Top Banner
The Case for Hydrogen Motorbikes in Vietnam Presented by: Van Nguyen 1. Executive Summary This report is an effort to develop and provide a thorough exploration of the commercialization of hydrogen motorbikes in the Southeastern Asian country of Vietnam. This report will first strive to examine Vietnam as a potential market, and explore the political, economic, and social conditions that makes hydrogen motorbikes a unique commercializable business model in Vietnam. After a firm foundation for demand has been established regarding hydrogen technology in Vietnam, this report will then provide a high level understanding of hydrogen fuel cell technology, and its application the automotive industry. After establishing the case for the technology behind hydrogen motorbikes, we will explore some current challenges and limitations of hydrogen technology as it applies to our case. We will use these analysis to develop recommendations to commercialize hydrogen motorbikes in the vietnamese market. Once a thorough case has been presented, an analysis of how social media can aid in the commercialization of hydrogen based motorbikes will explored. 2. Introduction “The first experimental fuel cell was developed in the nineteenth century, and a 6 kW alkaline fuel cell in conjunction with a battery bank was used to power a small car as early as 1966, would not be until major improvements in power density were made in the 1990's that major car companies took notice” (Lin 2014) As an emerging technology, hydrogen fuel cells has been in development for a number of decades. Sponsored by various governmental grants in different countries, the use of Hydrogen fuel cells is a timetested technology that is ripe for commercialization.(Lin 2014) This report will start with examining the Vietnamese Market, and then build the case as to why Hydrogen fueled motorbikes could potentially be a profitable entry into that market. This report will then work to provide a high level understanding of hydrogen fuel cell technology, and its use in transportation. However before we drive into exploring the demand for hydrogen motorbikes in Vietnam, we will introduce the use of Stanford’s designthinking model as the main method in which we will use to formulate and develop case hydrogen fuel cells. 3. Method: Design thinking and Stanford’s 5 stage design thinking process For the purpose of developing the ideas and discussion points presented in this case, we will use design thinking, as well as specifically the incorporation of the designthinking model as developed by Stanford University. The Stanford design thinking model has five different action stages that can be exactly define as
19

The Case for Hydrogen Motorbikes

Apr 13, 2017

Download

Documents

Van Long Nguyen
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: The Case for Hydrogen Motorbikes

   The Case for Hydrogen Motorbikes in Vietnam 

 Presented by: Van Nguyen  1. Executive Summary  This report is an effort to develop and provide a thorough exploration of the                           commercialization of hydrogen motorbikes in the Southeastern Asian country of                   Vietnam. This report will first strive to examine Vietnam as a potential market, and                           explore the political, economic, and social conditions that makes hydrogen                   motorbikes a unique commercializable business model in Vietnam. After a firm                     foundation for demand has been established regarding hydrogen technology in                   Vietnam, this report will then provide a high level understanding of hydrogen fuel                         cell technology, and its application the automotive industry. After establishing the                     case for the technology behind hydrogen motorbikes, we will explore some current                       challenges and limitations of hydrogen technology as it applies to our case. Wewill                           use these analysis to develop recommendations to commercialize hydrogen                 motorbikes in the vietnamese market. Once a thorough case has been presented, an                         analysis of how social media can aid in the commercialization of hydrogen based                         motorbikes will explored.   2. Introduction  “The first experimental fuel cell was developed in the nineteenth century, and a 6 kW                             alkaline fuel cell in conjunction with a battery bank was used to power a small car as early                                   as 1966, would not be until major improvements in power density were made in the                             1990's that major car companies took notice” (Lin 2014) As an emerging technology,                         hydrogen fuel cells has been in development for a number of decades. Sponsored by                           various governmental grants in different countries, the use of Hydrogen fuel cells is a                           time­tested technology that is ripe for commercialization.(Lin 2014) This report will start                       with examining the Vietnamese Market, and then build the case as to why Hydrogen                           fueled motorbikes could potentially be a profitable entry into that market. This                       report will then work to provide a high level understanding of hydrogen fuel cell                           technology, and its use in transportation. However before we drive into exploring                       the demand for hydrogen motorbikes in Vietnam, we will introduce the use of                         Stanford’s design­thinking model as the main method in which we will use to                         formulate and develop case hydrogen fuel cells.  3. Method: Design thinking and Stanford’s 5 stage design thinking process  For the purpose of developing the ideas and discussion points presented in this case,                           we will use design thinking, as well as specifically the incorporation of the                         design­thinking model as developed by Stanford University. The Stanford design                   thinking model has five different action stages that can be exactly define as                         

