The Mesh - Lisa Gansky [42]
But it’s also true that the number of elements and parties that have to come together to create a mature, economically viable technology like electric vehicles is daunting. University and private researchers, government regulators, and industrial competitors have to share information and common purpose. The political and commercial will has to be in place to spur the creation of an entirely new infrastructure to support the vehicles. Despite these obstacles, there are signs that the parts of the puzzle may finally be coming together, led in part by a Palo Alto- based company called Better Place. The CEO, Shai Agassi, says he named the company in response to the simple question posed at a World Economic Forum meeting in Davos, Switzerland: “How can we make the world a better place?”
Better Place has managed to attract several partners for different pieces of the electric vehicle puzzle, or as I like to think of it, the EV “ecosystem.” Better Place’s primary role is to create and run a network of battery-switching stations. The EV pulls into the station, which looks similar to a car wash, and a robotic arm replaces the nearly depleted battery for a recharged one. For short-term city driving, there will be compact charging stations located at customers’ residences, and in parking lots, retail locations, and other convenient spots. Better Place has partnered with Renault to build the cars, and with various governments, including those of Denmark, Australia, and California, to support the infrastructure development. The company planned its first launch in Israel—where a thousand charging stations have been installed, with more to come—followed by Denmark.
The EV infrastructure requires standards, much like the Internet. Agassi’s model was the mobile phone, where drivers would pay for miles the way phone users pay for minutes. Like phones, the creation of design standards for the battery-powered cars is a crucial piece, and difficult in the auto industry, where traditionally the only fuel standard required has been the diameter of the hole for the gas pump. Success depends on operating systems that can speak to each other and coordinate a complex series of actions seamlessly. No wonder Better Place has focused on building the EV’s operating system. The company was conceived inside the technology sector, where Agassi was formerly a top exec with the enterprise software giant SAP. In fact, like many Mesh businesses, Better Place is best viewed as an information company. The data required for the system to function smoothly, and the data it collects to improve the service, is the primary share platform. This sets up nicely for the Better Place network to offer value-added services, traffic reports, directions, efficiency analysis, and feedback to manufacturers to improve EV performance. The operating system is the backbone for the shared physical dimensions of the company, including the batteries, the switching stations, and the energy sources.
Better Place is not only a Mesh business, but the hub of what I refer to as a “Mesh ecosystem.” A core strength of the Mesh is the ability to fully integrate clusters of partners and systems for sharing information.
spice up your Mesh. get partners.
As mentioned in chapter 1, the multiple transactions involved in Mesh businesses also expand partnership opportunities. For an entrepreneur, part of the joy and excitement of the Mesh is that it opens up new ways to build partnerships, make offers, and bring products to specific markets with tools that haven’t been supplied together before. Young