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About the UNEP Division of Technology, Industry and Economics The UNEP Division of Technology, Industry and Economics (DTIE) helps governments, local authorities and decision-makers in business and industry to develop and implement policies and practices focusing on sustainable development. The Division works to promote: > sustainable consumption and production, > the efficient use of renewable energy, > adequate management of chemicals, > the integration of environmental costs in development policies.

The Office of the Director, located in Paris, coordinates activities through: > The International Environmental Technology Centre - IETC (Osaka, Shiga), which implements integrated waste, water and disaster management programmes, focusing in particular on Asia. > Sustainable Consumption and Production (Paris), which promotes sustainable consumption and production patterns as a contribution to human development through global markets. > Chemicals (Geneva), which catalyzes global actions to bring about the sound management of chemicals and the improvement of chemical safety worldwide. > Energy (Paris), which fosters energy and transport policies for sustainable development and encourages investment in renewable energy and energy efficiency. > OzonAction (Paris), which supports the phase-out of ozone depleting substances Copyright Š United Nations Environment Programme, 2009 This publication may be reproduced in whole or in part and in any form for educational or non-profit purposes without special permission from the copyright holder, provided acknowledgement of the source is made. UNEP would appreciate receiving a copy of any publication that uses this publication as a source.

in developing countries and countries with economies in transition to ensure implementation of the Montreal Protocol. > Economics and Trade (Geneva), which helps countries to integrate environmental considerations into economic and trade policies, and works with the finance sector to incorporate sustainable development policies.

No use of this publication may be made for resale or for any other commercial purpose whatsoever without prior permission in writing from the United Nations Environment Programme.

Disclaimer The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the United Nations Environment Programme concerning the legal status of any country, territory, city or area or of its authorities, or concerning delimitation of its frontiers or boundaries. Moreover, the views expressed do not necessarily represent the decision or the stated policy of the United Nations Environment Programme, nor does citing of trade names or commercial processes constitute endorsement.

UNEP DTIE activities focus on raising awareness, improving the transfer of knowledge and information, fostering technological cooperation and partnerships, and implementing international conventions and agreements.

For more information, see www.unep.fr ISBN:

92-807-2711-7


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Design for Sustainability

a step-by-step approach


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Design for Sustainability a Step-by-step approach

United Nations Environment Programme DTIE Sustainable Consumption and production Branch 15 Rue de Milan 75441 Paris CEDEX 09, France Tel: +33 1 44371450 Fax: +33 1 44371474 E-mail: unep.tie@unep.org Internet: www.unep.org Delft University of Technology Faculty of Industrial Design Engineering Design for Sustainability Programme Landbergstraat 15 2628 CE Delft The Netherlands Tel: +31 15 278 2738 Fax: +31 15 278 2956 E-mail: dfs@tudelft.nl www.io.tudelft.nl/research/dfs


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Acknowledgements This document has been a ‘work of art in progress’ for some time. D4S: A Step by Step Approach reflects the vision and insights of many people, as noted by the number of contributing authors and supporting organizations. We gratefully acknowledge the support of the Swedish Environmental Protection Agency, the Ministry of Housing, Spatial Planning and the Environment, The Netherlands and InWEnt, Capacity Building International Germany. We would also like to acknowledge the efforts of UNEP colleagues, Anne Solgaard, Desta Mebratu, Bas de Leeuw, Sonia Valdivia and Guido Sonnemann. A special note of thanks also belongs to Erica Allis, UNEP DTIE consultant who untiringly wove together the many visions and insights presented.

Supervision, technical editing and support Mrs. G. Clark and Ms. E. A. UNEP DTIE, France Ms. E. Long, Intern, UNEP DTIE, France Ms. M. McCall Johnson, Intern, UNEP DTIE, France

Editors Dr. M.R.M. Crul and Mr. J.C. Diehl Delft University of Technology, The Netherlands Faculty of Industrial Design Engineering and Prof. Dr. C. Ryan, University of Melbourne, Australia

Chapters and Modules Authors Chapter Chapter Chapter Chapter Chapter Chapter Chapter

1: Dr. M. Crul 2: Dr. M. Crul, Mr. J.C. Diehl and Dr. Th. Lindqvist 3: Prof. Dr. C. Ryan 4: Dr. M. Crul and Mr. J.C. Diehl 5: Dr. M. Crul and Mr. J.C. Diehl 6: Mr. J.C. Diehl 7: Mrs. U. Tischner, Prof. Dr. C. Ryan and Mr. C. Vezzoli

Module A: D4S Benchmarking: Prof. Dr. C.B. Boks and Mr. J.C. Diehl Module B: Design-Oriented Scenarios: Prof. Dr. E. Manzini, Mr. F. Jégou and Mrs. Dr. A. Meroni Module C: PSS Tools: Mrs. U. Tischner, Prof. Dr. C. Ryan and Mr. C. Vezzoli Module D: Creativity Techniques: Mr. J.C. Diehl and Mr. M. Tassoul Module F: D4S Management: Mr. M. Karlsson Module G: D4S Communication: Mrs. U. Tischner and Mr. A. Meta Module H: Eco-materials: Dr. X.H. Nguyen, Dr. T. Honda, Dr. Y. Wang and Prof. Dr. R. Yamamoto Module I: Energy: Mr. J.C. Diehl and Mrs. A. Mestre Module J: ICT: Prof. Dr. C. Ryan

International Scientific and Professional Review Panel Prof. Dr. P. Eagan, University of Wisconsin, USA Prof. Dr. R. Gouvinhas, Universidade Federal do Rio Grande do Norte, Brasil Dr. Th. Lindqvist, International Institute for Industrial Environmental Economics, Sweden Prof. Dr. H. Schnitzer, Technical University of Graz, Austria Prof. Dr. S., Royal Melbourne Institute of Technology, Australia Prof. Dr. B. Mwamila, University of Dar es Salaam, Tanzania

Case study research Mr. O. Visser, Delft University of Technology, The Netherlands

Design and lay-out Ms. A. Mestre and Ms. G. Campelo, SUSDESIGN, Portugal


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Foreword

The United Nations Environment Programme Medium-Term Strategy 2010-2013 adopted by the Global Ministerial Environment Forum in February 2008, underlines that current economic growth and development patterns can not be sustained without a significant shift in global production and consumption trends. Decoupling economic growth from negative environmental and social impacts will require producers to rethink design, production and marketing paradigms. Consumers will need to consider real environmental and social concerns along a product’s life cycle – in addition to price, convenience and quality, in their purchasing decisions. While these drastic changes face formidable challenges, there are encouraging developments contributing to an expanding knowledge base in the product development field. This publication is the most recent milestone in a series of steps towards more sustainable consumption and production. UNEP proudly supports this latest publication as an update of the successful 1997 manual, “Ecodesign: A Promising Approach to Sustainable Production and Consumption.” As a brief history, in the 1990s, concepts such as ecodesign and green product design were introduced as strategies companies could employ to reduce the environmental impacts associated with their production processes. These strategies also bolstered a company’s position and competitive market edge where more and more emphasis was being placed on environmental stewardship. In 1997, UNEP published the ecodesign manual which was one of the first of its kind and helped lay the foundation for widespread adoption of ecodesign concepts by policy makers, programme officers, and project specialists. The manual was instrumental in inspiring other documents and sector specific publications on the topic. Since then numerous initiatives and programmes have been carried out by industries and research institutions demonstrating how the economic, social and environmental benefits could be achieved through sustainable product design. UNEP working with the Technical University of Delft, led to the convening of leading sustainable product experts to outline the evolution of ecodesign to the concept of Design for Sustainability (D4S).


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D4S goes beyond how to make a ’green’ product – and strives to meet consumer needs through sustainability-oriented interventions in a systematic and systemic way. UNEP also supports related efforts operating in parallel that strive to achieve similar goals such as the Life Cycle Initiative and Eco-Labeling projects at the national level. Both activity areas seek to improve products by promoting supply chain responsibility and sustainable procurement to assess and manage the social and environmental impacts of products. The recent publication “Life Cycle Management: A business guide to sustainability” is an excellent overview on how to improve products by assessing and managing their impacts throughout their life cycle. One of the largest challenges to more sustainable operations is a lack of communication about key initiatives, innovative strategies, effective solutions, and successful technical know-how. This publication is an example of one effort to address this limitation by presenting the collective insights of experts in the field. It covers D4S concepts ranging from incremental to radical innovation and provides an overview of D4S potential — why it works and who should be involved. The publication focuses specifically on four practical approaches, and provides a collection of case studies showing D4S applications and their sustainability benefits. Each chapter reflects the knowledge and lessons learned from a multitude of projects and represents years of logged project work. It is not meant to be a comprehensive or exhaustive review of D4S approaches but a presentation of the global picture and the key steps for application of the key areas of D4S intervention. The publication targets designers and other professionals working in the area of industrial product development. It is useful to those new to ecodesign as well as those interested in breakthrough innovation for sustainability. This is also a sister publication to “Design for Sustainability: A Practical Approach for Developing Economies” (2006) which focused on the specific needs of small- and medium-sized companies in developing economies.


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D4S Graphic Design Concept The D4S graphic design of this publication is based on the sustainability concept and its consideration of the three elements of PEOPLE, PROFIT AND PLANET. The graphic design is comprised of 3 subjects and 3 colours to illustrate these elements: PEOPLE are illustrated by the expressions of Human beings from different cultures and races. PLANET is represented by different natural elements of the planet such as water, rocks, trees, sand and plants. PROFIT is illustrated by views of examples of highly developed sites from throughout the world. Lgo Sto Antoninho, 3 1200 406 Lisboa Portugal Tel l Fax: + 351 213 422 200 info@susdesign.org www.susdesign.org Photos by: Carmen van der Vecht carmen-v@dds.nl www.streetarts.info and SUSDESIGN

The graphic design was developed by SUSDESIGN, an entity devoted to the promotion of Design for Sustainability and is illustrated with images from student projects and SUSDESIGN.


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Part I What is D4S and why do it?

1> Introduction to the D4S:

A Step-by-Step Approach

1.1 _ From Ecodesign to Design for Sustainability (D4S)................................. 1.2 _ To whom is this publication addressed?............................................. 1.3 _ How to read this publication...............................................................

15 17 17

2> What is D4S and why do it? 2.1 _ Products and Sustainability....................................... 2.2 _ Products and environmental aspects – Planet implications................................................... 2.3 _ Products and social aspects – People implications ................................................. 2.4 _ Products and financial aspects – Profit implications ................................................... 2.5 _ Life cycle and improvement factor thinking.....................................

23 25 26 26

27 2.6 _ Product innovation...................................................... 28 2.7 _ A systematic approach.............................................. 31 2.8 _ Why do D4S – Drivers for industry.......................... 31


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Part II How to do D4S in practice 3> A ‘Quick Start’

approach to D4S

3.1_ Overview................................................................. 3.2_ How - Simple steps to re-thinking your product......

41 42

4> Inside-the-Box: D4S Redesign

4.1_ A structured, stepwise approach on D4S Redesign...

57

5> Out-of-the-Box: Radical Sustainable Product Innovation

5.1_ The need for radical sustainable innovation.............. 5.2_ Managing radical product innovation......................... 5.3_ Methods and tools for risk reduction....................... 5.4_ Creative industry and distributed economies............ 5.5_ Sustainability and radical product innovation.............

75 76 78 79 80

6> New Product Development 6.1_ Product innovation.................................................. 6.2_ New product technologies....................................... 6.3_ Integrating human powered, photovoltaics and fuel cell energy systems into consumer products ........... 6.4_ ICT technology in new product development: One Laptop per Child..................................................... 6.5_System level innovation connected to new products: the example of fuel cell systems.....................................

83 84 85 88 89

7> Product-Service Systems 7.1_ Introduction – the concept of PSS.......................... 7.2_ PSS for D4S – some starting points........................ 7.3_ How to run a PSS for D4S pilot project.................

95 97 102

> References............................................

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Part III (on the web www.d4s-sbs.org)

Case Studies 8> D4S Case studies 8.1_ Drivers for D4S at Natura, Brazil 8.2_ D4S Redesign 1.8 Litre HDPE Bottle, Microplast Costa Rica 8.3_ D4S Radical Sustainable Product Innovation: new mobility concepts 8.4_ D4S New Product Development: Photovoltaic Lantern, Kamworks, Cambodia 8.5_ D4S Product-Service System: Call-a-Bike a professional bike rental system, Germany

Part IV (on the web www.d4s-sbs.org)

Tools and Topics > Design Tools Module Module Module Module Module

A_ B_ C_ D_ E_

D4S Benchmarking Design-Oriented Scenarios Product-Service Systems tools Creativity Techniques D4S Rules of Thumb

> Management Tools Module F_ D4S Management Module G_ D4S Communication

> Innovation Topics: Module H_ Eco-Materials Module I_ Energy Module J_ ICT

> Worksheets D4S Redesign D4S Benchmarking Product-Service Systems


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People


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Part I What is D4s and why do it


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Introduction to the D4S: a step-by-step approach

1.1 From Ecodesign to Design for Sustainability (D4S) In the 1990s, concepts such as Ecodesign and green product design were introduced as strategies companies could employ to reduce the environmental impacts associated with their production processes. These strategies also served to bolster a company’s position and competitive edge in a market where more and more emphasis was being placed on environmental stewardship. In 1997, UNEP published “Ecodesign: A Promising Approach to Sustainable Production and Consumption” which was one of the first manuals of its kind and helped lay the foundation for widespread adoption of Ecodesign concepts. This publication introduced the fundamental concepts of Ecodesign to policy makers, programme officers, and project specialists. The manual has been instrumental in the development of many other documents and sector specific publications on the topic. In the last ten years, the global threats of climate change have pushed environmental concerns to the forefront of political agendas around the world. In response to these concerns, many nations have taken up the urgent call to ‘act now.’ These countries have established policies designed to mitigate the deleterious effects of climate change by reducing greenhouse gas emissions, shifting energy supply to include a larger portion of renewable energy resources, and increasing energy efficiency.

While much emphasis is currently placed on climate change, other environmental issues and concerns are looming on the horizon. These include the availability of potable fresh water, increased deforestation, reduced biodiversity and the destruction of ecosystems. Reversing these trends requires dramatic changes in consumption and production at the process, product, service, and system levels. Profound changes have taken place in the world economy and industrial production practices over the past decade. The accelerating processes of globalisation and trade liberalisation, supported by advances in information technologies, have fundamentally changed the landscape of the private sector in all countries. These changes have resulted in economies around the world becoming increasingly interconnected with developing economies playing a more and more important role in economic growth (i.e. China, India, Mexico, Brazil and Russia). In the wake of globalisation, it is becoming increasingly evident that current economic growth and development patterns cannot be sustained without significant innovation in both the supply (production) and demand (consumption) sides of the market. Therefore, there is a growing demand for companies to research and implement more innovative processes and develop better products and services. Governments can support this by providing a conducive policy environment and creating civil society programmes that facilitate the dis-


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semination of information to promote the selection of sustainable products among consumers. To keep pace with the rapidly changing industrial setting, many environmental movements have expanded their scope to include social and economic concerns. This combination of environmental, social, and economic priorities is referred to as ‘sustainability.’ Like many other environmental concepts, Ecodesign has evolved to include both the social and profit elements of production and is now referred to as sustainable product design. The concept of ‘Design for Sustainability’ (D4S) requires that the design process and resulting product take into account not only environmental concerns but social and economic concerns as well. The D4S criteria are referred to as the three pillars of sustainability people, profit and planet. D4S goes beyond how to make a ‘green’ product and embraces how to meet consumer needs in a more sustainable way. Companies incorporating D4S in their long-term product innovation strategies strive to alleviate the negative environmental, social, and economic impacts in the product’s supply chain and throughout its life-cycle. This step-by-step approach to D4S provides companies and intermediate organisations in developed and developing economies with practical support for both incremental and radical product innovation. It should be noted that by no means has incremental redesign or greening of products lost its relevance in today’s marketplace. D4S essentially builds on these concepts and aims to drastically improve the efficiency and social qualities of production processes by developing new products, services, and systems. This publication provides examples and approaches on how to accomplish these goals. The D4S: A Step-by-Step Approach was compiled by Delft University of Technology’s Design for Sustainability (DfS) Programme for UNEP’s Sustainable Consumption and Production Branch of the Division of Technology, Industry and Economics. Both organisations have been active in the area of promoting more sustainable product design since the introduction of these concepts in the 1990s. The publication is a result of a long-term cooperation with international experts from the Netherlands, Sweden, Italy, France, Germany, Japan, Australia, UNIDO, the Swedish EPA, InWent Germany, and UNEP and reflects the evolution of the concept.

UNEP supports a variety of D4S efforts — strengthening resource efficiency and sustainable consumption and production is a UNEP priority area. UNEP does this through strengthening the knowledge base underlying action by government, industry, and consumers, building governmental capacity to implement policies and tools, and strengthening partnerships with business and industry. These include initiatives such as reporting on economics and development implications of resource depletion, establishing supply chain partnerships with SMEs to enable them to meet more stringent environmental standards, or training key stakeholders on resource efficiency and sustainable consumption and production. In the D4S area, UNEP has developed materials to help business leaders, product designers, and policy makers rethink how to design and produce products to improve profits, competitiveness, and social benefits while reducing environmental impacts. In addition to the Ecodesign Manual (1997), other publications and tools include: Design for Sustainability: A Practical Approach for Developing Economies (2006) (developed in conjunction with Delft University of Technology, it introduces the D4S concept and methods for applying it in a business setting in developing economies). Relevant examples and case studies are included from demonstration projects carried out in Costa Rica and Morocco. It is available in English, French, Spanish, and Vietnamese. Other manuals cover life-cycle management: Life-Cycle Management: A Business Guide to Sustainability (2007). UNEP’s work with UNIDO on the National Cleaner Production Centres (NCPC) Programme also highlights D4S as a focal area. For example, in 2008-9, UNEP is working with the Vietnamese NCPC to implement an EC supported project to test the D4S methodology. Disseminating the D4S concept globally is a long-term strategic focal area. UNEP has an increased focus on design issues in sustainability efforts as a result of years of work in cleaner production and eco-efficient systems. The horizons of pollution prevention have widened from a focus on cleaner production processes to the broader concept of sustainable product design, and have expanded to include transport logistics, end-of-life collection, and component reuse or materials recycling. These product systems innovations in existing endeavors couple well with new products, systems, and enterprises designed to create win-win solutions for businesses, local com-


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munities, supply chains, the environment, and consumers. Each product or system that is designed with resource efficiency and a full life-cycle analysis in mind contributes to the promotion of a 10 Year Framework of Programmes on Sustainable Consumption and Production patterns that was mandated at the World Summit on Sustainable Development in 2002. (http://www.unep.fr/scp/design/d4s.htm) Delft University of Technology’s D4S Programme has extensive experience in sustainable product, service, and system innovation worldwide. Industrial and research projects are carried out in the areas of products, renewable energy, innovative mobility, renewable materials, sustainable Product-Service Systems, telemedicine, leisure products, and regional innovation. Projects have been executed in the Netherlands, Europe, Africa, Asia, and Latin America. Several of the corporate projects are used as examples and case studies in the publication.

apply D4S. A separate publication on D4S in developing economies (D4S-DE) was published by UNEP in 2006. Given their unique and more immediate needs, particularly in the area of awareness and capacity building, the D4S-DE publication focused on needs assessment, redesign, and benchmarking of products and outlined a practical approach that is feasible for the context. However, this does not exclude the importance of ‘leapfrogging’ towards new and more sustainable products, services, and systems which are presented in this step-by-step approach. As redesign and benchmarking can be highly valuable approaches in developed economies as well, text on product redesign and innovation is provided in Chapters 4 and 5, respectively. Information on benchmarking is detailed in Module A, and the worksheets on redesign and benchmarking on the web, are all similar to what has been presented in the D4S-DE publication.

1.2 To whom is this publication addressed?

1.3 How to read this Publication

This publication is written for professionals involved in product innovation and sustainability, including innovators, product developers, company executive managers, environmental managers, intermediates such as consultants, centres of excellence, and researchers. It is also relevant for professionals from business associations, NGOs, and governments that work with industry in joint projects. The type of D4S related methodologies proposed in this publication can be used in a collaborative process with several partners, either within a company, or within a project where intermediates and companies are involved. Certain chapters of this publication were written to be used by an in-company or external project team that can initiate D4S projects (i.e. the quick-start, and the redesign and benchmarking chapters). Other chapters outline concepts or initiatives that require a broader partnership of companies and societal actors, or a longer timeline for the execution of the project (i.e. the product innovation, product-service systems and system innovation chapters). This publication is addressed to professionals in both developed and developing countries. It presents the concept, its rationale and context, and approaches to

This publication is comprised of four parts (Parts I-IV) two are contained in this document (Parts I-II). Parts III and IV are a series of modules that are located on the webpage www.d4s-sbs.org <http://d4s-sbs.org>. Readers can navigate this publication in different ways depending on their interests and focuses. Reading suggestions are provided below. In Part I, What is D4S and why do it? (Chapters 1 – 2), introduces the concepts and motivations for D4S initiatives. Chapter 2 provides an overview of the relationship between sustainability and product innovation and how to meet consumer needs while improving the environmental, social, and economical aspects of products. Chapter 2 also outlines the basic concept of product innovation and the difference between incremental and radical innovation. The three approaches featured in this publication – redesign, new product development and Product-Service Systems (PSS) – and their common basic steps (policy formulation – idea generation – strict development – realisation) are introduced. For each of the methods, these four steps are subdivided differently (see Figure 1-1), based on specific goals and requirements. As a final part of this chapter, the reasons for a

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Figure 1-1: stepwise approaches for redesign, new product development and PSS.

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company to work on sustainable solutions are discussed. Part II, How to do D4S (Chapters 3 – 7), is the publication’s core.This portion of the document outlines the practical design approaches to execute a D4S project in a company or network: Redesign, new product development and PSS development. Additional methods and tools are provided in modules on the web. Chapter 3 is the Quick Start approach for D4S. This chapter aims to orientate readers on the D4S process and provides guidance on selecting from the various

types of D4S approaches. Chapter 4 describes the key incremental innovation strategy: D4S Redesign. This strategy is aimed at sustainability-driven, incremental improvement of an existing product. A closely connected approach, D4S Benchmarking, is presented in Module A on the web. This benchmarking approach advocates learning from competitors’ efforts and experiences to improve a company’s own products, and is especially suitable for companies that develop products by imitating existing prod-


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ucts. A comprehensive set of worksheets on redesign and benchmarking is included on the web. Chapter 5 emphasises the importance of out-of-thebox or radical sustainable product innovation. It describes how to efficiently and effectively manage radical innovation and reduce risk. Chapter 6 highlights new product development and shows similarities and dissimilarities with redesign. This chapter also provides examples of several innovative new product technologies, three of which are detailed in the innovation topic annexes on the web: application of new eco-materials (Module H), integration of new energy systems in products (Module I), and application of ICT technologies (Module J). Innovative new products often are part of system innovations on both the technical and socio-cultural level. Chapter 7 details Product-Service Systems (PSS). This design approach was developed to accommodate the fact that services and products are becoming increasingly intertwined, and if properly designed and managed, can fulfill customer’s needs more efficiently and sustainably than purely product based solutions. A step-by-step approach for a PSS pilot project is provided, and this methodology is further detailed in Module C on the web. Module B on the web also provides information and examples on design-oriented scenario building, which is closely connected to PSS. The conclusion of this section provides suggestions for further reading. Part III of the publication consists of Case Studies on the web. provides five case studies that depict the concepts outlined in the previous chapters (drivers, Redesign, radical innovation, new product development and PSS). Each case begins by listing the company and stakeholders implementing the D4S initiative, the issue, the goals and process of the case, and finally the project results. Part IV of this publication consists of the supporting materials on the web. These resources are grouped into the following categories: design tools, management tools, design related innovation topics, and three sets of worksheets. The design tools are to be applied in combination with the methodologies described in Part II of this publication. The contents of Modules A, B, and C have already been presented. Module D provides an overview of creative techniques a D4S team can apply in developing novel solutions to product innovation challenges. Module E includes rules of thumb for

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implementing D4S projects. Management tools (Module F) and communication tools (Module G) are presented to assist professionals initiating D4S projects, as well as those responsible for internal and external communication. Modules on innovation topics - eco-materials (Module H), energy (Module I), and ICT (Module J) have already been presented in connection with Chapter 6 on new product development. Finally, three sets of worksheets on Redesign, PSS, and benchmarking are provided to better assist individuals targeting these efforts. The web also holds a printer-friendly version of the entire publication. The website with the same digital information and additional materials can be found at: http://www.d4s-sbs.org An overview of the publication which highlights the relationship between the various Chapters and Modules is provided in Figure 1-2. The following selections are recommended for fast track reading:

Fast track reading suggestions: I do not have an idea yet: Read Chapter 2: What is D4S and Why Do It? and Chapter 3: A ‘Quick Start’ approach to D4S. Browse through rest of the publication. After that, decide what you want to do and see below. I want to redesign existing products: Read Chapter 2: What is D4S and Why Do It? Chapter 3: A ‘Quick Start’ approach to D4S, Chapter 4: Inside-the-box: D4S Redesign, Module A on benchmarking, Modules D and E on creativity and rules of thumb, and Modules F and G on management and communication for reference. Use Redesign/benchmarking worksheets as needed. I want to develop new products: Read Chapter 2: What is D4S and Why Do It? and Chapter 3: A ‘Quick Start’ approach to D4S, Chapter 5: Outside-of-the-Box: Radical Innovation Sustainable Product Innovation, Chapter 6: New Product Development, Modules D and E on creativity and rules of thumb and Modules H, I, and J on innovation topics. See Modules F and G for reference. I want to develop Product-Service Systems: Read Chapter 2: What is D4S and Why Do It? Chapter 5: Outside-of-the-Box: Radical Innovation Sustainable Product Innovation, Chapter 7: Product-Service Systems, Modules B and C on design-oriented scenarios and PSS tools, Modules F and G for reference. Use PSS

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Publication Overview

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www.d4s-sbs.org <http://www.d4s-sbs.org>

Figure 1-2 ___ Publication overview


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What is D4S and why do it Marcel Crul, Jan Carel Diehl and Thomas Lindqvist Design for Sustainability (D4S) is a key tool in incorporating sustainability concepts into the design and product innovation processes that companies employ.The role of the environmental, social, and economic aspects of sustainability as they relate to product innovation is explored in this chapter. The key drivers for D4S and a basic scheme for product development will also be presented.

2.1 Products and Sustainability It is increasingly apparent that current patterns of consumption and production are unsustainable, as evidenced in the ever increasing rate of adverse environmental and social impacts. The accelerating processes of globalisation and trade liberalisation, supported by advances in information technologies, have fundamentally changed the landscape of the private sector in both developed and developing economies, providing new opportunities to improve sustainability. Large and small companies have made impressive efforts to address sustainability issues with a bottom line focus. Companies are improving the efficiency of current production and the design of new products and services through supply chain management, corporate reporting, benchmarking, and adopting related international standards. These profit-driven strategies go by many names, such as sustainable product design and Design for Sustainability (D4S). D4S, which includes the more limited concept of Ecodesign (Chapter 1 describes the evolution of Ecodesign to D4S), is one globally recognised way that companies can improve efficiencies, product quality, and market opportunities while simultaneously improving environmental performance, social impacts, and profit margins. Many developed economies are highly aware of the business opportunities related to efficiency increases and more stringent environmental and social standards. D4S efforts have already been linked to wider concepts such as product-service mixes, systems innovation and other life-cycle-based efforts. In

developing economies, more immediate technical support is needed to introduce the D4S concept. Many organisations have developed tools to help companies, designers, and consultants rethink how to design and produce products in a way that improves profits and competitiveness while reducing adverse environmental impacts. Over time, this process, known as Ecodesign, has evolved to encompass broader issues such as the social component of sustainability and the need to develop less resources intensive ways to meet consumer needs. D4S goes beyond how to make a ‘green’ product and addresses how to best meet consumer needs on a social, economic, and environmental level. This does not only include the individual product, but also the system of products and related services which are jointly capable of fulfilling consumer needs more efficiently and with a higher value for both companies and consumers. The 3 key elements of sustainability – social, environmental, and economic – are also referred to as people, planet, and profit, and are the fundamental components of product innovation (see Figure 2-1). To be sustainable, product innovation must work within a number of frameworks linked to people, planet, and profit, including social expectations, equitable distribution of value along the global value chain, and the carrying capacity of the supporting ecosystems. Examples of sustainability challenges include:


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> Stop overexploitation of renewable resources and water > Stop deforestation, soil loss, erosion, and ecosystem destruction > Reduce dung and wood burning

Profit: Create equitable value for c u s t om e r s a n d s t a k e h o l d e r s along the global value chain

Figure 2-1 ___ People, profit, planet and product

People: Create opportunities to meet social and eq uity requirements > Reduce urban and minority unemployment > Improve working conditions, safety, and well-being > Acceptance and integration of minorities > Reduce income inequity > Enhance number of skilled workers > Abolish child labour > Reduce illiteracy > Provide basic health services > Provide clean drinking water > Reduce population growth > Improve status of women > Adopt international employment standards > Increase social opportunities and community interaction > Abolish large scale dislocation of people

P l a n e t : F i t w it hi n t h e c a r r y in g c a p a c i t y of s u p p o r t i n g e c os y s tems

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> Reduce fossil fuel energy use > Use of renewable energy > Increase energy efficiency > Reduce use of toxics > Clean contaminated sites > Improve level of waste prevention, recycling, and reuse > Reduce and treat industrial emissions > Reduce quantity of waste water and promote treatment

> Value for company and stakeholders > Value for customers > Fair business model > Fair share of and linkage to global value chains > Linkage of small and medium sized enterprises in developing countries to large transnational companies > Fair price for commodities and raw materials > Ownership and credit opportunities for entrepreneurs The company capacity to undertake D4S initiatives is highly variable from one organisation to the next. If organisations with lower D4S capacity levels were expected to integrate every element outlined above, many product innovation ideas would not be implemented. Furthermore, the afore mentioned elements may not be relevant to all companies and countries. To facilitate the D4S process and maximise project impact, companies should review their sectoral needs to identify the design aspects that would yield maximum positive impacts and the successful achievement of goals and targeted elements of D4S projects. A carefully prepared D4S project can have a significant impact on a companyâ&#x20AC;&#x2122;s future competitiveness, as well as immediate benefits. Sustainability requirements are increasingly being incorporated into corporate supply chain requirements, government procurement guidelines, and consumer decision making. During the development of a new product, or the redesign of an existing one, the product development team is confronted with a variety of design criteria such as quality, ergonomics, safety, and aesthetics. When using the D4S approach, environmental, social, and profit criteria are integrated into the product development process along with elements that serve to minimise the adverse impacts of the product throughout its life-cycle.


