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Company Overview 1. 2. 3. 4. 5. 6.
HEV combines battery and electrical drive system with an Internal Combustion engine & Fuel efficiency
is generated through the combination of energy optimization and Breaking energy (Toyota Prius is the
best example which has mileage of 26.3 Kmpl)
Expansion into HEV Powertrain segment Justified? 3. 4. 5. 6.
Core Competency: Deltas core competency lies in design and manufacturing of energy-efficient power management and
automation systems.
They had years of learning in the energy efficiency domain after manufacturing electronic components for TV, PC & laptop, UPS,
Partnership
batteries with
and solar Ricardo Win-Win
PV industries.
To benefit by the rich expertise of Ricardo in Engines, Transmissions (automatic transmissions & Torque Vectoring) &
Structure (Noise, Vibration, Harshness, Thermal Systems and Safety)
To benefit by gaining deeper understanding of system-level issues with hybrid electric vehicles and their impact on
those components and subsystems
To become an independent subsystem supplier by leveraging its core competency and access to latest technology and
designing techniques by Ricardo
To cover itself under Ricardos patents and hence reduce risk of brand dilution and IP infringement
Platform approach to design
Build a common platform for each different frame size for different car sizes A frame, B frame, etc
Core circuitry and core designs will be the same. Dimensions, outside mounting will change as required
Strategy reduces design (engineering) fees since customers (Chinese manufacturers) wont pay high fees
Downside of the platform approach: Even low-volume customers need lot of customization Design would not be
optimized on cost or performance which a complete integrated customer design might offer
Parallel Management Approach
A separate BU setup to develop & supply components for electric vehicles. Shared manager model
Automotive and industrial control 2 departments, 1 common manager, 2 different product design teams
Once these incubated units got larger, a separate manger would be put in place to run it
Using existing CashFlows to fund investment; Investments not so big incremental changes only to existing capabilities
and technologies
Hire new people for technologies that they didnt have expertise in and build the expertise slowly by finding and utilizing
resources internally
Distributed Intelligence approach
Deltas Response to Customers Demand 5. 6.
Countering threat of imitation
Data analytics
Through distributed intelligence approach, industrial automation is updated through two
phases- upper layer for master control and execution layer at device level
The various sensors at the execution level like shaft encoders, voltage or temperature
sensors, will incorporate fair amount of intelligence. This will make duplication harder
Countering threat of Imitation 6.
Countering threat of imitation
A B
Distribute Upper Layer Constant Innovation-Upgrading
d Master layer the technology of vehicle control
control unit in short intervals will deter
intelligenc
imitation
Execution Layer
e
Device level
incorporating feedback C
from sensors Sign enforceable contracts &
build long term relationships,
Worked well for where protecting IP is a mutual
Industrial benefit for Delta as well as
automation Chinese customers
Simple duplication
will not give access Automotive industry
to the know-why has higher focus on D
costs-such systems
Filing Patent for the new
Imitation lag-Slow
will shoot up the cost technology- This is a strong
down the rate of
copying Higher volumes- method of protecting IP but China
Chinese customers difficult to install has a poor legal system and hence
can control the patents are easily copied.
master layer &
execution layer could
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