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POWER-UP

A strategy for building Tesla charging stations in Beijing

This project is dedicated to my parents,


who have always supported me and
have given me a wonderful life. Theyve
made me strong and brave, and I am
sincerely grateful for all theyve done. Im
proud to be their son.
The project is also dedicated to the
place where I was born: Beijing. It has
been my home for twenty-five years.
Ive experienced great change in the

city over my lifetime, and have also


witnessed the growing issue with air
pollution. My greatest wish is that this
project assists with that problem.
Last, but not least, I dedicate this project
to myself, as a reminder that all effort is
worth it. Pouring effort into my passions
creates a positive life. This is a reminder
to work hard and go forth with a smile
on my face.

I Hate smog
Subject of the study

Target audience

Tesla is a car manufacturing company


that produces vehicles that are
electrically operated. The study
researches how to develop electric
charging stations for Tesla vehicles.

The study mutually benefits electric


vehicle manufacturers and Chinese
consumers. For this project, Tesla
has a framework that supports
building electric infrastructures
that are appropriate for the Chinese
market. Consumers will have a better
experience as electric car drivers.

Problem statement
Tesla has limited sales because of
various issues including parking
space, power network and access to
build electric chargers in China. To
increase sales, Tesla must expand the
availability of charging stations for
Tesla customers.

Opportunity statement
An opportunity exists to conduct
research from the perspective of EV
manufacturers to identify and reframe
the various of limitations by using
design thinking and management
process.

Marketing Analysis

Sinopec:

Chargerlink:

The charging stations will play


important roles in the industry of
electric vehicles. Compared with
traditional gas stations, which are
occupied by state-owned businesses,
the construction of charging
station offers opportunities for
young enterprises. As of now, the
construction of charging stations offers
no benefits to stakeholders. However,
The State Grid, Sinopec, Potevio, Vanke,
and Wanda have already been building
or have planned to build electric
infrastructure by using their own
resources.

In 2010, Sinopec worked with Beijing


Capital Technology Cooperation to
created a subcompany named Sinopec
and New Energy Cooperation. Electrical
safety is their main challenge because
Sinopec must cooperate with a grid
company to build a charging station.
Huge networks of gas stations and
services are beneficial to the success
of Sinopec. Why are gas stations a
strength? It seems that gas stations and
gas-powered cars are in competition
with Tesla and the electric car industry.

Chargerlink is the only partnership with


Tesla for diffusion charging stations. It
provides a platform for both consumers
and business owners to build public
charging stations in their private
parking areas. Tesla drivers can use the
Chargerlink app to find and use those
charging stations. The app also allows
people to find those who drive the same
Tesla model.

Potevio:

Real estate:

Potevio New Energy Cooperation


was established by two state-owned
cooperations: PertoChina and Potevio.
They play the roles of both constructor
and designer. Potevio constructs,
manages and manufactures their
own charging station. In addition, the
company designed a battery switching
system.

In 2014, the government permitted


private companies to construct electric
vehicle charging stations. Real estate
companies benefit because they
have the land for building electric
infrastructures. It will be more affordable
for real estate agencies to build charging
stations because most the charging
stations are located in hotels, shopping
malls and apartments.

The State Grid:

BYD:

The State Grid has an inherent advantage


of setting electric infrastructure because
they have a wide power network and
advanced technology. They currently
have more than 20,000 charging stations.
The State Grid is the biggest charging
station company in China. They also
have a government background, and
they are supported by government
policies.

BYD is the only Chinese electric car


manufacturer. They build charging
stations, and also face challenges
such as inaccessibility to community,
renewal of power systems and lack of
unified charging standard. As a Chinese
manufacturer, they get more benefits
Tesla, such as loans and rental contract
by local government.

Positioning 2x2
Evaluating the Competitive Landscape

Benefit-driven

BYD

Real estate

ChargerLInk

Low utilization

High utilization

Potevio
Motivation and utilization

Sinopec

All state-owned companies built charging


stations according to the government
urban development plan. However, the
government failed to make the plan
because of low utilization. The benefitdriven building are more useful.

