For all those at OMD currently coming up with ideas for the Trading Places initiative, I thought you might find this a little inspiring!
I came across a story, and dare I say it, a ‘big idea’, in Wired recently that intrigued me. The idea belongs to Shai Agassi. If you haven’t heard of him yet, you will soon. His plan is ‘simple’, to save the planet. Now I know what you are thinking; Superman has already thought of that, so I will explain. His idea is to put electric cars on the road and create a worldwide grid of charging stations that effectively replace petrol stations. In short, a whole new business model for the automobile industry.
Incredibly, his interest in energy is relatively new. In 2005 he joined the ‘Young Global Leaders’, an invite only group of politicians and business people under 40. In his first meeting their task was to come up with ideas that would 'help make the world a better place by 2020'. More specifically, Agassi’s brief was the environment.
His background is in electronics. He sold an electronics company that he set up with his father to SAP for $400m. Following this, he was made SAP’s Head of Products. However, once he was given the brief from the YGL he clearly became consumed by it. In his words “once you have a mission, you can’t go back to having a job”. He resigned from SAP and set up Better Place. His ambition - to “end oil”.
Now considering the companies and politics involved, you might be thinking his goal was a ‘stretch target’, but no. To make his plan a reality, he and an ever growing legion of devotees have designed a grid system that allows cars to recharge and change their batteries at work, home, in exchange centres and more.
The grid feeds back to a central system that monitors and charges people for the exact miles they accumulate. A person that clocks up 15,000 miles a year would pay $3,000 at present, compared to $1,050 with Better Place. The idea doesn’t just shift the environmental burden over to the electric utility though. His plan is to pay a premium and only use energy made from renewable resources. The idea doesn't just shift the environmental burden over to the electric utility. His plan is to pay a premium and only use energy made from renewable resources.
The remarkable thing is that, to the shock of car makers and oil companies, he is already winning not just people over, but countries. Israel was the first to sign up. His close connections there, coupled with the Governments unease over their reliance on oil imported from neighbouring countries, has given them the beta test Better Place needed. It doesn't stop there though, he has since signed up Denmark, a country commited to increasing their energy efficiency. Car makers are naturally taking note. After meeting Carlos Ghosn, CEO of Nissan Renault, they signed up to deliver 100,000 Better Place vehicles by the end of 2011.
You are probably thinking that the ultimate test will be the US. The country has the highest per capita consumption of oil in the world after all, so when he first presented his vision in Washington, it is no surprise that most Senators declared it impossible. Undeterred by this Agassi targeted the island state of Hawaii. They have since signed up and they now have the Mayor or LA and San Franciscio knocking on their door as well.
Clearly the guy must have remarkable energy and unbelievable ability to convey his vision. That said, the interesting point made is that it is moving ahead not because of his selling alone, but because he is tapping in to something people now want. In his words, Better place is "here to serve you, not to sell to you".
As the aritcle concludes (click here to read it all), while he has only one prototype car, no charging stations yet, and not a single customer to date, everyone he meets is coming on board, arms held out, or cash in hand. They believe they can see the future.
Lets just hope Lex Luther isn't his apprentice.
- Sam