Page 2: The Case for Hydrogen Motorbikes

empathize, define, ideate, prototype, and test as seen in figure one below (Plattner                         2014):  

  

Figure 1­ Stanford Design School (Plattner 2014)  For the empathize phase of the design thinking process above, which asks for the                           designer to seek to better understand their consumer, we will look at why the                           Vietnamese market is a favorable potential market for hydrogenmotorbikes. During                     the define phase of the process, the report will start to define hydrogen technology                           and develop exactly the term of reference that we will use hydrogen technology in                           our potential motorbike offerings. In the ideate phase of the process wewill look at                             how we would ideally implement the proposal and what characteristics our                     recommendations should include. In the prototype stage, wewill go deeper into the                         implementation plan and provide details on how the idea can be initially marketed                         for optimal success. In the testing phase, we will start to develop metrics that will                             signal whether the recommendations presented later in this report are successful as                       we move to implement and market the product to the Vietnamese market.    4. Empathize  4.1 Why Vietnam needs hydrogen Motorbikes (Social, Political, and Economical)  Following the research and thesis of a master's level engineering student at                       Princeton University, Bruce Lin, who sought to develop a case for the                       commercialization of hydrogen motorbikes in Taiwan, we will use parallel                   arguments to assess social, political, and economical market conditions that make                     Vietnam a favorable market for Hydrogen motorbikes. (Lin 2014)  4.1.1 Social 

Page 3: The Case for Hydrogen Motorbikes

 Based on the the air quality and pollutionmeasurements for the country of Vietnam,                           and considering it’s two major cities Hanoi and Ho chi Minh City, we can start to see                                 that Vietnam is currently at a crossroads.   

 Figure 2 Vietnamese Air quality and Pollution measurements (ACICN 2016)    

Page 4: The Case for Hydrogen Motorbikes

  

 Figure 3: Air quality and Pollution measurements meanings (ACICN 2016)   Selling itself as the new manufacturing destination of Southeast Asia, completing                     directly with China and other countries in the region, Vietnam has to decide on such                             current pressing issues as “ Do you choose between steel or fish?” (Tuoi Tre News                             2016). The direct quote above is a brief insight into Vietnam’s current social issues                           with pollution and industry. The background of the quote above can be briefly                         explain as a dialogue in a Vietnamese legal situation where a foreign entity, in this                             case Formosa steel, has demanded the Vietnamese people to choose between                     aquatic food sources or contaminated ground water supplies due to increased steel                       manufacturing. This case and many others similar situation forces the government                     of Vietnam to make decisions that will shape Vietnam social corporate                     responsibilities as it relates to the environment.   Based on Figure 1 and Figure 2 from Aqcin, we can see that both Hanoi and Ho Chi                                   Minh City was given 51 and 72 respectively. (ACICN 2016)While these two marks                         are not of urgent nature and needs immediate environmental saving actions;                     Vietnam must consider the environmental impacts that businesses produces in the                     name of industrialization and profits, as it moves to increase its manufacturing.  Another area of environmental concern that Vietnam must also decide on in the                         near future is the Vietnamese population’s dependence on high emission producing                     petrol fueled two stroke engine equipped motorbikes. “A single two­stroke engine                     

