Future of mobility - capturing value

Tuesday, 10 January 2017

by: Sacha Oerlemans

What's the return on mobility? What do we mean by return on mobility?

It starts with the notion that for most of us, most of the time, mobility is a means to an end. Sure, some of us simply enjoy the experience of driving, but most of us are focused on what we can accomplish through greater mobility—it is really about what we can do once we get to where we are going.

The car (or other means of transportation) is a means to do things that otherwise would be much more difficult. It may be about visiting friends, getting to work, taking our children to ballet class, buying things, seeking entertainment, or discovering and exploring new locations. That’s where the real value is, the car is simply a vehicle to achieving that value.

What this means is that the evolving mobility ecosystem offers the opportunity to create value to players far beyond automakers—indeed, far outside the car itself. Anyone who can help us maximise the value that we realise at our destinations or stops along the way can become a key player in the mobility ecosystem.

Anyone who can help to increase the pleasure (or utility) of the experience while we are in transit also has a role to play. And, of course, anyone who can help us accomplish our goals without spending the time required to get to a destination also shapes the mobility ecosystem—think, for example, of online retailers and package delivery services that eliminate the need to go to a store for purchases.

If we focus on return on mobility as a key driver of value creation, what are the emerging opportunities in the mobility ecosystem to create and capture value? There are four potential opportunities;

  • Trusted mobility advisors - Enhancing the value of mobility
  • Mobility data aggregators - Making the invisible visible
  • Mobility fleet operations - Enhancing flexibility and experience
    • Accessible autonomy
    • Economies of skill
  • Horizontal operating systems for mobility-related devices
    • Free other players from having to develop their own operating systems
    • Catalysts for innovation within the mobility ecosystem

The bottom line is that the evolution of the mobility ecosystem is generating substantial new opportunities for value creation and capture opportunities available to both incumbents and new entrants. But the key to harnessing these opportunities is to look ahead and anticipate how the forces of change are reshaping the mobility landscape.

Each of the opportunities involve designing and deploying platforms that can mobilise a growing ecosystem of participants to add more and more value to the mobility customer. These platform-based businesses offer an attractive opportunity for leveraged growth, with the vast bulk of the investment coming from third parties that have an economic incentive to participate on the platform, allowing the platform operator to generate increasing returns over time.

From that perspective, small moves—smartly made and aggressively pursued—can set big things in motion.

Source; Deloitte - Future of mobility

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