The State Grid

Government-forced
Destination
ChargerLInk

Sinopec BYD
Potevio
Developing area

Developed area
The State Grid

Types of charging station and areas


More competitors focus on building
destination charging stations due to the
access of users communities. Most of
these stations are located in developing
locations, such as suburban parking lots,
due to overcrowded downtown areas
and limitations of access.

Real estate

Home

High accessibility
The State Grid

Real estate
Individual

Cooperative
Potevio

Sinopec

Cooperation and accessibility

ChargerLInk
BYD

The state grid has a high accessibility


because It has huge branches all over the
country. On the other hand, other smaller
companies suffer the accessibility problem
due to the lack of partnership.
Low accessibility

Summary of positioning
After researching the various competitors, including state-owned
companies, real estate, and EV manufacturers, the following evidence is
revealed:
1. High-utilization charging stations were built due to high benefits
for stakeholders. There is an opportunity to increase the benefits by
building more successful charging stations.
2. Destination charging stations seem to solve the community access
problem. However, accessibility in overcrowded downtown areas
becomes its own problem.
3. Partnerships increase the possibility of overcoming limitations such as
accessibility. There is an opportunity to find local partners who have
the required resources.

Zag Steps

gas motor vehicles.

Marty Neumeier, Zag, 2007

STEP 1: Who am I?
The strategy of constructing charging
stations to fit the conditions of
China overcomes limitations from a
manufacturers perspective. It was
created by using design management
methodology.
STEP 2: What do I do?
The strategy explores how to build
electric vehicle infrastructure and diffuses
electric vehicles.
STEP 3: What is my vision?
Everyone in China is willing to become
a electric driver because charging is less
tedious.
STEP 4: What wave am I riding?
Residents of China suffer from severe air
pollution. The government attempts to
solve the problem by implementing new
policies. Tesla electric vehicles offer ecofriendly alternatives to gas vehicles. The
hope is for all Chinese drivers to purchase
and drive Teslas vehicles to decrease and
ultimately eliminate air pollution from

STEP 5: Who else share my brandscpe?


There are many enterprises in the parallel
spaces, such as: Sinopec, State Grid, BYD,
Potevio, Vanke, and Vanda.
STEP 6: What makes me the only me?

STEP 9: Whos the enemy?


There are several enemies: the chaos of
the EV charging industry in China; the
non-cooperation between stakeholders
and the government; and the
infrastructure limitations of China.
STEP 10: What do they call me?

The EV diffuser focuses on finding a new


collaborative approach to build charging
stations for electric drivers in big Chinese
cities.

Consumers call me Plug. The


government calls me the Eliminator of
Smog. Stakeholders call me Connector.
The car industry calls me Model.

STEP 7: What should I add or subject?

STEP 11: How do I explain myself?

I should consider the benefits of


the stakeholders to make potential
cooperative opportunities. I should look
into other fields to see who shares the
same vision.

I am an agent of change for the diffusion


of electric vehicles. I am doing this to
solve the problem of the lack of charging
stations, focusing on user experience,
stakeholder benefit, and government
policy.

STEP 8: Who loves me?


I am loved by many: the consumers,
for a better charging experience; the
government, for mitigating air pollution;
and the stakeholders and partners, for
driving new business opportunities.

STEP 12: How do I spread the word?


The charging station spreads the word
through high visibility, advertising
on social media, and promotion from
partners.

Vehicle emissions were


undoubtedly the major source of
Beijings air pollution.
-Tao, president of the Beijing Municipal Research Institute of Environmental
Protection

STEP 13: How do people engage with


me?
Electric vehicles can be simply chartered
by the charging station. The convenience
allows people to become electric drivers.
They can also engage through their
diffusion network.
STEP 14: What do they experience?
The difficulty of charging will not cause
weakness in electric vehicle sales.
STEP 15: How do I earn their loyalty?
I earn the loyalty of consumers by the
convenience and advanced techniques
that will more quickly charge a car. I
will provide potential partners with a
unique chance to share the business
opportunities during the electric vehicle
revolution.
STEP 16: How do I extend my success?
Success is extended by enhancing
accessible charging, which would
probably aid business. DV (driverless
car) is a trend after EV. Tesla already has
a mature technique, so the charging
stations will play an important role to
diffuse DV as well.

STEP 17: How do I protect my portfolio?