Page 5: The Case for Hydrogen Motorbikes

produces pollution equivalent to that of 30 to 50 four­stroke automobiles. With                       roughly 100 million motorcycles in Asia—roughly half of them using two­stroke                     engines—that translates into as much as 2.5 billion cars’ worth of smog.” (Discover                         Magazine 2016) From the quote above we can see that moving away from two                           stroke engines will help Vietnam manage its air quality and decrease pollution.   4.1.2. Political  “Clearly, the overwhelming reason is a desire in Vietnam for closer relations with                         the United States in the shadow of a China that is now flexing its muscles. “No                               country had to do more to enter the TPP than Vietnam,” Zachary Abuza, a                           Washington­based Southeast Asia analyst, said in an interview. Such political will                     crystallizes “how far Vietnamese leaders are willing to go to secure a deeper                         economic relationship with the United States,” (Dien Luong T 2016)  From a political aspect, we can see that that Vietnam, as evident from the facts                             above, wants to join the TTP. However one of the keys aspects that Vietnam has to                               improve on to join the TPP is it’s quality of corporate social governance. Corporate                           social governance as it relates to Vietnam is inclusive of labor conditions,                       governmental corporate regulations, and as well as environmental consciousness                 and protection. Vietnam has an obvious political benefit, enhancing its standing and                       partnership within the TPP, to increase its focus on increasing production standards                       that minimizes environmental impacts. Bymoving away from two stroke engines for                       motorbikes, and to alternative product such as hydrogen fuel cell motorbikes or                       electric powered motorbikes, Vietnam will be successful in reducing the overall                     impact of emission on air quality, pollution levels, and product quality. This will help                           Vietnam transition easier into the TTP in the near future.   4.1.2 Economical   As we start to develop the case of the social and political benefit of moving away                               from two stroke engine equipped motorbikes, we have to examine how                     economically feasible a transition would be, andwhat alternatives currently exist as                       well as their respective pricings. Direct from themaster thesis written by Bruce Lin,                           we can see this difference in relative terms in figure 4 below.   

Page 6: The Case for Hydrogen Motorbikes

  Figure 4: Alternative fuel sources table from Princeton master thesis (Lin 2014)  From the table above and the Lin’s master thesis, we can see the four market                             options, electric powered motors (Zinc­air hybird), regular petrol (keeping the two                     stroke engines), and hydrogen fuel cell options (Pure Fuel cell or hybird). (Lin 2014)                           As we can see from the table above, the ten­year cost of fuel for the hydrogen fuel                                 cell options is comparatively cheaper then the electric and petrol options. (Lin                       2014) The table above as explained by Bruce Lin accounts for the initial cost of each                               option taking into account the aggregate cost of cost ownership as it relates to fuel.                             Whenwe compare the long­term expected cost of hydrogen fuel cell scooters we can                           start to see that once an initial investment has been made to establish the needed                             infrastructure, Hydrogen scooters will be competitively priced against existing                 petrol options, which range from seven hundred dollars to four thousand dollars                       each. (Lin 2014) 

 

Figure 5: Long term cost of hybrid fuel cell scooters from Princeton master thesis.                           (Lin 2014)  

Page 7: The Case for Hydrogen Motorbikes

Based on the figure and information discussed above, we can see that with proper                           industry development and investment, hydrogen fuel motorbike can be an attractive                     long term option compared to Electric and traditional petrol.    5. Define  5.1 Hydrogen fuel cell technology  Labeled as an emerging technology fuel cell technology has actually been in                       development for over two centuries. Below is a timeline of fuel cell technology.   

Page 8: The Case for Hydrogen Motorbikes

 Figure 6: timeline of the Development of Fuel Cell Technology (fuelcelltoday.com)  While some emerging technologies experiences rapid commercialization and               deployment, fuel cell technology can be seen as comparable to gorilla glass                       developed by Corning. ( Pisano 2015)As with hydrogen fuel cell technology, gorilla                       glass sat on Corning’s technology shelf for over 50 years before the technologywas                           eventually incorporated in the Apple’s iphone in 2007. ( Pisano 2015) With the                         extensive history of fuel cell technology, as seen above and the growing number of                           research within the last ten to fifteen years on fuel cell technologies, we can see that                               the technology is proven and solid.  