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2.2 Products and environmental aspects â&#x20AC;&#x201C; planet implications In the late 1980s and early 1990s, sustainability was largely an environmental issue. Initially efforts focused on improving end-of-pipe technologies, designed to treat waste and polluting streams. In the mid-1990s, the focus shifted towards production improvements via concepts such as clean technology, cleaner production, and eco-efficiency. The next shift was to product impacts, thereby taking into account the whole product life-cycle. Concepts like Ecodesign and Design for the Environment (DfE) were developed and put into practice to address the environmental concerns associated with production and consumption processes. D4S is the latest evolution of product design and takes into account the overarching goals of sustainability, which include social and economic concerns. Environmental impacts can be divided into three main categories: ecological damage, human health damage and resource depletion (see Table 2-1). These impacts, including eutrophication, land use, ecotoxicity, human health damage, and the depletion of fossil fuels and fresh water, are relevant to large industries and SMEs in both developed and developing economies. Another way to classify the different types of environmental impacts is by geographical scaleâ&#x20AC;&#x201C; local, regional, fluvial, continental, or global. Typically, the higher the scale level, the more sources that contribute to the impact, the greater the need for international collaboration to solve issues, and the longer it takes for improvements to become visible â&#x20AC;&#x201C; depending on the reversibility of the problem. A legal framework is in place for many industrialised countries to enforce regulations that deal with local problems like water pollution, soil pollution, and waste disposal, however, while developing economies may posses a similar legal framework, they may lack the enforcement capacity necessary to successfully address these issues. Global issues like climate change are best tackled through international cooperative global warming mitigation efforts. Irreversible depletion problems, even when occurring locally, such as loss of topsoil, are not easily solved, therefore preventive steps to avoid depletion are the most cost-effective. After preventative solutions, back-

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Table 2-1 ___ Ecological Impact categories


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stopping technologies like CO2 sequestration and toxic waste incineration will remain necessary to tackle problems on all scales.

2.3 Products and social aspects – people implications Social aspects of sustainability have begun to receive more attention from the media over the last 10 years as exemplified by negative articles on child labour, companies running ‘sweatshops’, workers’ rights and indigenous peoples. Corporate strategies increasingly include corporate social responsibility in addition to economic and environmental priorities. These social concerns are relevant to all stakeholders, including investors, participants in a supply chain, and local communities. Products and the production process impact people in a variety of ways. Understanding the vast spectrum of societal aspects relevant to sustainable production better equips companies to assess impacts and design and/or modify existing product designs to enhance the positive societal impacts and decrease the negative. Table 2-2 outlines societal aspects of sustainable production and potential impacts. Societal impacts can include on-the-job injuries, consumer and employee health effects to chemical exposure, exploitation of labour, child labour, and resource conflict (diminishing water and food supplies).

2.4 Products and financial aspects – profit implications

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In addition to environmental and social benefits, D4S can also help a company’s bottom line. Sustainability improvements made to products can lower production costs through increased resource efficiency, open up new markets and improve the quality of the product produced, increase customer loyalty and marketing opportunities, and link smaller companies to global value chains and multinational companies. D4S improvements often involve the improvement of resource efficiency during production and an overall Table 2-2 ___ Social Impact aspects


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reduction in material and energy used. More resource efficient production can contribute to significant material savings for companies through reduced material use, reduced energy consumption, and increased recycling. Additionally, reduced material and energy requirements can insulate profit margins from volatile energy and commodity markets. The greening of products can open up new markets that have previously been out of reach due to regulatory requirements or consumer preferences, and allay consumer fears over contaminated products. Sales can also be increased through expanding marketing opportunities and strengthened customer loyalty. A companyâ&#x20AC;&#x2122;s market position can be reinforced and enhanced via links to global value chains and multinational companies brought about by D4S initiatives.

2.5 Life-cycle and improvement factor thinking 2.5.1 Life-Cycle The D4S approach is based on taking the entire life-cycle of a product into consideration when evaluating sustainability impacts (See Figure 2-2). The product life-cycle starts with the extraction, processing and supply of the raw materials and energy needed for the product. It then covers the production of the product, its distribution, use (and possibly reuse and recycling), and its ultimate disposal. A variety of environmental and social impacts occur in different phases of the product life-cycle and should be accounted for in an integrated way. Key environmental factors are the consumption of input materials (water, non-renewable resources, and energy in each of the life-cycle stages) and production of output materials (solid and chemical waste, wastewater, heat, and emissions) and factors like noise, vibration, radiation, and electromagnetic fields. Key social factors are labour policies, production processes that use toxic chemicals to generate products that can adversely affect workers and consumers, and unsustainable consumption of natural materials that ultimately adversely impacts ecosystems and biodiversity in local communities. An example of a product life-cycle evaluation is provided in Box 2-1.

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Figure 2-2 ___ The life cycle of a product

Though they are the subject of much environmental focus, raw material provision and factory production are only two stages of the product life-cycle. In many cases, the distribution, use and disposal phases have higher environmental than the production itself. The environmental and challenge for D4S is to design products that minimise environmental and impacts during the entire product life-cycle, not just during production. Various parts of the value chain connected to a productâ&#x20AC;&#x2122;s material life-cycle should also be considered to fully address social concerns. Social issues in each phase must also be addressed. Specifically, social concerns can arise around child labour, employee wages, and equal opportunities in the production phase with relation to the employees. As a product reaches a consumer, compliance, health, and safety issues also highlight the social impacts. In many cases, the added value generated during different steps of the life-cycle varies considerably; it is often relatively low in the extraction and production steps and higher in the sales and service steps. BOX 2-1: The Life-cycle of a Shirt Shirts are often a combination of natural and synthetic fibers. To produce natural fibers (e.g., cotton), energy, fertilisers, water, and pesticides are needed. For synthetic fibers, chemicals, water, and energy for extensive manufacturing are required. These fibers are combined into cloth during a process

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which uses water, energy, and chemicals to give cloth its colour and other characteristics. From the cloth, shirts are produced and then packaged and distributed to retail shops. After the consumer has purchased the shirt, he or she will discard the packaging and will use the shirt. During the use phase, the shirt, on average, will be worn 100 times, washed, dried and maybe even ironed. Each of these steps has environmental impacts resulting from detergent, water, and energy use. Finally, perhaps when some parts of the shirt have worn out, it will be discarded. It is not possible to compost it because of the synthetic parts, and it may not be easy to recycle because of the mixed materials. During its life time, components of the shirt may have traveled thousands of kilometers, since the production of the cloth production could have occurred in Asia, the manufacturing of the shirt in North Africa, and the retail in Europe. There are also social implications within this lifecycle. Social aspects could include the working conditions on cotton plantations, as well as in the production facilities where cotton and other synthetic fibers are developed into usable materials, and finally the factories where the garments are manufactured. The labour policies used throughout this process can have adverse social impacts (one such example is sweatshops employing child labour). When evaluating and seeking to improve social impacts throughout the life-cycle, efforts should be made to promote a better distribution of benefits throughout the value chain.

2.5.2 Improvement Factors

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Sustainability also requires taking the needs of future generations into account, which means future environmental and social concerns need to be addressed. Global environmental pressures are directly related to the size of the population which helps define consumption levels, and the materials and energy required to produce each ‘unit’ of consumption. It has been estimated that environmental pressures should be reduced by about half. Taking into account the current growth rates of developing economies, the efficiency of products and

processes needs to be improved by a factor of 4. Future generations could be living in a world with a population of 9 billion, and much higher consumption levels, which would require materials and energy improvements by a factor of 10 to 20. This type of ‘factor thinking’ or ‘factor X thinking’ shows the magnitude of the task at hand, and the critical need to improve production processes, products, and systems. Short-term incremental redesign of existing products, also called ‘inside-the-box’ innovation, can typically lead to improvements of a factor of 2 to 4. To achieve long-term factors of 10 to 20, radical product innovation, or outside-the-box-innovation, is necessary. This includes developing completely new products, improving products as well as the services connected to them, and developing entirely new functional systems of products and services. Figure 2-3 illustrates the different degrees of environmental benefit and innovation required. In the next section, the different types of innovation are explained in more detail.

Figure 2-3 ___ Degrees of environmental benefit and type of innovation required

2.6 Product innovation Since D4S is based on a combination of product innovation and sustainability, understanding the underlying concepts of (product) innovation can be helpful in implementing D4S projects. This section discusses different approaches to innovation.


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2.6.1 Innovation

2.6.2 Innovation levels

Product innovation is essential for industry’s competitive position as well as for a country’s economic growth. Companies operate in a rapidly changing world in which customer needs and wants are not fixed and industry faces increasing competition due to open markets and globalisation. Companies that effectively integrate innovation into their product development process can gain a significant competitive advantage. Innovation is a broad concept that is used in many different contexts. As a result, there are many definitions of innovation. One useful definition is: “the commercial or industrial application of something new– a new product, process or method of production; a new market or source of supply; a new form of commercial, business, or financial organisation”. Most definitions of innovation emphasise ‘newness’ and ‘successfulness’. There are distinctions made between product versus process innovations and sometimes amongst market, business, and management innovation. For example: > Product innovation is the introduction of new products that have characteristics and/or use applications that differ from existing products on the market. > Process innovation is the introduction of a new method of production that has not previously been used, or a new way of handling a commodity commercially, to make production more efficient or to produce new or improved products. > Market innovation involves entering new markets, expanding existing markets, and/or developing new ways of serving customers. > Business and management innovation involves developing new reward systems, organisational structures, and ways of handling responsibilities and human resources etc. that positively affects product sales. D4S efforts usually focus on product and market innovation, while cleaner production is linked to process innovations and environmental management systems like ISO 14001 are associated with management innovations.

Innovation can be categorised into three levels: incremental, radical, and fundamental (see Figure 2-4). Each category is progressively more significant and far-reaching. 1> Incremental innovation_ Entails step-by-step improvements of existing products and tends to strengthen market positions of established companies in the industry. This includes benchmarking approaches in which products of competitors are copied and/or improved. 2> Radical innovation_ Drastically changes existing products or processes.The risks and investments required for radical innovation are usually considerably greater than those needed for incremental innovation but offer more opportunity for new entrants to the market. 3> Fundamental innovation_ Depends on new scientific knowledge and opens up new industries, causing a paradigm shift. In the early stage of fundamental innovation, the contributions of science and technology are important. There is a wide range of innovation possibilities between the two extremes of incremental and fundamental innovation. Fundamental innovation often takes place only in large multinational companies, company clusters or national and international research programmes because of the large human and capital investment needed. The majority of companies engage in incremental or radical innovation efforts. Successful incremental or radical innovation requires different kinds of thinking, working, and risk taking. For more insight into both types of innovation, a more detailed discussion of each is included below.

29 Figure 2-4 ___ different degrees of innovation


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Inside-the-box: Incremental innovation As the name suggests, this type of innovation makes small changes over a period of time. Incremental innovation is sometimes referred to as continuous improvement, and the business attitude associated with it is ‘inside-the-box’ thinking. A simple product may be improved (in terms of better performance or lower costs) through the use of higher performance components or materials. A complex product that consists of integrated technical subsystems can be improved by partial changes to one level of a sub-system. Incremental innovations do not involve major investments or risk. User experience and feedback is important and may dominate as a source for innovation ideas. As an example, customer preferences can be identified and added as features to the existing product. Incremental innovation and design improvements are known as the ‘bread and butter’ of product innovation for many firms. Many firms do not even attempt to explore radical innovation for a variety of reasons having to do with their size and resources, the nature of the industry, the level of research and development required, or the amount of risk involved. Even firms that successfully introduce radical innovation may not do so very often. Incremental innovation projects, due to the low-level of involved risk usually follow a structured and predictable process.

Out-of-the-box: Radical innovation

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Radical innovation involves the development of new key design elements such as change in a product component combined with a new architecture for linking components. The result is a distinctively new product, productservice, or product system that is markedly different from the company’s existing product line. A high level of uncertainty is associated with radical innovation projects, especially at early stages. Technical, market, organisational, and resource issues all need to be addressed. Two primary types of radical innovation: - New-to-the-Market: Novel substitutes, based upon new products to society; - Breakthrough: Significantly changes the existing

industry or creates a new business. In the well-known Ansoff matrix (Figure 2-5) these two types are included in the ‘out-of-the-box’ approach. It means that the idea is based upon (1) a new technology or product; or (2) it is new to the market; or (3) both. Product innovations based on a new technology or product and new customers have the highest risks

Figure 2-5 ___ The Ansoff risk matrix for innovation projects

not to be adopted in the market. In many cases, established companies are not able to create new-to-the-market or breakthrough solutions, because they would potentially jeopardise the existing business model and/or industrial infrastructure itself. Therefore, radical product innovation usually requires an ‘outside-the-box’ approach. Outside-the-box innovation aims to create an approach that goes beyond existing business models and links with other companies to create a new venture. The risks involved with outsidethe-box innovation are significantly higher than those associated with inside-the-box innovation. The outsidethe-box innovation process is more volatile and the outcomes more uncertain; the time horizon also tends to be much longer.

The need for radical innovation To reach sustainability from a ‘planet’ point of view, large improvement factors are necessary, which can only be


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reached with radical innovation. Furthermore, radical innovation is increasingly becoming an economic necessity for companies. For years, incremental innovation and inside-the-box thinking were considered the most successful way to innovate, and that still might be the case for many companies. Recently however, many consumer goods companies are faced with poor returns on their investments because markets in developed countries have matured and sales of incrementally improved products are decreasing. In sharp contrast, sales of breakthrough innovations are shown to have dramatically increased. Another signal is the change in supply scenarios: resources and raw materials are becoming scarce and more expensive. Clearly, the need for radical innovation is growing, not only from an environmental but also from an economical point of view.

2.7 A systematic approach A systematic approach for product innovation has been developed by Roozenburg and Eekels and is shown in Figure 2-6. It consists of four basic steps: formulating goals and defining strategies for product development based on market perceptions; generating and selecting ideas for the new or improved product; developing these ideas into the blueprint of the new product; and transforming the plans into reality including production, distribution, sales, use and end-of-life assessment. Of course an actual product innovation process will often be more chaotic, iterative, and less linear than described here, but the fundamental steps can usually be recognised and are necessary for successful innovation. Part II of this publication presents guidelines and stepwise approaches for both incremental and more radical product innovation. Three common approaches to product design include: redesign, new product development and product-service systems and will be dis-

Figure 2-6 ___ Basic steps for Product Innovation

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cussed in the context of sustainable product innovation. Each category has its own specific requirements and issues, but the basic four steps shown in Figure 2-6 are common to all. Figure 2-7 depicts the three main design approaches: Redesign, new product development and ProductService Systems. The four basic steps are clearly shown for each. Chapters 4, 6 and 7 are devoted to explaining these design approaches in more detail and distinguishing the similarities and differences.

2.8 Why do D4S â&#x20AC;&#x201C; drivers for industry 2.8.1 Internal and external drivers for D4S As described in the previous sections, there are compelling reasons for society to work on more sustainable solutions to the environmental, social, and economic problems the world is facing today. Furthermore, sustainability, corporate social responsibility, and related trends are part of the business agenda for an increasing number of companies worldwide. This is not only the case for most transnational companies, but also for a growing number of medium-sized and smaller companies. Understanding how to integrate these concepts into business planning can be an important part of a successful business strategy. Pressure to integrate sustainability requirements into corporate practices will come from government, business partners, non-governmental organisations, and citizen groups. Motivation to implement D4S can come from within a business itself (internal drivers) or from outside a company (external drivers). Although there are overlaps amongst the people, planet, and profit aspects of sustainability, a driver is usually connected to one of them. Understanding the most influential drivers for a company or product can provide valuable information on the most effective types of D4S projects and activities to initiate. Table 2-3 presents common drivers for each of the three key elements of sustainability, people, planet, and profit. For industry in developed economies, a mix of internal and external drivers for D4S generally exists, since

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Figure 2-7 ___ The three parallel D4S approaches of this Publication

legislation, policy, and public opinion on sustainability are well developed. For industry in developing economies, internal drivers are more decisive for the initiation of D4S projects than external drivers, because external drivers currently are less developed.

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2.8.2 Business opportunities and D4S Another way to evaluate reasons for industry to engage in D4S is to analyse the various business opportunities arising from these initiatives. The following three categories outline resulting business opportunities.


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Tabel 2-3 ___ Internal and External Drivers for D4S

> Cost savings and risk reduction opportunities Some of the business opportunities can be realised in a short timeframe. For instance, if a company manages to cut back on the amount of raw material, energy, or water used, this translates to direct savings in production costs. Similar benefits can be achieved by lowering

the costs for cleaning equipment, waste management, tax savings, and reduction of future liability risks. > Enhancing image and market opportunities D4S can be a decisive factor in the creation of new markets or in competition in existing markets. Also,

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improvements in the quality of products improved by D4S can enhance the market position of the company. Furthermore, market research indicates there are a growing number of green investment funds offered by financial institutions: access to investment funding can be a beneficial effect of D4S implementation. > Legislative, social, and business requirements Societal concerns also signal business opportunities. In order to maintain their competitive edge in the market, companies will be required to address consumer concerns and take advantage of up-coming trends. In addition to the well known legislative requirements, buyer and supplier demand, and pressure from societal groups is becoming a more important factor. An overview of the most common drivers from the perspective of business opportunities and challenges follows.

Cost saving and risk reduction opportunities > Saving raw materials > Saving energy > Saving water > Savings in emission and waste treatment > Savings in environmental taxes and fees > Savings in product transportation (distribution) > Reduction of insurance costs > Reduction of accident costs > Reduction of future liability risks > Postpone disposal costs by offering ProductService Systems (PSS)

Image enhancing and business opportunities

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> Competition (retain markets, create new markets) > Quality improvements that can enhance market position > Customer demands (eco-labels) > Branding and image creation > CSR â&#x20AC;&#x201C; Corporate Social Responsibility > Improving worker health and safety issues > Motivating employees and creating enthusiasm

> Enhancing innovation capacity > Low profit margins call for new business ideas > Improved access to green investment funding > Building enduring producer-consumer relations by offering PSS

Legislative, social and business requirements > Bans of toxic substances > Take-back legislation â&#x20AC;&#x201C; Extended Producer Responsibility > Recycling requirements or recycled content requirements > Emission limit standards > Legislative information requirements > Public procurement > Buyer or supplier demands > Pressure from environmental or other citizen groups > Free customer of responsibilities for managing waste and hazardous substances by offering PSS Case: A company committed to sustainability in all its aspects is Natura in Brasil. In the Case Study section on the web, the case of Natura is described with clear reference to the various drivers for D4S that influenced the strategic decisions of the company.


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Planet


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Part II how to do D4S in practice


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A ‘quick–start’ approach to D4S

Chris Ryan

Overview This part of the D4S: A Step-byStep Approach is for those who want to quickly commence a project. The authors of the D4S: A Step-by-Step Approach have many years of experience in the practice of Ecodesign, design for environment or design for sustainability (D4S) as well as in the development of appropriate methodologies for different contexts, circumstances and business sectors. Ask any of them how projects get started and they will tell you that most begin with the vision and the determination of an ‘inside’ champion. If you are the first person in your organisation to open this D4S A Step-by-Step Approach, then it is likely that you are the sort of champion they would be thinking of – someone who wants to promote and facilitate action in your company or organisation to improve the environmental and social performance of your products or services. This ‘Quick-Start Guide’ is just like the first section of a software manual (often called something similar to ‘quick-start’) as it aims to help you get started, quickly, before having to read the entire Publication. First steps towards the environmental improvement of products usually involve putting together a case for action, to ‘bring others on board’, developing a case that will persuade enough key people that this is a sensible and valuable thing to invest in. You will want to be able to present a persuasive argument that your company or organisations could produce product(s) which could be

both more sustainable and more successful in the market. It will help your case if you can show that the design steps to delivering an improved product are neither too complex nor too expensive; it also helps if you can produce simple, clear, arguments about why embracing D4S is good business. This quick-start guide is one way to develop that case. Note: The Power to Change. This ‘quick-start’ guide comes with a warning: batteries not included. ‘You’ have to supply the energy to drive this change. Most successful examples of more sustainable products started with a champion. Sometimes that champion is a middle, or even senior manger, sometimes a designer or a technical person involved in production, sometimes a marketing person. Whatever position you hold in your company you need to do the work to develop the arguments and to find the examples which will work in your context. The D4S Step-by-Step Approach is structured with a layered approach to information – a broad overview, detailed methodologies relevant to various (product) contexts (with many good example projects), worksheets to help support various steps in the methodologies, and finally a large set of references to other guides to research and case studies to review. This should allow you to build up a body of information suited to your needs. In the end, however, this Publication cannot supply one critical element: your enthusiasm and determination.


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How to make most use of the D4S: A Step-by-Step Approach with a pilot project. It is usually a good idea to begin a D4S process with some sort of pilot project, an exploration of the process of D4S using a real product that you have selected as appropriate. All the sections of this publication will help you with your projects. However, if you need to quickly understand what such a project would entail and to quickly present to your colleagues D4S possibilities for an existing product, then this is a good place to start. You will be able to consult the other sections of the D4S: A Step-by-Step Approach so ‘pointers’ are included in this text to the relevant page and section for you to refer to for a deeper understanding. Hint: Starting Options If you already have sufficient commitment within your organisation (and a decision to support D4S activity) then you can either just read quickly through this section or jump straight into the sections of the publication that seem most appropriate to your circumstances.

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As you will see from the table of contents page, the D4S: A Step-by-Step Approach begins with an exploration of the ‘what’ and the ‘why’ of D4S or the social, business case, and environmental (People, Profit, Planet) drivers for D4S. It then moves on to the ‘how’, the actual processes for redesigning products or developing innovative new ones. In this quick-start section the order is reversed: we begin with a simplified ‘how’, focusing first on the steps to improving the sustainability of a product you have selected, or will select. Experience suggests that you will already have ideas about the ‘Why’ (it will be part of your motivation for taking on the role of champion) and that what you need first is some real sense of what it will take to improve your product. Of course you will need to develop a business case – the ‘Why’. There is a simple outline in this section that will help you structure your thoughts on that process, assuming that you will consult the longer discussion of motivation and drivers in the manual. [Chapter 2]

Note: D4S is deceptively simple. The Quick-Start section begins with the simple – what D4S involves and (in general) how it is done. You will find that the concept appears remarkably simple; the steps to a better product can almost be described as a list of good design principles. Looking at such a list you will probably find it easy to think of products (in the market place) that have been improved by following the various approaches listed. But there is a deceptive part that you will need help in dealing with: determining what design approaches are the appropriate ones for your product, to address its specific environmental and social impacts and to find its competitive ‘sustainable edge’ (to maintain or improve its economic value whilst increasing its sustainability). It is this deceptive aspect that is the reason for the D4S: A Step-by-Step Approach, it is why D4S and Ecodesign require a methodology and not just a list of design guidelines.

Getting Started Nine simple steps to improving your product In this Quick-Start we assume that you will run through a pilot or hypothetical redesign exercise for a product, in 9 steps: NOTE: These steps do not follow the exactly same sequence as the 10 steps in Chapter 4, because this is a simplified process and you do not yet have a team. 1. Select a product 2. Prepare a product ‘dossier’ 3. Review your product market – in terms of environmental and social issues 4. Reflect on your product in the light of a simple D4S list of approaches 5. Develop a quick picture of your product’s ‘impact profile’ 6. Defining your product’s improvement targets and design approaches


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7. Redesign concepts – creativity at last! 8. Prioritising ideas and concepts 9. Making your case (for the real project)

STEP 1: Select a ‘product’ It is very likely that you already have a ‘target’ product in mind, presumably because market intelligence suggest that there are environmental and/or social characteristics of that product that are becoming critical to its future success. Or perhaps you are aware of societal or market pressures which could impact the reputation of your company. In this context we assume you intend to select a product as your ‘case study’ to explore its ‘D4S potential’. Experience has shown that selection of the first ‘test’ product should be made carefully. Generally the product should fit the following characteristics in that it should: -Be in a market where its environmental and/or social characteristics are under scrutiny, or where there is competition from products claiming to be more sustainable -Have a potential for change -Be (relatively) simple [See Chapter 4; Steps 2 and 3]

STEP 2: Prepare a Product Dossier You are going to need to know a lot about your product, perhaps in ways that you haven’t had to think about before. Start a file or dossier on the product. Hint: Just start collecting product information for your dossier now You don’t, at this stage, need to make this a detailed investigation. Start with whatever you know, or can discover quickly; you can keep adding to the information as you proceed. When a full pilot project is underway, this could become a collective activity, with members of the team adding information based on their knowledge. Tables 3-1 (a) and (b) below provide environmental and social impact areas to consider when ‘filling out’ your dossier.

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The sections of the dossier should encompass (in no particular order): The Product and its Use: > its history > the original brief and the marketing plan for the current product > market information (how it is sold, to whom, market share information) > distribution and typical transport information > typical product life > typical ‘user scenario’ [Chapter 4; Step 5] – use patterns (including any resource inputs and waste generated – with rough estimates of amounts) > typical end of life pathway (how products are recycled or disposed at expiration) Design and manufacturing: > a breakdown of the key components and sourcing of the components > materials list > a simplified diagram or ‘flow chart’ of the manufacturing process [Chapter 4; Step 5] - including resource inputs and outputs (waste pollution) associated with each step (ideally with rough estimates of amounts) Competing products: > other products in the market > any defining characteristics (function, market segment, etc.) > attributes of the product that are marketed as having environmental value > relative performance data (often available from consumer or business magazines, internet sites, etc.) Add two (initially blank) sections to your dossier to fill in as you go through the next steps: Important characteristics of this product > ………… Improvement ideas > …………

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STEP 3: Review the important environmental and social impact areas in your market For your product, and your market, you have to develop a sense of the priority areas which you need to address. What is considered a priority environmental or social issue will change from context to context. This is not a purely scientific issue, it also reflects local social and political issues – human rights, equity, labour – and of course, the economics of your product and its market.

Note: It is very important to be sensitive to emerging issues; you will be redesigning a product that should last in the market for a good period of time. You do not want to get caught by issues which arise after you have designed and produced a new product. Start by listing environmental and social issues which are currently important in your region and your market, for your customers. Review the competing products in your dossier to check what priorities are expressed. Consult company personnel about standards and regulations in your market. A generalised list is provided in Tables 3-1 (a) and (b) to guide your thinking. [For a more extensive list see Chapter 2, Sections 2.1 – 2.4

TABLE 3-1(a)___ Environmental Impact Areas

44 TABLE 3-1(b)___ social Impact Areas


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and 2.8 as well as Chapter 4, Step 2.] An economic impact table has not been included (although it is the third pillar of sustainability) because it is assumed that you are best placed to identify those for your company and product. Mark (colour) on Table 3-2 those areas/issues which are most important for your product. Add any notes into your dossier in the ‘important characteristics’ section. You will use this information in Step 6.

STEP 4: Reflect on your product in light of the simple D4S assessment Read quickly through Table 3-2 below, with your product in mind. Table 3-2 is one version of a common list of D4S approaches. Use it as a way to start thinking critically and creatively about possible product improvements. This will help you identify any missing information for your dossier. Use the two blank sections of your dossier to collect observations and ideas about your product characteristics and possible areas of improvement. You will return to this list later when you begin to select appropriate improvement option for your product. Note: D4S approaches are product specific – there is no universal formula for success. The approaches in Table 3-2 are easy to grasp. They require some complex decisions, but as approaches they are simple and not unusual as design specifications go. The approaches listed below should not be thought of as a checklist that needs to be followed for D4S action on a product. Nothing could be further from the truth. The approaches cannot all be applied to a given product. There are conflicts and trade-offs involved - if you follow one approach you might find that you then cannot follow another. For example, ‘light-weighting’ can reduce material inputs and the environmental costs of transport, but it might reduce the longevity of the product. More importantly, some of the design approaches will be unnecessary because they will not improve your product’s environmental performance, they may actually make things worse. In

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practice it is necessary to identify a selection of the approaches listed that are appropriate to improve the ‘environmental and/or the social profile’ of your product. D4S requires more than simply following a list of design approaches, these approaches have to be embedded in a selection methodology in which you actively evaluate and assess each approach to determine the potential outcomes. This active evaluation of approaches for D4S is the reason for the D4S: A Step-by-Step Approach publication.

STEP 5: Develop a quick picture of your product’s ‘impact profile’ A D4S methodology relates the different design approaches to the environmental and social impacts of your particular product, providing a way to select those that will be relevant and fruitful. Hint: Taking social and ethical issues into account. If your answers to the social and ethical issues outlined in Table 3-2 showed them to be significant then you will need to ensure you become familiar with the strategies in the rest of the manual, particularly Chapter 2 and Chapter 7.Table 31 (b) is provided to ensure you have these issues in mind as you proceed. It may be that there are issues here that will be the driving force for your product redesign. If you start with environmental improvement of your product as the main driver then you should ensure that you do not exacerbate any social/ethical issues you have identified. Ideally you will be able to find strategies to resolve those issues whilst delivering environmental improvement. In order to select design strategies, you need to understand the environmental and social profile of your product - a picture of how much each life-cycle stage (extraction of raw materials; processing of those materials; manufacture; distribution; use; end-of-life disposal; labour and human rights issues) contributes to its environmental and social impacts. Refer to Figure 3-1 below. (This is the basic approach known as ‘life-cycle thinking’,

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TABLE 3-2

Approaches for design focus and response


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the fundamental approach that underlies all aspects of the D4S process.) D4S methodologies can be complex because they aim to work for all products - to provide tools for calculating their life-cycle impacts and for deciding on the appropriate design strategies. But experience has shown that, for many products (particularly if it is the first time that environmental or social improvement has been attempted) there are short-cuts that can give useful results, particularly for a pilot project. At this point you have two options: • You can set up a small workshop and conduct a qualitative evaluation of the life-cycle impacts of your product (see Note: ‘LCA and Expert Workshop’ Box below). If you decide to do this turn to Chapter 4 in the D4S: A Step-by-Step Approach and follow the process set out there. • You can work on your own (with whatever guidance or help you can elicit from colleagues). We assume that you are likely to proceed on your own, with some help from colleagues, but that you are unable at this moment to mount a full workshop process. Go back to your product dossier and (in the section on important characteristics) write down what you know about your product’s inputs for each lifecycle stage; energy (note what kind of energy); water use (note what kind of water – fresh or recycled); other resource, or consumables, use (note what kind) and the social elements surrounding product production (labour policies, health and safety in the workplace). Find out if there are any toxic materials in the product (at what life-cycle stage do they enter)? Next consider outputs: what pollution, waste, or adverse social impacts is created at each life-cycle stage. Draw up a simple product life-cycle diagram and note on that diagram (see Figure 3-1 below) using all the data that you have collected.