Value Proposition

My portfolio is protected by the


partnerships established. Each
stakeholder has something to obtain
with the charging stations existence,
and each is encouraged to maintain the
partnership.

For consumers who are willing to buy an


electric vehicle but are discouraged by
the charging process, we remove limitations in Chinas infrastructure. We build
charging stations using a new collaborative approach to find local partnership. Unlike in other strategies, we fully
consider both the interest of stakeholders and future industry trends to develop
a solution.

Summary of Zag Steps


Throughout the Zag process, steps
were informed by the insight that a
China-based partner is needed to build
charging stations. As an international car
manufacturer, Tesla has resources such
as branding, management method, and
technical advantage. Those superiorities
would be appreciated by the local
enterprise. There is an opportunity
for Tesla to consider the stakeholders
and make a partnership with a local
enterprise that shares a similar vision.

Onliness Statement
The EV diffuser focuses on finding a new
collaborative approach to build charging
stations for electric drivers in big Chinese
cities who suffer when charging.

What: The only EV diffuser


How: That focuses on finding a new
collaborative approach to build charging
stations
Who: For electric drivers
Where: Big Chinese cities
Why: Who suffer
When: Charging

The Research synthesis


Applied from Jon Kolko, Exploring the magic of
design, 2011

Research activities
Secondary research was conducted with
competitors and partners from four
different industries: energy, grid, real
estate, and manufacturer. All distance
interviews were conducted with Tesla
owners, potential owners, car industry
experts and power system experts.

4.17
4.16
4.15
4.14
4.13
4.12
4.11
4.10
On ground

Facetime

Wechat

Phone Call

Car dealer

Tesla

Car expert

Community officer

Potential user

Power system

Data processing and analysis


Secondary research data was collected
by taking a source book. Primary research
data was collected by note-taking,
screenshots, audio and sketching. All data
was put on a working wall throughout
the research process in the form of printouts, post-notes, and sketching. When
the research was finished, the researcher
analyzed the data to find common
insights. The researcher created visual
diagrams for both primary and secondary
research. These diagrams include: SWOT
analysis, history map, system map, trends
matrix, persona, empathy map, ERAF
system map, user blueprint, semantic
profile, affinity map, and needs-resources
map.

Persona
Empathy map
Semantic profile
Affinity map
Needs analysis map

Users blueprint
ERAF system
Affinity map
Needs analysis map

Car dealer

Tesla

Car expert

Community officer

Potential user

Power system

Main Research Question


From the manufacturers perspective, how can design
management methodology be used to create a strategy for constructing electric infrastructure in China?

Research Methodology
In this project, the researcher try to find new
collaborative approach for building charging station
for Tesla through both primary and secondary
research. This study will be completed mostly by
ethnographic research. Most of the interviews will be
conducted through Skype, Wechat and Facetime.
The methodology was appropriate for the project
because the researcher is located in the Untied States.
The research will be completed over long-distance.
The long-distance interview methodology will be used
to help the researcher come as close to the answer as
possible.

Research protocols

Key Research Insights

Insight 1: Building a charging station is


a tedious process.
EV owners encounter the tedious
process of building private charging
stations. Renewal of electric systems is
complex, because 2/3 of residents have
to agree.
Insight 2: Express EV advantage
Tesla is not on the list of governmentpromoted EVs. Therefore, the users
cant get any benefits from the
government when they become Tesla
drivers. Technically, Tesla is not seen as
an electric vehicle in China now.
Insight 3: Out of the city
Tesla is treated as a highly cost-efficient
car. Especially when people drive it
long distances, it saves a lot over the
cost of gasoline. However, you can only
drive it within a city in China due to a
lack of suburban charging stations.

Insight 4: Standards dont exist


The State Grid tried to make a national
standard for charging stations, but they
failed to work with other manufacturers
because of disagreement over technique.
Therefore, their charging stations cant be
adopted by most of EV. All the charging
stations are currently unused and
continue to lose money.

Insight 6: Chinese collaboration needed


for success
As an international company, Tesla faces
unique limitations in China, like land and
technique, like land and technique. They
suffer working individually. They failed
to work with Alibaba and the State-Grid
because of marketing mistakes and
disagreement over technical sharing.