Page 9: The Case for Hydrogen Motorbikes

 5.2 Current uses in transportation  One particularly interesting use of hydrogen fuel cell technology is its application in                         the transportation industry. With major players like Toyota recent market entry of                       the Mirai, we can see that major players in the automotive industry is finally ready                             to speculate on the promising hydrogen fuel cell technology segment. The basic                       specs of Toyota’s market entry is seen below as collected from google.com.   

 Figure 7: Toyota Mass market Hydrogen fuel cell entry: Toyota Mirai (google.com)  The figure above allows us to see what current hydrogen fuel cell technology is at a                               point of marketable feasibility, a point that even Toyota is willing to stake a bid on                               the segment. The figure shows us that hydrogen fuel cell based on nickel­metal                         hydride is the progress in Hydrogen fuel cell technology that is the first to be used in                                 mass­market commerization. So how is the application of hydrogen fuel cell                     different compared to the use of current electric powered vehicles and petrol                       

Page 10: The Case for Hydrogen Motorbikes

powered vehicles? Based on Bruce Lin’s master thesis we can see the main                         difference in figure 8.   

 Figure 8: Comparison of power Systems (Lin 2014)  How all the components listed above work together in the electric fuel cell systems                           as compared to traditional petrol motorbikes and electric motorbikes is very                     different.(Lin 2014) Figure 9 will help us understand how exactly a fuel cell work.   

 figure 9: Indivudal Fuel Cell (energystoragesense.com)  In figure 9 we can see that as compared to traditional petrol powered system, Fuel                             cell systems are very efficient due to the fact that no combustion takes place and all                               excess hydrogen can be fed back into the close looped system for use. Based on                             

Page 11: The Case for Hydrogen Motorbikes

using hydride as the hydrogen’s altered state, the fuel cell above produces energy in                           the form of electrical power and heat, as well as water (H20), but no emissions.(Lin                             2014) Compared to petrol alternatives from the figure above we can see that                         electric and hydrogen fuel cells are the two potential propellers of tomorrow’s                       transportation industry, displacing emission heavy alternatives such as petrol while                   saving the customer money in the long term. (Lin 2014)  5.3 Hydrogen fuel cell technology limitation and assumptions  5.3.1 Assumptions  For the purpose of developing the proposal of the introduction of Hydrogen                       motorbikes to Vietnam, we must make two assumptions for the developing the                       recommendations for this particular technology.    The first assumption that we must make is that we must be sure that the fuel cell                                 technology to be incorporated in our proposed hydrogen motorbike use the latest                       technologies, in that it must use refillable canisters of hydrogen stored in it’s                         hydride form. This method of storage is currently the most efficient and profitable                         use of hydrogen fuel cell technology. Uses of any other of hydrogen storagemethods                           are unreliable and potentially detrimental to the success of the product. (Lin 2014)  The second assumption we must make is that we must assume that in order for                               hydrogen fuel cells motorbikes be successfully introduced to Vietnam that wemust                       also introduce the best methods of hydrogen production to the country. The                       assumption is made that should hydrogen motorbikes become successful in                   Vietnam, heavy investment should also be made in the efficient and clean                       production of hydrogen hydride and its complementary products. Without these                   assumptions, the product would potentially fail.   5.3.2 Limitations  One big limitation about the recommendation of hydrogen technology in Vietnam, is                       the massive governmental assistance required to develop a strong enough initial                     infrastructure to support the convenient and cost effective use of hydrogen powered                       vehicles. Without this infrastructure, no matter how clean and better hydrogen                     energy is compared to the alternatives, hydrogen fuel cell motobikes will not be able                           to capture the market share needed to disrupt the alternatives currently on the                         market that has better existing supporting infrastructure. For the purpose of this                       report, we will give a very high level of the type of infactrustre that is needed to                                 achieve the desired market conditions needed to introduce hydrogen fuel                   motorbikes. The three main components of infrastructure required are Hydrogen                   chemical processing plants, hydrogen hydride canister refilling factories, and retail                   locations in which hydrogen hydride canisters can be distributed. Without any of                       the component listed above, we will not be able effectively introduce hydrogen fuel                         