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Note: LCA and Expert Workshops Product inventory data can be inserted into a variety of software systems that calculate a lifecycle impact profile, which quantifies environmental and social impacts across all the life-cycle stages. The results of a life-cycle assessment (LCA) can provide insight into which phase of the product’s life-cycle has the largest impact. This information can be contrary to what might be

expected. For example, a life-cycle assessment of a product might find that the total solid waste created by the energy (electricity, gas, petrol, diesel) required to operate the product over its usable life, is several orders of magnitude larger than the total weight of the product itself. In this case the ‘use-impact’ will be much more significant than end-of-life disposal. A full quantitative LCA is quite complex and generally costly. While a full LCA is desirable (and is the approach taken by many large companies) the cost and complexity leads many producers and designers to downscale the effort to an expert workshop. The expert workshop is an alternative approach to product assessment. (Even for companies possessing the resources necessary for conducting full LCA studies, the expert-workshop approach can be an effective way to assess the potential positive outcomes of a D4S pilot project.) The workshop usually requires a mixture of people who are knowledgeable about the different production and use aspects. This includes insight from a technical, manufacturing and performance perspective (those who supplied the product data) and additionally the people who are aware of the environmental and social impacts. Unlike LCA software systems, the expert workshop will not always produce quantified data about the contribution of each of the life-cycle stages to a particular environmental or social impact. Expert workshops generally deal with a mixture of quantitative and qualitative data to provide a sense of relative values and impacts. Generally, the participants are asked to rank the contribution on a limited scale (e.g. zero; low; medium; high). Expert workshops of qualitative life-cycle assessment will often involve reflection on a full LCA carried out on a similar product. Many studies which have compared the results of an expert workshop process and a full quantitative LCA have shown that the expert workshop gives excellent results and for less money and time. [See Chapter 4 Step 5 ]


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Figure 2-1

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product life-cycle

Table 3-3 lists key categories of product use, provides impact profiles for each of the use scenarios, and the types of information needed to better assess lifecycle impacts. Now consider where your product fits in Table 3-3. Check the column ‘product type/characteristics’. Find the characteristics that best match your product and review the impact profile in the centre column. The ‘impact profile’ concisely identifies the most significant life-cycle phases of the product; this information is based on knowledge gained from full life-cycle impact assessments of a large number of products which have been the focus of design for sustainability. Note: products may cover more than one of the ‘types’, so you will have to combine the average impact profile information.

The information in the centre column in Table 3-3 (typical impact profile) tells you which are likely to be the most significant life-cycle stages for your product; go to the Figure 3-1 on which you have marked the inputs and outputs of your product and circle those that are noted as most significant. Now consider the ’Knowledge Focus’ column, in Table 3-3 above, and check if that data is already in your dossier; if it is not, you will need to find (or estimate) this information. Now look at the final column ‘Most relevant D4S responses’ for the reference points linking back to Table 3-2. Following these reference points, highlight those items in Table 3-2 that best match the needs of your product. You will use this marked table, the ‘ringed’ life-cycle diagram and the information in your dossier in the next step.

STEP 6: Defining your product’s improvement targets and design approaches (a simplified design brief)

Hint: take four large sheets of paper and write out: 1. The main issues for your product in your markets – from Table 3-1 (a) and (b); 2. The marked life-cycle diagram; 3. The list of highlighted approaches (from Table 3-2); 4. Key information from your dossier.

You now have almost all the information you need to proceed to identifying D4S strategies and design responses that address the life-cycle phases and product characteristics requiring focus. Note: Remember this is not a precise process but an approximate way of narrowing down the focus for action and reducing the complexity of decision making. For a real project requiring investment and risk, you will need to follow the detailed processes and tools set out in the D4S publication.

Hint: Hang these four sheets up in the room you are using to work on the pilot project. Leaving them up for a period of time, even when you are not working on the project can be a great way of stimulating ideas. It can be useful to have a fifth sheet – initially blank – for writing down ideas when they come to you.

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Table 3-3 ___ Product type, impact and response


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STEP 7. Redesign options (creativity at last!). The data (on your large sheets of paper) now becomes the focus for creative redesign ideas. Here you need creative processes and (if you can) a few people to help you brainstorm [See Chapter 4, Step 7). Draw up a table on another large sheet of paper with the selected life-cycle stages across the top. On the left column mark the various D4S design responses that you highlighted in Step 6 above. Now you can proceed by addressing each cell of this table, asking the following questions: - Is this focus/response relevant to this product life-cycle? - What design options are appropriate here? Write your creative ideas in each cell. Check back through any ideas that you have jotted down. Investigate possibilities. Follow normal brainstorming procedures; get ideas on paper without self-censorship (this process may take a number of days, because you may need to brainstorm, break, and then return to the task when you have the time). When you finish and are finally run out of ideas, it is finally time for a ‘reality check’. (Again this will be more effective if can combine the insights and knowledge of a number of people within the company, but you can start this process on your own with a little research.) Using whatever notation you like (coloured dots; ‘high’, ’medium’, ‘low’; ‘A’;’B’ ‘C’; ticks or crosses, etc), consider each cell in turn and rank each of the ideas you have written, consider the three questions:

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- Could this deliver significant environmental and/or social improvement? - Can it be done cost effectively? - Will this help improve my product in an area that is important in my market - or could such an improvement be used to market this product or differentiate it from the competition?

STEP 8: Prioritising ideas and concepts Now you have a series of ideas with some estimation of their environmental, social and market value. Place each of the ideas into four categories on the following Table 3-4. Any ideas that fall into the bottom left cell (4) can be discarded. Those in the top right (2) should be given the most serious attention. (Ideas that sit in cell 3 may indicate some quick improvements that can easily be implemented in the short term.) For the ideas selected (from cell 2 and perhaps cell 3) there will still be different degrees of difficulty and cost as well as different degrees of environmental (and social) gains. You will need to prioritise these. [Chapter 4 and Worksheet 7 provide some detailed processes for prioritising your possible design approaches.] Ideas in the bottom right and top left will need to be further researched to see how their technical, cost and market problems can be overcome. You now have a list of product improvement and redesign ideas to take forward within the company.

53 Table 3-4 ___ Prioritising D4S ideas


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STEP 9: Make a case for D4S work in your company – get resources and support for a pilot project. In Step 8 you identified a range of possibilities to improve your product and reduce its overall life-cycle impact. You are now in the position to make a case for undertaking a full pilot project within your company or organisation: Aim: to increase awareness; explain concepts; motivate people; win support and resources to proceed with a more detailed project. Target: management, design, and marketing personnel. This step involves preparing a Business Case for undertaking a full pilot project. This report is likely to contain three sets of information: - The broad strategic case for addressing D4S within your company - A report on all the work carried out in Steps 1-8 - Ideas for marketing a new product with strongly improved environmental and social features. You may need some help in putting this case together, but you must have thought the business case was clear and strong when you initiated this quick-start approach. The following is offered only as a stimulus for organising your ideas.

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Hints: Be proactive: Go back to Table 3-1 and make a list of the environmentally-related laws, regulations and standards that will affect the market of your product. Make a list of any social and/or ethical issues in any of the markets from which your product draws materials or components. Try to identify any movements for change in those areas and consider scenarios for how those changes could affect the market position of your product. Consider all markets that your product will enter – are some countries or regions more advanced (or more stringent) in their regulatory action than others? Consider consumer sensitivities: Make a list of what customers are demanding. Look closely at the way demands are changing. Consider scenarios for how those changing demands could affect your market. Consider

brand and reputation:What aspects of your brand or your company’s reputation depend on being environmentally and/or socially responsible. What environmental and/or social issues are most important in improving that brand and reputation. What does the consumer choice/media say about your product? Have any of your competitor’s products been criticised for environmental or social affects? What does staff think about the environmental and social commitment of the company and the quality of its products? Arguments for embarking on a D4S project can be grouped into three sets of motivations and these provide a simple way to organise your case: Legal and social obligations – must do it! Any existing legal requirements (safety standards, chemical regulations, materials bans, pollution monitoring, control, reporting, take-back requirements, and so on) will already have impacted your product design and sales. Social and ethical issues within your markets will have been considered in Step 4. The critical issue is to understand trends, not just the current conditions but to project likely future requirements. Develop the case relating to trends and the value of being ahead. Products can have a long-life in the market and anticipating change is usually better (and less expensive) than reacting to it (making whatever adjustments to existing products that become necessary to meet new requirements). Companies that have sought ‘first-mover’ advantage by anticipating new legal frameworks (for example on recycling or eliminating sensitive materials) sometimes find it is to their advantage to actively lobby to speed up the regulatory change they anticipated. What do consumers say? Be sensitive to consumer preferences: Make a list of what customers are demanding. Look closely at the way demands are changing. Consider scenarios for how those changing demands could affect your market. Consider brand and reputation: What aspects of the brand or the company’s reputation depend on being environmentally and socially responsible. What environmental or social issues are most important in improving that brand and reputation? What does the consumer choice media say about the product? Have any of the competitor products been criticised for environmental or social affects?


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Financial analysis – it is worth it! List the economic returns possible: Reduced cost (due to energy and materials savings); improved market share (getting ahead of competitors by reputations and environmental/social quality); brand recognition and reputational returns; avoiding risk by being pro-active. Improved morale and commitment – it is good to do! Consider the social motivations for improving the local or global environment and assuming responsibility for your actions. Who will this effect and how will it contribute to the success of the company? D4S is one important aspect of corporate social responsibility, with both ‘internal’ and ‘external’ rewards. It represents a commitment to the long-term economic sustainability of the company. Developing a strategy to improve your product not only improves your external reputation but it improves morale and commitment and motivation within the company. People prefer to come to work for a company that is assuming a responsibility for its impacts, particularly when that is evident in its products. [For assistance with marketing your future product read the communication, Module G on the web.] NOW TURN TO WORK WITH THE D4S: A STEPBY-STEP APPROACH. IT SHOULD PROVE VERY REWARDING – FOR YOUR COMPANY, PEOPLE AND THE PLANET.

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004 Box 4-1: Another approach focused on redesign of existing products is D4S benchmarking of a product against those of a companyâ&#x20AC;&#x2122;s competitors, leading to improvement options. This approach is explained in detail in Module A on the web.

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Inside-the-box: D4S Redesign Marcel Crul and Jan Carel Diehl As the name implies, D4S Redesign aims at redesigning an existing product made by a company, including its primary function and any associated services provided, from a sustainability point of view. Redesign is an incremental, or inside-the-box, type of product innovation and typically involves smaller risks and investments. In contrast to more radical types of product innovation, redesign usually follows a predictable, stepwise process and is as economically and commercially important as more radical approaches for many companies. Because the focus of D4S Redesign is on an existing product, the specific market and manufacturing conditions are already known. A productâ&#x20AC;&#x2122;s improvement potential can easily be determined from available information, including feedback from the sales department and user experiences, testing and market investigations. In addition, the existing production facilities are usually suitable for manufacturing the redesigned product so, investment costs are likely to remain within reasonable boundaries. The risks associated with redesign efforts are lower compared to the more radical D4S innovation approaches that are described in the next chapters. As discussed in Part I, redesign is often a good approach for a first D4S pilot project in a company.

4.1 A structured, stepwise approach to D4S Redesign A typical D4S Redesign approach has 10 steps, as illustrated in Figure 4-1 below. These steps can be grouped according to the 4 basic steps for product innovation (goals and strategies, idea finding, strict development, and realisation) as shown in Figure 2-6 in Chapter 2. In redesign, the formulation of goals and strategies is focused on the existing product (Steps 1-3).The idea finding steps are limited to the selected product so the assessment can be very specific (Steps 4-7). In most cases, existing production and distribution resources are used to create the product, hence the realisation phase is relatively straightforward (Steps 8-10). In the following sections, each step is explained, and a reference is made to the related Worksheet set R (redesign) that can be found on the accompanying web.

Step 1: Creating the team and planning the project A D4S Redesign team will be responsible for introducing and implementing D4S Redesign procedures at the

organisational and technical levels. The team needs to identify people inside and outside the company who will be involved in the project and determine how each one can best be used. Ideally, the D4S Redesign team will have members with different areas of expertise. The goal is to involve product developers, environmental experts, employees in the sales and marketing departments, and senior management in the redesign process. If appropriate, finance and quality control departments also can be involved. The marketing department is critical in D4S Redesign activities. Experience shows that the marketing department is key in sharing knowledge about consumer needs and wants and in marketing the redesigned product. The team needs the full support of senior management and product managers because they control budgets and product strategies. Other key stakeholders outside the company (knowledge institutes, universities, dedicated consultancies, sector organisations, or partners from local or regional clusters) can be asked to


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> Communication skills within the team and the organisation; > Multi-disciplinary; and > Well organised and operational. The role of each team member should be clarified at the beginning of the project along with specific tasks and responsibilities to optimise the process. > Which departments and staff members will be involved in the D4S Redesign team? What will the specific roles in the team be? > Worksheet R1 An essential prerequisite for the successful introduction of D4S Redesign â&#x20AC;&#x201C; as in all implementation processes â&#x20AC;&#x201C; is motivation of those involved in the project. There are three basic ways of convincing people of the relevance of D4S Redesign: 1) highlight business benefits, 2) provide good examples of D4S Redesign products and resultant benefits, and 3) list convincing sustainability arguments. In addition, successful D4S Redesign projects can motivate company employees and help to integrate D4S Redesign into the company after the demonstration project is completed. The first priority for the D4S Redesign team is to develop a clear action plan and to identify the expected deliverables. Most D4S Redesign projects take from three months to a year to complete, depending on the product innovation capacity of the company and the complexity of the product that is redesigned. Figure 4-1 ___ D4S Redesign step-by-step

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join the project team or monitoring committee as needed. External expertise may be required when specific experience or knowledge is not available inside the company. Advice can be provided by an external design or innovation consultant.This advice might be limited to targeted needs within specific phases of the project. Collaboration with local industrial design schools can support D4S projects with interns or graduate students. The D4S Redesign team should not be too big (preferably no more than 6 people) and should try to have the following characteristics: > Creative ability to generate new ideas; > Decision-making capacity;

> Discuss the timeframe of the project: What will be carried out? How often will the team meet and how they will communicate with the rest of the organisation? > Worksheet R1

Step 2: Strengths, weaknesses, opportunities and threats, drivers and goals for the company The D4S Redesign process is essentially the same as a conventional product development process but its goal is to integrate sustainability criteria into the process. As a result, D4S Redesign is interwoven with normal product development and businesses activities within the company. Given this integration, the companyâ&#x20AC;&#x2122;s overall


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objectives and current situation should be taken into consideration as well as specific sustainability concerns. In order for a D4S Redesign project to be successful, it is important to have clear goals and expectations from the beginning.The team should ensure that project goals are aligned with the company’s policies, business plans, and other strategic objectives. A strengths, weaknesses, opportunities and threats (SWOT) analysis outlines the current product innovation capacity within the company and provides an overview of relevant D4S drivers. Based upon this analysis the team can define D4S Redesign project goals and assess the level of ambition and innovation within the company.

D4S Redesign drivers

SWOT Analysis

> Identify which internal and external D4S drivers are relevant to the company and prioritise them. > Worksheet R2

It is useful to get a picture of the competitive position of the company before proceeding with a D4S Redesign project. The SWOT matrix is a useful tool to facilitate this process. It analyses a company’s internal strengths and weaknesses as well as external opportunities and threats. > Identify the internal and external conditions a company is operating in and fill in the SWOT Matrix.> Worksheet R2 Product innovation capacity within a company is based on prior product innovation experience and staff competence.This capacity assists in the identification of appropriate D4S innovation goals for a company. > What is the company’s main activity? Does the company develop and produce final products (product-company) or does it use production capacity to provide services for other companies (capacity-company)? > Worksheet R2 > On average, how many redesigned products and how many new products are launched into the market annually? > Worksheet R2 > Does the company have a product development department or do they normally contract out design services for product development? > Worksheet R2

Why does the company want to carry out D4S initiatives? What are the D4S drivers for the company? Sometimes a company might be forced by external drivers like environmental or social legislation or supply chain requirements. However, often the project will be driven by internal company demands, such as cost reduction or corporate social responsibility. Generally there are one or two major drivers influencing D4S decisions. Even if the drivers are obvious, they should be identified during the initial project stage, and other potentially relevant drivers should be evaluated (see Chapter 2 for an overview of D4S drivers).

The internal and external D4S drivers are related to the three different pillars of sustainability: people, planet, and profit. In some projects the objective is to find a ‘perfect balance’ between them. Other projects may have a specific focus on environmental aspects (planet) or social aspects (people). Goal of the project After carrying out a SWOT analysis, the team has a better understanding of the competitive position of the company and the internal and external D4S drivers. The team can now address the following questions: > What must the company do? Because of environmental laws, labour laws, or customer demands. > What does the company want to do? Because of cost reduction, improved market position or assumed corporate social responsibility. > What can the company do? Depending on available financial and human resources and product innovation capacity. Specific D4S project goals are defined based upon the answers to these variables. The goal(s) of a D4S Redesign project can vary depending on the company priorities and capacity as defined in this step. Examples of possible goals are given below.

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Possible goals for D4S Redesign projects: > To show that the sustainability of a product can be improved; > To show that the sustainability of the production process can be improved; > To gain insight into the sustainability impacts of a productâ&#x20AC;&#x2122;s life-cycle; > To communicate sustainability aspects of a product to the market; > To demonstrate that D4S can contribute to the economic performance (cost reduction) of a company; > To prepare a company and its product portfolio to meet upcoming legislation requirements; > To prepare a company to face critical demands from civil society and stakeholders; > To enter sustainability niche markets with sustainable products; and > To bring down the end-of-life cost of a product. Experience shows that for a first project, the D4S Redesign team should establish goals that can be achieved in a relatively short timeframe. This builds a foundation of support and confidence for future projects. > What is the goal of the D4S demonstration project? > Worksheet R2

Step 3: Product selection Companies often use intuition to select the product for redesign efforts. However this approach may not result in the selection of the most appropriate product and may reduce the chances of project success. Therefore, product selection criteria should be derived from Step 2. The product should be one that is affected by identified D4S Redesign drivers and in line with the D4S project goals resulting from Step 2. > Based on Step 2, what are the product selection criteria? > Worksheet R3

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If possible, the product should: > Have sufficient potential for change; > Be relatively simple (in order to achieve fast results and to avoid extensive research); and > Be affected by the identified D4S drivers for the company.

> Select a product out of the company portfolio that fits the defined D4S product selection criteria. > Worksheet R3

Step 4: D4S drivers for the selected product Does the selected product meet the drivers and company goals for the D4S Redesign project? It is possible that the D4S drivers identified in Step 2 apply to the entire product portfolio but are not relevant to the selected product. After the product is selected, the D4S Redesign team should cross reference the internal and external D4S drivers for the proposed product are in line with the overarching company goals. This will help ensure that the optimal product has been selected for the D4S Redesign efforts. > Determine which internal and external drivers are relevant for the selected product and prioritise them. > Worksheet R4

Step 5: D4S Impact Assessment A successful D4S Redesign project is based on an understanding of the sustainability impacts of the target product during its lifetime. The product life-cycle can be assessed on the three sustainability pillars of planet, people, and profit. There are various qualitative and quantitative methods for assessing the sustainability profile of the product. The analysis can be very detailed and time consuming, as in the case of a life-cycle assessment (LCA). The more quantitative assessment methods (often supported by LCA software) can provide quantifiable estimates of project impacts. (See the list of references at the end of this publication). D4S Redesign projects implemented by large industries should, to the extent possible, have well defined project impact criteria and a thorough monitoring framework in place to capture the quantitative impacts of the project. SMEs, on the other hand, should employ more simple and qualitative sustainability assessment methods. Comparatively, SMEs have relatively few staff, expertise, data and available finances. In addition, the social aspects can be assessed on a qualitative or semiquantitative basis.


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The main goals of a D4S Impact Assessment are: > To understand the major sustainability aspects of the product life-cycle; and > To identify sustainability priorities of the product life-cycle. A D4S Impact Assessment consists of 5 steps: 1> Creating the life-cycle process tree; 2> Defining the user scenario and functional unit; 3> Identifying D4S impact criteria; 4> Filling in the D4S Impact Matrix; and 5> Prioritising the D4S impacts. 1> Creating the life-cycle process tree The project team should first decide on the exact area of study – known as the functional unit - and the boundaries of the assessment. A process tree can be used to identify the key stages in the product life-cycle and the boundaries of the system. This can be done by noting the major upstream stages, such as the extraction and processing of raw materials, and the major downstream stages, such as packaging, distribution and transport, sales, use, disposal, and recycling. The life-cycle process tree is important because it documents all the stages of the product’s life-cycle that need to taken into account. It can help to identify life-cycle stages that might otherwise be overlooked. It also helps the team identify the stages having larger impacts which can then be used to prioritise specific product areas to enhance the effectiveness of D4S project efforts. Prioritisation of product stages for study will depend on a number of factors, such as whether or not the company can influence the stage and availability of information.

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It is useful to visualise the process tree. This can be done by using flowchart software or by sketching it by hand. It is recommended to note the physical location of each of the life-cycle stages (see Figure 4-2). > Outline the stages of the life-cycle process tree and indicate the physical location. > Worksheet R5 2> Defining the user scenario and functional unit The product function and consumer use – known as the user scenario – can assist in defining the functional unit and should include employees, consumers, the local community, and society.The functional unit is defined as the quantified performance of a product-system and is used as a reference unit in a life-cycle assessment study. The frequency and lifespan of product use can have significant impacts on the outcomes of the sustainability assessment, especially if the product consumes energy or materials during the use phase. It is important to take into account where the product will be used since the local circumstances, such as electricity generating source (fossil fuel, nuclear, or renewable), has a large influence on environmental impacts. The user scenario also includes the location and time-related elements of the product. For example ‘the product will be used by an average family in 2005 in a large city in Europe for an average of 1 hour per day for 10 years.’ > Define the user scenario and the functional unit of the product. > Worksheet R5 3> Identify D4S impact criteria The product life-cycle, (as discussed in Chapter 3), includes raw material acquisition, manufacturing, distribution and transportation, use, and end-of-life considerations. Each stage of the product’s life-cycle consumes materials and energy (inputs) and releases wastes and emissions (outputs) into the environment (see Figure 43). In addition, each stage in the product life-cycle has social impacts (people) and involves economic (profit) flows. The D4S Impact Matrix is a qualitative or semi-qualitative method that provides an overview of the environmental inputs and outputs, social aspects and profit

Figure 4-2 ___ Example of part of a life cycle process tree

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impact of the products, the team might decide to add a column ‘retailer’ in between the distribution and use phases. In this way the contribution of the retailer (e.g. cooling of the products in the supermarket) can be made more explicit in the D4S Impact Assessment. In the case that a product leasing company is involved in the project, where the product remains the property of the leasing company, a stage ‘service and maintenance’ might be added. Always try to keep the matrix clear and transparent. Do not add more columns and rows than needed! > Identify D4S criteria factors (rows) and lifecycle stages (columns) to be included. Complete the first row and first column of the D4S Impact Matrix. > Worksheet R4

Figure 4-3 ___ Input-output model of the product life cycle

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flows at each stage of the product life-cycle. It also provides an idea of where additional information is needed. It can help the team make a quick qualitative assessment of the life-cycle. The columns correspond to the different product life-cycle stages and the rows concentrate on the relevant D4S criteria. Rows_ Environmental criteria usually include: material use, energy consumption, solid waste, and toxic emissions. Social criteria usually include social responsibility, local or regional economic development and human resource management. More issues can be considered by adding rows. Examples include issues such as specific local problems or sustainability issues like water consumption, biodiversity, CO2 emissions, cost, and cultural heritage. In addition, rows can be added and linked to the relevant D4S drivers (Steps 2 or 4). Columns_ Depending on the life-cycle process tree of the product, the stages can be named in different ways and the number of columns can be increased. In Figure 4-4, the life-cycle has 6 stages. Depending on the real situation, the team can decide to add or leave out stages. For example, if a retailer is interested in the D4S

4> Filling in the D4S Impact Matrix The next step is to discuss and fill in the resulting D4S Impact Matrix. Often knowledge existing within the team is sufficient.The idea is to sit together and discuss the D4S aspects of the different life-cycle steps. In some cases, it might be useful to invite a D4S expert. For example, discussions of the environmental aspects might benefit from an energy expert joining the session. There are different ways to complete the matrix.The team can select more qualitative measures (for example, plastic or fossil fuels) or quantitative measures (for example ‘gasoline 200 liter’). The challenge is not to write down all the materials and processes, but to record those that are relevant. Some suggestions for filling in the D4S Impact Matrix: Material row_ This row is intended for notes on environmental problems concerning the input and output of materials. This row should include information and data about the use of materials and components that are: non-renewable, being depleted, creating emissions during production (such as copper, lead, and zinc), incompatible and/or inefficiently used in all stages of the product life-cycle. A few relevant questions for the team include: > What kind and quantity of materials are used? > Which type and quantity of surface treatment is used? > Are they renewable or non-renewable?


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Figure 4-4 ___ Stages of the life-cycle (E-O-L = End of Life)

> Are materials incompatible (for recycling)? > Other? Energy use row_ This row lists energy consumption during all stages of the life-cycle. It could include energy use for the production of the product itself, transport, operating and use, or maintenance and recovery. Material inputs with high energy content are listed in the first cells of this row. Exhaust gasses produced as a result of energy uses are included in this row. A few relevant questions for the team include: > How much energy is used during manufacture? > What feedstock is used (coal, gas, oil, renewable, etc.)? > How is the product transported, how far and by what mode? > Have energy intensive materials like primary aluminum been used? > Other?

Human resource management (HRM) row_ This row lists the activities needed to improve the companyâ&#x20AC;&#x2122;s HRM. Some relevant issues include: > How safe and clean is the work place? > Is healthcare being provided for employees and their families? > Are there policies to address issues like freedom of association? > Are there corporate policies against child labour? > Are there corporate policies against discrimination? > Are there training and development opportunities in place for employees? > Other? Similar questions apply for the other sustainability issues in the first column of the D4S Impact Matrix. > Fill in the D4S Impact Matrix. > Worksheet R5

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5> Prioritising the D4S impacts After completing the matrix, examine the cells and highlight those that have major ‘sustainability’ impacts. The next step is to prioritise the impacts which will become the focus for developing improvement options. > Highlight those cells or activities in the D4S Impact Matrix that have high sustainability impacts. > Worksheet R5 While developing the matrix, improvement options may become obvious. > Collect obvious improvement options to use in the later phase of idea generation. > Worksheet R7

Step 6: Developing a D4S strategy and a D4S design brief

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The insights gained in the analysis phase (Steps 2, 4, and 5) are the starting point for Step 6. The D4S strategy wheel (see Figure 4-5) illustrates 7 general D4S strategies that cover a wide range of improvement directions and parallel the stages of the product life-cycle: 1> Selection of low-impact materials; 2> Reduction of materials usage; 3> Optimisation of production techniques; 4> Optimisation of distribution system; 5> Reduction of impact during use; 6> Optimisation of initial lifetime; and 7> Optimisation of end-of-life system. Next to the 7 strategies described above, the D4S strategy wheel also shows the ‘0’ strategy of a completely new product design – an important strategy in light of innovation potential. In this strategy, consumer needs define the development of a product and/or service to best meet these needs in the most sustainable manner. This chapter, which focuses on D4S Redesign, does not refer to this more radical innovation strategy. The next Chapters, 5 and 6, on radical innovation and new product development have more information on this topic. The D4S strategy wheel, shown in Figure 4-5 can be used to define which of the design strategies are best suited for the selected product. The results of the

Figure 4-5 ___ D4S strategy wheel

impact assessment (Step 5) are linked to potential D4S improvement strategies. However, the results from the SWOT analysis and identification of prioritised D4S drivers with the business perspective (Steps 2 and 4) may lead to a different improvement direction. For example, in the case of an electronic product being developed by a company, the outcome of the D4S Impact Assessment in Step 5 might highlight energy use and worldwide distribution to have the greatest environmental impact. As a result, the design team could focus on D4S Strategy 5 ‘Reduction of impact during use’ and Strategy 4 ‘Optimisation of distribution system’. On the other hand, the outcome from the assessment of the D4S drivers might conclude that environmental legislation regarding ‘take-back’ legislation and hazardous substances is essential. This outcome could lead to the decision to focus on Strategy 1 ‘Selection of low impact materials’ and Strategy 7 ’Optimisation of the end-of -life ‘system’. (See Figure 4-6) This can lead to an evaluation of trade-offs between the results of different assessments. To facilitate the decision-making process, the team can select two strategies based on the D4S Impact Assessment and two based on the D4S drivers. > Based upon the results of the D4S Impact Matrix, what are the ‘top two’ D4S strategies for improvement options? And what are the ‘top two’ strategies based upon the D4S drivers? > Worksheet R6


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> The selected D4S strategies; > The way the project will be managed; > The final composition of the project team; > A plan and time scale for the project; and > The project budget (staff and money) and activity breakdown. > Work out the D4S design brief. > Worksheet R6 Case: An example of the redesign of a bottle for milk and juice products is described in the Case Studies section on the web. The company, Microplast in Costa Rica, redesigned the bottle with a focus on four strategies, low-impact materials, materials reduction, optimisation of production techniques and improved distribution.

Step 7: Idea generation and selection This step generates ideas for improving the sustainability of the product. Once generated, the team prioritises them and then generates, selects and details a new product concept. (See Figure 4-7) The D4S design brief and selected D4S strategies are the starting points for generating ideas on improvement options. Different techniques can be used to generate ideas:

Figure 4-6 ___ Example of selection of D4S strategies based upon 1) priorities of D4S Impact Assessment (top) and 2) priorities based upon D4S drives (bottom)

After defining project goals and selecting 4 priority D4S strategies, the team can make a final evaluation and select the product strategies for the D4S Redesign. > What D4S strategies will the company and project team focus on in the next stages of idea generation and concept development? > Worksheet R6 When the guiding D4S strategies have been determined, the team can draw up a more detailed design brief. The design brief should include as a minimum: > The reason(s) for selecting the product; > An indication of the social (people), environmental (planet), and financial (profit) goals;

65 Figure 4-7 ___ The D4S product development process


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1> Using the obvious ideas collected during the D4S Impact Assessment and D4S driver evaluation; 2> Using the D4S strategy wheel for brainstorming; 3> Using the D4S rules of thumb; and/or 4> Other creativity techniques. 1> Ideas from the D4S Impact Assessment and D4S drivers During the analysis of the D4S Impact Matrix and the D4S drivers, obvious improvement options have been collected on Worksheet R7.

