Don’t Make This Mistake in Your Product Roadmap For Battery-Powered Equipment (and what to do instead)
Does your battery solution leave room for future improvement? Can you upgrade your product or create different versions using the same battery solution? Will the manufacturer provide the support you need for ongoing refinement? Integrating a battery pack is no small feat, so you should ensure the effort will pay off in the long run.
But don’t wait for the day when new battery chemistry magically appears to save the day. Unlike what Moore’s law did for computer chips, battery chemistry isn’t evolving at a breakneck speed where capacity doubles and price halves annually.
The most common battery roadmap mistake: Focusing on battery chemistry
Sony introduced the first commercially available lithium-ion battery through its CCD-TR1 camcorder in 1991. The battery chemistry Sony used then is fundamentally the same as what we use today, including the newest and latest Lithium Titanate (LTO). The foundation for electrification will remain lithium chemistry-based for the foreseeable future.
However, the slow evolution of battery chemistry is beneficial because the billions of dollars invested in the fundamentals for lithium mining, refining, processing, manufacturing, distribution, and integration will continue to be relevant — bringing down the costs of battery solutions.
As such, your product roadmap shouldn’t count on some unicorn battery chemistries to appear and solve all power woes once and for all.
What your product roadmap should focus on
The battery industry is fast-moving, especially for product development teams specializing in high-value equipment where implementing lithium battery packs is complex, expensive, and dangerous. However, the rapid development isn’t about the fundamental chemistry.
Your electrification strategy must address new insights as battery technology develops. For example, about a decade ago, we knew charging batteries faster cause more wear, but we didn’t know by how much.
Today, we have more data to predict battery lifespan and behaviors — developing confidence from numbers (i.e., billions of data points from telemetry). For example, when Tesla introduced Supercharging, it was essentially an unproven concept. In fact, many skeptics bet the vehicles will turn into shiny bricks fast. Of course, now we know that isn’t the case.
What does that mean for your electrification roadmap?
When starting a product development project, you must first find the sweet spot for cheap and good enough and iterate from there.
The first version probably won’t be as cheap, high-performance, or long-lasting as it could be. But as you develop multiple generations, you’ll collect data and find the optimal point to deliver the features your customers want at a price point they’re willing to pay while making money for your company.
As we mentioned in the previous chapter, over-dimensioning your battery pack just because users think they need the capacity based on how ICE-powered equipment works is counterproductive.
What does a typical roadmap look like, then?
First-generation products are usually expensive and only cater to a small portion (e.g., 1%) of your total addressable market (TAM). Regulations often create this market, such as legislation requiring garbage trucks serving a historic district to be emissions-free by a specific date.
Second-generation products are less expensive, slightly more optimized, and serve an increased customer base (e.g., 5% of your TAM). This second stage is often fueled by positive discrimination like reduced taxes or incentives like access to HOV lanes for electric cars.
Third-generation products are where performance matches up with user needs. Meanwhile, the products aren’t excessively over-dimensioned to be cost-uncompetitive. Fourth-generation products are typically business-case-driven — developed to be better and cheaper than the alternatives.
The true accelerator in electrified product development
Advanced solutions like software-defined batteries (SDBs) allow product teams to iterate faster. Their telemetry and remotely controllable nature enable engineers to easily change various parameters between product generations without reengineering the battery pack. The true accelerator is the insight and analytics, not advancements in battery chemistry.
You may also use an SDB solution in your prototypes to quickly adjust the battery pack’s parameters. After finding the sweet spot, apply the insights to develop a traditional battery solution to bring down costs for mass-market products.
Your product roadmap should be boring
While a detailed, professionally managed battery roadmap for high-value products may involve a more sophisticated approach to battery chemistry, most product builders shouldn’t focus on battery chemistry in their product roadmaps.
Instead, your product roadmap should address market fit, the cost of goods sold, and supply chain management. Any good product or portfolio manager already does this with their eyes closed. This stage is where we want electrification to be — mature and boring — because that’s where we cut through bright shiny objects and focus on business case and profitability.
Don’t get stuck in analysis paralysis. We can help you make meaningful progress in selecting your battery solution and designing an integration strategy in a day in our new Battery Technology Workshop. Learn more to see how we can help you build electrified products cost-effectively with cutting-edge insights and deep industry knowledge.