Insight 5: Sharing benefit


According to the Destination Charging
strategy, Tesla planned to work with
hotels, banks, and real estate companies
to build. However, the charging service
is free. Also, Tesla drivers are limited in
number. Only a few charging stations
were built. Those business partners are
not willing to build the charging stations.
Tesla faces the difficulty of diffusing their
charging stations.

The problem reframing


The project was summarized and
reframed to effectively address the
opportunities which were found after
answering all of the research questions.
According to the affinity map, a
partnership will be created by
finding local business owners such as
supermarkets, shopping malls, cinemas,
and restaurants. The businesses can
provide most of the resources needed to
build charging stations..

A vicious cycle was found within the


system of building charging stations in
China after talking with potential users
and industry experts. The business
owners who could fill out peoples needs
dont want to cooperate because the
limited numbers of EV drivers cant bring
enough benefits.
Meanwhile, they government is trying
to push the stated-owned companies to
build charging stations with government

financial support. Then, it also provides


some policy benefits for people when
they purchase EV without wide networks
of charging stations.
There is an opportunity to break down
the vicious cycle to increase the number
of EV drivers and increase benefits to
those business owners who are willing to
build charging stations.

Design Criteria
In order for the project to be considered
successful:

to become Tesla drivers, because the


charging is easier.

1.A new collaborative strategy will be


created by using design management
methodology.

3.Boost public confidence in electric


vehicle industry in China by the new
strategy.

2.Tesla owners will easily charge their


cars. Potential users will be more willing

4.Open doors for business owners.


More business owners will be willing

to go into the field of building electric


infrastructure, because an infrastructure
that fits into China will create more
opportunities.
5. Break down the vicious cycle of
building charging stations in China, so
that a promising and positive direction of
construction will be created.

Ecosystem map before reframing


State-owned

Ambitious

No

n- c

p
oo

e ra

tio

Professional

State-Grid

Ap

Educated
ply

High-end

Weak

Buy a parking

o we

Bui

ld

he p

Maintains

User
t
t to
nec
Con ork
w
net

Purchase Vehicle
Charging Equipment

Manufacturer

Ask to build

Charging Station

Private

Pl a

Public

Community

n
Government

Pushed

No

pl

an

u
to

pd

at

Enough
Parking

Reach
Standard

Making
Plan

The vicious cycle reframing

Partner

Partner

Opportunities

Building unprofitable
charging stations

No one

No benefits
for building

builds

Competitors

Opportunities

Limited

Building charging

EV driver

stations in China

Limited
charging
station

Promotions
Marketing Strategy

Opportunities

Partner

Weak

No one

sales

wants buy EV

Policy to engage
Government

Manufacturers

The concept
We provide the tourists a rentable Tesla as their transportation when they travel in Beijing
and cooperate with airlines, hotels, shopping malls, and attractions. In order to attract those
costumers, hotels, shopping malls, and attractions are willing to have charging stations. This
concept has multiple benefits for airlines, hotels, shopping malls, attractions, and Tesla.

Design opportunity
Target audience
Beijing has become one of the most
popular tourist destinations in the world,
with about 140 million Chinese tourists
and 4.4 million international visitors in
a year. PEK is worlds second-busiest
airport--it attracted 86 million passengers
in 2014. 51 countries and regions,
including the USA, the UK, Australia,
Canada, France, Germany, Italy, Denmark,
and the Netherlands, are granted a visafree stay of up to 72 hours when taking
an international transfer via PEK airport.
Those people have the biggest potential
to become the target users.

Opportunity statement

How might we

Beijing has a history lasting more than


3,000 years and attracts and attracts
various tourists. The first impression of
those tourists about Beijing is the air
pollution which they observe during the
flights. Attractions are eager to welcome
those tourists all over the world. There is
an opportunity to engage the attractions
to build electric charging stations.

How might we provide the


tourists with a rentable Tesla as
transportation when they travel in
Beijing? How might we cooperate
with airlines, hotels, shopping malls,
and attractions? In order to attract
those consumers, the businesses are
willing to have charging stations.
This concept has several benefits
for airlines, hotels, shopping malls,
attractions, and Tesla.