Page 12: The Case for Hydrogen Motorbikes

cell motorbikes as a viable alternative to electric and petrol motorbikes. The main                         reason for these key aspects is because as with all new technologies wemust ensure                             that potential customer switching cost and switching barriers are reduced to the                       lowest possible level. Should we not be able to provide any three of the components                             listed above, our success in launching hydrogen fuel cell motorbikes would be                       severely limited.   6. Ideate  6.1 Solution Decision Criteria  Based on the research presented above and what we understand about hydrogen                       technology, the solution decision criteria for the successful introduction of hydrogen                     technology must satisfy the a range of key factors. These range of key factorsmakes                             up the decision criteria for the introduction of hydrogen fuel cell technology to                         Vietnam. The decision criterion for introducing hydrogen technology are as follows:  

1. Initial hydrogen fuel cell motorbikes must employ the use of hydrogen                     stored as hydrogen hydride in hydrogen canister 

2. Initial design for hydrogen motorbikes must target a niche market 3. Initial deployment of hydrogen fuel motorbike must be introduced in a                     

manageable  geographical area.  The use of hydrogen in its hydride form is a decision criteria because of the proven                                 safety record of hydride compared to other methods of distributing hydrogen as                       detailed in section 5.2 of this report.   The focus on the design of the hydrogen fuel cell motorbikes mimics the path that                             Tesla headed down during its early stages. In targeting a specific market segment,                         our product will be able to deeply penetrate the targeted nichemarket and create a                             loyal first adopter following. In targeting these “extreme users”, we will be able to                           create a value position that can be easily leverage in branding our product offering.   Launching the first wave of hydrogen fuel cell motorbikes in a manageable                       geographical area will help in the early development of the infrastructure needed to                         support the technology. Strategically deploying the motorbikes in a region that can                       support and encourage the consumption of the motorbikes will definitely help the                       product’s launch. Staying close to hydrogen production facilities and building on a                       network of friendly hydrogen canister distribution locations will help reduce                   overhead costs and lower consumer switching costs.    6.2 Recommendations of Alternatives  

Page 13: The Case for Hydrogen Motorbikes

Considering the decision criteria and their relative importance to the case of                       Hydrogen fuel cell motorbikes in Vietnam, we will make two recommendations and                       pathways on how to move forward with the introduction of the product.   6.2.1 Fully Hydrogen motorbikes  The first recommendation that we will present for this case is the introduction of                           motorbikes that is built to only run on hydrogen.With this recommendationwewill                           focus heavily on accomplishing decision criteria one, two, and three. In this                       recommendation we will attempt to perfect the production of hydrogenmotorbikes                     and its complementary product as quickly as possible to ensure that we are able to                             efficiently attain economy of scale in the shortest amount of time. Once economy of                           scale is achieved through strategically focusing on superior hydride canister                   development and efficient upstream as well as downstream supply chain                   management, we will be able to effectively satisfy cafeterias one, two, and three. 

This recommendation incorporates the use of hydride canisters, uses design                     oriented actions to target a niche market, and encourages us to be centrally located                           to all related production inputs and potential channels of sales.   6.2.2 Electric hydrogen hybrid motorbikes  The second recommendation for the case of hydrogen motorbikes in Vietnam is to                         initially introduce hydrogen technology in conjunction with existing electric                 technologies. This recommendations for a initial product offering of a hybrid                     hydrogen and electric moped satisfies design criterias two, and three. Introducing a                       hybrid model during our initial product offering will ease new customers into the                         hydrogen market with a moderately liberal product compared to the more liberal                       product suggested in section 6.2.1. This will ease any switching hesitation that the                         market might have toward hydrogen fuel cell motorbikes. While built as a hybrid,                         this recommendation calls for the incorporating hydrogen hydride canisters as the                     medium in which hydrogen will be provided. The motorbike that will result from                         this recommendation should also be based on design and be launched in a centrally                           located geographical region as in recommendation 6.2.1. This recommendation                 centers around the introduction of a electric and hydrogen fuel cell motorbike that                         incorporates use of hydride canisters, uses design oriented actions to target a niche                         market, and encourages us to be centrally located to all related production inputs                         and potential channels of sales. However as compared to the first recommendation                       in section 6.2.1, this recommendation will not be able to achieve the full economy of                             scale as it related to hydrogen based technologies.   6.3 Preferred Alternative  After careful consideration and review of the two recommendations above this                     report will continue to detail why recommendation 6.2.2 Electric hydrogen hybrid                     motorbikes is the preferred recommendation and alternative. Leveraging the                 