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2> Brainstorming with the D4S strategy wheel The D4S strategy wheel can be used to identify suitable design strategy directions as well as to stimulate the generation of new ideas. With this in mind, the 7 D4S strategies have been extended with sub-strategies, as summarised below. 1> Selection of low-impact materials that are; a_ Cleaner b_ Renewable c_ Have lower energy content d_ Recycled e_ Recyclable f_ Have a positive social impact, (e.g., generate local income) 2> Reduction of materials use: a_ Weight b_ Volume (transport) 3> Optimisation of production techniques: a_ Alternative techniques b_ Fewer steps c_ Lower and cleaner energy use d_ Less waste e_ Fewer and cleaner materials used to support the production process f_ Safety and cleanliness of workplace 4> Optimisation of distribution system: a_ Less, cleaner, and reusable packaging b_ Energy efficient transport mode c_ Energy efficient logistics d_ Involve local suppliers 5> Reduction of impact during use: a_ Lower energy use b_ Cleaner energy source c_ Fewer consumables needed

d_ Cleaner consumables e_ Health supporting and/or added social value 6> Optimisation of product lifetime: a_ Reliability and durability b_ Easier maintenance and repair c_ Modular product structure d_ Classic design e_ Strong product-user relationship f_ Involve local maintenance and service systems 7> Optimisation of end-of-life systems: a_ Re-use of product b_ Remanufacturing/refurbishing c_ Recycling of materials d_ Safer incineration e_ Taking into consideration local (informal) collection/ recycling systems > Organise a brainstorming session and come up with options to improve product sustainability using selected D4S strategies. > Worksheet 6 Box 4-2 provides examples of products developed with each of these strategies. These examples aim to further illustrate the specific strategy, not to present the perfect product with an integral low score based on a complete LCA. 3> Rules of thumb for D4S strategies ‘Rules of thumb’ have been formulated for each of the 7 D4S strategies. An overview of these rules can be found on the web (See Module E). > Check the D4S rules of thumb on the web to see if they stimulate other improvement options. > Worksheet R7 4> Apply other creativity techniques In addition to the improvements derived from the previous steps, it also makes sense to apply other creativity techniques to generate improvement options. ‘Creativity thinking’ is an expression used to describe different ways of thinking that can lead to new ideas. Creativity techniques can inspire a team to generate ‘crazy’ ideas, but even ‘crazy’ ideas can lead to useful concepts. Module D on the web provides several creativity techniques.


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Box 4-2 A ___ Furniture

Box 4-2 B___ mobility

BOX 4-2: Examples of application of D4S strategies for furniture, mobility, electronics and packaging products.


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Box 4-2 C___ Electronics

Box 4-2 D___ Packaging


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> Organise a creativity session and generate improvement options. > Worksheet R7 Selection of promising ideas After generating a lot of ideas, it is useful to cluster them according to the seven D4S strategies. > Cluster all the generated improvement options according to the D4S strategies. > Worksheet R7

Figure 4-8

Step 8: Concept development A qualitative process of selection is then applied to prioritise the ideas. The improvement options are subsequently assessed for environmental, social, and economical impact/benefits as well as technical and organisational feasibility. In addition to the criteria below, each company may define additional parameters or weigh them differently according to individual circumstances. Possible criteria could be: > Expected environmental (planet) benefit; > Expected social (people) benefit; > Expected economical (profit) benefit; > Technical feasibility (given resources available to the company); > Organisational feasibility; > Perceived added value to the customer; and > Market potential. > Which criteria should be used to select and prioritise improvement options? > Worksheet R7

In this step, the selected product ideas are developed into concepts and then into a more detailed design. In essence, the ideas generated previously are combined into holistic concepts. (See Figure 4-9) At this stage there will be some uncertainty about the feasibility of various ideas. In practice, several concepts will be developed at the same time. It may be possible to combine several concepts into one design. A technique called the ‘Morphological Box’ (See Module D ‘Creativity Techniques’ on the web) is valuable when the team wants to combine several ideas in one product concept in a systematic way. (See Figure 4-9.) Various tools are available for the D4S Redesign team to evaluate technological feasibility and optimise the design process, including test models, prototypes, and computer simulations. Attention to the financial feasibility of the new concepts is necessary. The project team will have to ascertain whether the financial benefits of the options will outweigh the costs involved.

The improvement options can be evaluated and weighed according to each criteria (See Figure 4-8). The feasibility of various options is often time-related: some improvement options and redesigns can be carried out immediately (short-term) and others require more time (mid- or long-term). > List the options and rate each one based on the time implications (short or long-term). > Worksheet R7 A final choice can usually be made only after the ideas have been fleshed out in greater detail. This process is known as a ‘product concept’.

69 Figure 4-9 ___ Morphological box for a food trailer in Ghana (UNEP 2006)


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It can be useful to evaluate concepts by using the information in the product specification from earlier steps (like the D4S Design Brief), and assigning qualitative values such as good, fair, poor, or numerical scores from 1 to 10. Using these values, an overall value can be given to each of the concepts. This process may be similar to the one applied during the idea generation and selection stage (Step 7). In addition to concept development, the production plan and marketing plan are developed during this stage, as in traditional product innovation projects.

See Module G for a detailed discussion of D4S Communication. After the product launch, the company can monitor the product’s sustainability performance. Consumer feedback, as well as information derived from internal product testing can be incorporated into the planning process for further product revision. See Module F for a detailed description on D4S Management. A good example of an ongoing programme of product improvement is Philips’ ‘Green Flagship’ programme (Box 4-2)

Step 9: D4S evaluation BOX 4-2: Philips Green Flagships, The Netherlands Comparing the product profile of the new design with that of the previous product enables an estimate of the sustainability merits of the new product. Efforts should be made to be as quantitative as possible when evaluating the redesigned product. > Evaluate the benefits of the D4S drivers and goals as defined in Step 2. > Worksheet R9

Step 10: Implementation and follow-up

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This step involves integration of sustainability elements into prototype production, testing, planning of largescale manufacturing, and test marketing. During prototyping and testing the actual sustainability performance of the product can be evaluated for the first time. In the test marketing, consumer reactions to the sustainability qualities of the products can be assessed along side standard criteria. With these insights, final alterations can be made before large-scale market introduction. Key stakeholders identified in the initial phase may also be taken into account. In parallel, the company needs to prepare a communication strategy. The company can decide to present the sustainability benefits of the product explicitly in its advertisements or not. Both strategies have advantages and disadvantages. Explicit marketing can be worthwhile if the consumer group is interested in sustainability issues, or when the marketing contributes to a brand or corporate image. The disadvantage can be that the company may be required to substantiate its sustainability claims.

Company & Stakeholders Building on Philips’ tradition of innovation and technological expertise, Philips has developed procedures for Environmentally Conscious Product Design –EcoDesign – that deal with all phases of product development. To support the EcoDesign process, Philips’ EcoVision programme focuses on the following Green Focal Areas during product developing:

These focal areas were introduced as part of the first EcoVision programme in 1998. Over the years Philips has realised there is a need for customisation to reflect areas of particular relevance for their businesses. Energy efficiency for Lighting division products is expressed in efficacy, which is the amount of visible light produced (lumen) per Watt (lm/W). For other products, energy use is expressed as kilowatt-hours per year (kWh/year), based on average annual use. Packaging reduction and the resulting savings in transport and logistics is an area of particular concern for Consumer Electronics, driven by cost and environmental considerations. To deal with this challenge, Consumer Electronics is focusing on reducing packaging volume and adapting pack-


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aging dimensions to increase shipping efficiency by being able to load more products in a single container. This is in addition to work being done to reduce packaging weight. Green Flagships The top EcoDesigned products achieve Green Flagship status. This means that after going through divisional EcoDesign procedures, a product or product family must be investigated in three or more of the Green Focal Areas and proven to offer better environmental performance in two or more of those areas, compared with its predecessors or closest commercial competitors. When a product is compared with more than one competitor, the results are expressed as an improvement compared to the average of the competitorsâ&#x20AC;&#x2122; performance in the investigated focal areas. To continue to drive innovation and the development of environmentally responsible products, the current EcoVision programme calls for one Green Flagship product per product division each year. In 2004 four product divisions fulfilled their commitment to developing at least one Green Flagship per year and a total of 21 were put on the market. The following two products are examples: Figure 4-10 iU22 ultrasound system, from Philips Medical Systems

Results With its intelligent control and advanced ergonomic design, the iU22 ultrasound system (see Figure 4-10) delivers a range of high-performance features, including next generation, realtime 4D imaging, voice-activated control and annotation, and automated image optimisation technologies. Compared with its predecessor, the iU22 weighs 22% less, eliminates 82% of the

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hazardous substance mercury, reduces energy use by 37%, uses 20% less packaging and contains 30% more recyclable material by weight.

Figure 4-11 DECT 525 Telephone, Philips Consumer Products

Results The DECT 525 (see Figure 4-11) maintains the high quality sound and easy to use features consumers expects, while consuming 54% less energy and using 14% less packaging than the average commercial competitor. It also uses 33% less raw material and improves recycling and disposal 12%. Cadmium, lead, and mercury have been eliminated from this phone.

(source: www.sustainability.philips.com , Sustainability Report 2004 Royal Philips, Sustainability Report 2005 Royal Philips)

In this chapter, the D4S approach for redesigning an existing product has been explained. This is a practical way to start implementing the D4S concepts in a company. The overall improvements in sustainability that are typically made with this approach are a good start, but usually not enough to achieve the long-term levels of environmental and societal sustainability that are needed. For this, more radical sustainable product innovation is necessary. These strategies are discussed in the next chapters.

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Profit


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0


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Out-of-the-box: Radical Sustainable Product Innovation Marcel Crul and Jan Carel Diehl The incremental innovation approaches of redesign are not enough to achieve long-term sustainable development. Out-of-the-box, or radical, innovation strategies on the other hand can lead to more sustainable impacts while providing the breakthroughs necessary to ensure industriesâ&#x20AC;&#x2122; continued growth. This chapter outlines the benefits of radical innovation and the need for more of these initiatives. It should be noted that radical innovation differs significantly from incremental innovation in that it involves more risk. However, this chapter provides a number of tools proven to effectively manage and minimise these risks. This chapter serves as an introduction to Chapters 6 and 7, in which the specific methodologies for radical product innovation are described. Chapter 6 deals with new products and system innovation and Chapter 7 with Product-Service Systems.

5.1 The need for radical sustainable innovation Previous chapters in this publication have outlined the process for improving an existing product. While these strategies are effective for initiating D4S projects and beginning to address sustainability challenges, more drastic approaches are needed to achieve a long-term balance between the economic, environmental, and social pillars of sustainable development. Radical sustainable product innovation, including breakthroughs and leapfrogging, is required to reach the desired improvement factor of 10-20 (incremental redesign only yields improvement factors of 2-3). Refer back to Chapter 2 Section 2.5.2 - Improvement Factors for a review on factor thinking of D4S. This chapter details the principles of radical product innovation and provides examples of higher product-system sustainability. The effectiveness of Product-Service Systems (PSS) is dependent on 3 factors: the design of the product, the design of the service, and the system in which the product-service combination functions. The system itself is characterised by (1) the organisation or business that runs the service or activity-chain and by (2) the selected infrastructure. Successful and sustainable PSS are designed so that the system has value for the end-user and is profitable

for other actors in the chain. Optimising the use of existing infrastructure, such as buildings, roads, and telecommunications networks, will lower investment costs and increase potentials gains. While most PSS are developed using existing or slightly redesigned products (see Box 5-1), ideally entirely new products would be developed to create superior sustainability solutions. Use of existing products provides designers with expediency to better compete with other services in a highly competitive market, but it also limits the sustainability gains that can be made. While the development of new products can be challenging and as complex as setting up a new business or venture, the rewards are significant. Research in the radical product innovation field is still in the early stages but initial studies have yielded valuable insight into the project implementation process. This insight is detailed in following sections however it is important to note that the approach should be tailored to fit the selected product and implementing company or organisation. BOX 5-1 More and more responsible business actors and service designers are incorporating existing products into their services, for example,

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many green car renting companies select their vehicle fleet by evaluating fuel usage and integrating innovative Information and Communication Technology (ICT) based renting and reservation systems. Additionally, Dutch Railways combined the train reduction card with a bicycle renting card. Under this system, passengers can rent a bicycle at any train station within less than 30 seconds for only â&#x201A;Ź2.75. This combination makes renting bicycles convenient and affordable.

5.2 Managing radical product innovation

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There is abundant existing research on product innovation management (see references section for additional reading). An underlying theme of the existing research is the importance of product innovation managers drawing upon the lessons learned from successfully implemented radical innovation projects. A few of the main lessons from radical product innovation are summarised below. In todayâ&#x20AC;&#x2122;s literature a distinction is usually made between two types of radical innovation, new-to-the market and breakthrough. In this context, radical refers to product innovations that have the potential to disrupt existing industries and are able to create new businesses, services, consumer behavior, and infrastructures. > New-to-the-Market: Novel substitutes, based on products that are new to society; and > Breakthrough: Significantly changes the existing industry or creates a new business. The are several variables that contribute to the achievement of radical product innovation. First, is the vision of the innovator or innovative organisation. Second, is the ability to develop new and emerging technologies that are not easily replicable. Thirdly, the use of management tools to streamline the radical innovation process. In summary, radical product innovation is a function of vision, technology and management. The risks associated with radical innovation are significantly higher than those of traditional business innovation. It is more volatile, the outcomes less certain, and the time horizon tends to be much longer. In many cases, existing companies are not able to create new-to-

the-market or breakthrough solutions because of the high risks associated with these strategies. The Ansoff Growth Matrix is a tool that can help companies evaluate growth strategies and analyse risk. As shown in Figure 5-1 when new products and new markets are developed simultaneously, companies are assuming a greater level of risk. There are three types of diversification, first, companies can seek new products that have technological and marketing synergies with existing product lines, in which case the resulting product may appeal to a new class of customers. Second, companies can search for new projects that are technologically unrelated to the existing product line that possess market demand with their current customers. Finally, companies can seek new businesses that have no relationship to the companyâ&#x20AC;&#x2122;s current technology, products, or markets.

Figure 5-1 ___ Ansoff growth matrix


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New Coalitions In most cases radical product innovation requires a new venture or the support of external partners to provide additional competencies and capabilities. When additional expertise is required, companies should form a new coalition with external partners to support implementation efforts. This outside support can be in the field of design creativity, complementary technologies and markets, production facilities, etc. In finding the right partners, it is important to avoid conflicts of interest and to strive for a win-win situation with an attractive cost-benefit ratio for coalition partners. The formulation of new coalitions can be a difficult process as the necessary trust building requires time and working effectively together requires flexibility. The progress of radical undertakings can be hindered by obstacles such as a breach in confidentiality or overlapping markets among coalition partners which may lead to excessive competition.

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A number of sustainable innovations originate from university spin-offs, this is due to the supportive environment for innovations and because the younger generation tends to be more open to new ideas and technologies. Examples of university spin-offs from the Delft University of Technology include the Epyon, an efficient battery charging system in which the charge time is reduced to minutes instead of hours. The Epyon system is designed for the batteries of vehicles and mobile products. The Senz umbrella, a windproof umbrella (up to a wind force of 10) that is more resistant to inversion (less destructible and more resilient). These umbrellas are more durable and have a much longer lifetime. The Evening Breeze, an air-conditioned bed which if used to replace traditional cooling systems can save 60 percent on the hotel roomâ&#x20AC;&#x2122;s energy consumption (see Figure 5-2).

New Ventures If radical product development is not feasible within the existing company structure, one alternative is to create a new business venture. If the new business is linked to the existing company a certain element of â&#x20AC;&#x2DC;intrapreneurshipâ&#x20AC;&#x2122;, is required, if it is created separate from the company, venture capital and entrepreneurship may be in store. Developing a new business venture outside the existing company is often the best option for entrepreneurs in radical product innovation as new activities are often met with resistance within an organisation when the idea (1) goes beyond the demands of environmental or social legislation; and (2) posses significant risk. Anyone with a challenging idea - be it inventor, artist, or manager - can start a radical undertaking. Numerous programmes supported by chambers of commerce, innovation agencies, financial institutions, and government agencies exist to support the new entrepreneur. In addition, many universities around the world facilitate the creation of these new ventures as their environments provide students and other academic entrepreneurs with the support (in the way of infrastructure and entrepreneurial expertise) necessary to establish university spin-off businesses.

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Figure 5-2 ___ Examples of sustainable products from university start-up companies in Delft University of Technology: Previous Page Top: Fast charger form Epyon,, Previous Page bottom: innovative umbrella from Senz Umbrellas, and above: innovative air-conditioned bed which saves on hotel energy use.

5.3 Methods and tools for risk reduction The innovation funnel* There are a variety of methods and tools available to assist managers in reducing the risk involved in radical product design. The ‘innovation funnel’ is a common approach among larger research and development driven companies.The ‘innovation funnel’ can be viewed as a stage-based approach to innovation. (See Figure 5-3)

As shown in Figure 5-3, the ‘innovation funnel’ is comprised of 4 stages. The stages are (1) problem orientation and strategy; (2) idea generation and design; (3) demonstration and launch investment; and (4) production, roll-out, and exploitation. The tollgates I, II, and III are the points in the funnel where key decisions are made. Options at each of the tollgates are as follows: > Continue to the next stage: for instance when all goals are positively met; > Move the project from ‘out-of-the-box’ to ‘inside-the-box’: for instance when profitable opportunities for the innovation emerge at existing markets, the innovation project could be fitted in the existing business portfolio; > Stop the project: for instance when the idea seems not to be able to make money or – on the contrary – is very good, but doesn’t seem to fit the company profile. Box 5-2 provides a number of relevant guidelines for managers using the innovation funnel. Box 5-2 Guidelines for managing the innovation funnel 1- The funnel needs to be loaded with innovations at all stages 2- Projects have to move forward through the funnel as in a supply chain 3- The stages are sequential and interdependent 4- Each stage and tollgate has to be managed separately

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Figure 5-3 ___ innovation funnel

* Parts of this section are - with permission - directly cited or adapted from: Verloop 2004 (see references)


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5- Each stage and the overall process can be optimised with respect to resource use and reaching the objectives 6- Clear guidelines and criteria should be in place at each tollgate and all actors should understand and be in agreement 7- Each consequent tollgate requires the same criteria, but with an increasing demand for detail and quantification 8- Tollgate III requires a comprehensive and detailed business and launch plan 9- The innovation manager is responsible for keeping the momentum, managing the tollgates and optimising the supply chain 10- The innovation manager is responsible for the link with the innovation strategy, the identification of stakeholders, and balancing efforts –i.e. between ‘bottom-up’ and ‘top-down’ and the position of the radical innovation team

Bricolage Bricolage is another tool used to minimise the risk involved in radical product development. Berchicci underlines the additional difficulties an entrepreneur might encounter when trying to achieve highly ambitious sustainable goals by radical product innovation. Berchicci stresses the need for a step-by-step or bricolage approach, even in cases where the environmental ambition is high. Bricolage involves starting with small actions, with regular feedback loops from potential future users to maximise the use of experiment and trial-and-error. In this case, goal setting may emerge in the second stage, instead of at the onset of a radical undertaking. Berchicci encourages environmentally driven designers to integrate flexibility into their vision and innovation process to develop breakthrough products.This approach posits that the best way to build up capabilities and simultaneously decrease uncertainty is to conduct simple tests, or pilots.Therefore, radical sustainable product innovation is best achieved through a series of incremental innovations as the integration of a number of smaller solutions can produce significant results while reducing risks and failure. The Bricolage approach is recommended for SMEs and new ventures with limited research and development budgets.

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CASE The case on new mobility concepts provided in the Case Study section on the web describes an example of a bricolage approach in radical D4S innovation. Starting from the ‘MITKA’ project, several others concepts for sustainable new mobility were developed.

5.4 Creative industry and distributed economies In addition to models on product and business innovation, a new paradigm has recently emerged stressing the importance of cities as facilitators of societal innovation. Richard Florida is the main representative of this paradigm. His book ‘The Rise of the Creative Class’ further details this concept (see references at the end of this publication). The main points are outlined below: > Technology is a partial collection of a much broader class of activities, called ‘creativity’ > Technological creativity – our capability to invent new products and processes is crucial, for a successful economy > Other creativity, such as aesthetic, stylistic, cultural, artistic and musical, is also necessary for successful commercial entrepreneurship > Supporting the creative class with an attractive, active and inspiring infrastructure and synergy of the different creative variables in all societal sectors is a precondition for successful innovation. In Florida’s theory, cities and particular neighbourhoods have become the central organising factor. However, this model does not explicitly address sustainable development. Therefore, other models complement the creative class paradigm with the concept of Distributed Economies (DE). They argue that growth, which is dominantly driven by production efficiency, is accompanied by the dynamics that undermine sustainability. To address this concern, the authors introduced DE, which advocates to decentralise a portion of production activities and distribute them throughout the region in the form of small-scale, flexible, and synergistically interconnected production units. DE serves to establish a renewed balance between small and large-scale production units and the three pillars of sustainability.

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Environmental and social principles guide the development of DE according to the following criteria: > Increasing the share of renewable resources in economic activities; > Increasing wealth creation for a larger number of people; > Decreasing pollutant emissions and waste generation at the local and regional level > Increasing the sustainable use of local resources in economic activities > Increasing the value added to local resources > Increasing the share of added value benefits retained in the regions > Increasing the share of non-material (e.g. information know-how) and higher added value material resources in cross-boundary resource flows > Increasing the diversity and flexibility of economic activities > Increasing the diversity and intensity of communication and collaboration among regional activities The DE criteria are in line with the D4S concept.

5.5 Sustainability and radical product innovation

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In addition to technology and business, sustainable development has become an independent driver for change. While today’s policies seem restricted to the regulation of the proper end-of-life management of certain product groups, in the future – as factor X thinking objectives (refer to Chapter 2 Section 2.5.2 for a review of factor X thinking) for product-systems become more accepted global standards- value creation will move beyond end-of-life management to include societal concerns throughout the value chain. As found in sustainable innovation literature: ‘Sustainable innovation has three value drivers – technology, business and society – that need to be in balance to create new choices for the customers of today, without compromising the options for the future. In the value driven model, the cycle for D4S sustainable innovation begins when society starts to adopt or develop new values and to reject certain products in the market place. At the same time, technologies

emerge to support the creation of new Product-Service Systems that fit the new values. Sustainability becomes a social change driver, complementary to marketing pull and technology push. In practice, ongoing efforts are being made to operationalise these concepts, taking both the lessons from product and business innovation, creative cities, PSS (Chapter 7) and design oriented scenarios (Module B and C on the web) into account.

figure 5-4 ___ The value driven model for sustainable innovation (Verloop 2005).


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New product development Jan Carel Diehl New product development is a method of out-of-the-box innovation which involves a higher level of technical, market, and organisational uncertainty than redesign, as discussed in Chapter 4. Given the increased uncertainty of the new product development process, no standard rules of thumb to improve an existing product can be applied, and a more open ‘idea finding’ phase is necessary. In this chapter, a general model for new product development for D4S is explained and several new product technologies and market opportunities are described. Additionally, the strong connection between system innovation and new product development is examined.

6.1 Product innovation As introduced in Section 2.7, new product development follows the four basic stages of product innovation (policy formulation, idea finding, strict development, and realisation) and involves a series of sub-processes dominated by the product development process followed by the realisation of project activities (see Figure 6-1). Product Innovation = Product Development + Realisation

Product development can be defined as ’the process that transforms technical ideas or market needs and opportunities into a new product and on to the market.’ It includes strategy, organisation, concept generation, product, and marketing plan creation and evaluation, and the commercialisation of a new product. The product development process is a creative and iterative set of steps and phases that converts ideas into saleable products and/or services. The product development process itself can be split up into three phases:

Figure 6-1 ___ Product development as part of the product innovation process


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policy formulation, idea finding, and strict development (see Figure 6-1). Each step contains a divergent activity that identifies relevant information in a creative way and a convergent activity which evaluates that information (see Figure 62). The divergent activity explores and redefines problems, generates ideas, and combines concepts. The convergent activity imposes value judgments and includes methods to make sense of information, prioritise items, compare solutions, assess ideas and select concepts.The product development process is often presented as a linear process. However, in practice it can contain iterative cycles, where design teams go back to earlier stages in the product development process to re-evaluate decisions that have been made. Development of new D4S products is not an isolated process. Production development and marketing planning take place in parallel to the product development process (see Figure 6-1). Since production development and design are directly linked, equipment availability and investment needs should be considered during the design phase. Production management will need to address how to introduce any production changes resulting from design changes. In addition, information on market analysis, consumer behaviour, trends and future scenarios, government policies, environmental concerns, new technologies and materials is essential for targeting a new product to the needs of consumers. In contrast to redesign, there are no clear rules-ofthumb or strategies to be followed for new D4S products, since the approach exactly is focused on new products for existing or new markets. Hence, the more open â&#x20AC;&#x2DC;idea findingâ&#x20AC;&#x2122; phase is included in the stepwise approach explained above. In Module D several forms of

creativity techniques are presented that can support in this. Also, the approach of design-oriented scenarios in Module B can provide new ideas and concepts. Another source for new product ideas come from new product technologies and the vast array of new opportunities they can provide â&#x20AC;&#x201C; as highlighted in the next section.

6.2 New product technologies New product technologies such as eco-materials, nanotechnology, renewable energy sources, and Information and Communication Technology (ICT) can be a source of inspiration for new product development, since these technologies often add value when incorporated into a new product. Incentives of these technologies include increased savings through energy and resource efficiency, reduced toxicity, and improved reusability or recyclability. Additional information on these technologies is provided below. > Eco-materials are new materials that have far less impact on the environment and play an important role in new product developments. Eco-materials are characterised by one or more of the following attributes: increased savings in energy and/or resources, improved reusability or recyclability. Module H provides additional information on these materials. > Nanotechnology is a growing field that offers great innovation potential in the realm of sustainable materials (smaller, lighter, and more intelligent). A downside of this technology is that the byproducts generated in the processing are not well researched and could possibly

84 Figure 6-2 ___ Step-by-step design approach characterised divergent and convergent activities.


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be toxic. The potential applications for nanotechnology lie primarily in the car and electronics industries, for example non-scratch windows, self-repairing structures, etc. > Renewable energy sources, such as human powered devices and photovoltaics offer great sustainable enhancement potential for portable products, one example being larger distribution of medical care instruments in remote regions. Fuel cells can add to this potential, provided their energy sources are from a sustainable source. Section 6.3 provides a number of options for the integration of renewable energy sources into consumer products. Additional information on renewable energy options in technical product innovation can be found in Module I. > ICT easily contributes to new product development by advancing sustainable functionalities or features in existing products. Intelligent products can be developed to reduce energy use, improve connectivity and improve functionality. Multifunctional products reduce the need for separate products for example, cameraphones. ICT can also provide new opportunities for learning tools such as in the example of ‘One Laptop per Child’ (refer to Section 6.4). More examples of ICT contributions to new D4S products can be found in Module J on the web.

6.3 Integrating Human Powered, PhotoVoltaics and Fuel Cell energy systems into consumer products The application of Renewable Energy (RE) technologies like Human Power (HP), Photo Voltaic (PV) cells, and Fuel Cells (FC) offer more sustainable alternatives to current energy systems. The integration of these new energy technologies into D4S product design is moving from the experimental phase towards becoming an established discipline in Industrial Design. To continue the forward momentum of these design efforts, it is necessary to increase the amount of structural information regarding the identification and integration of renewable energy technologies into products available to technological developers as well as industrial designers.

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Each of the three RE technologies listed above have their own advantages and disadvantages for product and product-system applications. The added value of RE technology is contingent upon product applications and design limitations. Table 6-1 outlines the potential advantages of HP, PV, and FC.

PV-powered product-systems Of the three Renewable Energy technologies listed above, the PV-cells are currently the most applied at the product and product-system level. During the last decade the number of PV-cell product applications has significantly increased. A wide variety of electronic products are powered by PV-cells, including solar chargers, outdoor lighting, calculators, gadgets, ticket machines, etc. These can be characterised into one of the following four groups of PV products. 1. Existing product designs with an ‘added’ PV source: There are a variety of existing products in which PV cells have been included as an alterative energy source. For example, the PV-powered weight-scale shown in Figure 6-3 has ‘pasted’ PV cells onto the product by adding an additional surface. The PV-cells are not integrated into the product’s design and do not create an essential added value for users (the battery normally only has to be replaced once every 3 years). 2. Redesign of existing products with ‘integrated’ PV source: If PV-cells replace another type of energy source in a product, it is very likely that the product design and the configuration were adapted and optimised for the new situation. While integration of PV-cells into the product’s design can enhance its sustainability, the design must take into account product function or the innovation effort may not yield the intended benefits. Take for example, the solar battery pack for a mobile telephone (shown in Figure 6-3). In this example the solar cells have been integrated into the product using transparent plastic and hi-tech surface styling, despite constrains in the size and shape of the battery pack. While the intended value of this product–technology combination is clear, there is not a suitable balance

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Table 6-1 ___ Characteristics of HP, PV and FC


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between energy generation and consumption. Although the PV-cell area is small, a full day of sun would be required to supply the energy required to maintain proper functioning of the mobile telephone. However, the mobile telephone will often be disconnected from sunlight because it will be in the palm of the hand when in use and is often carried inside a bag or a pocket. The characteristics and positioning of PV-cells do not provide an optimal match with the user context and energy need. 3. New products based on PV technologies; Based upon the characteristics of the new RE technologies and consumer needs, new PV-powered products are increasingly being developed. For example, solar chargers offer consumers the distinct advantage of generating energy independent from batteries or the electricity grid (refer to Figure 6-3). The design should be developed considering the new function and technology, the shape and colour should be matched to user preferences, and there should be a suitable match between energy generation and consumption. 4. New product-systems based upon PV technologies; Low voltage and Direct Current (DC) appliances are rapidly being introduced in todayâ&#x20AC;&#x2122;s market, for example, mobile telephones, ipods, and personal digital assistants (PDAs). In order to power these products the 220 Alternating Current (AC) has to be converted twice to

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the low-voltage DC. This process results in efficiency losses. Renewable Energy technology like PV-panels produce low voltage DC electricity which makes them (more) compatible to power these appliances. One of the current solutions under research is to integrate a PV-powered low voltage DC electricity grid in houses to power these products more efficient and to abandon the need for adaptors Case: The development of a new PV powered lantern for the Cambodian market is described in detail in the Case Study section on the web.

Human Powered Products While human-powered products are not a new concept, they do offer great advances in product sustainability. The introduction of the Freeplay radio in 1996 sparked interest in fusing HP and products and as a result a range of HP products have been introduced into the market (see Figure 6-4). In the first example, a Freeplay wind-up flashlight is equipped with a metal spring to store energy. While the HP innovation adds value, one might question if the bulky weight and dimensions do not present an inconvenience to users. In the second example, the HP technology has been integrated more sophisticatedly into the product (by shaking the flashlight, linear induction within the light creates energy). Finally several new HP-products have been developed to charge low power products like mobile telephones.

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Figure 6-3 ___ Examples of PV-powered products; weight scale, mobile telephone, PDA and a solar charger for mobile telephones.

Figure 6-4 ___ Examples of human-powered products: two torches and a mobile charger.


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Fuel Cell Powered Products Since the miniaturisation and commercialisation of the Fuel Cell technology is more recent, the number of product examples available in the market is limited. Figure 6-5 depicts a selection of fuel cell examples that are still in the experimental or prototype stage. In the first example, a PDA is fuelled using FC technology however the FC source is large in comparison to the product and not well integrated in the design. In the second example from formula zero (the racing cart), the FC has been integrated in the design, however it does not yet compare to the characteristics of competing technologies like combustion engines. In the last example, the integrated FC power operated laptop, the FC technology creates added value as it enables users to work at least twice the amount of hours independent from the electricity grid. Additional information on design processes for integrating renewable energy systems into products can be found in Module I of the web. Many mobility and transport products featuring fuel cell technology are currently being developed. However, innovative mobility initiatives need to be accompanied with supporting infrastructural systems, supply, user practices and regulations (see Section 6.5).

