RiversimpleProfiting from Product Service SystemsCollaborate or die!

@riversimple

www.riversimple.com

An introduction to Riversimple

Our purpose is to provide mobility at zero cost to the planet

We’re developing a radically efficient hydrogen fuel cell vehicle

We never want to sell one

We’re very small – but have big ideas!

Riversimple 7 point strategy

www.riversimple.com

Click ‘CROWDFUND’!

Sale of service not cars

Selling mobility as a service, instead of a car as a product

Decouples profit from material throughput

It’s also better financially (in the long term)

Identifying lost value

Fixed costs

Variable costs

Sales revenue

Lost value ~60% for a car!

Cost of usership

x

Fixed costs

Variable costs

Economic benefits of efficiency

Services revenue

Efficiency drives profit

y

Fixed costs

Variable costs

Economic benefits of efficiency

Services revenue

y

y>>x!

How is this financed?

What’s the optimum between life cycle

and unit cost?

Does the risk justify the reward?

Circling the financial square

New forms of value

Explore

Analyse

Unlock

ImplementNew forms of

value

Exploring new forms of value

Strategy Example Underlying value creation assumption

Preventative Efficiency, non-toxicity Reduces cost per functional result

Loop-closing Recycling, composting Value from ‘waste’

Loop-extending Downcycling, energy from waste, cascading loops

Value from ‘waste’

Longevity Maintenance, reconditioning

Increase revenue per unit, reduce cost

Intensification Shared use Increase revenue per unit

Blomsma et al., 'Exploring circular strategy combinations – towards understanding the role of PSS', Proceedings of the 25th CIRP Life Cycle Engineering conference, 30 April – 2 May 2018, Copenhagen

Blomsma et al., 'Exploring circular strategy combinations – towards understanding the role of PSS', Proceedings of the 25th CIRP Life Cycle Engineering conference, 30 April – 2 May 2018, Copenhagen

Analysing new forms of value

Example drivers:• Potential for more stable revenue streams• Removes cost barriers• Closer customer relationships• Potential for innovation

Example barriers:• Legislative• Cash flow• Lack of end-of-life infrastructure• Lack of awareness

Power: 8.5 kW hydrogen fuel cell

Efficiency: Efficiency equivalent to

250 mpg of petrol

Emissions: 40 gCO2/km

Well-to-Wheel

Acceleration: To 60 mph in 10 seconds

Speed: Max cruise speed 60 mph

Range: 300 mile range

Weight: 580 kg

Unlocking new forms of value

Unlocking new forms of value

H2

800+

beta testers

The inevitability of new value networks

Disconnect between supplier incentives and

Riversimple’s

We need to go upstream with sale-of-service

Sale of service upstream

Feasibility study into:

Circular Economy: Business Models

Objective: Deliver a plan to pilot a ‘circular’ business model

Methodology

1. Partner who agreed to pilot got taken over, so this couldn’t take place!

2. It’s feasible!

3. Methodology; we have a better sense of ‘how’

4. Must be coupled with technology

5. Collaboration is key – grant funding helps

6. We need future collaborative projects to help us develop the business model AND technology side by side

Outcomes of study

Next steps – Powertrain development

• Focused on the whole powertrain – fuel cell to motor

• 3 year technology development programme

• Whole cross-cutting work package focused on exploring servitisation

• Partnered with fuel cell supply chain partners

• Outcomes:• Agreed value proposition for key components• Technology developed in accordance with requirements of the value

proposition

Next steps – Elvis and Kresse

Next steps - Composites

Designing a service changes the customer

relationship…

Two more service insights…

Service means data: (Truly) Intelligent mobility

Innovate or die(Peter Drucker?)

We have to innovate the business model

Business model innovation requires collaboration

We are called to be the architects of the future, not its victims…(Buckminster Fuller)

www.riversimple.com

Follow us @riversimple