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. They’ve made me strong and brave, and I am sincerely grateful for all they’ve done. I’m 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. I’ve 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 H

ate

smog

”

Subject of the study

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.

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.

Target audience

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.

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

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.

Sinopec:

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.

Potevio:

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.

The State Grid:

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.

Chargerlink:

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.

Real estate:

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.

BYD:

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

Government-forced

Low utilization High utilization

Sinopec

Potevio

The State Grid

Real estate

BYD

Motivation and utilization

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 benefit-driven building are more useful.

ChargerLInk

Destination

Home

Developed areaDeveloping area

Sinopec

Potevio

The State Grid

Real estate

BYD

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.

ChargerLInk

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.

High accessibility

Low accessibility

Individual Cooperative

The State Grid

Sinopec

ChargerLInk

BYD

Potevio

Real estate

Cooperation and accessibility

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.

Zag Steps 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 manufacturer’s 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 eco-friendly alternatives to gas vehicles. The hope is for all Chinese drivers to purchase and drive Tesla’s vehicles to decrease and ultimately eliminate air pollution from

gas motor vehicles.

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?

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

STEP 7: What should I add or subject?

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.

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 9: Who’s 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?

Consumers call me “Plug.” The government calls me “the Eliminator of Smog.” Stakeholders call me “Connector.” The car industry calls me “Model.”

STEP 11: How do I explain myself?

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 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 Beijing’s air pollution.” -Tao, president of the Beijing Municipal Research Institute of Environmental Protection

Value Proposition

For consumers who are willing to buy an electric vehicle but are discouraged by the charging process, we remove limita-tions in China’s infrastructure. We build charging stations using a new collab-orative approach to find local partner-ship. Unlike in other strategies, we fully consider both the interest of stakehold-ers and future industry trends to develop a solution.

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 stationsWho: For electric driversWhere: Big Chinese citiesWhy: Who sufferWhen: Charging

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?

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.

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.

On ground Facetime Wechat Phone Call

Tesla

Potential user

Car expert

Power system

Car dealer

Community officer

4.17

4.16

4.15

4.14

4.13

4.12

4.11

4.10

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.

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 print-outs, 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.

Tesla

Potential user

Car expert

Power system

Car dealer

Community officer

User’s blueprint ERAF system Affinity map Needs analysis map

Persona Empathy map Semantic profile Affinity map Needs analysis map

The Research synthesisApplied from Jon Kolko, “Exploring the magic of design,” 2011

Research protocols

Main Research Question

From the manufacturer’s perspective, how can design management methodology be used to create a strat-egy 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.

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 government-promoted EVs. Therefore, the users can’t 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 don’t 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 can’t be adopted by most of EV. All the charging stations are currently unused and continue to lose money.

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..

Design Criteria

In order for the project to be considered successful:

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

2.Tesla owners will easily charge their cars. Potential users will be more willing

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.

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 people’s needs don’t want to cooperate because the limited numbers of EV drivers can’t bring enough benefits.

Meanwhile, they government is trying to push the stated-owned companies to build charging stations with government

to become Tesla drivers, because the charging is easier.

3.Boost public confidence in electric vehicle industry in China by the new strategy.

4.Open doors for business owners. More business owners will be willing

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.

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.

Competitors

Building unprofitable charging stations

Opportunities

Policy to engage

Building charging

stations in China

Manufacturers

PromotionsMarketing Strategy

Government

Opportunities

Opportunities

Partner

Partner

Partner

No benefits for building

No one

builds

Limited

charging

station

No one

wants buy EV

Weak

sales

Limited

EV driver

The vicious cycle reframing

Manufacturer

State-Grid

Government

Charging Station Community

User

Educated

High-end

State-owned Professional

EnoughParking

Reach Standard

MakingPlan

Pushed

Public

Private

Weak

Ambitious

Purchase VehicleCharging Equipment

Buy a parking

Apply

Connect to the power

network

Build

Mai

ntai

ns

Ask

to b

uild

Plan

No plan to update

Non-cooperation

Ecosystem map before reframing

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 world’s 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 visa-free 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

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

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.

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.

Concept testing

Concept testing took place with potential foreigner who might travel to Beijing. 10 target audiences did reflective 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. It’s a good memory.” - Visi-tor

“I am not sure that a foreign driver’s 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 isn’t 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

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.

Yes

No Unk

now

n

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.

Policy to engage

Building Charging

Stations in China

Diffusion

PromotionsMarketing Strategy

Work with

Government

Power Up Business alliance

Visitors

More benefits for buidling

Willing to

builds

More

charging

Station

More

Customers

Soild

Sales

More

EV drivers

Visitors as bait

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.

Interference map

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.

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.

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.