FRENCH STARTUPS Are Reinventing - Capgemini

5FACED WITH THIS UPHEAVAL,MANUFACTURERS WILL HAVETO REINVENT THEMSELVESDIDIER GAMBARTCEO, Toyota FranceTaking a new approach alsomeans fitting into a newsocietal and technologicalecosystemThe model based on individual vehicle ownershipis set to become obsolete, so manufacturersneed to reinvent themselves. Toyota has putresponsible automobility at the core of its futurestrategy, focusing on three aspects.It is a vast project that requires a completeoverhaul of the traditional organisations,something that we have done at Toyota, ready totackle innovative topics in a more agile way andto become more outward-looking.Firstly, the environment with the ambition ofslashing our CO2 emissions by 90% by 2050(compared to 2010), mainly through hybrid andhydrogen technologies; second, safety, andthird the notion of mobility for all, with a rangeof vehicles and services that respond to thediversity of profiles and needs.Rethinking our approach means making aplace for ourselves in the new societal andtechnological ecosystem, and input from startupswill be crucial. Toyota started out makingweaving looms almost 100 years ago and hasconstantly reinvented itself to become theworld’s leading car manufacturer.There are numerous technological, economic andsocietal challenges to overcome before we canachieve fluid, integrated mobility, coordinated byplatforms such as the Mobility Service Platform.The self-driving vehicle will spark this revolutionand, with that in mind, we need to rethinkbusiness models, user experience, logistics,maintenance and so on, while complying withregulatory changes.Today, the Group is gearing up for an even morefar-reaching transformation.13

6CARMAKERS WILL HAVE TO ACHIEVEA THREEFOLD TRANSFORMATIONNICK GILLGlobal Automotive Council Lead, CapgeminiBeing able to workeffectively with startupsand draw on theircustomer focus will bekey to successOver the past few years, the automotivesector has been making huge investmentsin four areas that will undoubtedly define itsfuture: connectivity, autonomy, mobility andelectrification.Car manufacturers are becoming increasinglyaware that these areas are all interdependent:electrification facilitates connectivity, whichis itself vital for autonomy, which encouragesmobility, and so on! A truly virtuous circle,where advances in one area will benefit all theothersIn addition, these four areas are all likely tohave an impact beyond the traditional sectorboundaries. Telecoms, IT, energy and utilities,finance and public services will all inevitablybe involved when it comes to defining andimplementing the infrastructure associated withtomorrow’s vehicles.14While we do not yet know which services willdefine the connected car, or which usecase will drive the adoption of self-drivingvehicles, one thing is sure: consumers, andconsumers alone, will be the once who decide.If car manufacturers are to make a successof this period of disruption and become thebenchmark player in the field of mobility, theywill have to achieve a threefold transformationby breaking down organisational silos, workingon a peer-to-peer basis with external partners,and focusing resolutely on their customers.These are three profound cultural changes.Being able to work effectively with startups,and being able to draw on their agility and theircustomer focus will no doubt be key to success.

7WITH REGARD TO STARTUPS, THE BIGINDUSTRIAL GROUPS MUST SHOULDERTHE RISKS OF INNOVATIONJACQUES ASCHENBROICHCEO, ValeoThere are differencesbetween the culturesand the responsibilitiesof the two worldsWe estimate that there are around 30,000startups in the automotive sector worldwide.Inspired by Tesla, some aspire to become fullyfledged manufacturers. Others, such as Waymoor Uber, seek to revolutionize vehicle use, withthe introduction of robo-taxis for example.Most of them, however, are focused on eitherdigital mobility services, such as car sharing,or on technological niches, such as sensors orsolid-state batteries. It is vital that carmakersand OEMs collaborate with these newcomers,who hold massive intelligence, energy andinnovation potential. Which is why an initiativelike France AutoTech is a welcome boost to theecosystem. Nonetheless, not all startups havethe same needs, the same maturity, or thesame position in the value chain. Hence, theirrelationships with the big corporations takemany forms.Peiker and Gestigon. There is a broad array ofpossibilities. But whatever form the relationshiptakes, it remains complex because of thedifferences between the cultures and theresponsibilities of the two worlds.The big corporations have to deliver the resultsexpected by their customers, shareholders andemployees. Yet when we incorporate a newentity, we inherit not only its strengths but itsweaknesses too.One of the key roles of OEMs is to assumeand control this risk to secure the delivery ofinnovation to carmakers.For example, Valeo has entered into atechnological partnership with Mobileye, hasinvested directly in Navya, and has acquired15

