moving from car ownership to car usership.” Arguably it will take longer than headline-grabbing statements suggest, not least because a large section of the consumer base still feels a strong emotional connection to the car they own or that they wish to own, but it is undeniably underway. Read more…
Don’t expect electric cars to substitute motor cars like-for-like
Disruptive innovations often combine a changes on several dimensions: product, consumer experience, market segment, business model. The emblematic example remains the iPod, which would not have met its phenomenal success if it had not been associated with the business model change that iTunes brought to the music distribution industry. Like-for-like substitution of the old product by the new product, everything else being equal, is rarely a recipe for breakthrough innovation.
Take the electric car. The current focus of the auto industry is to increase battery autonomy and drastcially reduce recharging time in order to mimic the experience that the motorist currently gets when driving long distances refuelling along the way in a few minutes. This is almost certainly a lost cause! Read more…