Page 14: The Case for Hydrogen Motorbikes

successes with electric based technology, we can use the hybrid platform to ease                         potential customers into increased awareness and eventual acceptance of hydrogen                   based technologies.   The reason that we would want to start with an hydrogen fuel cell and electric                               

hybrid in our initial offering is because as we develop the infrastructure to support                           hydrogen based technologies, we want to ensure that our customer are never left                         without fuel for their motorbikes. Just as Tesla’s fully electric automobile was the                         successor to the United States’ move towards hybrid technologies between petrol                     and electricity, we want to nurture hydrogen technologies during our initial public                       offerings to ensure that we maximize our opportunities for success. Learning from                       Tesla, producing the initial offering of a hybrid rather than a fully hydrogen power                           motorbike will allow us to better focus on the customer development through the                         easing of the adoption of hydrogen technologies.  Oncewe are successful with our initial product offering, we can actually come back                             

to this report and implement recommendation 6.2.1 Fully Hydrogen motorbikes.                   Employing this recommendation will actually allow us to also have the advantage of                         recommendation 6.2.1 Fully Hydrogen motorbikes in the run long. Should                   recommendation 6.2.1 Fully Hydrogen motorbikes be employed before               recommendation 6.2.2 Electric hydrogen hybrid motorbikes, the later deployment                 of recommendation 6.2.2 Electric hydrogen hybridmotorbikes will actually hurt the                     brand image of hydrogen technology. The introduction of hydrogen technologies                   should be a one way path, backtracking will actually harm the brand value in the                             long term. Customer will see the later introduction of a hybrid as an admittance that                             hydrogen based motorbikes doesn’t work. However this drawback is not as strong if                         the hybrid offering were introduced before fully hydrogen powered motorbikes. In                     that particular scenario, the customer would see the later introduction as an                       improved product and will have increased faith in the brand and technology.    7. Prototype and Commercialization   As we begin to develop what our hybrid hydrogen and electric motorbikes will look                           and feel like, we will start to develop details regarding how we should position our                             offering as well as how we can use social mediums to increase the likelihood of                             success for our product. To accomplish these two commercialization efforts, wewill                       look at the market position based on the design of our proposed hybrid hydrogen                           motorbikes as well as how social marketing can be apply to our advantage.     7.1 Market positioning and Design   Taking a page fromApple’s success and innovation based on design, wewill strive to                             position our proposed hybrid motorbike as a design oriented product. Rather than                       being designed based on current motorbikes frames in Vietnam, our proposed                     motorbike will be marketed as a technology heavy product. The proposed Hybrid                       hydrogen motorbikes will be built on a special frame that can be upgraded every                           two to three years. Computing technologies will also be fitted on these motorbikes                         

Page 15: The Case for Hydrogen Motorbikes

to position the product as a niche luxury product during the first three to four years                               of production. In establishing a niche market position, hybrid motorbikes will seek                       to disrupt the current industry by clear differentiation as a technologically advanced                       company. As seen in figure 10 below, our proposedmotorbike will strive to look like                             the motorcycle on the right more than the motorbike on the left. In creating this                             proposed brand and market position for our hybrid hydrogen motorbikes we will                       continue to differentiate our product from other existing offerings on the market.   