8THE AUTOMOTIVEECOSYSTEM NEEDSCATALYSTS TO FACILITATECOLLABORATIONNICOLAS DUFOURCQChief Executive Officer, BpiFranceBpifrance helps bringingthese different worldstogether to form anenlarged and vibrantecosystemIn France, the automotive sector hasalways been driven by the passion ofentrepreneurs. Which is why Bpifrancelends its support to numerous startupsacross the entire automotive industry, fromdigital services to deep techs and the moretraditional businesses. We listen to them,advise them and support them with a seriesof financial and non-financial aids, such asour SME Accelerator scheme, to help themturn their vision into reality.In the more specific case of the automotiveindustry, Bpifrance also acts as a catalystfor new partnerships. Today, manufacturersand the leading equipment suppliers areeager for new technologies and ideas, whichmay spring from sectors with which theyare less familiar, such as the semiconductorindustry or the field of artificial vision.We enjoy a central position with an all-roundview of innovation in France, so we helpbring these different worlds together to16form an enlarged and vibrant ecosystem,in which startups can find the means theyneed to grow. They are not all destined tobecome giants, but we cannot let thosewho demonstrate potential go unnoticed.At the present time, however, our mostpromising fledgling entrepreneurs head offto the United States or China, countries thatwelcome them and reap the rewards.Contrary to popular belief, the obstaclesto nurturing these businesses and helpingthem grow are not financial but cultural.To resist the temptation of selling up, anentrepreneur must have the ambition tocreate something great and, above all, theaudacity to believe in it.

9AUTOTECH STARTUPS MUST SPEAK WITHA COMMON VOICEALAIN CLOTChairman and Founder, France FinTechLike France AutoTech, FranceFintech is a catalyst forbringing members togetherand sparking innovationWith the advent of digital technology, I believethat the automotive industry is having to facevery similar challenges to those encounteredin the realm of finance. The first being thehuge change in consumers’ expectations andbehaviour. Increasingly, consumers wantfreedom and a feeling of control over theirchoices, to be able to change their mind,and put together their own solutions as theirneeds evolve. Use is taking precedence overownership, convenience over price. Therelationship with the object is changing radicallywith, for example, the take-off of carpooling orthe various rental schemes.and becoming tougher, and then there aregroundbreaking innovations such as blockchainand artificial intelligence. What is more, bothsectors have lost some of their original appealand need to rebuild their image to win overclients and attract the best talents.In both banking and the automotive sectors, theoutcome is a rapid and profound upheaval ofthe ecosystems that had not seen much changeover the years: startups are offering newservices and new experiences much more inline with what people want, powerful operatorsfrom other sectors – such as GAFA – areedging into the market; the regulations, whichare already very stringent, are changingBonne route, France AutoTech!France FinTech was created to rise to all thesechallenges together. Like France AutoTech,France Fintech is a catalyst for bringingmembers together and sparking innovation,giving them a common voice and presencebefore the various stakeholders in the hugechanges taking place.17

4 TRENDSSHAPING THEMOBILITY OF THE FUTURE

1 THE TRENDSCONNECTEDDIGITALMOBILITY WILL BECONNECTED - AUTONOMOUS - SHAREDELECTRIC - DIGITALThe automotive industry is undergoing an unprecedented revolution, driven by five factors:sharing, autonomy, connectivity, electric engines and digital. As use is redefined, industrystakeholders are increasingly turning into mobility service providers. This new concept of‘mobility as a service’ (MaaS) is a major paradigm shift and comes with a new mindset, widelyshared by the players in a growing ecosystem.From every angle, this multifaceted or multimodal ‘disruption’ of society is opening upsome extraordinary opportunities, while raising numerous questions.20

