Many OEMs producing electrified products find themselves not knowing the next steps to take once its time for their product to be mass-produced. Join us this week as we break down this common problem faced by many “Big Thinking OEMs” as they move from a Minimum Viable Product to a battery system ready to be produced at scale.
Contact: Betsy Barry
Communication Manager
706.206.7271
betsy.barry@acculonenergy.com
Dear Abby,
We were able to get our first off-road industrial EV to market in a decent turnaround time, and I think that we are actually going to sell a bunch of them. Now what?
Thinking Big,
Off-Highway OEM
Dear Big Thinking OEM,
It sounds like you’re a victim of your own success. Congratulations! But now it’s time to create a strategic vision for the future of your product, starting with a bit of textbook product development.
A Minimum Viable Product (MVP) is a concept commonly used in manufacturing and product development to describe a version of a new product that includes only the essential features necessary to meet the basic requirements of early adopters. The goals of creating an MVP are to bring a functional product to market in the least amount of time, learn from customers and stakeholders in particular market segments, and then iterate (and improve) design and production based on feedback and a solid strategic vision.
Now, what does this look like in the electrification space for off-highway OEMs? Especially those OEMs that are charting the course for industrial markets in energy storage systems and committed to incorporating “lessons learned” from customer feedback and more mature market segments.
In short: it’s complicated, but let’s start with some basic questions before we move beyond an MVP to a battery system that will exceed “minimum” requirements and, hopefully, resonate in the market and inspire customer loyalty. First of all, does your MVP Q & A look a little like this?
It’s not just about who can get there the fastest, but who can stay at the front of the pack the longest when making a product for commercialization.
Making safe, reliable energy storage products designed for commercialization and doing so with partners who have vast expertise, can help make this happen with speed and without risk.
If you’re like most players in the EV industrial applications space, you initially out-sourced your battery system design and production. Let’s face it: we live in a world of products that have “made in China” provenance and the electrification space is no exception. Outsourcing battery design and production overseas can have a cascading set of downstream consequences, especially when testing at both the component and the system levels, which can unfortunately translate into a less rigorous validation testing strategy and longer time intervals overall. This also has implications for meeting and exceeding UL safety requirements and other certification standards, as the safety of advanced energy storage systems–especially lithium energy storage systems–has become an enduring part of ongoing conversations not only in both industrial and commercial environments but in legal and policy-related environments as well.
It is no secret that prioritizing speed-to-market often involves shortcuts along the way, and these shortcuts can not only negatively impact quality, but importantly, they can impact safety: the number one thing that is sacrificed in trying to shorten time-to-market is often safety. And safety is not simply a feature of a battery system, rather it is a design-level commitment guided by regulations and industry standards that not only set quality thresholds but also protect life and property. And while shortcuts in the realm of safety can save you time and money upfront, the liability and the cost of that liability can offset any perceived benefits one hundredfold. Just ask the micromobility sector.
Speed-to-market is dependent on supply chain reliability, which can create bottlenecks: if key components or cheaper raw materials are unavailable or delayed due to disruptions, it can stall the production process, leading to delays and added expense. Add to this the new logistical challenges in adhering to recent regulations, like EU battery passport requirements for example, and moving beyond the MVP becomes an even bigger challenge with respect to establishing market presence and loyalty.
All of these aspects of an MVP in electrified products will have to be addressed sooner rather than later as OEMs mature through product life cycles, especially as markets and customers’ expectations mature over time.
How OEMs address the above questions as they evolve in rapidly maturing EV markets is essential if they are going to move forward with quality energy storage solutions that will power their off-road, industrial applications in a safe, reliable capacity. As the market becomes more and more saturated with products, creating differentiators will decide who stays at the starting line and who laps the competition. And the race is most definitely on–a race demonstrating that advanced battery technologies are providing a much-needed winning edge for OEMs.
Making safe, reliable energy storage products that power your commercial and industrial applications can happen with speed and without risk, and that begins with designing for commercialization and doing so with partners who have an innovative vision, deep experience, and vast expertise in battery programs, from start to scale. It’s not just about who can get there the fastest, but who can stay at the front of the pack the longest. Here at Acculon, we are training for the long haul and creating a foundation for the future of electrification in the process. Let’s get across that finish line together!