 Figure 10 Motorbike brand versus Motorcycle branding (California DMV)   7.3 Social Marketing  With good design and a clear value proposition as detailed above,                     commercialization of the proposed motorbike will leverage social media tools as we                       bring the product to market. In the commerization of our motorbike we will use                           social media tools to fund, promote, as well as sell our product. Extensive use of                             social media will not only allow us to bring our product to market, but also create                               brand awareness along theway. Creating brand awareness through the heavy use of                         social media tools will tremendously help our project in the long run.   In funding the developmental costs required for our product, we will start a                         kickstarter campaign for five hundred thousand dollars on Kickstarter.com.                 Kickstarter is a crowdfunding website that has helped over one hundred thousand                       projects raise over two billion dollars. Using Kickstarter we will develop a funding                         schedule that will allow early adopters to back our product with the ability to                           pre­purchase our motorbike as the highest tier of support. Wewill also develop low                           tiers of funding support that is rewarded with company gear and special                       merchandises. Funding through crowd funding and especially kickstarter.com will                 help the brand awareness during the development and deployment of our hybird                       hydrogen motorbike.   In the promotion of our motorbike wewill use Twitter and Instagram tomarket the                             lifestyle that is associatedwith our brand.Where Facebook should have been a clear                           tool used, we will opt to not engage on facebook for the case of Vietnam. In light of                                   

Page 16: The Case for Hydrogen Motorbikes

the censorship placed on Facebook, we will not include the social networking                       platform to mitigate any potential business disruption resulting from periods of                     heavy censorship that impacts access to the website.    In well designed twitter and Instagram updates wewill portray the hybrid hydrogen                         motorbikes as a luxury good that mirrors Apple’s branding of its products. Using                         Twitter and Instagram we will reach out to our “extreme users”, another name for                           passionate first adopters. We will use these online social networking platform to                       directly target young technology savvy professional to adopt our product. Through                     these platforms we will continue to work to develop and reinforce our brand in the                             market.   In using social tools to sell our product, wewill use online ecommerce platform such                             as ebay or lazada to directly sell our motorbike to our customers. Following Tesla,                           we will reduce dealership costs and overhead by not having a physical distribution                         location, but rather a clean showroom like Apple. Having a showroom that can                         educate the market regarding our motorbike will help the initial transition from                       petrol based motorbikes. Employing ebay or lazada, will help us provide superior                       customer service by only allowing customers to buy ourmotorbike directly through                       us via those platforms. When the e­commerce transaction is completed by our                       potential customer, wewill deliver eachmotorbike to our end user and provide four                           hours of training on how to use and operate our motorbike. In using these                           e­commerce platform we transfer the cost that we would have otherwise spent on                         an extensive network of brick and mortar locations to build one central store front                           supported by a team of service oriented professional whowill travel to the customer                           to ensure each customer is happy with their purchase.    8. Testing  In the testing phase for hybrid hydrogen motorbikes, we will start to develop                         metrics that will signal whether the recommendations presented are successful as                     we move to implement and market the product to the Vietnamese market.    8.1 Success metrics  In testing for our prototype, we will focus on three metrics that we can measure as                               we implement our product. These three metrics are low annual fuel cost, high                         reliability, and high brand perception. Described in measurable terms, the table                     below has been developed as goals for testing throughout the process of                       implementing  hybrid hydrogen motorbikes in the Vietnamese Market.   