SHAREDAUTONOMOUSELECTRICSHARED MOBILITYWhile 60% of Europeans own a car, their vehicles are only usedfor 3% of their life cycle. This model is far from optimal and thevarious sharing services intend to give it an overhaul. However,despite the appeal of these services, questions remain: How dowe ensure their economic viability? How do we roll them outoutside of the major urban centres? And how do we industrialiseoffers where the value is largely social? The availability andreliability of services for all, and a stricter regulatory frameworkto prevent abuse, will be key to success.ELECTRIC MOBILITYRegulatory changes, a fall in battery production costs, increasedbattery life and the development of charging infrastructureswill speed up the introduction of electric vehicles. With them,other than a more positive carbon footprint, we will see theemergence of new business models (for example, using yourvehicle to store then redistribute its energy). However, we needto make sure that the arrival of other forms of energy, suchas hydrogen, does not alter the positive opinion consumerscurrently have of electric vehicles.CONNECTED MOBILITYJust as smartphones have developed multiple uses for thetelephone, the connected vehicle will redefine interactionsbetween the car and motorist. However, as on-board servicesdevelop, the vehicle’s value proposition and, in particular, itsresidual value will be called into question. What attitude willthe manufacturers take? How much of the value associatedwith these services will they capture? And how will the used carmarket be affected?AUTONOMOUS MOBILITYRobo-taxis and ambulance robots will revolutionise habits andaddress unresolved mobility situations, such as emergencyservices in rural areas. However, the shift towards self-drivingvehicles raises a number of questions. Given that level-4 selfdriving vehicles will account for 55% of sales in 2040, how canwe handle the transitional period during which self-drivingand non-autonomous vehicles will exist side-by-side? And howwill we manage the end-of-life of the conventional fleet, whichcurrently counts almost 40 million vehicles in France?DIGITAL MOBILITYThe customer experience in the automobility sector is changing:booking a vehicle with driver, paying for parking with yourphone, offering an online maintenance service, registering yourcar with your tablet Digitalization has transformed the habitsof automobility consumers. And what is at stake is simplifyingresponsible driver’s experience to offer them a serviceadapted to their needs. How far will we get down the road ofautomation? What role will have in car screens? How can weensure continuity within the digital experience once outside ourcar?21

2 THE TRENDSI BUY / I SELLMY CARI LEARN HOWTO DRIVEI OPTIMIZEMY BUDGETI SHAREA RIDEMOTORISTSWILL BE RESPONSIBLE CITIZENSConsumers are increasingly attentive to the societal and environmental impact of the choicesthey make, even when it comes to their car. Where and how was my vehicle produced?How does it perform? How will it be used, reused and dismantled? These are just some of thequestions that motorists are now asking and the answers provide the basis on which theyassess manufacturers and service providers.Tomorrow, travelling by car will be a responsible endeavour, so automotive businesseswill have to take three major issues into consideration:22

I SECURETRANSACTIONSI OPTIMIZEMY DRIVINGI MAINTAINMY CARNTREI RENTA CARI SHAREA CARRESPECT FOR THE ENVIRONMENTInnovation must aim for rational consumption to reducegreenhouse gas emissions, harmful emissions and waste. Whilethe car is a voracious consumer of energy today, in the future itcould help to produce energy and optimise energy consumption.The car is in constant interaction with its environment (cities,roads, buildings and so on), and offers possibilities for energystorage and transport that will optimise use and cost. Forexample, a vehicle can run during the day but be recharged atnight, when electricity is cheaper.ROAD SAFETYA self-driving vehicle processes 5 TB of data every day! Big Dataand Data Science will be used to exploit that data to give us abetter understanding of various driving situations. The challengewill then be to develop tools and services to facilitate interactionbetween the self-driving vehicle and its environment in order toreduce accidents, starting with the upcoming transition phasewhen self-driving vehicles will exist alongside conventionalvehicles and pedestrians.The self-driving vehicle will not only have to avoid hazardoussituations, but also make sure its presence in the environment isrecognised and that people become accustomed to its presence.PERSONAL DATA PROTECTIONConsumers increasingly seek to protect their data, yet selfdriving vehicles will require significant data exchanges to ensurethe safety of passengers and their environment. A vehiclewhose passengers prefer not to share their data would become‘invisible’ to surrounding vehicles, and therefore dangerous.To keep everyone safe, it will be the motorist’s responsibility toshare their data, and the relevant companies’ responsibility toallow them to do so in complete confidence.Well aware of this societal shift, France AutoTech has clearlystated its intention to bring its members together around acommon goal: making life better and improving the experiencefor responsible drivers.23