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Figure 6-5 ___ Examples of FC-powered products; PDA, racing cart and a FC-powered Laptop.

6.4 ICT technology in new product development: One Laptop per Child The One Laptop per Child project has created a learning tool expressly for the world’s poorest and underprivileged children inhabiting remote areas. The laptop was designed collaboratively by experts from both academia and industry. The Media dubbed the project ’One Laptop per Child’ but industry members knew it as ‘the $100 laptop.’ The expected manufacturing cost is below $150 and expected to fall below $100 by the end of 2008. “It should be compact and sealed, like a suitcase. And it should really look and feel different. It shouldn’t look like something for business that’s been colored for kids.” (That’s more than an aesthetic concern: An unmistakable, childlike design will be the laptop’s only real defense against theft and resale.) The result is a unique harmony of form and function; a flexible, ultra low-cost, power-efficient, responsive, and durable machine with which nations of the emerging world can leapfrog decades of development—immediately transforming the content and quality of their children’s learning. The product development team explored several options. One of the first decisions was to place the bulk of the electronic wiring behind the display, like an iMac, instead of beneath the keyboard. This simplified the wiring as the motherboard and display were no longer connected through a fragile hinge and also cut costs. The new laptop designed by the One Laptop per Child project contains a number of innovations designed to reduce cost and make it practical for children in developing countries. A few of these design innovations are listed below. Furthermore, Figures 6-6 and 6-7 depict the final design and evolutionary stages of the design process, respectively. - Renewable Energy: The low energy display and drive has made it possible to build a computer that consumes only 2 watts of power, compared with the 25 to 45 watts consumed by conventional laptops. Each machine is accompanied with a simple mechanism to recharge itself when a standard power outlet is not available.The project team experimented with a crank, but eventually discarded the idea because it seemed too fragile.


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- Low energy display: The small high resolution screen has both a low-power monochrome mode – readable in sunlight, unlike conventional displays – and backlit color using light emitting diodes (LEDs). - Low energy drive: The ultra-low-power operation is possible because of the lack of a hard drive (the laptop uses solid-state memory, which has no moving parts and has fallen sharply in cost). In addition the microprocessor shuts down whenever the computer is not processing information. - Wifi and USB ports: Two design challenges included unprotected USB ports and a pair of radio antennas needing to be exterior to the machine for reception. A dual solution was designed which turned the antennas into a pair of playful ‘ears’ that swivel up for reception or down to cover the laptop’s exposed USB ports. “Everything on the laptop serves at least two purposes”

Figure 6-6 ___ The final concept

Figure 6-7 ___ The evolution of the concepts

6.5 System level innovation connected to new products: the example of fuel cell systems Fuel cell and hydrogen technologies utilising renewable energy sources offer great potential in the realm of

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innovation product systems and can provide the necessary energy efficiency in urban transportation systems to mitigate climate change through reduced emissions. Several hydrogen powered (fuel or fuel-cell) vehicle demonstration projects are underway. However, new products featuring fuel cell technology instead of conventional energy sources are only part of a much larger system that needs to be changed. Typically, system innovation must be accompanied with radical changes in technologies, regulations, user practices, markets, culture, infrastructure, and supply networks to further support widespread uptake of the technology. System innovations require large investments and will always replace defunct parts of the existing system which often leads to opposition from actors connected to the old system. An important aspect of system innovation management is learning-by-doing, keeping several options open for exploration, maintaining long-term vision and shortterm actions, involving all relevant stakeholders and evaluating continuously (see also the bricolage approach, Chapter 5). System innovation is a relatively new field with limited practical experience. A methodology was developed to address the need for concrete insights in initiating system innovation and was pilot tested in fuel cell transport system in Rotterdam. This methodology emphasises outlining a combined set of concrete short-term projects and conditions, within a long-term perspective. The approach is characterised as ‘bottom-up’ as it involves relevant stakeholders very early in the process, in order to build upon current projects and views and support short-term projects with long-term objectives. The approach includes both current and future stakeholders in the process. The following steps are performed in chronological order: > Draw a system definition: a system innovation or a transition consists of a combination of different subsystems fulfilling various functions. These functions can involve changes in existing functions or implementing new functions. The system definition includes both technical and sociocultural elements, as change is required in all these dimensions in order to bring about a transition.

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> Identify stakeholders: the different functions of the system definition can be associated with clusters of stakeholders that are necessary to fulfill these functions. It is essential that present stakeholders as well as potential stakeholders are involved. Small entrepreneurs are often more motivated than incumbent firms to manufacture the new technologies required for system innovation, for example, fuel cells. > Perform stakeholder interviews and workshops: a transition or system innovation can only take place due to a collective action of the different stakeholders. Therefore, it is crucial to obtain stakeholder commitment. Furthermore it is assumed that system innovation can only be successful if it is based on a common vision and ideas. Insight into stakeholders reaction to system innovation (their views and perceived barriers and opportunities) can be obtained through in-depth interviews and workshops. The interviews should be aimed to obtain in-depth insight into the views of a wide variety of stakeholders. The workshops should facilitate interaction between different groups of stakeholders. In this way consensus regarding certain issues can be achieved. Also, the workshop contributes to the origination of stakeholder networks. > Generate a roadmap: the results from interviews and workshops should be used to create a roadmap. The roadmap should include the most promising shortand medium-term projects for D4S and relate these to

long-term objectives. The purpose of the roadmap is to identify and visualise potential innovation steps between the present situation and a possible sustainable future situation. The timeline and content of the roadmap should relate to existing roadmaps, in order to incorporate the national and international context. A roadmap can be used to develop the transition steps necessary to implement system innovation. An important aspect of this method is that stakeholders are identified and consulted before the roadmap is developed. The roadmap should not be regarded as a fixed path; the transition steps need to be continuously evaluated based on the interim objectives developed by stakeholders. Because the transition projects and related conditions are based on the views of stakeholders, the methodology actively engages stakeholder commitment. The following case study outlines a D4S system innovation in the fuel cell transport field.

Fuel cell transport in Rotterdam The following case study provides the design approach for the fuel cell based transport system in Rotterdam. The design called for changes in infrastructure to accommodate the necessary storage, transport and distribution of hydrogen; filling stations; the production and supply of fuel cell vehicles and ships and the operation of these vehicles. Furthermore, the design requires

90 Figure 6-8 ___ System design for future fuel cell transport system in Rotterdam (van den Bosch et al, 2005)


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changes in policy and legislation to transition into the fuel cell transportation option. Figure 6-8 outlines the overall design. All relevant stakeholders were interviewed to gather information and insight on how they perceive implementing short-term projects on fuel cell transport. Both vehicle and water taxi producers and suppliers demonstrated proactive attitudes towards fuel cells. The policy and legislation sector was also positive. The vehicle and water taxi fleet owners were willing to participate but

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were less enthusiastic. To ensure the commitment of all three groups, transition steps should meet commercial, learning, and sustainability objectives. A workshop was held during which the various conditions and preconditions of stakeholders were further defined, and ideas for a number of concrete fuel cell projects were developed. The most promising ideas were used as input in the roadmap. The roadmap (see Figure 6-9) was used to put the short-term projects into a long-term perspective.

91 Figure 6-9 ___ Roadmap for Fuel Cell transport system in Rotterdam


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The three transport domains: water, road, and internal transport, along with the required infrastructure (vertical axis) were distinguished, and the developments are followed in time (horizontal axis) connected to targets and phases of Dutch and European roadmaps. The promising fuel cell projects were depicted, and connected into various subpaths within the overall transition path. The roadmap is presented in Figure 6-9. The primary focus of the roadmap is that the transition path utilises hydrogen available from the Rotterdam industry in the fuel cell projects. ‘Internal transport’ is an ideal area to carry out pilot projects, because it is less affected by rules and regulations. Furthermore, demonstration projects with battery electric or hybrid transport applications can be used as stepping stones to introduce fuel cell transport applications. The roadmap also supports an integrative approach with regard to the different transport domains, water, road, and internal transport; interaction between projects in all domains is necessary to increase knowledge and stimulate learning. Rotterdam is not the only city active in hydrogen and fuel cell systems development. ‘Hydrogen highway’ systems, including both vehicles and infrastructure, are being developed in Canada, the US, and also in Germany. However, because these projects are part of much larger system innovations, risks and uncertainties are large, and competing systems based on electricity or biofuels are also being developed. No statements regarding the outcomes of these projects are available. In all cases, a long-term vision, commitment, and the pro-active role of industry, government, and knowledge institutes are essential. In this chapter the approach for new sustainable product development was introduced. A general description of the approach is followed by the opportunities that new product technologies provide for the development of new, more sustainable products. Key renewable energy technologies are detailed with their potential advantages, as well as some examples of ICT technologies. The link with new products as part of system innovation is made, and the example of fuel cell systems is given. In the next chapter, another key approach for radical sustainable product innovation is presented: Product-Service Systems (PSS).


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007 7.1 Introduction – the concept of ProductService Systems In today’s economy, companies normally deliver value by offering products or services to other companies, public entities, or individual customers. Most companies operate primarily within a product-based or a servicebased system. Product producers typically design and manufacture a product to sell directly to consumers, or manufacture a component to sell to another producer, or to be incorporated into a product which is then sold to consumers. In some market sectors, particularly for ‘intelligent’ products such as computers and mobile phones, producers may also add services (such as software, data, or communications) to enhance the value and utility of the product. Service providers operate in a different part of the market. A major part of the economy in most industrialised countries is now based on the production and sale of services (about 75% of the GDP in the US and about 50% of the GDP in Europe). Some services are dependent on products for their utility and value. Many communications companies, for example, require mobile phones to deliver services. Increasing integration of products and services is becoming more and more apparent in industrialised economies. However, as most companies have developed knowledge and optimised organisation in one specific area, such as product development, they may lack of

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Product-Service Systems Ursula Tischner, Chris Ryan and Carlo Vezzoli In addition to new product development (Chapter 6), development of Product-Service Systems (PSS) is another approach to radical sustainable innovation for D4S. The concept of PSS stems from the fact that services and products are becoming more and more intertwined. If Product-Service Systems are properly designed, they can be more sustainable then purely product-based solutions and thus can achieve higher factor improvements. In this Chapter the concept of PSS is introduced, three types of PSS are defined, and a step-by-step approach for a PSS pilot project is given. More information on the theoretical background of PSS is provided in Module C on the web. As in previous chapters, this approach has a strong connection to the basic four-step methodology for product innovation.

knowledge and organisation in service development. Given this example, they may not be well prepared for a shift in the marketplace. The PSS approach to D4S was formulated to help companies transition to a more integrated product and service market. It is a promising approach for companies wanting to grow in a market that is rapidly changing and shaped by environmental and social concerns and regulations. The concept of PSS proposes that companies transition from selling only products (or services) to: Designing and providing a system of products and services (and related infrastructure) which are jointly capable of fulfilling client needs or demands more efficiently and with higher value for both companies and customers than purely product based solutions. The concept of PSS, as a business and design strategy, is the result of the growing interdependence of products and services in the current economy. It is clear that in the modern economy, the value derived from production and consumption depends on a series of services, which support the production and operational utility of products. The utility and value of a product derives from the ‘service’ which it provides for the con-


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sumer. This is an important way to think about the product design process. For many products, delivering utility and value require additional services such as maintenance, information and support, spare-parts, consumables and software, and so on. These services are necessary to ensure a product ‘works’ for the consumer. Increasingly, economic value lies less in the product itself than in other parts of the product-system that can be called product-related services. Current ink-jet printers, for example, are generally considered to be sold at a discounted price because of the future income to the manufacturer that will come from the long-term sales of ink cartridges. As a strategy for innovation, PSS can be thought of as widening the scope for design and development to include coordination and re-configuration of a set of products and services to meet customer needs in a more economic, environmentally efficient and socially sensitive way. Based on research, analysis, and exploratory case studies, it is possible to design an appropriate system of products and services (PSS) which could: > Be commercially viable in the current or future market place and deliver more value to companies and customers (economic dimension). > Decouple the creation of value from consumption of materials and energy and thus significantly reduce the life-cycle environmental load of current product systems leading to factor 4 to factor 10 improvements in eco-efficiency (environmental dimension). > Fulfill client’s demands in a more appropriate way and thus create better quality of life for all stakeholders (social dimension). PSS has significant potential to lead to radical innovation and D4S solutions for companies and customers/consumers, because the entire production and consumption system is rethought, as opposed to the simple redesign and improvement of existing products and systems in other approaches. PSS offers the opportunity to decouple value creation from environmental consumption by selling services instead of material products. However, these benefits do not occur automatically; they have to be carefully designed into every new PSS. This Chapter and the corresponding section on the web (Module C) describes the methodologies and tools that can be used to enable companies to do so.

Why should business and designers consider PSS for D4S? PSS is an innovative approach to sustainable business and may allow a company to: > find new markets and profit centres; > survive in rapidly changing markets; > increase efficiency and reduce resource consumption; > comply with environmental and labour regulations, or meet environmental and labour standards; and > compete in the market and generate value and social quality, while decreasing total negative environmental and social impact (directly or indirectly). In other words, PSS suggests a way to identify potential win-win solutions – for producers, providers, customers, stakeholders and the environment. PSS proposes that a producer (often in partnership with other businesses) expands the role in the market to better coordinate and control the mix of products and services to meet customer demand with lower total adverse environmental and social impacts. PSS is a very customer-focused strategy which draws on customer and consumer demands and needs. It allows producers to optimise market value while reducing environmental and social impacts, which can yield higher operating efficiencies and improved strategic positioning. Enhancing operating efficiency. A shift to PSS can result in a situation where a company operates at the same or increased profit levels while reducing material and energy consumption (decoupling) and promoting sound human resource policies. A company can make more money if it can meet the same customer demand by providing a less resource-intensive productservice mix. Companies can also boost production efficiency by maintaining positive employee relationships. Improved strategic positioning. PSS may improve a company’s strategic position in the market because of the added value perceived by clients. Improved strategic positioning could be obtained as a result of: > New market development – opening up a new business niche (even in saturated markets) > Increased flexibility – responding more rapidly to the changing market


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Table 7-1 ___ Motivations expressed by companies that have explored or developed new PSS

> Longer term, more direct, client relationships – most PSS lead to stronger company-customer relationships. > Improved corporate identity – ‘responsible and transparent’ – companies clearly show their environmental and social benefits Table 7-1 lists some motivations expressed by companies that have explored or developed new PSS. To varying degrees all PSS approaches change the existing relationship between production and consumption. Therefore a company must be open to new opportunities and business relationships.This can mean changing the existing corporate culture and organisation to support a more systemic innovation and service-oriented business. In many cases it also means reaching out to find corporate partners and creating new alliances between companies with complementary market experiences and skills (e.g. manufacturers partnering with service companies). A PSS approach requires companies and providers to develop: > A managerial vision for system innovation: the ability to recognise new opportunities and to design new product service mixes that meet customer demands.

> An innovative corporate culture capable of promoting new forms of internal organisation, e.g. to coordinate the product-service co-development. > An innovative corporate culture capable of promoting new forms of external partnerships and having the ability to interact on new levels with different stakeholders. > A knowledge of the opportunities offered by Information and Communication Technology (ICT) (see Module J) for the realisation and application of PSS. More information on the theoretical background of PSS is given in Module C.

7.2 Product-Service Systems for D4S – some starting points PSS for D4S requires motivation for changes similar to those described above. It also requires a process to identify strategic opportunities, based on a review of current market demands and trends and the existing system through which customer satisfaction is fulfilled. The concept of PSS allows for many different combinations of products and services to optimise commercial,

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Table 7-2 ___ Five starting points for the development of new product-service systems. (These approaches are introduced as ways of thinking about PSS. They are not models and they are not discrete, they overlap and combinations are possible.)


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Table 7-3 ___ Typical classification of PSS.

environmental, and social returns. To explore the potential of PSS for an existing business or product, or to begin to develop a new product-service, it is useful to look at various case-studies to understand what approaches others have taken and what models have emerged. A number of research projects have examined case studies that employ a PSS approach and several PSS models have been generated from that research. Other projects have worked with companies to explore and implement new PSS and develop models and methodologies in the process. Module C on the web contains various short case studies from these research projects and web references to related programmes in the resources section. PSS approaches can be classified in various ways. Although there is continuing interest in defining a set of

models to guide PSS development, this Chapter does not provide any one comprehensive template, it outlines starting points and a guiding process. The aim is to assist companies and new partnerships in innovation through ‘thinking about PSS’. As a beginning, Table 7-2 describes five different approaches to ‘thinking about PSS’, focusing on the ways that existing customer needs can be met in new ways through PSS related changes. PSS initiatives are generally classified to assist stakeholders in understanding the objectives, needs, and expected outcomes of radical sustainable innovation projects in D4S. There are three broad categories used to classify PSS and eight sub-categories to further refine the PSS directives. Table 7-3 defines the key characteristics of the primary PSS categories and Figure 7-1 depicts the overall classification scheme. This PSS classification allows for a logical grouping of virtually all types of product-service value propositions that one can think of, including ‘immaterial’ offerings such as (non-product related) advice and consultancy (which is a pure service). However, as with any classification system, there are exceptions for which this classification does not work well. The classification assumes that ‘products’ by definition have a material character, and for some products – most notably software – this is simply not the case. Case: An example of a successfully implemented PSS for D4S is the Call–A-Bike system in Germany, as it was introduced throughout the country by German Rail – see Case Study section on the web.

Figure 7-1 ___ One typical PSS categorisation with three main categories and eight sub-categories.

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The PSS approach is taking off in industrialised countries, but can also be of great value for the developing world. PSS can help developing countries leapfrog to more sustainable patterns of production and consumption, since the existing structure of products and services are often not well developed. In developing economies where labour is abundant and income levels are relatively low, PSS can provide considerable benefits. For example, if community members cannot afford individually owned tools or appliances, products and services can be sold on limited ownership. Establishing PSS systems that effectively meet consumer needs can counter increasing consumption pressures for the private ownership of goods. A widespread example of a PSS in developing economies is the service of mobile phone calls in rural villages in several countries, where calls can be on a shared mobile phone, whereby the owner of the phone receives a small fee. An example of a PSS clothing care system in Delhi, India is provided in Module C.

7.3 How to run a PSS for D4S pilot project What is new in the PSS business and design approach?

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For efficient PSS development, both the product and service sides have to merge, and be integrated in market research and innovation activities including the formulation of design specifications, the timeframe for design implementation, and the actual delivery of the PSS on the market to increase efficiency and success. Today, it often happens that both sides (products and services) are not coordinated or well connected, leading only to sub-optimal results. For instance some service providers, e.g. mobile communication providers have difficulties in their business model because the product producers, e.g. mobile phone producers, do not respond to their demands, do not deliver the products in time, and do not adequately handle repairs, which reduces the customer’s satisfaction and perception of the providers. Customers view providers as being responsible for a complete telecommunication service (including phones).

The following paragraphs describe how both products and services can be developed together, more strategically and efficiently in a manner that takes into account environmental, social, and economic aspects. This approach leads to more sustainable business and consumption strategies. It is often necessary to engage additional partners in the design process; for example, in a formerly productoriented company, the company’s service side must be developed to balance competencies. It is recommended that companies involve other organisations and consumers in this process in order to build capacity. The ultimate goal of this approach is to fulfill the customer’s and consumer’s demands in a sustainable way (deliver satisfaction) – gain more profit, and create more value at the same time. In PSS, customer demands are the focus of business activities and the company searches for the most efficient and effective combination of products and services to fulfill the customer’s needs.This approach offers a great opportunity to move the entire production and consumption system towards sustainability.

How to start? Before trying to restructure the entire organisation or create a company on a new business idea, the company should develop and implement a pilot project. The aim of such a project is to analyse the PSS business opportunities, to find out how the new PSS design and development process can work, to experiment with new PSS tools, and finally to develop new PSS for D4S solutions and test them, e.g. in a niche market, before the company or consortium of companies decide to enter a bigger market. One recommended approach for such a pilot project is described below. For more detailed information on the pilot project approach, please see Module C on the web. The pilot project will assist companies in the following five areas: 1> Exploring opportunities, identifying and analysing the existing reference system; 2> Generating PSS ideas and selecting the most promising concepts; 3> Detailing selected PSS concepts; 4> Evaluating and testing detailed PSS concept(s); and 5> Planning implementation.


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Following the pilot project, the company will evaluate the results and decide whether to proceed with the full scale implementation of the new solution. The pilot project process is very company and solution specific, thus only the generic aspects will be mentioned here. The five phases correlate with the four basic steps for product innovation (see Section 2.6), whereby the last two PSS phases (evaluation and planning of implementation) can be seen as detailing of the fourth product innovation step ‘realisation.’

The PSS for D4S pilot project The challenge of the pilot project is to develop and explore business strategies to fulfill customer and consumer demands in a sustainable way – and to create more value and profit at the same time. This is done by exploring and assessing the PSS opportunities for a company in a specific market, that have the potential for sustainability improvement. The following pragmatic approach is suggested: A company should start with qualitative tools and analyses, and transition to (semi-)quantitative tools whenever possible and as time allows. It is important that the data collection process is realistic provided the timeframe and resources available to the team. The following table describes the steps of the pilot project and suggested tools. The following description of the pilot project only describes simple and time efficient (‘quick and dirty’) tools. See Module C on the web for more details.

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The stepwise approach in the PSS pilot project can be carried out by organising workshops for each or some of the different steps involving a multidisciplinary team. The following internal experts are recommended to be involved: > Strategic management; > Marketing and public relations; > Research and development (designers, engineers and product managers); > Purchase and procurement; > Retail; and > Customer services. Furthermore, it might be sensible to invite external stakeholders including: > PSS and D4S experts; > Trend and scenario analysts; > Environmental analysts; > Social and labour policy analysts; > Customers and other stakeholders (NGOs, Media); and > Potential or actual co-operating partners (suppliers). More information on PSS can be found in Module C, where this stepwise approach is further detailed, and additional tools are presented that are helpful and are recommended for use for a more detailed approach. This is followed by a short introduction to integrating PSS thinking and innovation into company practice. Additional case studies and best practice examples are presented that show how the PSS approach works in practice.

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> Berchicci, Luca. 2005 PHD Thesis ‘The green entrepreneur’s challenge- the influence of environmental ambition in new product development.’ Beyen, A., J.C. Brezet et al. 2002. Kathalys visie op duurzame productinnovatie: Vision on sustainable product innovation. Bish Publishers. Borland, N. Wallace, D. Environmentally Conscious Product Design. Journal of Industrial Ecology, Volume 3, Number 2 & 3 2003 Bosch, S.J.M. v.d. and J.C. Brezet. 2005. How to kick of system innovation: A Rotterdam case study. Journal of Cleaner Production 13 (10-11): 958-962. Crul, M., UNEP 2006. Design for Sustainability: A Practical approach for developing economies. Paris UNEP. ISBN 92-807-2712-5 Florida, R. 2002. The Rise of the Creative Class. Basic Books. Hochschorner, E, Finnveden, G. 2003. Evaluation of two simplified life-cycle assessment methods Journal of Cleaner Production 8 (3), 119-128 Johansson A, Kisch P, Mirata M. 2005. Distributed economies – A new engine for innovation. Journal of Cleaner Production 2005;13:971-9. Kelley, Tom et all. 2001. The Art of Innovation: Lessons in Creativity from IDEO, America’s Leading Design Firm. Cahners Business Information, Inc. ISBN-10: 0385499841 and ISBN-13: 978-0385499842. Markoff, John (2006, November 30). For $150, ThirdWorld Laptop Stirs Big Debate. The New York Times. www.nytimes.com


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>>> McGray, Douglas (2006, August). The Laptop Crusade.Wired, 14-08. www.wired.com Mirata M.,Nilsson H., Kuisma J. 2005. Production systems aligned with distributed economies: Examples from energy and biomass sectors. Journal of Cleaner Production 13 (10-11), 981-991 Mirata, M. et al. 2005. Production Systems aligned with distribuited economies. Journal of cleaner production 13 (10-11) 981-991. Nissen, N. F., H. Griese, A. Middendorf, J. Mueller, and H. Poetter. 1997. Comparison of simplified environmental assessments versus full life-cycle assessment (LCA) for the electronics designer. Fourth International Seminar on Life-Cycle Engineering, Berlin, Germany, pp. 435–444. Roozenburg and Eekels, J. 1995. Product Design, Fundamentals and Methods. Chichester, New York, John Wiley and Sons. Stahel, W. R. 2000. Multi-client Study on the Shift from Manufacturing to Services, 1998 and 2010. The Product-Life Institute Geneva. Ryan, C. 2004. Digital Eco-Sense: Sustainability and IC – a new terrain for innovation. Lab 3000, Melbourne, Australia. Tischner, U et al. 2000. How to do Ecodesign”; Verlag Form Praxis. Tukker, A. and U. Tischner (eds. 2006). New business for Old Europe. Product Services, Sustainability and Competitiveness. Greenleaf publishers, Sheffield, UK

References

Tukker A., Charter M., Vezzoli C., Stø E., Andersen M. M. (edit by). 2008. System Innovation for Sustainability 1. Perspectives on Radical Changes to Sustainable Consumption and Production. Sheffield, UK: Greenleaf Publishing, ISBN 978-1-906093-03-7. UNEP. 2006. Design for Sustainability: A Practical Approach for developing economies. Paris: United Nations Environment Programme, ISBN 92-807-2712-5. UNEP. 2002. Product-Service Systems and Sustainability. Opportunities for sustainable solutions. Paris: United Nations Environment Programme, ISBN 92-807-2206-9. van Halen C., Vezzoli C., Wimmer R. (edit by). 2005. Methodology for Product Service System. How to develop clean, clever and competitive strategies in companies. Assen, Olanda: Van Gorcum, ISBN 90-2324143-6. Verloop, J. 2004. Insight in innovation. Amsterdam, Elsevier. ISBN 0-444-51683-2 Verghese, K, Hes, D. 2006. Qualitative and quantitative tool development to support environmentally responsible decisions. Journal of Cleaner Production 15 (89): 814-818 Vezzoli C. 2007. System design for sustainability. Theory, methods and tools for a sustainable “satisfaction-system” design. Patronised by United Nation DESD. Rimini: Maggioli, ISBN 9 788838 741005. WEBSITES http://www.laptop.org/index.en_US.html PSS the European MEPPS project: www.mepss.nl PSS the European SusProNet project: see www.suspronet.org


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!

Evaluation Questionnaire

DESIGN FOR SUSTAINABILITY A Step-by-step Approach As part of its continuing review of the impact of its publications and projects it supports, the United Nations Environment Programmeâ&#x20AC;&#x2122;s Division of Technology, Industry, and Economics would appreciate your co-operation in completing the following questionnaire.

1> QUALITY Please rate the following quality aspects of the publication by ticking the appropriate box: Very Good Adequate Objectivity Rigour of Analysis Up-to-Date Readability Organization

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3> EFFECTIVENESS IN ACHIEVING THE OBJECTIVE The objective of this publication is to give readers information on what is meant by the concept of D4S, current barriers to improved implementation, an action list on how to overcome these barriers and appendices of existing information sources. In your opinion, to what extent will the publication contribute to the achievement of this objective? Please tick one box

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b. Please indicate, in order of importance (first, second, or third), the usefulness of the publication to you First

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6> GENERAL OBSERVATIONS a. Please indicate any changes in the publication which would have increased its value to you.

b. Please indicate, in order of importance (first, second or third), which of the following three items might have increased the publication to you.

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7> THE FOLLOWING DATA WOULD BE USEFUL FOR STATISTICAL ANALYSIS Your name (optional): Professional background: Position/ function/occupation: Organization/ government agency/ institution: Country: Date: UNEP would like to thank you for completing this questionnaire. Please photocopy and airmail (or scan) to:

Sustainable Consumption and Production Branch UNEP Division of Technology, Industry and Environment 15 Rue de Milan 75441 Paris CEDEX 09, France Fax: +33 1 44371474 E-mail: unep.tie@unep.org


About the UNEP Division of Technology, Industry and Economics The UNEP Division of Technology, Industry and Economics (DTIE) helps governments, local authorities and decision-makers in business and industry to develop and implement policies and practices focusing on sustainable development. The Division works to promote: > sustainable consumption and production, > the efficient use of renewable energy, > adequate management of chemicals, > the integration of environmental costs in development policies.

The Office of the Director, located in Paris, coordinates activities through: > The International Environmental Technology Centre - IETC (Osaka, Shiga), which implements integrated waste, water and disaster management programmes, focusing in particular on Asia. > Sustainable Consumption and Production (Paris), which promotes sustainable consumption and production patterns as a contribution to human development through global markets. > Chemicals (Geneva), which catalyzes global actions to bring about the sound management of chemicals and the improvement of chemical safety worldwide. > Energy (Paris), which fosters energy and transport policies for sustainable development and encourages investment in renewable energy and energy efficiency. > OzonAction (Paris), which supports the phase-out of ozone depleting substances Copyright Š United Nations Environment Programme, 2009 This publication may be reproduced in whole or in part and in any form for educational or non-profit purposes without special permission from the copyright holder, provided acknowledgement of the source is made. UNEP would appreciate receiving a copy of any publication that uses this publication as a source.

in developing countries and countries with economies in transition to ensure implementation of the Montreal Protocol. > Economics and Trade (Geneva), which helps countries to integrate environmental considerations into economic and trade policies, and works with the finance sector to incorporate sustainable development policies.

No use of this publication may be made for resale or for any other commercial purpose whatsoever without prior permission in writing from the United Nations Environment Programme.

Disclaimer The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the United Nations Environment Programme concerning the legal status of any country, territory, city or area or of its authorities, or concerning delimitation of its frontiers or boundaries. Moreover, the views expressed do not necessarily represent the decision or the stated policy of the United Nations Environment Programme, nor does citing of trade names or commercial processes constitute endorsement.

UNEP DTIE activities focus on raising awareness, improving the transfer of knowledge and information, fostering technological cooperation and partnerships, and implementing international conventions and agreements.

