modularity in electric vehicle - faee€¢ bicycle(fixson & park, ... • mirroring is supported...
TRANSCRIPT
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Challenges: EV
EV not only challenges electricity network But also set challenges to automobile sector
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EV: challenges to automobile industry
• How car-makers manage the design and production of EV?• Less valued knowledge over Engine
• Lack of knowledge on battery, recharging system
• Recharging system within scope? Problem on range anxiety and chicken-and-egg question
• Firm boundary in the competition for EV dominant design?
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Mirroring Hypothesis and Integrality in the Electric Vehicle Industry: Evidence from Tesla Motors
CHEN Yurong , CHOWDHURY Shamsud, DONADA Carole & PEREZ Yannick
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Introduction: mirroring hypothesis in the context of EV
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Vertical Integration and Mirroring hypothesis
Vertical Integration
Product architecture: Modularity and integrality
“Mirroring”
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VI and Mirroring hypothesis in auto industry
early 20th century early 1990s Now
Increasing vertical integration
Decreasing vertical integration
Outsourcing => Modularization in automobile product (Argyres & Bigelow, 2010; MacDuffie, 2013; Sako, 2003, etc.)
Source: (Huth, Wittek, & Spengler, 2013)
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Mirroring hypothesis in EV industry
EV industry:• Product architecture?
• Vertical integration level?
• Mirroring hypothesis?
early 20th century early 1990s Now
Increasing vertical integration
Decreasing vertical integration
EV
– just refit ICE with electric motor, tank with battery pack? - Modular architecture?
– buy battery pack, Rely on public recharging system? VI disintegration ?
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Mirroring hypothesis in EV industry
Two approaches in the search of dominant design refitted EV
• minimizing changes in their existing production infrastructure, capabilities, and network of external partners.
• E.g. BMW Mini E and Mitsubishi i-MiEV, Tesla Roadster• “Business as usual” vertical disintegration
purpose designed EV• new vehicle design with an idiosyncratic architecture • EV = auto industry + electricity industry• E.g. Tesla Model S, BMW i3, and Nissan Leaf• Product Architecture? Vertical integration? Mirroring hypothesis?
Less manufacturing costs/ impact on electricity network->Range anxiety problem!
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Mirroring hypothesis of Modularity and integrality
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Modularity and integrality in product architecture design
Complex product
With modularity With integrality
Component level innovation Architecture innovation
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Modularity and integrality in product architecture design• Product architecture
• A scheme by which the functional elements of the product are arranged (or assigned) in to physical building blocks and by which the blocks interact (Ulrich, 1995)
Modular product • shows “one-to-one mapping between
functional elements and components.”• includes de-coupling interfaces.
Integral product• shows “one to more” or ”more to
more mapping”• includes coupling interfaces
Funtional mapping/ function component allocation interface
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Mirroring hypothesis of modularity and integrality
Transaction cost theory:
Integral product- specific asset, and
potential hold-up situation with suppliers-
high transaction cost - VI
Vertical integration
ModularityIntegrality
Vertical disintegration
Product architecture
Organizational structure
One• Bicycle(Fixson & Park,
2008)
Abundant empirical studies:
• Mirroring is supported in the 70% of thecases (Colfer and Baldwin, 2010 )
• PC (Baldwin and Clark, 2000; Langloisand Robertson, 1992)
• Early U.S. Auto (Argyres & Bigelow,2010)
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Empirical case study from Tesla Motors
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Case study approach
Tesla Motors
• Purpose designed EV
• Successful player in EV industry
2008-2012 2012-now Oct. 2015- now March 31, 2016
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Research design
• Key Components and interfaces
Architecture of Tesla Model S
Measures- Function- component allocation ( Fixson, 2005)- Design structure matrix map (Baldwin & Clark, 2006)- Vertical integration
Other components in
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Function Component allocation
Function-component allocation scheme of Model S
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Coupling character of Interfaceselectrici
ty
network
size
/number
electrical
spec.
capacity/
size
electrical
spec.
energy
managem
ent
system
electric
spec.
physical
output of
plug
body
material
arrange
ment
vehicle
control
system
fast
charging
technolog
y
requirem
ent
electrical
spec.
physical
specific
of plugs
location
size /number
electrical spec.
capacity/ size
electrical spec.
energy
management
system
X X
electric spec. X
physical output of
plugX X
body material X
arrangement X
vehicle control
systemX
charging
technologyX
electrical spec.
physical specific of
plugs
location X X
Electricity network
Electric
motor
Battery
pack
Charger
Vehicle
Charging
system
Electric
motorBattery pack Charger Vehicle Charging system
design structure matrix map of Model S
- Vehicle body designModel S: 85-90kWh battery pack ~ 544 kg,Same size conventional car ~ 2,000 kg Aluminum vehicle body
2,108 kg - (85 kWh battery pack)- Shape of battery pack- Allocation of components
- Fast charging technology- Location of recharging network- Battery energy management systemIn 2012, supercharger station can only support of Model S with certain type battery pack (upgrade in hardware and software of battery pack)
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Vertical integration of Tesla
Vertical integration strategy of Tesla Motors
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Mirroring hypothesis in Tesla?
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Basically, the case of Tesla supports mirroring hypothesis of integrality
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Drives for mirroring hypothesis in Tesla
Integrality
Vertical integration
Vertical disintegration
Modularity
Differentiation strategy of TeslaCommitment for “range anxiety reduction”
External environment
• Differentiation strategy of Tesla :ambitious goal for largely reducing range anxiety• Integrality of Model S -> VI of Tesla: Transaction cost• External environment: other stakeholders in the ecosystem are unwilling to invest directly in
charging system
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Power of integrality: Compete in the nascent EV market • Modular EV vs. Integral EV
• History of modularity in auto-industry
• Less components, modularization is relatively easy in electronical components -> not true for recharging system
• Architecture innovation vs. component innovation
• Emerging EV market: competing for market share, developing features that attract customers. e.g. range anxiety issues
• Integrality may be essential for compete with Tesla for relevant EV market segment to reach high vehicle performance
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Conclusion
• The case of Tesla Motors, verifies the mirroring hypothesis of integrality that higher integral product architecture corresponding to higher vertical integration level of firm.
• Our work contributes to the debate over integral or modular EV architecture for current nascent EV market
• Future research: Extend the frame to other EV firms: e.g. BMW-I, Dynamic of integrality and modularity and VI/DVI in EV architecture choice: regarding product- company life cycle, generic strategy …
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Thank you for your attention!