Concept testing
Concept testing took place with potential
foreigner who might travel to Beijing. 10
target audiences did reective activities
within a group, then shared their results
and experiences.

Quote from participants


I have already made my plan before
travel. - Visa free
This is nice. But I travel for business. My
company makes the decision. - Business
tripper
My friends always pick me up. - Visitor
By the way, I head the traffic is awful in
Beijing. Why do I need a car? - Visitor
I like to make contributions to the place.
- Visitor
Very good idea. This makes my trip more
than a travel. Its a good memory. - Visitor
I am not sure that a foreign drivers
license can be used in China. - Foreign
visitor
I have seen the air pollution on TV. I
might not travel to a place with serious
air pollution.- Visitor

Testing findings
The concept isnt strong enough to
attract visitors who have already made
their plan before they travel. However,
the idea that brings benefits to business
owners is solid.

User tesing planning

Concept validation with KPIs

Unknown

No

Yes

Evaluating how the prototype performed in relation to the design criteria, research questions and personas (
assumptive KPIs).

A new collaborative strategy will be created by using design management methodology.

Tesla owners will easily charge their cars. Potential users will be more willing to become Tesla
drivers, because the charging is easier.
Boost public confidence in electric vehicle industry in China by the new strategy.

Open doors for business owners. More business owners will be willing to go into the field of
building electric infrastructure, because an infrastructure that fits into China will create more
opportunities.
Break down the vicious cycle of building charging stations in China, so that a promising and
positive direction of construction will be created.
Is the concept helping to build charging stations?

Do those charging stations fit China?

Is the concept from the perspective of a manufacturer?

Is the concept increasing the sale of EV?


Lei Wang is the CEO of an Internet company at Beijing. The Tesla is his second vehicle. He has
private parking in his backyard. He always drives his friends to parties with his Tesla.

Kai Zhao is a professor. He works at a famous university and has a PhD. He is the father of two
children. His family is suffering from the air pollution in Beijing.

Interference map

Power Up
Business
alliance

Willing to

More benefits
for buidling

builds

Visitors as
bait

More

Building Charging

EV drivers

Stations in China

More
charging
Station
Promotions
Marketing Strategy

Visitors

Soild

More

Sales

Customers

Diffusion

Policy to engage
Work with
Government

Final concept
After testing with the target
audience and evaluating the
design criteria, some successful
elements were pulled out and
combined to become a finial
chosen direction and criteria.
In order to break down the vicious
cycle, a cooperative strategy that
focuses on enhancing benefits for
business owners will be created
by fully considering those criteria:

1.Business owners will be motivated

to build charging stations by bringing


benefits to them, rather than only to
customers.
2. People are motivated to join the
system by rewards and the providing of
rental Teslas.
3. Our target audience will be used as
a bait to encourage business owners to
build charging stations.

4. The observability of Tesla will be


increased by huge numbers of EV drivers
5. Teslas will be easy to get charged.
6. A sustainable, virtuous cycle of
building charging stations will be
created.

The business strategies


1. Visitors attracted
During this stage, visitors who traveled to Beijing will be attracted by mutiable method which are showed below. A service
blueprint of airline will be helped to find touchpoints to attach the trigger and increase their potential to act.

2. The Power Up alliance

In order to brings the most benefits for business owners who build charging stations, a business alliance will
be created for reward their contrbution. The business owners who are all related to tour industry can share
their successful experience, support each other, and make sustainable future strategies.

Conclusion
A strategic proposal for building
charging stations
The Power Up steps was designed from
manufacturer to overcome Chinese
limitations. After evaluating the data,
a vicious cycle was found. By following
and customizing the steps in the
proposal, any EV manufacturer would be
able to build charging stations.
Final Thoughts
The Power Up proposal was designed
for pitching Tesla in China. The lack
of charging stations cause the weak
sales. The project also paid my passion
with skills and design management
methodologies.
I set out to discover how innovation
and design thinking could be applied
into business field. Through contextual
research and design process, Power Up
became a framework to delivery. There
are still lots of opportunities to boost
electric infrastructure in China. I believe
the design management methodologies
will become more and more popular
in the future. It not only assist with
diffusion of electric vehicle in China but
also mitigate the air pollution.

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