SUCCESS METRICS  GOALS 

Page 17: The Case for Hydrogen Motorbikes

Low Annual fuel Cost  Fuel will cost no more than 90 dollars USD annually 

High Reliability  Motorbike will only required scheduled maintenance           once every year 

High Brand Recognition  Capture 5% of the market for motorbikes within the                 first year of operation 

 During the implementation stage of our product we will look to these success                         metrics to ensure that we are developing a product to meet the market’s                         expectations. In keeping the annual fuel cost at a low level we can build the                             perception that Hydrogen based technology is better the petrol based technology. In                       ensuring that there is no hesitation to adopt hydrogen as an emerging technology,                         we will strive to ensure that the proposed motorbike only needs servicing once                         every year. This will help boost the perception of hydrogen technology as reliable                         and a good replacement for petrol based technologies. Promotion of low cost to own                           and high reliability will work in tandem to accomplish our third success metric of                           high brand recognition. With high brand recognition we can measure the market                       acceptance of our product through acquired market share or lack thereof. If proper                         marketing is employed and the proposedmotorbike has high brand recognition, but                       sale does not reflect those facts then we can revisit why our product is not fairing                               well in the market.  9. Conclusion  As an emerging technology, hydrogen fuel cells has been in development for a number of                             decades. This report works to present how hydrogen can be implemented in motorbikes                         for the case of Vietnam. Through design thinking and analysis, this report have defined                           hydrogen technology and developed the exact the term of reference for application                       in motorbikes, how to ideally implement the proposal and what characteristics our                       recommendations should include, developed an implementation plan and provided                 details on how the idea can be marketed, as well as developed metrics that will                             measure success during implementation.   References  

Appleby, J. and Foulkes. F. Fuel Cell Handbook (Van Nostrand Reinhold: 1989) pp.193­196.  aqicn.org. 2016. Air Pollution in Vietnam: Real­time Air Quality Index Visual Map. [online] Available at: http://aqicn.org/map/vietnam/ [Accessed 15 May 2016].  

Page 18: The Case for Hydrogen Motorbikes

Design Council. 2016, “A study of the design process”, Design Council, viewed 25 April 2016, <http://www.designcouncil.org.uk/sites/default/files/asset/document/ElevenLessons_Design_Council%20(2).pdf>  Dien Luong, T 2016. Why Vietnam Loves the Trans­Pacific Partnership. [online] The Diplomat. Available at: http://thediplomat.com/2016/03/why­vietnam­loves­the­trans­pacific­partnership/ [Accessed 15 May 2016].  Discover Magazine. 2016. Two Strokes and You're Out | DiscoverMagazine.com. [online] Available at: http://discovermagazine.com/2008/may/21­two­strokes­and­youre­out [Accessed 15 May 2016].  Dmv.ca.gov. 2016. Motorcycles, Mopeds and Scooters Defined. [online] Available at: https://www.dmv.ca.gov/portal/dmv/detail/motorcycles/motorcycles [Accessed 15 May 2016].  Fuelcelltoday.com. (2016). Fuel Cell History ­ Fuel Cell Today. [online] Available at: http://www.fuelcelltoday.com/history [Accessed 15 May 2016].  Lin, B. 2014. Bruce Lin ­­ Master's Thesis ­­ Hydrogen fuel cell scooter forurban Asia. [online] Brucelin.ca. Available at: http://brucelin.ca/scooters/ [Accessed 15 May 2016].  Tuoi Tre News 2016. Beleaguered Taiwanese firm tells Vietnam to choose between factory and marine life. [online] Tuoitrenews.vn. < http://tuoitrenews.vn/society/34498/beleaguered­taiwanese­firm­tells­vietnam­to­choose­between­factory­and­marine­life> [Accessed 15 May 2016].  Pisano, G. 2015, "You Need an Innovation Strategy." Harvard Business Review 93, no. 6  Plattner, H. 2014, “Bootcamp bootleg”, Institute of Design at Stanford, viewed 25 April 26,  <http://dschool.stanford.edu/wp­content/uploads/2013/10/METHODCARDS­v3­slim.pdf>  

Page 19: The Case for Hydrogen Motorbikes

Thomke, S. & Feinberg, B. 2012, “Design Thinking and Innovation at Apple”, 

Harvard Business School, May 1.  

 

Schulze, S. 2011, “Design Makes the Difference. Foreword” in Schulze, S.Grätz ,                       

I. Borries, F. Burdek, B. Klinke, H. Polster, B. Urbach, H. Wagner, T. & Zec, P.                               

2011 Apple Design, Hatje Cantz.