For more information, see www.unep.fr ISBN:

92-807-2711-7


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Design for sustainabilty a Global Guide

Modules


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Acknowledgements Supervision, technical editing and support Ms. Garrette Clark, UNEP DTIE, France

Authors Dr. M.R.M. Crul and Mr. J.C. Diehl Delft University of Technology, The Netherlands Faculty of Industrial Design Engineering

International Scientific and Professional Review Panel Mr. Smail Al-Hilali, MCPC, Morocco Prof. Dr. Han Brezet, Delft University of Technology, The Netherlands Prof. Dr. Tijani Bounahmidi, LASPI, Morocco Mr. Lelisa Daba, NCPC, Ethiopia Mr. Bas de Leeuw, UNEP DTIE, France Prof. Dr. Patrik Eagan, University of Wisconsin-Madison, United States of America Mr. Juan Carlos Espinosa, Universidad Los Andes, Colombia Mr. Leonardo Guiruta, MNCPC, Mozambique Mr. Jens Hรถnerhoff, CEGESTI, Costa Rica Mr. Evert Kok, UNIDO, Austria Mr. Samantha Kumarasena, NCPC, Sri Lanka Mr. Nguyen Hong Long, NCPC, Vietnam Ms. Sophie Loran, UNEP DTIE, France Dr. Diego Masera, UNEP Regional Office for Latin America and the Carribbean, Mexico Dr. Desta Mebratu, UNEP Regional Office for Africa, Kenya Mr. Zhao Ming, Tsinghua University Beijing, China Mr. Sergio Musmanni, CNPML, Costa Rica Dr. Kasimoni Patrick Mwesigye, UCPC, Uganda Ms. Maria Amalia Porta, CGPML, Guatemala Mr. Peter Repinski, UNEP Regional Office of North America, United States of America Mr. Alex Saer Saker, ODES, Colombia Dr. Nurelegne Tefera, Addis Abbaba University, Ethiopia Mr. B.S. Samarasiri, Moratuwa University, Sri Lanka Prof. Dr. John Turyagyanda, Makerere University, Uganda Dr. Sonia Valdivia, UNEP DTIE, France

Design and lay-out Ms. Ana Mestre and Ms. Graรงa Campelo, SUSDESIGN, Portugal

Photography

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Mrs. Carmen van der Vecht, The Netherlands and SUSDESIGN Portugal

Financial support InWEnt - Capacity Building International, Germany


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Design for Sustainability a practical approach for Developing Economies

United Nations Environment Programme Division of T echnology, Industry and Economics 39-43 Quai AndrĂŠ CitroĂŤn 73739 Paris CEDEX 15, France Tel: +33 1 44371450 Fax: +33 1 44371474 E-mail: unep.tie@unep.fr Internet: www.uneptie.fr/pc Delft University of Technology Faculty of Industrial Design Engineering Design for Sustainability Programme Landbergstraat 15 2628 CE Delft The Netherlands Tel: +31 15 278 2738 Fax: +31 15 278 2956 E-mail: dfs@tudelft.nl Internet: www.io.tudelft.nl/research/dfs

With financial support from InWEnt - Internationale Weiterbildung und Entwicklung gGmbH Capacity Building International, Germany Friedrich-Ebert-Allee 40 53113 Bonn Germany Tel: +49 (0) 228 - 44 60 1106 Fax: +49 (0) 228 - 44 60 1480 Internet: www.inwent.org

3 On behalf of the Federal Ministry for Economic Cooperation and Development, Germany


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A

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D4S benchmarking

Prof. Dr. C.B. Boks and Mr. J.C. Diehl

6.1 Introduction to D4S Benchmarking In most markets, companies - regardless of their size need to be aware of their peers’ activities to maintain and/or to improve their competitive advantage. This is true for most business activities that have a direct or an indirect link to business and consumer markets. This is also relevant for environmental and sustainability issues. Companies need to determine how competitors are performing, where they stand themselves, and what are the industry best practice levels. For such needs, benchmarking has proven to be an effective tool. Benchmarking is the process of improving the performance of an existing product by continuously identifying, understanding, and adapting outstanding practices and processes found both within and outside of the organisation. Traditionally, benchmarking is applied to processes and strategies rather than to products and services. Environmental benchmarking of strategies and processes is more common than environmental benchmarking of products and services. Environmental benchmarking can take place on many levels, and can focus on products/services as well as processes/strategies, both internal and external to a company (see Table 1). Within this publication ‘D4S Benchmarking’ refers to activities that focus on products and services (the right column) in combination with a focus on environmental aspects. The D4S Benchmark approach has a strong focus on the profit and planet part of the D4S concept and less on the people part.

Table 1 ___ Types of environmental benchmarking.

D4S Benchmarking is a structured approach to compare the environmental performance of a company’s products against competitors’ products and to generate improvement options. Since individual competitors often use different solutions to resolve the same design problems – like a different product architecture, components or technology – D4S Benchmarking offers a reflective approach and advises learning from others’ products. Experience shows that, in practice, no single product scores high on all criteria and against all other products. This means that benchmarking improvement options can always be generated. An important element of benchmarking is the concept of best practice: ‘those practices that please the customer most’. The goals of a benchmarking study should be based on customer needs, whether the customers

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are internal (departments within an organisation, higher management levels, or employees) or external (consumers, citizens, regulators, legislators, local and national environmental groups or investors).

6.2 Benefits of D4S Benchmarking The goal of D4S Benchmarking is to learn from the best practice of others. It is an incremental improvement tool. Some of the potential benefits include: > Helping the company understand and develop a critical attitude to its own business processes. Benchmarking helps to overcome complacency (‘it is OK the way it is’) and convince the ‘non-believers’. It also creates awareness about environmental issues inside and outside a company. > Promoting an active process of learning in the company and motivates change and improvement. Benchmarking can break down ingrained reluctance to change and create momentum — employees become more receptive to new ideas. It also stimulates environmental thinking. > Finding new sources for improvement and ways of doing things without having to ‘reinvent the wheel.’ It provides a creative basis to find environmental improvement solutions. > Establishing reference points for measuring performance and providing early warning for lagging cost structures, customer satisfaction, technology infrastructure and for business processes (see Text Box 1). It can also correct inaccurate perceptions about competitor strengths, weaknesses and strategies. It helps focus more on specific environmental areas for improvement and ensures that environmental activities are embedded in the business.

6.3 D4S Benchmarking in practice D4S Benchmarking in large industries

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Several large companies have used D4S Benchmarking as a means to ensure that environmental thinking is not

limited to individual products, which may be labeled as ‘green’ projects, but more introduced the concept more thoroughly. Philips Consumer Electronics, for example, used D4S Benchmarking as an important element in their EcoVision programme. It provided management with the proper yardsticks on which to base decisions, which was crucial for embedding D4S in existing business processes. The basic idea is that environmental performance information gains value when it is compared amongst products. Case example_Sony TV’s_ Sony learned the importance of external benchmarking because of an experience in the mid1990s. At that time one of Sony’s colour TVs in the European market received a ‘reasonable buy’ rating from a Dutch consumer magazine, in part because its environmental performance fell short of that of competing models. Subsequent to publication of the magazine report, the market share for the Sony model dropped 11.5% in the Netherlands. At the same time, the two competing models that had received ‘best buy’ ratings garnered share gains of 57% and 100%. This experience spurred Sony Europe to redesign its TVs to be more environmentally sound. Sony’s new Eco TV received positive ratings in the consumer test magazines by reducing the use of materials and plastics, decreasing needed disassembly time and by increasing product recyclability. Text box 1___ Example of Sony TV’s

D4S Benchmarking in SMEs in developing economies In most developing economies, copying (or imitating) is the prevalent method to develop new products. SMEs often base product ideas on existing products of local or international competitors. Companies typically do not have R&D facilities. Products from (foreign) competitors are analysed, adapted and copied. Various studies confirm that ‘replication’ of new and increasingly complex products is the primary means through which new technological knowledge is assimilated in firms. Replication becomes a systematic activity and copying is


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done from prototypes as well as from blueprints. This process of copying or imitating competitors is in line with the idea of benchmarking - learning from others in order to improve strategies, processes and products. There are three strategies for ‘imitators’ to enter the market successfully: offer low prices, make a better product (‘imitate and improve’), and use market power against a weaker pioneer. Small companies in developing economies often lack the capacity to improve products, resulting in inferior products from a quality and environmental point of view. The D4S Benchmark approach can be an appropriate response to addressing both of these issues and improving products in the context of developing economies.

6.4 How to carry out a D4S Benchmarking project?

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> Light versus Extended version_ A set of worksheets is available to use for documentation when going through the steps. When a company has experience in carrying out an D4S Benchmark, or when thorough analysis is not possible or desired, the “all-in-one” Worksheet, which provides a “light version” of the 10step D4S Benchmarking method, is appropriate. If more time, staff and budget is available the “extended version” could be chosen. In this case, each step is supported by one worksheet (10 in total). > Physical versus Information_ The D4S Benchmark method can be carried out on physical products that are purchased, tested, dismantled and measured especially for the exercise. In case this is not possible, the D4S Benchmark can also be based on information collected rather than buying the product (see Step 6 for more information).

Light and extended version of D4S Benchmarking The characteristics and goals of a D4S Benchmark exercise might be different each time it is carried out, depending on the context and capabilities of the company, the goals of the exercise and the targeted industrial sector. For example, SMEs often have limited resources like labour, R&D and finances. As a consequence, they normally carry out a benchmark effort in a simplified ‘low-cost’ way compared to larger industries. International companies might have the budget to purchase and analyse a competitor’s product. SMEs often have to base a benchmark analysis on pictures of the products taken from catalogues and magazines, from internet information (like consumer tests) or by visiting fairs and shops. For example, an IKEA brochure has been used by companies in Asia to ‘benchmark’ or inspire design to develop furniture products for the export to European markets. This section presents a standard D4S Benchmarking method for assessing products, irrespective of product category or industry. The method is based on 10 steps which will be explained in more detail below. Depending on the context and needs, the method can be adjusted in two ways:

Table 2 ___ Types of D4S Benchmarking.

This leads to four different versions of D4S Benchmarking (see Table 2). The light version based on collected information (version A) is more in line with the capabilities of SMEs. The extended/physical version (D) might be more interesting for larger companies. Before planning a D4S Benchmark, the most appropriate approach (A, B, C or D) for the company or project should be evaluated and determined.

6.5 Step-by-step D4S Benchmarking Each step has a specific goal, question to be answered and worksheet. It is recommended to first print out the worksheet before starting. Figure 1 provides an overview of the 10 steps.

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Figure 1 ___ Overview of the 10 steps of the D4S Benchmarking method.

Step 1_ What are the objectives of the D4S Benchmark?

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There are many reasons to initiate a D4S Benchmark. In the beginning it is essential to discuss the project goals objectives with the team. What will be analysed? What should be achieved? These questions will have an impact on the project design and assist in identifying the products to be studied and the parameters used to make comparisons. Possible objectives of a D4S Benchmark project could include: > To learn from worldwide competition in order to enter an international market;

> To know how the product scores in comparison to local competitors; > To get inspiration for environmental improvements; > To know where the product stands in relation to specific (upcoming) legislation like packaging or take-back obligations. What can be derived from competitors in the field? > To monitor improvements over time; and there may be > Other reasons important to the company. > Specify the product to be benchmarked and define the main objectives for carrying out the project. > Worksheet B1


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> Determine the appropriate type of D4S Benchmark for the company. Light version versus extended version - information versus physical version > Worksheet B1

Step 2_ How to select products for the D4S Benchmark? The second step of the benchmark procedure is to select the products to be used. They can be selected from competitors at the international, national or local level. Sometimes much can be learned from the worst performing products in the sector. 1> Identify the leading products in the sector (local, regional or international); 2> Select products in the same specific market (target group, price/quality etc.); and 3> Identify products that illustrate ‘best practice’ in the field. A more structured approach could involve establishing selection criteria. Be sure to take into account the objectives determined in Step 1. For example, if the objective is: > To learn from competition worldwide make sure to include 2-3 products from global competitors, preferably from top multinational brands. > To know how the product scores in comparison to local competitors make sure to include 2-3 products from local competitors, preferably those that have the largest market shares. > To get inspiration for environmental improvements make sure to include 2-3 products from competitors that have good environmental performance, image, and/or that operate in an environmental niche market. > To know where the product stands in relation to (specific) upcoming legislation make sure to choose products from brands that will be affected by the same legislation and/or products from brands that are operating in markets that already have similar legislation. > To see performance improvements over time within product groups of the company make sure to choose products from the previous generation of the company’s own brand. Using several products of the company’s main competitor to benchmark rate of improvement can also be useful.

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> Based on objectives, choose the product brands that will be compared in the D4S Benchmark exercise. > Worksheet B2 The next step is to identify the most appropriate products. It is useful to use identification and selection criteria that are in line with the company’s own product. The following criteria can help: > Functionality_ Describe the major and specific features of the product. Make sure that the benchmark product does not differ too much from the company’s product. If the products are similar in functionality, the results are more appropriate to compare. > Manufacturing year_ Verify that the products come from the same product generation. Have they been developed and launched into the market in the same period? It does not make sense to compare the newest model with an old model of a competitor. > Retail price_ Check if the products have similar retail prices. > Availability_ Make sure that there is not too much difference in commercial availability. Ideally all products should be equally accessible to customers. The project products will be identified at the end of Step 2. > Choose the products and describe their features following the selection criteria. > Worksheet B2

Step 3_ What is the functional unit and system boundary of the D4S Benchmark? The context in which a product will be used influences the results of the benchmark. For example, the intensity of use of a product will have a serious impact on the level of the product’s energy consumption during a certain period. To make a clear comparison of products, it is essential to describe the function, the context, user scenario and system boundaries. This is usually referred to as the ‘functional unit’ and enables a ‘fair’ comparison. Addressing the following can be useful: > Identify the perceived function(s) of the product according to the user; > Describe the average user within his or her context;

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> Identify the location where the product will be used and; > Determine a user scenario describing elements such as the intensity of product use. > Determine the functional unit of the product. > Worksheet B3

Step 4_ What are the focal areas for the D4S Benchmark?

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To determine the main product variables to be benchmarked, it is necessary to identify what issues or focal areas are of ‘environmental’ relevance. This should be done from a broad perspective. Answers to the questions ‘what is environmentally sound?’ or ‘what is green?’ depend on the perceptions of different stakeholders. In practice, this requires at least three perspectives - from scientific, consumer and government points of view. > The scientific perspective of environment_ From the scientific perspective, the goal is to identify the key environmental impacts of a product during its life cycle. This is usually done by applying some form of a life cycle assessment (LCA) depending on the data availability. For many products, LCAs are publicly available on the Internet. However, it should be noted that much of the data is based on developed country databases and methods, which may not accurately reflect the situation of a product life cycle in another part of the world. In the case that good LCA data are not available, a D4S Impact Matrix (see Chapter 4) can be a practical alternative. Based on these assessments, it is possible to identify which stages of the life cycle are important in terms of environmental impact. > The government perspective of environment_ From the government perspective, it is important to identify the relevant legal systems for the product(s), as this might highlight additional environmental issues. This will determine the priority items on the government agenda and may not always reflect the same priorities as the scientific perspective (see also Chapter 2). > The customer perspective of environment_ From the customer perspective, yet another number of relevant environmental issues might arise. These are likely to go beyond the narrow definition of environment and could encompass sustainability in a broader

sense. Perceptions of the general public are strongly linked to emotions. Environmental issues related to health and safety (and therefore potential toxicity) score high. Whereas concerns about resources are considered a more long-term issue and thus score low. Concerns about emissions generally score medium (see also Part I). How to choose focal areas for environmental improvement?

A number of environmental issues will be generated after evaluating the scientific, government and consumer perceptions. The next step is to prioritize these issues. To keep the process short and manageable, a maximum of 5-6 main environmental issues should be chosen. This can be done based on the size of environmental impacts, financial aspects, and/or customer perceptions. Although combining these criteria into a weighted score can be difficult, in practice, the main focal areas will become clear fairly easily, usually targeting energy consumption, material application and distribution.

Figure 2 ___ The five green focal areas of Philips.

As an example, Philips Consumer Electronics decided in the mid-1990s that product development, marketing and sales would focus on five green focal areas: weight and materials application, potentially hazardous substances, energy consumption, recycling and disposal, and packaging. This was internally and externally communicated by using the focal areas as shown in Figure 2.


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Figure 3 ___ IProdesa, producer of dried fruits in Colombia.

IPRODESA, a medium sized food processing company in Colombia, carried out a D4S Benchmark to explore the possibilities to enter the European market of dried fruits. Five international competitors on the European market were selected and used to benchmark the products of IPRODESA. The following five focal areas were the main focus for the D4S Benchmark: a_ Environmental aspects of the food and packaging; b_ Protection of the food; c_ Distribution and retail; d_ Communication; and e_ Perception by consumers. Specific worksheets for food products can be found on the CD-ROM. > Determine the focal areas for the benchmark process. > Worksheet B4

Step 5_ How to translate the focal areas into measurable parameters? With the focal areas identified, the next step is to translate them into measurable variables. The challenge is to translate these ‘qualitative’ focal areas into quantifiable variables. Energy is expressed in kWh and materials in grams, etc. In many cases, it might be necessary to use more than one variable to describe one focal area. > Describe measurable parameters for the focal areas. > Worksheet B5

Step 6_ How to organize a disassembly session? In a ‘physical’ D4S Benchmark, the next step is to organize a disassembly session to flesh out and collect information on the focal areas. To get the best results out of a disassembly session it is worthwhile to plan well and structure it methodically. Do not forget to weigh and measure the whole product before taking it apart!

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Tools including a weight balance, a stopwatch, a multometer (to measure energy consumption) and a camera will help obtain and record measurements. During the disassembly session, other steps of the benchmark will present themselves. For example the ‘smart solutions’ employed by competitors and ‘silly solutions’ in the company product will become obvious. It is useful to write these observations down!

Figure 4 ___ Example of disassembly session of an electronic product

Where no physical products are available for disassembly (known as an ‘information’ D4S Benchmark, see Table 1), other information sources are needed to gain an understanding of how competition is solving design issues for the focal areas in the reference product. Often most of the required information can be collected through the internet.There are also more traditional ways of studying the products of local competitors like visiting fairs, observing products in the shop and interviewing customers. > Organise a disassembly session following a plan, note all findings and issues that are obvious (like smart and silly solutions). > Worksheets B6 A and B

Step 7_ How to process and compare the outcomes of the D4S Benchmark? After the collection of all relevant information for the D4S Benchmark focal areas, the next step is to process the data. It is advisable to prepare fact sheets for each focal area summarizing the compiled information. From these fact sheets all the measurements for the benchmarked products can be seen at a glance, which makes the information more easily interpretable. > Summarize all benchmark findings.

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> Worksheet B7

ranked. After improvement options have been generated, ranked and validated, the options need to be implemented and integrated into the company.

There are several ways to come up with D4S improvement options. In addition to solutions that the D4S Redesign chapter of this publication might yield, it may be useful to consider: 1> Using worksheet B 6B (Issues that are obvious) to identify smart solutions from competitor’s products that can be applied to the company products; 2> Using the same worksheet to identify silly solutions in the company’s products that need improvement in comparison to competitor’s products. The competitor illustrates that the solutions are feasible, so they are likely to be feasible in the company product as well; and 3> Trying to look for alternatives that have not been considered.

> Select the best improvement options by evaluating them against the potential benefits and feasibility. > Worksheet B9

Step 8_ How to review the results and to generate improvement options?

> Review all results and identify improvement options. > Worksheet B8

Step 9_ How to evaluate and prioritize the improvement options?

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Apart from environmental considerations, a multitude of issues need to be taken into account in evaluation and prioritization of the improvement options that are generated. For each option, the following aspects should be considered: > Environmental benefits_ an assessment of whether the improvement option reduces environment impacts along the product life cycle. > Consumer benefits_ an assessment of whether the consumer is likely to accept the option as a benefit. > Societal benefits_ an assessment of to what extent society will benefit from the proposed improvement. > Company feasibility >Technical feasibility_ an assessment of whether the improvement options are technically feasible (and timely). > Financial feasibility_ an assessment of the financial viability each of the improvement options. For each criterion it is possible to assign a ‘score’. Depending on the weighting factors, an overall score can be derived and the improvement options can be

Step 10_ How to implement the improvement options? The previous steps will result in a number of options for product improvement. Behind each improvement option will also be an understanding of why the option is good, beneficial to most or all stakeholders and financially and technically feasible. Connected to the options, are some examples from competing companies that are already applying these solutions and some measure of the potential results from implementing them. The product development and decision making processes are different in each company. However, this information should be very helpful in motivating decision makers to apply or at least consider the improvement options.

6.6 D4S Benchmark for specific product groups As mentioned in the beginning of this chapter, the characteristics of a D4S Benchmark might be different each time. In some cases not all the steps are needed or the needed steps can be simplified. For example, in the case of a D4S Benchmark for food products, Step 3 (definition of the functional unit) and Step 6 (disassembly session) are unnecessary. In other words, one must always determine if all steps are needed.The format of the D4S Benchmark has to be adjusted for the specific industrial sector in which it will be used. The website has worksheets for an extended version of the D4S Benchmark for durable products like electronics and an adjusted version for the food sector.


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Figure 5 ___ Example of relevant steps for a D4S benchmark for the food sector.

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B

B.1. Background and Overview This Module sets out a process that can help businesses, designers and communities ‘think through’ possibilities for the development of new sustainable products, product-service systems or businesses. Innovation for sustainability often involves the development of complex systems of products and services, and the reorganisation of current value chains into new networks, requiring the cooperation of many different actors (i.e. companies, public institutions, associations, small and large…). This network is likely to involve new partners that have no history of collaboration, raising a key-question: How can you facilitate and support dialogue between these actors that will generate a convergence of ideas? Innovation involving many actors requires mutual understanding of a problem and the identification of common interests and possible synergies. It involves the mutual exploration of different solutions and, finally, defining and fine-tuning a common objective. This requires processes of communication which can support strategic conversation throughout the innovation process. It also requires that those processes of communication can support the development of shared – converging – visions. In this module, processes and tools will be presented to initiate communication and facilitate dialogue within a large group actors towards the creation of shared visions, or a ‘panorama of potential solutions’, from which a partnership of actors may choose new

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DESIGN ORIENTED SCENARIOS: GENERATING NEW SHARED VISIONS OF SUSTAINABLE PRODUCT SERVICE SYSTEMs Ezio Manzini, François Jégou, Anna Meroni. 1

product-service systems to be developed for the market. The first part of the module will address the construction of scenarios of potential product-service systems. These scenarios called “Design Orienting Scenarios” allow the exploration and description of promising innovations involving a set of relevant actors. The second part will describe how to visualise these scenarios and discuss them so as to produce a “Design Plan” – design directions for the development and refinement of a new, more sustainable, product-service system.

B.1.1 Design Orienting Scenarios: building shared visions on sustainability… The process of building scenarios is presented here as a way to generate shared visions within a large system of actors. The term scenario is considered as a synonym for an overall vision of something complex and articulated – a set of possible conditions, or transformations, affecting the domain under consideration. In addition to presenting a vision, Design Orienting Scenarios (DOS) have to demonstrate a clear motivation (what the scenario is aiming at?) and practicality (the concrete actions that have to be taken in order to favour its implementation). They are called “design orienting” because they provide a framework for the design and realisation of new products and product-service systems. DOS are a way to


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systematically explore a panorama of alternative possibilities. They constitute “thinking material” to orient the strategic conversations between actors. Critical points of the DOS methodology are: > Analysing the current system of actors and discussing its strengths and weaknesses in terms of sustainability; > Negotiating and defining a set of common goals and intentions for the coming product-service system; > Generating ideas for solutions and selecting a diagram to organise them.

B.1.2 The Design Plan: supporting strategic conversation among network of actors

The Design Plan (DP) is a sequence of tools, in different formats, to assist in the synthesis of possible solutions in contexts that involve numerous actors and complex interactions. The Design Plan is a shared and progressive system to represent and elaborate solutions: > shared, in the sense that it’s based on a set of rules, allowing the representation of solutions in a reproducible and comparable way. It uses a series of fixed formats of representation (maps, matrixes, story-boards...), an open library of graphic elements (icons, pictures, arrows...), and a set of rules (layout, syntax...) to represent the different dimensions of a possible solution (platform organisation, partners’ interests, user interaction...). It provides conceptual and visual models, a sort of “technical drawing” to communicate a product-service system, and to structure the thinking process and design.

16 Figure 1 ___ The Design Plan is based on a series of formats to co-elaborate a solution involving different partners


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17 Figure 2 ___ General scheme showing the generation of Design Orienting Scenarios in a creative workshop process and the progressive definition of a related solution through Design Plan formats.


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> progressive, in the sense that it is a “formalisationin-progress” of a solution, facilitating strategic conversation among partners, and giving a more and more accurate picture of their common goals. It gives a view of the developing concept for a new product-service system, helping to understand that development as an outcome of a shared vision. It specifies “inputs formats” and “outputs formats” at each stage, from the early visualisations of first ideas and related hypothetical network of actors, to a detailed description of agreed specifications within an identified partnership. The Design Plan (DP) consists of 5 main tools presenting the solution from different points of view, with the common goal to develop “generative images” of it, images with the capacity to open and extend – and yet focus - the discussion about a subject. These tools have different formats and contents and respond to different aims: 1> the “ Advertisement Poster” that presents the potential solution to the market; 2> a “System Map” that depicts the system of actors and their interactions; 3> an “Interaction Story-board” that depicts the performance of proposed solution, step-by-step, from the user’s point of view; 4> a “Solution Elements Brief” that defines the task of each stakeholder in providing the solution as well as the likely interactions between the stakeholders; 5> a “Stakeholder Motivation Matrix” that maps the synergies and potential conflicts between the stakeholders.

B.1.3 The Overall Process

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Two different tools are presented: > the Design Orienting Scenario (DOS) process supports the generation of a collective and shared vision among a coherent group of actors. > the Design Plan process (DP) supports the strategic conversation between the actors towards the implementation of this focused vision. Although these 2 processes are independent one from the other and can be used separately, they tend to be used consecutively in practice, through a creative workshop involving all the stakeholders in the scenario

building process and a following series of meetings with different sub-groups of the actors involved. (See figure 2)

B.2. The methodology and tools for Design Orienting Scenarios. B.2.1 The Scenario building methodology The scenario building methodology consists of a series of processes to systematically explore potential reconfigurations of the current system of products and services. These are described as alternative scenarios. This process is useful within complex situations with a large quantity of variables and a high number of actors. It is used at the beginning of an innovation process in order to start it in a coherent and organised way – without reducing the creative interaction necessary to build shared visions. The scenario building methodology consists of an iterative dialog between two reciprocal processes: > An inductive, bottom-up process starting from the creative generation of promising, tentative, new ideas for the reconfiguration of the current system of products and services; > A deductive, top-down approach starting from a systematic exploration of promising reconfigurations of the current system, describing alternative scenarios and suggesting new tentative solutions. (See figure 2 – the workshop process). Both these processes make use of a polarity-based approach. A polarity shows a possible variation along one dimension of a product-service system (PSS), between two opposite directions: e.g. the relationship between the user and the product may be individual or collective, enabling or relieving…pointing each time to an alternative situation more or less pertinent to the objectives of the project. Both the inductive and deductive processes can be described as a coherent and consecutive sequence of activities. In practice, the two processes are often conducted in parallel, as an iterative dialog, converging progressively towards a limited set of promising scenarios and a related number of possible solutions. (For example, in practice a workshop group might be split initial-


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sentence which all agree to.

Figure 3 ___ Polarities are represented by a line with arrows at both ends between and a pair of opposite concepts figuring the potential variation considered in the current system of products and services.

ly into deductive and inductive groups, comparing their polarity systems and initial solutions only after some work.)

Note: filling in box two and three may constitute a good warming up exercise for the workshop participants.

B.2.2 (ii) Life Cycle Scheme

The life cycle scheme (Figure 5) presents actors and

B.2.2 The preparation phase (Project Input Materials). As figure 2 shows, the construction of the Design Orienting Scenarios should begin with a preparation phase. This is necessary in order to gather all information â&#x20AC;&#x201C; on the actors, their motivations, the contexts in which they evolve, the strength and weakness of the current situationâ&#x20AC;Śand so on. This becomes the projectinput material. A series of concise formats are proposed in order to synthesise this information and share it easily between the participants to the scenario building activity. We suggest six areas for information: (i) Objectives and Intentions (ii) Life-cycle diagram for current system (iii) Sustainability impacts identification (iv) Major macro trends (key changes in the context of the current product-service) (v) Initial stakeholder motivation (vi) Visualisation of early ideas

Figure 4 ___ Summary of the objectives of the project team in terms of new PSS development.

flow of the current product-service system. This scheme is made using the principle of the System map described in the Design Plan (above), in order to generate a coherent visualisation of the system and be able to make comparisons between the current product-service system and potential new ones.

B.2.2 (iii) Main sustainability impacts identification

B.2.2 (i) Objectives and intentions This format (Figure 4) gathers 3 levels of progressive summary of the objectives: > box one â&#x20AC;&#x201C; general intentions: gathers all the various motivations to start an innovation process, coming from each part of the project team; > box two - specific intentions: selects, from box one, the set of general intentions agreed by all of the project team; > box three - fundamental objectives: an attempt by the project team to summarise its intentions in one single

19 Figure 5 ___ life cycle scheme presenting actors and flow of the current product-service system.


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This format (Figure 6) shows the main sustainable impacts of the current system of products and services. Different pictograms are used to â&#x20AC;&#x153;flagâ&#x20AC;? the main impacts and options from all the three sustainability dimensions (people = socio-ethical, planet = environmental, and profit = economic) on the life cycle map, with links to detailed descriptions.

Figure 7 ___ list of major macro-trends potentially influencing the current system of products and services.

expected maturity); > each macro-trend represented each by an arrow figuring the trends emergence (arrow start), its expected duration (length) and its estimated impact on the focus system (thickness). The format distinguishes then between broad macro-trends (regular and long term changes starting before and going beyond the project time frame) and short fashion/trends (temporary changes occurring within the project time frame).

B.2.2 (v) Initial stakeholder motivation matrix Figure 6 ___ Main impact/option from all the three sustainability dimensions (people = socio-ethical, planet = environmental, and profit = economic)

This format (Figure 8) show the Stakeholder motivation matrix at the very beginning stage of the project. In par-

B.2.2 (iv). Identification of macro trends

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This format (Figure 7) shows a list of major macro-trends potentially influencing the current system of products and services. A macro-trend is considered as a general change in the context of the current system that may have a potential effect on its development.These changes are listed if they are considered as reliable and regular enough (invariant) within the project time frame. The format shows: > a time line with current time and project time frame (the approximate period of application of the new solution (from its expected implementation to its

Figure 8 ___ initial Stakeholder motivation matrix showing the promoting actors, their own motivations and the intention for the product-service system.


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ticular, it shows: the promoting (initial) actors; their initial motivations and the intention for the new solution. (This scheme is made using the principle of the Stakeholder motivation matrix tool described in the Design Plan.)

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in a standard format (Figure 10) based on simple drawings highlighting a specific feature or characteristic of the solution and a short slogan explaining it.

B.2.2 (vi) Visualisation of early ideas. This format (Figure 9) shows early ideas or tentative solutions brought to the project by team members before the project starts. Each early idea is formalised as a quick drawing showing a characteristic aspect of the idea and a title/slogan explaining it.

Figure 10 ___ tentative solutions emerging form a brainstorming session.

B.2.3 (ii) Clustering and organisation Figure 9 ___ set of early ideas / tentative solutions existing within the project team before the project starts.

B.2.3 (Workshop) Inductive process:

Clustering and organising the tentative solutions can show promising directions for a variation from the current system of product and services. The wo0rkshop exercise requires the identification of some key polarities represented by the tentative solutions. The solutions are then clustered into a map with two of the most characteristic polarities as axes. (See Figure 12 example)

The inductive process is made of 3 steps: (i) Creative Sessions; (ii) Clustering and organisation; (iii) Description of characteristics.

