Lexpert Magazine

nipeg), and then smaller trucks/vans for intra-city deliveries. And you know what the big, strategic problem is – the fossil fu- els that power your fleet today are like the horses of 150 years ago – they emit an un- acceptable amount of pollution. Moreover, the strategic answer is also fairly clear – you will have to switch to a cleaner form of fuel. e problem is – which of the compet- ing technologies do you go with (because the decision is an expensive one, given the amount of re-tooling involved, at the level of each vehicle, but also the support facili- ties in each city). In not too long, there will be full on electric, but also hybrid electric, and then hydrogen as well. Moreover, it will not be just a power train decision – there will also be a criti- cal question of what degree of vehicle au- tonomy to aim for (i.e., the decision about a new truck technology implicates all three of the Digital Trio!)? Already today you are finding it very challenging to attract driv- ers for your long haul trucks. No one un- der the age of 35 likes the idea of living out of a cab in the back of the truck for five to 10 days at a time. And it will likely be the major intercity highways that go autono- mous first given the ability of systems to master their fairly simple traffic dynamics (relative to the more complex urban envi- ronments). So, do you choose an all in full level 5 autonomy option, and therefore wait somewhat longer – or do you look at something like the Peloton truck platoon- ing system, which reportedly affords signif- icant gas savings just from allowing four of your trucks to speed along the highway as a "linked chain" (hence the name, like the bike racing peleton). So, to recap – the strategic decision is fairly simple, namely that eventually you will have to move to your fleet to a new energy source. But the tactical decisions of which products and services to choose, and the all important "when", that's where the challenges arise. To help with those deci- sions, consider the following tactical deci- sion making tool, a framework for analysis, to help with your due diligence. IMPORTANT LENSES FOR TACTICAL DIGITAL DECISIONS Here are six lenses that can be useful for supporting the all important tactical deci- sions surrounding the adoption and use of digital and related resources; that is, how to deconstruct the big challenges posed by the Digital Trio. ese decision lenses look at: technology innovation; business model innovation; social innovation; policy inno- vation; political innovation; and interna- tional innovation. Technological Innovation. By this I mean un- derstanding some key elements of the tech- nology, and possibly even the science, of the product or service itself. Most critical is to get a sense of its maturity. Every technology goes through at least two waves – the initial euphoria of the invention stage, when the early pioneers plough into the field, and all sorts of versions and variations of it flourish, but typically only in the lab and possibly in a beta trial. But is it ready for prime time? at usually comes with the second wave, lead by one or a few aggregators who take the early work, and bring it to industrial strength. So, in your space, has the innova- tion progressed to this point. And I'm not saying that sometime it's not appropriate to be a guinea pig – a very early adopter – you just shouldn't be one unwittingly. Business Model Innovation. As you do your due diligence, it is not enough to under- stand the tech you are being offered – you also need to get knowledgeable, and com- fortable, with the business model being built around it. For example, your next truck fleet technology comes complete with a big data service that tracks your trucks, but thousands of others as well, and then feeds you a steady stream of intelligence about your fleet, but also about the truck- ing space more broadly, data that you can deploy to manage your own company bet- ter. If this AI-driven service is valuable to you, or will likely become more so as time goes on and you have more experience with its data sets and analytics, then you need to understand who will be making what mon- ey from the service. is is critical so that you understand, fully, where you fit into the value chain. And if you have concerns, this is when you need to surface them. For example, you'll want to be sure that the sup- plier of the service, by collecting your own data, is unable to give away important facts about your company, such as how busy your trucks are at any one time, etc. Social Innovation. Increasingly, it is useful to consider not only the business model for the new technology, but also to probe the social implications of the new develop- ment. What impact will it have on your staff, and of course your customers, and those in your supply chain, and others. You might be in an industry or in a type of ac- tivity where some "social license" might be useful to consider. is will not apply to ev- eryone, but where it does it can be real and meaningful, and you ignore it at your peril. Policy Innovation. A related point is that beyond what might be an amorphous "so- cial license", there may well be also a "le- gal license" that is implicated by the new product or process. Is it governed by some form of regulation? For example, what are the relevant trucking regulations, and how does the new technology fit into them. And what about the tax collector – does the new product or process implicate in any way what happens to the public tithe that may be due from the new activity – again, you cannot leave these sorts of ques- tions to chance. Political Innovation. Particularly if you do not like the answers coming from your re- view of the social or policy innovation re- view, you might consider trying to change the rules themselves through the political process, whether at the municipal, provin- cial or federal level. And you might be best advised to try to effect change through a trade association, where you can aggregate like-minded players in your industry to ef- fect amendments to the legal or fiscal en- vironment collectively. is also helps you be less conspicuous if there is a vigorous debate about the changes being proposed. International Innovation. e final lens in- volves the world beyond our own borders, particularly in the US and the EU – how is the new technology being rolled out in those jurisdictions, and what are they do- ing with the same social, policy and politi- cal issues. Even if your trucking operations are limited to Canada, you will want to understand global trends, because there is such a buffeting of Canadian experience from factors that originate from beyond our borders. You cannot afford to ignore the new technological trends coursing through the economy, and society at large, just because the Digital Trio present some daunting challenges. George Takach is a senior partner at McCarthy Tétrault LLP and the author of Computer Law.

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