3 THE TRENDSCarsharingMOBILITYSERVICESCar rentalFleet managementDriver / carpoolingParking assistanceData (geolocalisation, traffic analysis.)Onboard contentOnboard torContact platformsTrusted third-party, checkerSABUYINGOR SELLINGA CARSales and promotion assistanceNEW SERVICES WILL BEDEVELOPED BY STARTUPSIn France, a startup is created almost every minute*, but nearly half of them fail in the firstthree years**. On the one hand, we have the big groups built to take disruption in their strideand, on the other, newcomers constantly seeking innovation but often overwhelmed by theensuing challenges. These two extremes have to exist and operate side-by-side, in a forcedrelationship. Here, three CEOs, Léa Chevry (Tchek), Sophie Vergne (Kleen) and Célina Maubert(Easyverif), share their vision and tell us how it all works.« There won’t be much change to the relationship between big businesses and startupsover the next ten years. The startups are gathering pace, are more innovative but haveless focus, while big firms are more profitable, better organised, with more resourcesbut are less likely to solve problems quickly », observes Léa Chevry.24* Insee, 2017. ** French Web, 2018.

Driving licenseADMINISTRATIVESERVICESLicense plate, car registration documentFinance / insuranceTechnical controlReparationSpare partsMAINTENANCEVehicle health reportPreventive maintenanceGas / car washAutonomous vehicleTECHNOLOGIESFOR MOBILITYElectric vehicleSensorsCamerasVoice assistantWhile big businesses are more likely to work with a startup toproduce a POC or run a pilot project , the fledgling business willnot often be involved once the project is scaled up. There aretwo main reasons for this: first, startups are not always familiar with how the bigcorporations operate, the constraints they face and theefforts required for integration; when faced with a problem,these big businesses have to mobilise all of their networks,their information systems, and so on.secondly, a win-win relationship requires startups to look tothe long term yet their survival really depends on the shortterm and the corporations’ ability to iterate rapidly.For our three entrepreneurs, however, startups are not destinedto replace the big companies. The goal is to learn and gain fromeach other in a partnership set-up. « The role of big corporationsis to invest in startups but not necessarily on a majority basis »,Célina Maubert thinks.UNPARALLELED AGILITYOne advantage of startups is their ability to change directionrapidly. « If, a year down the line, a startup realises that theirbusiness model is not right, they can change it in a singleafternoon », says Léa Chevry. It is this unique agility that makesthe relationship between big corporations and startups soprofitable and yet so complex. « For the startup, one of the keysto collaboration is to stay focused on its product or service, andto avoid cross-cutting projects or those that are not carefullytargeted », she goes on. In Sophie Vergne’s view, the big groups« should make better use of the startups’ agility and their abilityto pick up weak signals to test new ideas ». Which also meansadjusting their project management.In France, startups have a real opportunity to create theautomotive services of the future. However, if they want toavoid being confined to the role of ‘test centre’, as is all too oftenthe case, they have to look to the long term with new businessmodels that draw on their respective strengths and build ontheir combined qualities.25

4 THE TRENDSI want a cabMI want to know how to get tomy destination pointATCHINGweb uggestionsetMobility offerablesandavailabilitybustrainsbikesDIGITAL PLATFORMSWILL GENERATE NEW USESFuture mobility will be multimodal

SPEARHEADS OF FRENCH TECH French Tech was founded to help French startups get into business and it has been successful, having contributed to the emergence of an ecosystem harbouring more than 10,000 startups from across the country. Now, however, we need to take things further. With Horizon French Tech 2022,