B.2.3 (i) Creative Sessions Creative sessions start from the collective review of all project-input material to generate spontaneous tentative solutions. The creative session may be conducted through classical brainstorming sessions in sub-groups. In order to facilitate exchanges and communication between participants, tentative solutions are presented

21 Figure 12 ___ polarities emerging from the clustering of the promising solutions.


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B.2.3 (iii) Description of characteristics Descriptions are then made to express the characteristics of the four areas generated on the map and characterised by the tentative solutions places in those quadrants. They constitute the core visions of alternative scenarios (e.g. Figure 14). Most of the time, one of the four areas will describe the current system of products and services, with the three others depicting alternative scenarios. Figure 16 ___ list of possible polarisation within the current product service system.

B.2.4 (ii) Combination of two polarisations Various combinations of two polarisations are explored to define promising new areas for solutions and the most pertinent pair is selected (e.g. Figure 18).

Figure 14 ___ polarities diagram presenting the core vision of four promising scenarios.

B.2.4 (Workshop) Deductive process The deductive process is made of 3 steps: (i) List of possible polarisations; (ii) Combination of two polarisations; (iii) Creative sessions.

B.2.4 (i) Step 1: List of possible polarisations

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Starting from a collective review of the project input materials, various consistent polarities showing possible changes in the current system of product and services are defined, keeping in mind the objectives of the project (e.g. Figure 16).

Figure 18 ___ combination of two promising polarities toward the project objectives.

B.2.4 (iii) Creative sessions A creative brainstorming within each of the four areas generates new tentative solutions (e.g. Figure 20).

B.2.5 Description of the Design Orienting Scenarios Repeated iterations of both inductive and deductive processes (according to time and availability of people) will produce a convergence to a description 4 scenario


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Figure 20 ___ tentative solutions emerging from the four areas described by the polarity diagram.

visions that have the support of the majority of actors involved and can be described on polarity diagrams. Each of these visions will involve a cluster of related tentative ideas for new solutions (e.g. Figure 22).

Figure 23 ___ Poster Advertisement showing the main functionality of the tentative solution in the form of a simulated advertisement.

B.3.1 Poster Advertisement.

B.3. The Design Plan tools When a set of Design Orienting Scenarios have been described, the next phase in the process (see figure 2 for reference) is to formalise and test solutions through the Design Plan tools. Taking each of the DOS in turn (or starting with the DOS considered most interesting or promising) five DP tools are used to test and plan the scenarios.

The Poster Advertisement is a visualisation presenting the tentative solution to the market (potential users). The aim is to build a virtual or imaginary advertisement, a way in which the new offer could be well presented to the market (assuming it is developed). Advertising is often the way users discover a new product /service. This is a simple and effective way to understand how new solutions could be presented to potential user groups and to reflect on the potential of the concept, assisting the project team to further refine their ideas. These visualisations are called a “Poster Advertisement”, relating the process to film advertising in

23 Figure 22 ___ the two figures show a “polarity diagram” with respectively a set of scenario concepts and related cluster of characteristic product-service system ideas.


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the sense that: > they do not intend to sell what is presented on the image but invite the viewer/user to take part in the fiction represented; > they project a new situation the users have never encountered before.

B.3.2 System Map The System Map shows the necessary organisation between the partners providing the solution. With the Poster Advertisement at the centre, the system map depicts the general system organisation, showing main stakeholders and flows of goods and services between them (see example, figure 12).The map distinguishes: > system boundaries, > main and secondary stakeholders, > physical, informational and financial flows; > the core performance of the solution and any secondary functionality.

B.3.3 Interaction storyboard The Interaction storyboard shows the performance of the proposed solution along a horizontal time line. It is the translation of an event, which takes place in space and time, into a sequence of static images, with an explanatory caption under each one. In this case it is based on a series of images representing the significant steps of the interaction between the user(s) and the provider(s) of a product-service. Given the need to represent services organised into solutions, this is an effective, polymorph tool. This limited picture sequence visualises the salient service situations and resulting advantages. The pictures visualise the main action against a succinctly outlined background context; only elements useful to present the atmosphere and the key sequences in the new solution are depicted. Compared to a classical story-board, this interaction story-board shows not only the experience of the final user, or the â&#x20AC;&#x153;front officeâ&#x20AC;? of a service, but also the dif-

24 Figure 24 ___ System organisation map


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ferent levels of interaction among the various stakeholders along the performance of the solution. Thus, several lines of interaction are vertically distributed to show the synergies and connections between different providers and users as defined from the system organisation map.

B.3.4 Solution elements brief

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The Solution element brief breaks-down the productservice system into elements, relevant to the different partners, which have to be combined to deliver the total solution. Its aim is to visualise simultaneously the connections among elements and partners, in order to design, build and deliver solutions by showing: > all solution elements that are necessary to perform the targeted product-service system (horizontally); > the different options for each solution element (vertically); > the briefing of each partner (which solution element is already in its core business, which may be implemented and which connection with another solution element should be carefully considered); > the solution elements that have to be performed by specific partners.

B.3.5 Stakeholders motivation matrix Figure 25 ___ This Interaction story-board shows different levels of interaction between a core partnership providing the organisation of the general solution, to a local provider that manage various points of deliveryâ&#x20AC;Ś where finally the user interacts with the service. For each solution steps, the Interaction story-board allows comments, possible implications, requirements etc for each partner to be recorded.

The Stakeholdersâ&#x20AC;&#x2122; motivation matrix is filled in by the partner stakeholders, to show the actors and their intentions, their motivations for being involved, their potential contribution to the partnership and expected benefits from it. It is also a way of describing the possible motivations of any other hypothetical partners neces-

25 Figure 26 ___ Solution element brief showing the break down into solution element and their attribution to each of the actors involved.


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Figure 27 ___ final Stakeholders motivation matrix showing all the actors, their contribution and benefits from the partnership and potential interaction between each other.

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sary for the solution who will have to be brought into the partnership for the solution to work. (In other words it is a way of defining the characteristics of other partners who will have to be found.) The Stakeholders motivation matrix shows the solution focusing on the stakeholders’ interests. The matrix shows a checklist of motivations, benefits and contributions from each actor’s point of view (including interactions between them). This is an important part of the process. It should bring out the range of motivations of the actors, including: > those factors that relate to their interests in evolving their current business / activities > what they could bring to the partnership and what the partnership could bring to them > their expectations for the partnership > potential synergies/conflicts that may occur between them Through this matrix the solution can be improved: > hypothetical actors can be replaced by real ones; > actors contributions to the partnership and

expected benefits can be adjusted; > interaction between actors, synergies and potential conflicts can be investigated.

B.4. Further background information B.4.1. Scenario architecture Scenario building entails focusing on three fundamental components: a vision, a motivation, and some proposals. These three components constitute the scenario architecture. Vision_ this is the most specific component of a scenario. It answers the basic question: “What would the world be like if……?”, and it does so by telling a story and/or sketching a picture of what things would be like if a sequence of events were to take place.


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Motivation_ this is the component of the scenario that justifies its existence and confers its meaning. It answers the question: “Why is this scenario meaningful?” and it does so by explaining rationally the intention of building it - what the premises were, what surrounding conditions were assumed and finally how the various alternative propositions will be assessed (i.e. by what criteria and instruments). Practicability_ this is the component that adds depth and consistency to the vision. It answers the questions, “What are the various facets of the overall vision? What does it consist of? How can we make it happen?….”. Different kinds of scenario give rise to different kinds of proposals, which have the capacity to bring about the scenario they anticipate.

B.4.2. Application of scenarios The usefulness of scenarios in decision-making grows with the turbulence of the context, the complexity of the system operated on, and the number of actors involved (or to be involved). In fact it is true to say that: > The greater the number of elements in the system, the more interdependent those elements are and the more uncertain and faster the changes in the context, the more difficult it becomes to produce, intuitively, a model of the reality we are referring to and working on. > greater the number of actors who that will take part in the decision making /design process (and the more complex the system and the reference context), the more difficult it is to lay the ground, the “platform for interaction”, on which that process can effectively take place. When these conditions arise, scenario building not only allows us to overcome the limits of intuition and more simplistic model making, but also puts us in a better position to select with awareness and argue our options through in a participatory planning process.

3 Different nature of scenarios The kind of scenario varies according to its motivation,

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and the way it is built depends on in which phase of the design process it will be applied. Policy-Orienting Scenario (POS)_ this is the vision of a context as it might appear in the presence of certain (economic, social and cultural) dynamics, and/or should certain (economic, social and cultural) policies be implemented. It supports decision making in the face of complex and/or participatory institutional or industrial options. In general, several sets of POS present themselves, corresponding to the various policies that could be enacted. Design-Orienting Scenario (DOS)_ this is a (motivated and many-faceted) vision of a context as it might appear in the presence of certain (economic, social and cultural) dynamics and if carefully defined design choices were enacted. It is a support tool used in design activities where different actors take part in the strategic orientation of choices. In general various sets of DOS present themselves, corresponding to different design options. This methodology can also be used in relation to both individual and whole community behaviour. In this case the “projects” that the DOS refer to are individual life projects or processes of social innovation arising out of a combination of various such individual projects. Solution-Assessing Scenario (SAS)_ this is a vision of a design proposal and its context, which tends to highlight their reciprocal interaction. It is a support instrument used in the assessment phase of a welldefined design hypothesis. In general, single SAS are put forward that correspond to specific design proposals and their clearly defined contexts.

B.5. Case Study Example: Design Orienting Scenarios and Design Plan format: a simulation of a food delivery solution – Punto X This case show the use of some of the Design Plan tools within the industrial implementation

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phase of the E.U. HiCS (Highly Customerised Solutions) research project. The HiCS research project aimed at developing a methodology facilitating the constitution of partnership of companies and institutions able to provide industrial solution customised to different contexts of use. The implementation phase was targeted at contextsof-use characterised by a reduced access to food (elderly, handicapped people but also people with temporary mobility or time limitation such as patient in hospital or rushing workers). The Italian firm BioLogica running the network of Natura Ride biofood shops in franchising start a flexible delivery service of prepared biological food called Punto X. The examples presented below show the use of some of the Design Plan format during development process of the Punto X productservice system and the constitution of the partnership of companies able to provide it.

The System map supporting the strategic conversation between potential partners The “system maps” have been used by the Punto X team to communicate and discuss solution all along the partnership building process. They constitutes a synthetic view of the architecture of the platform, showing all partners involved, defining their role and relationships in the process of performing the solution. Their modular and up-gradable characteristics make them convenient tools to support strategic conversation between potential partners. At early stage of the concept generation, the comparison of the maps help to “filter” which solutions are based on similar platforms and may be clustered and which solution requires a too different platform and should be excluded. At the final stage of the partnership building, the superposition of the maps as layers allows to communicate how the same partnership is able to perform different solutions with the help of specific partners.

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Figure 28 ___ shows snapshots of "system map" at main stages of the Italian partnership involvement and especially how: - the draft outputs of the workshops progressively enrich with the progressive definition of the platform; - architecture adapts according to the necessity of approaching potential partners; - intermediates maps "freeze" the state of the art of the partner interests at each stage of the discussion in a sort of informal "visual contract"; - the final map identifies the nature, position, role and interaction of the partnership..


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Figure 29 ___ show snapshots of "system organisation maps" at the same stage (the output of the first concept generation workshop and the final agreed partnership) of the strategic conversation. Each map is related to the performance of a specific solution. Their superposition and comparisons shows: - which actors are common to the performance of the different solutions and may enter the partnership; - which actors are specific to the performance of a particular solution and should complete the partnership only to perform this very solution.

Solution element brief showing the connection between Punto X system of products and services The Solution element brief provides a synthetic view of

the brief of each actor in the development of the solution elements showing who is responsible for providing / designing what. Figure 30 shows focus on some part of the Solution element brief of Punto X product-service system. It works as a matrix crossing each solutions element with all the partners involved and fixes if the part-

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Figure 30 ___ detail of the Punto X Solution element brief format.

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ner is involved: > in producing / providing a solution element: square sign; > in designing the solution element: cross sign; > in both providing and designing: square + cross sign; > in providing nor in designing the solution: no sign.

> the production of the food is not done by one of the actor: although food is a core element in the platform, it’s a local resource and therefore, it will depend from a series of local producers. Some of them will be associated in the initial design phase and all the other will only receive specification form what they have to provide to the system.

The zoom on the solution element brief in this figure shows as illustration the specific question of the production of food in Punto X: > all the partnership is involved in the design of the food element and all actors are supposed to interface themselves in this task (Biologica should specifies the biological qualities of the food, the “health software provider” should integrate the food characteristics in its diets program and the “cooking appliance producer” will specifies the food according to the cooking devices he will provide);

The Stakeholder motivation matrix showing synergies between Punto X partners The “platform motivation matrix” allow to explore the potential relationship between the partners within the collective scope of building a platform and outlines the modalities of the future business plan of Punto X. It shows in particular if possible synergies / conflicts may occur between partners taken two by two. The matrix explores systematically each couple of actors in their business relationships: what they


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should provide and gain participating to the new platform but also what could be the incidence on their current business. Figure 31 shows for example a focus in the Stakeholders motivation matrix of Punto X and illustrates the relationships between the “appliance producer” and the “health software provider”. Their respective intentions in taking part to the platform (boxes at the crossing of an actor to himself) appear distinct: respectively “find new application fields for advanced cooking and preserving solutions” and “enter non-medical markets and open and finalise new areas of research”. Their specific relationships within the partnership shows more clear synergies as the health software provided by one could be directly hosted in part by the appliance produced by the other.

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The Design Plan tools as been developed within the HiCS (Highly Customerised Solutions) European research project funded by the Growth Programme / European 5th Framework by F. Jégou, E. Manzini, A.Meroni. and the MEPSS (Methodology for Product Services Systems) European research project funded by the Growth Programme / European 5th Framework by F. Jégou, D. Sangiorgi, E. Pacenti,. European Commission “GROWTH Programme, Research Project HiCS, Highly Customerised Solutions (HiCS) Solution-oriented design, production and delivery systems, N° GRD1-2000-25516

This module has been collectivelly writen by the 3 authors but F. Jégou has written A; B/1; B/2/a,b,e; B+; C; Ezio Manzini has written A+ and Anna Meroni has written B/2c,d; C+/1 Manzini, E. and Jégou F., “The construction of Design-Orienting Scenarios”, Final Report, SusHouse Project, Faculty of Technology, Policy and Management, The Netherlands, Delft University of Technology, 2000. Jégou F. Manzini E. Meroni A. “Desing Plan, a design toolbox to facilitate solution oriented partnership” in “Solution oriented partnership, How to design industrialized sustainable solutions” edited by E. Manzini, L. Collina, S. Evans, Cranfield University, 2004 ISBN 1861 94 10 64 for more detail on sustainability dimension, see PSS module.

31 Figure 31 ___ detail of the Stakeholder motivation map of Punto X.


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C

What does this module offer to successfully implement PSS activities? To keep the methodology simple and straightforward, a pragmatic approach on PSS is introduced in this publication. Nevertheless, reference is made to other sources for more detailed information and tools whenever suitable. This publication can be the readerâ&#x20AC;&#x2122;s initial step into the world of PSS and will encourage further testing in the field.

This module offers further background knowledge for experts who are more interested in the scientific concept and context of PSS.

Chapter C.1

Description in further detail of how to run a PSS pilot project and introduce helpful methodologies and tools.

Chapter C.2

How to integrate the PSS thinking and innovation into company practice on a more regular basis is described next.

Chapter C.3

Finally case studies and best practice examples are introduced to show that the approaches work in practice.

Chapter C.4

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Product-Service Systems; Tools and cases Ursula Tischner and Carlo Vezzoli

C.1 MORE BACKGROUND INFORMATION ON PSS This part of the PSS module gives more background knowledge. It discusses: > State of the art in PSS theory and practise PSS for all, industrialised and emerging contexts Barriers and rebound effects

State of the 2art in theory and practise Although Product-Service System (PSS) is a concept that is not necessarily connected with the Sustainable Development paradigm, a lot of research carried out (e.g. SusProNet, MEPSS etc.) discussed PSS as one effective strategy to lead towards Sustainable Development. And indeed it has been shown that PSS can lead to much more environmentally and economically efficient production-consumption systems, but this is not a given. When trying to understand PSS one should be aware that this field has strong connections to product design and its methodologies as well as service design and its methodologies. Nevertheless, PSS Design is more than just a combination of the former two fields.

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First area: Product design Product design and/or industrial design is a field which has been practiced professionally for more than hundred years now. It is not necessary to describe in detail the best practice of product design because it is wellknown. What is interesting for the focus of PSS is the state of the art integration of environmental and social aspects (sustainability) into the routines of product development and design. Integrating environmental aspects is also a field of study that has been researched for some decades now. The ISO technical report on “Integrating environmental aspects into product development and design” as well as national ecodesign guides have disseminated the knowledge about best practices in this field and have made information available on the market. This publication covers D4S Resdesign in Chapter 4. Nevertheless there are still a few gaps: > Integration of social aspects still is very difficult. Missing are practical indicators and tools covering social and ethical aspects and the strategies for integration into design and development. > Dissemination to small and medium sized companies is necessary. Most ecodesign tools and methods are for large companies and the majority of the activities are done by large companies. It is necessary to translate the methods and tools and adapt them to the specific needs of medium sized and small enterprises, which comprise almost 90% of business (See information on SMEs). > Looking at the soft factors of sustainable and ecodesign such as aesthetics, product semantics, cultural aspects and consumer behaviour and preferences etc.

Second area: Service design

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The main source of the service design area is the classical service marketing. The two central features of services are intangibility and client intensity. The main obstacles and drivers of service design are related to these features. A service is intangible, which means that a customer cannot see, touch, or feel a service before purchase, making it more difficult for a sales representative to sell the quality aspects of a service. Intangibility means that customers have nothing concrete to evalu-

ate; they must trust the provider’s word that the service was done as well as it could be done for the money the customer paid. In addition, if the customer has little idea of how a service is performed or what cost they would incur if they attempted to do the service themselves, very often they will undervalue the service. For these reasons, a service’s brand image, reputation and quality are particularly important in selling a service and introducing new services. A service must be designed to meet the customer’s needs even more than a product. A service varies more in its execution than a product does in its manufacturing. It is easier to excuse a product for not performing as previously expected. It is much more difficult to excuse a service provider who is not being responsive. While intangibility makes services more difficult to sell, it makes it easier to introduce new services by simply varying the nature of the service, changing the service production routine and retraining the service provider. New services form a decisive factor of competition. For example, in a study about the consumer choice of computer brands, the bad service of some companies was the reason for the consumers’ purchase of a different brand. As service conformance is particularly hard to manage compared to manufacturing conformance (services are produced by people who are much harder to regulate than machines), it is essential to care for well-trained and skilled staff in service concepts. For the different steps of service development and design, specific methods and approaches exist but often not adapted to the specific needs and co-operative operations in this area. In general the following steps are taken by service design methods: (1) Continuous Idea-Generation; (2) Concretion; (3) Assessment; (4) Decision; (5) Realisation. Tools that indicate the major design steps in service design are: blueprinting for conceptualising the wanted service; gap-analyses for detecting possible problems and QFD (Quality Function Deployment) for minimising those gaps. Scenario methods are also opening doors for integrating service design. The main gap in this area is the lack of integration of environmental and social aspects in both practice and research of service design (e.g. lack of sustainable service case studies).


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Third area: Product-Service System design Most businesses are connected with tangible products (e.g. a car), and services (e.g. automotive repair). In both cases, services and products are involved in offering value to the customer, e.g. the manufacturer needs services such as transport to produce the car, the mechanic needs products such as a screw driver to repair the car. For some years now the trend in most industrialised economies is that the service content of business is increasing and the material product becomes less important. Then a new perspective on this trend was raised by environmental scientists who expect this shift from products to services to have positive effect on the environmental impacts caused by production and consumption. Their thesis is that a demanded material and energy efficiency improvement of Factor 10 or greater is hard to achieve by modifications to existing products only. The idea behind broadening the view from product to service and system design is to integrate and optimise product functions or to replace the product with a service. There are many practical cases for reconfiguring the product-service mix. For example, some mobile phones are now given to consumers in a contract through which payment is made only for the service that they provide. A growing number of companies have marketed themselves as service providers, including Rank Xerox (photocopiers), Interface (carpets), Electrolux (industrial cleaning), IBM (computers), and Wilkhahn (furniture). The trend to offer product-service mixes has been most notable so far in business-tobusiness offers. There is increasing public interest in the environmental product policy and, specifically, the potential for ‘market transformation’. The debate on changing the product-service mix in order to gain environmental benefits has advanced significantly over the past ten years and is now attracting interest from government and industry as well as academics, proved by the amount of literature on this issue. However, that the concept has not been taken seriously enough by the societal actors may be due to the anecdotal nature of the discussion and the difficulty in determining the environmental or other merits of such an approach. The EU market for ‘products sold as services’ in 1998 was esti-

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mated at 758 billion euros, or 10% of GDP (Stahel, 2000). Within this segment, selling the function of products ( e.g. through fleet management) accounts for 60% (equal to 6% of GDP); while remanufacturing services account for 40% (4% of GDP) (Stahel, 2000). Due to the multiple approaches of academic research into PSS, a standard model for classifying the typology of the many possible product-service combinations and variations does not exist. The most common typology is presented in this text (see chapter 7). The generalisation of the principle of ‘function vs. product sale’ for an ecological modernisation of economy and society has to be clearly differentiated. The most important result still is that none of the researched services has a golden path of innovation (method) that decreases material flows and establishes a cyclic economy. At the same time there are clear distinctions considering the environmental effects. There is practically no general solution, thus customised concepts for different products and companies are always necessary. A progressive, gradual move towards PSS is usually the best course of action for companies, e.g. running through a pilot project and understanding what should be integrated into normal business practice. Another more radical and promising but also more risky strategy, as shown by case studies, is to start a new business or branch with a new PSS, which gives the opportunity to develop everything from scratch. It may be concluded from the literature that PSS have a potential for promoting better economic, environmental and social characteristics than similar products. But as PSS are so diverse and their success depends on many frame conditions each PSS must be analysed and evaluated on a case-by-case basis to understand if they really lead towards more Sustainability. Often PSS are able to increase the economic and environmental efficiency in the system, but there can be pitfalls. Sharing washing machines in a laundry, for example, reduces the amount of products that are required to fulfill the need to clean clothes. But case studies show that if consumers washing in the laundry who use the tumbler to dry clothes would dry their clothes at home on the line, it is more eco-efficient to do the washing at home. Most existing PSS cases were originally implemented for reasons other than environmental benefit. By con-

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tinuing research in this field, a better understanding can be developed regarding PSS characteristics, success factors, and relation to sustainability. When a company decides that it is worth going for PSS – the question is how they can manage to do so – there are methodologies and tools available to support the development and implementation of PSS. The tools for PSS Design have different backgrounds (e.g. chemical industry, car sharing) and are differentiated to their type (e.g. assessment, priority setting tools). It is also very helpful to look at successful examples. The cases listed in this module (section C-4) vary from small to large firms and from country to country. From looking at such cases obstacles, drivers and success factors can be identified, these include (see also chapter barriers and rebound effects below): > The possibility of PSS with a stronger value in the service, like leasing and sharing, to be able to compete with ‘buying products’ considering the price and/or generate a higher added value respectively usability so that the customer is willing to pay for these services. > How to shift the consumer’s ideas about ownership to “usership”, i.e. it is not necessary to own a product in order to use it for satisfying your demands. > A clever combination and diversification of product service offers. Providers should identify the need and purpose first and then strive for the most effective, efficient and elegant combination of products and services to fulfill the need and deliver customer satisfaction. > How to motivate the service personnel as it is representing the “user interface” in a service concept and how to motivate and train sales personnel to “sell” services instead of products > How to organise multi-stakeholder participatory design and development processes as PSS concepts often require strategic partnership and co-operation. > Regional and global dimensions of a PSS combined with the use of modern information communication technologies and their influence on society.

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Aside from the uncertainties mentioned above, major gaps in the area of PSS design are: > The lack of integration of social/ethical aspects in both practice and research of PSS design. > Quick and efficient tools to estimate the sustainability of PSS.

> The missing multi-stakeholder and -actors approach that is necessary to (re-)design whole production and consumption systems. > New forms of co-operation and methods to organise these, which take the different stakeholders’ motivations and interest into account and are able to deal with possible conflicts. The following section suggests an approach and tools to close these gaps.

PSS for all, industrialised and emerging contexts Can PSS, as a business approach, be applied to reach more sustainable production and consumption patterns in developing and newly industrialised contexts? In other words, could PSS be a valid business strategy for both industrialised and emerging contexts? At a first glance an answer to the former question is: PSS already exist in those contexts. For example, we can identify more shared use of products (in keeping with cultural norms) than in industrialised contexts, e.g. the use of carpooling could be a common solution for mobility in several world-wide emerging contexts. In fact, the PSS we may observe in emerging contexts derive from economic and cultural conditions, such as scarcity of access to products and resources. So we cannot say these kinds of PSS are sustainable, at least not in the social and ethical dimension of sustainability. On the other side, some of the most modern utilities have been offered and accessed by a large number of people through service brokers. For example, the dissemination of Internet cafe sites (a PSS appreciable by both emerging and industrialised contexts, thus offering a globally “sharable” quality standard) in emerging contexts is even more rapid than in the industrialised ones. We can also observe examples of PSS offered from emerging to industrialised countries like call centres or financing consultancy services (especially form India to US companies).

I m p l e me n t a t i o n o f PS S i n emerging contexts As argued previously, PSS are likely to be more eco-effi-


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cient on a system level because of the stakeholders’ convergence of interests. This means, in the case of a system to be implemented from the beginning (as is the case of emerging context), a PSS solution is in principle “cheaper” on a macroeconomic scale. In fact, a PSS as a whole and for a given social demand requires fewer resources. In other terms, an economic implementation and expansion in poorer contexts of such systems (for the given demand satisfaction), could be easier than other resource-intensive solutions. Furthermore, PSS often require investments in Information and Communication Technologies, which generally speaking requires lower investment costs, in comparison with industrial technological infrastructures transferred to emerging contexts in recent times. Normally PSS are more labour-, organisation- and/or intellectual-intensive. Thus the lower labour costs in emerging contexts may be, in a first stage, an advantage compared to industrialised ones. Hence their PSS could be more competitive on a global scale. A PSS approach typically focuses more on specifying the context of usei, because it is characterised by a stronger and longer relationship with the customer (both end-user and business). That leads to a greater company involvement at the user locations, which means greater involvement of local rather than global (multinational) stakeholders. In emerging contexts this may have the positive implication of fostering the growth and the empowerment of local economies. Furthermore, PSS focuses on “satisfaction” as a value instead of private ownership of physical products (the traditional perceived standard of well being in industrialised contexts). This may again be an advantage for emerging contexts in which the non-owning of products is closer to existing cultural-economical habitsii. We can think to the diffusion of the mentioned internet sites where computers are publicly available. However, the real issue is to put together as a PSS a business concept that developing and emerging contexts may aspire to. This is something that they could see as more interesting than patterns for development aiming at privately owned and mass distributed (physical) products.

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PSS may bring forward business opportunities to facilitate the process of socio-economic development – by jumping over or by passing the stage characterised by individual consumption/ownership of mass produced goods – towards a “satisfaction-based” and “lowresource intensive” service-economy.

Barriers and rebound effects Barriers The main barrier to adopting PSS in industrialised contexts is the cultural shift necessary for the user, to value ‘having a need or want met in a sustainable way’ as opposed to ‘owning a product’. This cultural leap can be made, but is not straightforward for a consumer or intermediary retailer (as client) to understand. In a developing country, the main barrier may be the availability of advanced technological information and knowledge, to produce a socially and economically viable PSS. Businesses face barriers in the design, development and delivery of PSS, in implementing the changes required in corporate culture and organisation to support a more systemic innovation and service-oriented business. In this regard, it has been observed that some companies in mature industries see it as an opportunity to survive, while others see it as a way of gaining entry to a new sector. A further obstacle for business is the difficulty of quantifying the savings arising from PSS in economic and environmental terms, in order to market the innovation to stakeholders both inside and outside the company, or to the company’s strategic partners. Other barriers faced by business include lack of knowledge and experience in terms of: > service design methods and tools > new tools, which companies can use to assess and implement PSS > service management systems > entrepreneurial personnel who are skilled in service development and provision and life-cycle costing methods

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Furthermore, businesses may perceive the risks of: > conflict with their business as usual and offers they have already on the market > conflict with existing internal procedures and tools, e.g. accounting and reporting methods > service being easily replicated by a competitor (more easily than a physical product) > partnerships and entrepreneurial interdependence leading to reduced control of core competencies and reducing the influence of business decisions Finally, barriers to be overcome may include a lack of external infrastructure and technologies, e.g. for product collection, re-manufacturing or recycling.

The rebound effects

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Not all shifts to PSS result in environmental benefits and/or economic or social advantages. A PSS must be specifically designed, developed and delivered, to be sustainable. For example, schemes where products are borrowed and returned incur transportation costs (and the resultant use of fuel, and emissions). In some instances, the total fuel cost and environmental impact may make the system less sustainable than a product sales concept. Furthermore, even when well-designed, some PSS concepts could generate unwanted side effects, usually referred to as rebound effects, i.e. counterproductive effects that â&#x20AC;&#x153;eat upâ&#x20AC;? the intended positive sustainability effects, maybe by inefficient use or unsustainable changes in consumer behaviour etc. Society as a whole is a set of complex, inter-related systems that are not clearly understood. As a result, something may happen that turns potential environmentally friendly solutions into increases in global consumption of environmental resources at the practical level. One example is the impact of PSS on consumer behaviour. For example, outsourcing, rather than ownership of products, could lead to careless (less environmentally responsible) behaviour, e.g. the benefits of a small and more fuel therefore cost efficient car can lead to more driven kilometres, simply because it is convenient and cheaper even in a car sharing system. Nevertheless, PSS development certainly presents a potential for generating win-win solutions, which promote economic, environmental and social benefits. They

have the potential to provide the necessary, if not sufficient, conditions to enable communities to leap-frog to less resource intensive (more dematerialised) systems of social and economical benefits.

C.2.1 HOW TO RUN A PSS PILOT PROJECT/ APPROACHES, SKILLS AND TOOLS What is new in the PSS business/ design approach? Most of the companies today are either mainly product oriented, e.g. a producer of computers adding service as necessary and only as a by-product to its computers, or service oriented, e.g. a telecommunication company using the products (phones) only as means to provide their services. Depending on their starting points, companies have the knowledge and optimal organisation for a specific field, e.g. product development, but lack knowledge and organisation in the other field, e.g. service development. For efficient PSS development both sides have to work together, meaning they have to be connected in market research, innovation activities, in the formulation of specifications, in the time frame of the design, in the actual delivery of the PSS on the market etc. to increase efficiency and success. Today it often happens that both sides (products and services) are not co-ordinated and connected enough, leading only to sub-optimal results. For instance some service providers, e.g. mobile communication service, have difficulties because the product producers, e.g. mobile phone producer, do not listen to their demands, do not deliver the products in time, do not take care for repairs well enough, which then demolishes the image of the mobile communication providers, because they are responsible for the complete service, including the material product, in the view of their customers. We describe an approach below, describing how both sides, products and services, can be developed together more strategically and efficiently taking into account environmental, social and economic aspects and therefore leading to more sustainable business and consumption strategies. Because of this it is often nec-


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essary to get additional partners in the design process, because the competencies, e.g. of the former product oriented company, have to be increased in the service side, or the other way round. This means co-operation with new stakeholders, e.g. other companies or organisations, and also that the customer is highly recommended for PSS development. The ultimate goal of this approach is to fulfill the customer’s/consumer’s demands in a sustainable way (deliver satisfaction) – while increasing profits and creating more value simultaneously. This means that the demands of the customers are in the focus of the business activities and then business searches for the most efficient and effective combination of products and services to fulfill the customer’s needs. This approach offers a great chance to move the whole production and consumption system towards greater sustainability.

How to start? Before trying to restructure a whole organisation or found a new company or organisation with a new business idea, it makes a lot of sense to run through a pilot project. The aim of such a project is to analyse the PSS business opportunities, to find out how the new PSS design and development process could work, to experiment with new PSS tools, and finally to develop new PSS solutions and test them, e.g. in a niche market, before the company or consortium of companies decide to go for the real market launch.

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An approach for such a pilot project is described in this chapter. The pilot project will take the reader through the following five phases: 1> Exploring opportunities, identification and analysis of the existing reference system. 2> PSS idea generation and selecting the most promising concepts. 3> Detailing selected PSS concepts. 4> Evaluation of detailed PSS concept(s) and testing. 5> Planning implementation. The actual implementation, management and control of success will be done after the pilot project if the companies decide to materialise the new solution. This is very company consortium- and solution-specific, thus only the generic aspects will be mentioned here. In Chapter C we will expand more on the question of how strategic PSS development can be done in companies as a more regular, daily activity.

The PSS pilot project The challenge in the pilot project is to develop and explore business strategies to fulfill customer’s/ consumer’s demands in a sustainable way – and create more value/ profit at the same time. This is done by exploring and assessing the PSS opportunities for a company in a specific market, that have a potential for sustainability improvement. In general we suggest the following pragmatic

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approach: A company should start with qualitative tools and analyses, and go to (semi-)quantitative tools whenever possible, i.e. when there is enough time, when the necessary knowledge can be generated easily in the given time frame and capacity. The following table describes the steps of the pilot project and the tools that are suggested to be used. In the following description of the pilot project we only describe simple and time efficient (‘quick and dirty’) tools. In section 2.2 we add additional tools that are helpful and are recommended to use for a more in depth approach. The stepwise approach in the PSS pilot project can be carried out by organising workshops for each or some of the different steps involving a multidisciplinary team. Recommended internal experts to involve are > strategic management > marketing and public relations > research and development, e.g. designers, engineers and product managers > purchasing / procurement > retail > customer service Furthermore it might be sensible to invite external stakeholders, e.g. > PSS experts > trend and scenario analysts > environmental analysts > customers and other stakeholders, e.g. NGOs, Media > potential or actual co-operating partners, e.g. suppliers Between the workshops the participating experts can complete some “homework” and do research to answer open questions and develop and detail concepts.

STEP 1: Exploring opportunit ie s : i d en t if ic a t i on and analysis of the existing reference system 40

Tools: > Drawing a system map > Blueprinting

> Sustainability SWOT

> Identification and analysis of an existing system All companies already offer products or semi-finished products or services in existing production-consumption systems. But usually these systems are not in the scope of the company’s development activities. They normally focus on what happens in their own company, in relation to their suppliers and in relation to their customers. For a PSS project it is necessary that the production-consumption system is taken into account as often and as broadly as possible. Thus a very sensible first activity is to identify existing production-consumption reference systems in which the company is active or expects to be active in the future. To do this, it is essential to define a functional or satisfaction unit, e.g. for a washing machine producer this might be “cleaning clothes” for a furniture producer it might be “having nice interiors in private homes” or even “living in healthy interiors that create well-being”. Given this satisfaction unit, the boundaries of the existing references system to consider can be defined, e.g. for the washing machine this might be: producing and purchasing materials/pre-products, manufacturing the machine in the company, selling it, using it, repairing it, recycling it and final disposal, but also providing the water, the energy and the cleaning agents for the washing in the private household. Part of this process is to write down customer’s/consumer’s demands that are fulfilled in the existing system but also, which demands are not yet covered by the existing system but are existing and therefore an excellent starting point for a new offer. Result: identified satisfaction unit, list of elements of the reference system, description of the boundaries of the reference system. Then the most relevant actors in the reference system have to be identified, e.g. product manufacturers, suppliers, customers, retailers, etc. with their own interest in the system. Result: list of actors with one line about their interest in the system Furthermore the necessary products and services that are needed so far to make the system work have


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to be listed. Result: list of (material) products and (immaterial) services that are necessary in the system With all this information it is finally possible to produce a rough sketch of the reference system that describes its interactions. This can be done either by using a system organisation map technique (illustrated in Figure C-1) or the blueprinting method (described below in C.2.2). This system map should summarise and visualise the reference system, its actors and the interactions that are necessary to deliver the required function/ satisfaction from the viewpoint of the customer/ consumer. 5

TOOL: DRAWING A SYSTEM MAP

This tool is used here for the existing reference system and it is recommended for describing the new PSS concept below (Step 2). The application of a system map brings many benefits: It provides a complete and clear overview of the (product-service) system, which is useful for everyone working with it, it helps to identify potential failure points, it helps to identify the role and level of partici-

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pation of customers and to clarify what customers should see or come in touch with, it stresses the areas of interactions between different actors and how the money flows through the system. Thus it is very helpful to support system re-design processes. It can be very enlightening if a company switches roles and takes the customer/ consumer perspective (for business to business and/ or business to consumer offers), e.g. in a workshop to complete the system mapping exercise. Figure C-1 gives one example for a system drawing methodology of a carpet leasing system. In this system map for a carpet leasing system the system starts with the customer, here offices, in the centre. Then the material/product flows in the system are represented by the large grey arrows and the information/service flows are indicated by the dotted lines. The icons show actors and locations. The orange square shows the closer system of primary service provider(s) and customers. Additional secondary actors that are important for the system are positioned outside the square. Result: Overview about the existing reference system through written text and system map After getting an overview about the existing system the task is to understand where problems in the exist-

41 Figure 1 ___ System map of a carpet leasing system for offices. Source: Econcept


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ing situation occur, how the system will develop in the future and where future opportunities and threats lie. The goal of this activity is to identify and explore (future) business opportunities that lead to more sustainability. To do so, we recommend completing a SWOT (Strengths-Weaknesses-Opportunities-Threats) analysis that includes all three dimensions of Sustainability (environmental, socio-cultural and economic).

TOOL: SUSTAINABILITY SWOT Sustainability Strength-WeaknessOpportunities-Threats Analysis The following matrix (Table C-1) should be completed for the existing reference system and the future situation that is likely to occur, e.g. the washing machine producer looks at the reference system that was described and mapped in the system map and tries to identify current strengths and weaknesses elaborating all the dimensions in the SWOT and filling in the boxes of the first two columns. Maybe he finds out that from an environmental point the biggest problem is that the users always wash with half empty machines and therefore a lot of energy, water and detergent is misspent etc. Next, investigation and exploration regarding the

future developments are necessary in order to identify future opportunities and threats for the company (or a consortium of companies). This means that all the data that are available about current developments in terms of user demands, technology, legislation etc. are gathered and filled into the SWOT matrix. In addition to the SWOT, a future or scenario workshop can be used to explore possible future trends more in depth (e.g. Jungk/ M端llert 1987; Kensing 1987) The SWOT matrix requires looking at the situation from different perspectives, e.g. > related to the natural environment > related to society, the social and cultural environment, including media > related to the economical situation for the company and the value chain on the one hand > but also the customers/consumers on the other > related to technology and feasibility > related to legislation, regulation and public infrastructure Now try to identify the importance of the weaknesses and threats, e.g. the possibility that it is a real threat for your business within the next year or the next five years. Are you expecting the public awareness to increase regarding this problem? Do you expect any new legislation/regulation regarding the problem? Try to do a ranking of the problems and fill them into a work-

42 Table 1 ___ (see also Worksheet 1) Sustainability SWOT


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sheet similar to Table C-2 below. Do the same for opportunities: Try to identify the potential of the opportunities, e.g. is it powerful and has a significant impact? Can it really change the existing system? Can you make business out of the opportunity? Do you think it will be interesting for some customers/target groups? Try to do a ranking and fill the most important opportunities in the table below.

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ground information. Results of this step 1: After completing step 1 you familiar with the satisfaction unit and the reference system that you are dealing with. Furthermore, you have identified the strengths and weaknesses, problems and opportunities of this existing system and of the future of the system according to the expected developments. You finished a ranking of problems and opportunities and selected the most important ones. You have drawn a map of the existing system and its actors. You might even be able to mark the points of problems (red) and of opportunities (green) in the System Map of the existing system.

STEP 2: PSS Idea Generation Table 2 ___ (see also Worksheet 1) List of Problems and Opportunities

If you like to expand the SWOT analysis and analyse the system more in depth, please see Chapter B+, where a PSS sustainability evaluation tool is introduced. With the help of this tool you can expand your analysis of an existing system in the dimensions: A – environment, B – socio-cultural and C – economic. This tool will also help you to set the priorities for your project (designing a new sustainable PSS) with more back-

Tools: > PSS Idea generation > > Tool: Sustainability Guidelines Level 1 > Representation of new PSS concepts > > Tool: Format of PSS concept description > Selecting the most promising PSS concepts > > Tool: Sustainability Screen > > Portfolio Diagram Sustainability and Feasibility

43 Figure 2 ___ the system map with identification of problems (red dots) and opportunities (green dots).


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Based on the analysis of the existing system, now the challenge is develop concrete ideas for new PSS that are aiming at improving the existing system taking into account that you might expand the system or even end up with a completely new system. The goal of the idea generation should be to solve the identified problems, take the opportunities and satisfy the identified consumer/customer demands and â&#x20AC;&#x201C; of course â&#x20AC;&#x201C; the new solutions should be as sustainable as possible. To do so, it is necessary to identify exactly which consumer or customer demands the new PSS should fulfill. This decision should be taken based on the analysis of step 1: Consumer demands that are fulfilled in the current system but also demands that are not yet completely satisfied have been identified. So take a look at this list and decide which items are promising demands to deal with in the new PSS. Here it is very sensible (or essential) to choose demands that are not yet fulfilled and or demands that you expect to still be there in the future or even might increase in the future. Then consult the following sustainability guidelines sorted according to the three sustainability dimensions (environment, socio-cultural, economic) to help you formulating new sustainable PSS solutions.

T OO L : S U S T A I N A B I L IT Y G U ID E LINES (LEVEL 1)

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These guidelines help to develop solutions and ideas that are moving the system towards greater Sustainability. They are formulated on two levels: 1> Level one is introduced below because Level one guidelines ask inspiring questions that are suited for idea development. 2 > Level two Guidelines are more detailed recommendations and therefore introduced in the PSS Design phase (Step 3). The guidelines are organised in 6 criteria per each of the three dimensions of sustainability. The criteria are relevant for the Sustainability of PSS and given in the table below. In the PSS Sustainability guidelines each criterion is expanded by questions (level1) and recommendations (level2). Please see PSS worksheets 3 to 5 for level 1 and worksheets 9 to 11 for level 2.


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How to work with the PSS Sustainability guidelines: This can be done in a brainstorming workshop with a group of experts or alone and requires minimum 2 hours time: Generally it is interesting to work through all the 6 criteria of the 3 sustainability dimensions, i.e. 18 criteria. However, not all of them are of the same importance for every PSS project. Thus a first step can be to set priorities and do a weighing of the criteria. For this use Worksheet 2, the checklist for analysis of the existing reference system and setting priorities. With the help of this checklist you can identify for each criterion if it is of High (H), medium, (M), Low (L) or no (N) priority for

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your specific system. Mark the specific priority on the worksheets for each criterion. In parallel to the Sustainability guidelines we suggest to use the Sustainability Radars to visualise the priorities and evaluate and compare different new solutions with the existing reference system. Here you can start using the Radars by identifying the given priorities, i.e. transfer these priorities to the three sustainability radars. (30 minutes) Next follow the given questions and suggestions in the guidelines especially for the criteria with high and medium priorities, when developing new PSS ideas to fulfill the function/satisfaction that you have defined as the goal of the new PSS. Do this, for instance, in an idea brainstorming. Brainstorm 10 to 15 minutes per each of

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the selected criteria (also possible in workgroups). Take notes (words or sketches) of the developed ideas, e.g. using memo slips, so that after completing the exercise the cards can be used to cluster and rank the collected PSS ideas. (90 minutes)

A. Environmental guidelines: System eco-efficiency, Level 1 These guidelines should lead to eco-efficient solutions (win-win: environmental + economic) by new stakeholders partnership/relations. See worksheet 3.

The guidelines: Below we only show the first block of each sustainability dimension. The complete guidelines can be found in the annex (worksheets 3 to 5).

B. Socio-cultural guidelines, Level 1 These guidelines should lead to socially and culturally beneficial solutions. See worksheet 4

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C. Economic guidelines, Level 1 These guidelines should lead to long term economically beneficial solutions. See worksheet 5 Results: new PSS ideas collected while working through the guidelines The outcome of working through the sustainability guidelines is many new PSS ideas that are likely to improve the current system in the direction of sustain-

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ability. These ideas first of all have to be sorted, duplications have to be eliminated and the ideas shall be clustered so that the amount can be reduced and they can combine to a more complete PSS concept. Then they have to be described in a way that they can be discussed and evaluated. Please use the approach described below to do so.

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TOOL: REPRESENTATION OF NEW PSS CONCEPTS The new PSS concepts (a more elaborated idea) must be described in a nice and clear way, so that they can be discussed, communicated and evaluated. For that we suggest to use a short descriptive text, a system map like the example given in step 1 (but now for the new product service system) and some tables as suggested in the following: The important elements that have to be generated to get an overview about the new concepts are: > Short description of the new PSS concept. > System map that describes the PSS from the customer’s/consumer’s point of view. > Network of key actors and how it is organised. > Revenue model: how is the cash flow through the system, who pays whom for what. > Key material parts of the system, the material infrastructure, technology used. > Key immaterial (service) parts of the system, organisation, information etc. An example can be found in worksheet 6. Results of these activities: A number of new PSS concepts are generated that are able to improve the problems/weaknesses and use the opportunities as identified in step 1 and follow as much as possible the sustainability guidelines. The PSS concepts are described in detail as much as possible for the stage of idea generation and a first estimation about their sustainability has been completed.

Selecting the most promising PSS concepts After generating a number of new PSS concepts, the task is now to select the most promising ones. For that it is necessary to look at two dimensions:

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(a) > which of the new solutions are the most sustainable ones (in all three dimensions). (b) > which of the new solutions have the most promising market potential and are not too problematic for implementation, i.e. meeting clients’ demands, feasible in terms of technology, organ-

isational aspects and related to the starting point of your company/ organisation and the network of actors involved. For these two areas we introduce two helpful tools below.

(a) TOOL: PSS SUSTAINABILITY SCREEN Please use the following qualitative assessment tool to evaluate your ideas according to their sustainability. PSS Sustainability screen The starting point of this simple screening tool for the Sustainability of PSS is the description of a PSS concept that has the same (or better) functionality/ user satisfaction as a competing or reference system. The tool works as follows: > The three sustainability dimensions are evaluated. > For each aspect, 6 key criteria are defined and questions referring to that criterion are asked. > Each criterion can be scored. + means ‘better than the reference system’, ++ means ‘radically better’, = means equal, or – means worse than the reference system. > Scores are summed up per sustainability dimension. (Use worksheet 7) Please use these results to confirm or change your preliminary estimation of the Sustainability of the PSS solutions that you have generated in the concept description and fill it into the description form (worksheet 6).

(b) TOOL: PORTFOLIO DIAGRAM SUSTAINABILITY AND FEASIBILITY In addition to the economic aspects considered in the Sustainability Checklists, another important perspective for evaluation and selection of the best PSS concepts is feasibility and market potential. It is important to estimate how difficult it would be to implement the new PSS idea. Is the technology already there or would it need new technology development? Is there a big change necessary in the frame conditions of the system, e.g. public infrastructure, legislation etc.? Please position all the new PSS concepts in the fol-


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lowing matrix: Then try to discuss implementation and feasibility issues. Do you think customer acceptance for the new PSS will be high? Is there a big demand for the solution? Consult your marketing experts. Do research if possible. Will it be difficult to implement the solution for your company/the consortium of companies? Do you have the right knowledge; can you get the right partners to increase your capacity if necessary? Now summarise all the results of the evaluation into the following PSS portfolio diagram. It offers two axes for the dimensions: > Sustainability (all three dimensions as evaluated before). > Feasibility/ Implementation (as evaluated in the two matrices above). Evaluate the PSS concepts compared to each other and by consulting all the previous evaluations you have completed. Then position the solutions in the diagram according to the high or low potential regarding sustain-

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ability and feasibility/ implementation. It is recommended to complete this step in an expert workshop to reduce the subjectivity of the evaluation results and to hear more than one opinion about it. Now it becomes clear that the solutions in the upper right field are very good, while the solutions in the lower right field are more short term and the solutions in the upper left field are more long term. The ones that end up in the lower left field are not interesting because they are neither sustainable nor very feasible. In the next step you should only take solutions further that are positioned in the upper right field, because these are solutions that are best in all dimensions. But maybe you can shift solutions from the upper left field to the right or from the lower right field up, by modifying them. Maybe you are able to combine ideas or take important elements from one idea into another. Maybe you can expand one concept that has not yet been evaluated as successful, into a new direction e.g. with a few amendments you might be able to turn excellent solutions that are more long term into short term solutions, or make concepts that are very promising in terms of feasibility more sustainable etc. Results of this step 2 The final results of the idea generation and prioritisation phase is a number of new PSS concepts that are evaluated and compared according to their sustainability and feasibility. This is a good basis to make the decision, which of the concepts should be taken further to the next step 3, where the selected concepts are detailed and elaborated further.

49 Figure 3 ___ Sustainability/ Feasibility Portfolio Diagram (cf. worksheet 8)


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STEP 3: PSS design Tools > Sustainability Guidelines level 2 In this step, the chosen PSS concept(s) from step 2 are elaborated and detailed further. One way to do so is to detail the system map of the selected new PSS system really in depth and to complete the system drawing (for an example compare step 1 and chapter internal communication). To detail the new PSS concept, include the following important considerations for the design of PSS:

Relation of material product and immaterial service Identify the importance of material products including infrastructure in the system versus the importance of immaterial service. Check for options to increase the importance of immaterial service and decrease the importance of products. Can you imagine a solution using almost no material input? Will this have positive effects on environmental aspects of the offer? Can the value creation in the whole system for all actors be delinked from the consumption of raw materials and energy? If you need products in the system then make clear: Is your design based on already existing products (that you/ a partner in the system produce/s)? Can you use existing products available on the market or do you have to design a new product/ get a new product designed? What makes the system most efficient, what is the most elegant combination of product and service? Does the product have to be designed to meet the service aspects or does the service have to be designed to meet the product characteristics? According to this decision the specifications for product design respective service design have to be formulated.

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To do so, please expand the description of the technological architecture/ material infrastructure in the system and the description of the organisational architecture/ the immaterial processes in the system as started in step 2 (worksheet 6).

Co-operation and partnership

Identify which actors are needed to offer the productservice-system in a professional way taking into account which core competencies you and your partners have, which expertise you lack, which additional competencies you need, how this can best be organised so that all partners profit in the system and that it is as cost efficient as possible. Understand how co-operation will work in practice, what information exchange is necessary, which cost occur for the partners and how the revenues have to be distributed, which contracts have to be made etc. To clarify these points please expand the description of the value network/ actors and roles table that you started in step 2 (worksheet 6).

Organisation Identify the product life cycle and the service ‘life cycle’ and how they come together. Connect this with actors responsible for product development and design and service development and design, and the timing of the production of product and production of service. How can the system be organised in a highly professional way offering the PSS as close and convenient as possible to the customer/ consumer? How can you avoid transport of material products or people in the system? To clarify this, please expand the description of the PSS concept (the storyboard) that you have started in step 2 including all the organisational aspects (worksheet 6).

Customer/ Consumer relation Identify exactly which consumer/ customer needs you want to fulfill and how you can create as much value as possible for the customer for as little cost as possible. Identify exactly which target group you are aiming at. For example: > How open is your customer for using services instead of or accompanying products? How will you communicate the PSS to your customers? > What are the benefits for the customers compared with other existing offers and how can you increase them? Is there a possibility to change your customer’s behaviour towards less material and energy consumption? > Can you reduce any inconveniences (e.g. dealing


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with waste disposal) and risks (e.g. handling hazardous substances) for your customer by offering a new P-SSystem? > Can you offer opportunities for your customers to be involved in the design of the system, or possibilities to learn, get interesting information, and get more skills through the new PSS? How can you reach a high customer/ consumer satisfaction and therefore establish a close customer relationship through the new system? To expand this point it is beneficial to create an advertisement that would convince the customers about his/ her benefits connected with the new PSS concept. Try to make it as real as possible and list good arguments that would convince the customer to choose your PSS (instead of buying a product or going to the competitor).

User interface In a PSS with a high value in service the user interface is normally dominated by personnel rather than by the material product. Thus it is very important how this user interface is designed, how the staff that is in contact with the customer is trained and motivated. As services themselves are mainly immaterial the question is how the brand image and the value is communicated, how the point of sale can be designed in a way that expresses the idea and character of the product-service-system, increases confidence of the customers, and attracts customers to use the system. Check if you have the right expertise on board and the right information about your target group to formulate the design specifications for the user interface. If not, get the missing expertise and knowledge, e.g. by involving external experts, by training your designers and marketing staff, by learning from experiences of other comparable cases etc. Check if there are any obstacles, e.g. if your sales people are paid by the number of product sales, then they will not like a service concept, unless you offer them other (financial) incentives to sell the PSS instead of products. Are your employees and retail people capable of explaining the new PSS offer or do they need training? Add a detailed description of the user interface in the PSS concept description and identify needs for training and

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incentives for personnel.

Financial Structure Please be aware that in a PSS quite often the pay back period (return on investment) for a produced product is longer than in a pure product-selling concept, e.g. car sharing, leasing, or contracting. Do you have the financial resources or the right financing partners on board to bridge this period? Furthermore in a co-operation of different companies the revenue distribution in the system has to be clarified and fixed in contracts. The same is true for the tasks and duties that the co-operating partners have, e.g. guarantees, who is responsible in case of an accident etc. Please expand the description of the revenue model/ money flows through the system as started in step 2 (worksheet 6). In addition to these important generic issues the following sustainability guidelines level two are recommended to detail and improve the sustainability of the new PSS concept.

TOOL: SUSTAINABILITY LEVEL 2

GUIDELINES

These guidelines are the continuation of the guidelines level one, which were introduced in the idea generation phase (step 2). The level 2 guidelines can be used in the same way as guidelines level 1, but this time for the detailed design of the chosen PSS concept. Please check and identify first the priorities of the criteria for your new PSS concept (High, Medium, Low or No) and then detail your PSS concept with the help of the guidelines as given below. Especially the guidelines for the criteria with high and medium priority should be considered. Here we introduce only the first block of the 6 criteria for the 3 sustainability dimensions. The full guidelines can be found in the annex (worksheet 9 to 11). A. Environmental guidelines, Level 2: See worksheet 9 B. Socio-cultural guidelines, Level 2: See worksheet 10

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C. Economic guidelines, Level 2: See worksheet 11 Results of this step 3: Now the new PSS concept has been elaborated and is described in detail using a system map, the description form as given in step 2, which was elaborated in this step 3, an advertisement for the new PSS system with all the arguments that are able to convince the customers. Next a final sustainability evaluation can take place to understand if your new PSS concept is really going in the right direction and is so promising that it should be materialised. We suggest using the following tool:

S TE P 4: E v a l u a t io n Detailed PSS

of

Tool > Sustainability evaluation of detailed PSS

TOOL: SUSTAINABILITY EVALUATION OF DETAILED PSS Once the new PSS solution has been detailed and the implications are much clearer than in the previous phases it is time to do a final sustainability check, before it is decided to realise the solution and launch it on the market. For this, the three radar diagrams as introduced in step 2 can be used to check the improvement (or worsening) of the new solution compared to the existing reference situation that has been analysed in step 1. Please use the three radar diagrams, one for each sustainability dimension (environment, socio-cultural, economy) with the six sustainability criteria and assess the new PSS solution in comparison with the existing reference situation. You have to decide if the new solution is improving radically (++), improving incrementally (+), is on the same level (=), or even worse than the existing/ reference situation (-). To go more in detail here, you can use again the PSS Sustainability screen (see worksheet 7), this time to compare the two systems: the existing reference system that you analysed in step 1 and the newly developed PSS. Mark your decision for every criterion in the radar diagram and finally con-

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nect the marks to create the Sustainability Profile of the new solution compared to the existing system. Please use worksheet 12. If the evaluation has been done for all three sustainability dimensions it shows whether the new solution is really going into the right direction. The further to the outside of the radar the profile expands, the better the solution. It shows also if there are any weak points left that should be improved and eliminated before market launch. The Radars can also be used to compare different new PSS solutions, which deliver the same functional or satisfaction unit, with each other. Important aspects out of the evaluation should be integrated into the specifications for implementation. For example, if it is discovered that transportation is a critical issue, the specifications for implementation could ask for short transportation distances and efficient transportation means etc. Results of steps 3 and 4: Now the new PSS concept has been elaborated as much as possible to satisfy the customerâ&#x20AC;&#x2122;s/ consumerâ&#x20AC;&#x2122;s demands in order to be sustainable and profitable for the companies or consortium of companies offering it. It has been evaluated and compared with the existing reference system. According to the outcome of the evaluation the solution has been amended further. Next the company has to decide how to implement the new PSS solution. To do so the critical implementation issues must be identified for the new PSS. That is what we describe in the next step and that leads to successful implementation.

STEP 5: Planning PSS implementation Tools > List of specifications for PSS implementation > Business plan for new PSS After the final evaluation has been carried out and the new PSS concept has been evaluated as good enough to implement it in the market a lot of activities have to follow: > the consortium of companies has to be formed

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and the partners have to agree on contracts and a form of organisation, > the material parts of the system have to be designed or purchased, > the immaterial/ organisational parts of the system have to be organised and designed, > the user interface has to be designed > and the brand identity, communication, advertisement must be designed and planned > a business plan for the PSS has to be developed These processes are very company/ consortium and PSS type specific. Therefore we suggest in this chapter

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only the following format to identify and decide the most important aspects and specifications for implementation. The participating companies in the pilot project have to make sure that they have the right capacities to complete the implementation and market launch of the chosen PSS concept successfully.

TOOL: LIST OF SPECIFICATIONS FOR PSS IMPLEMENTATION Source: SusProNet, U.Tischner./A.Tucker See worksheet 13.


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Please complete the following list considering important implementation issues for the new PSS concept. Which are the key drivers and obstacles for implementing the PSS on the market? The field you should consider are issues related to > The company internal, strategy, experience, culture > The value chain/ network > External (governmental) support > The PSS development process as such Please identify also if these issues can be controlled/influenced by you/ the consortium of companies and if you can propose solutions for the problems detected.

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them to the customers. Special incentives have to be given to attract retailers, sales personnel and customers to the new and maybe unconventional PSS. Please refer to the Module G on D4S Communication to get more information about these communication issues.

C.2.2. MORE TOOLS TO USE IN THE PSS DEVELOPMENT PROCESS T O OL : B L U E P R IN T I N G/ S Y S T E M MAP Systematically describing a (service) system: Blueprinting

General communication issues Generally it is necessary to invest some thinking in the way PSS are communicated internally and externally because some of these new offers are so unusual and have to overcome common traditions and consumer habits that it is necessary to develop an excellent way of explaining their benefits. Consumers are still used to a culture of buying and owning things. The benefits of using a flexible sharing system like car sharing which does not only save cost but also gives a much wider variety of using a lot of different cars, from small lorries to sports cars, has to be explained carefully and only convinces a specific target group, which is not too addicted to the private car as a prestige object. It is recommended to select the right target group for the new PSS offers. At the moment PSS seem to be more successful in the B2B sector, e.g. because the payment model gives tax benefits for companies, and outsourcing of problematic activities like waste management is a common and sensible activity for companies. Internally and along the value chain communication of the new ideas is also important. Especially because most PSS are based on new partnership and cooperation of companies, the information flow and the facilitation of development and implementation processes is a challenge and has to be organised carefully. Training and education are equally important issues for successfully implementing PSS, e.g. the sales personnel have to understand the value and characteristics of the new PSS offers, and have to be able to communicate

Blueprinting is a tool that originates from the service design field. A blueprint is a model of the (service) system, covering all activities that are happening during the progress of a customer through the (service) system and the time scale. With this technique, the activities that constitute the function delivery are chronologically ordered. The interaction with the customer is a central theme. To make a blueprint eight steps are recommended, which are summarised below: 1> Identify the (Service Process) System to be blueprinted 2> Map the (Service Process) System from the customer’s point of view 3> Draw the line of interaction 4> Draw the line of visibility 5> Map Contact Employee Actions, both onstage and backstage 6> Draw the line of internal interaction 7> Map internal support activities 8> Add physical and non-physical evidence of service (products/ infrastructure/ information) at each customer action step Blueprinting has four principle levels of representation (see fig. C-4): customer action, “onstage” contact employee actions, “backstage” contact employee actions and support processes. These four key actions are separated by three horizontal lines: the line of interaction between the users and the “onstage” contact employee, the line of visibility which separates what is visible from

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Figure 4 ___ Blueprinting diagram (source: Bitner M. J. and Zeithamal V. A., 2000)

what is hidden from the users’ sight and the line of internal interactions between “backstage” contact employee activities and the ones generated by the support processes. Over the representation of the customer’s actions there is another level of description, which defines the physical (and non-physical) evidence that the users come in touch with. Figure C-4: Blueprinting diagram (source: Bitner M. J. and Zeithamal V. A., 2000)

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The application of a blueprint brings many benefits: it provides a complete and clear overview of the (service) system, which is useful for everyone working with it, it helps to identify potential failure points, it helps to identify the role and level of participation of customers and to clarify what customers should see or come in touch with, it stresses the areas of interactions among departmental lines and it supports system re-design processes.

Method: Sustainability priority setting

To understand the sustainability perspective of the current system and potential improvements even more it is helpful to take a closer look at the three dimensions of Sustainability: the environmental, the economic and the socio-cultural dimension. Below you find three tables, each related to one sustainability dimension, with sub-criteria and related questions. Please answer the questions in each of the three tables given your knowledge about the existing and the future situation and identify the importance of the different Sub-Criteria. The goal is to choose out of the following lists the most important criteria for the system that you are considering. Please mark, if you think they have a high, medium, low or no priority. Related to the priority you should search for high, medium or low improvement in the next steps of idea generation and design. After you have worked through the list below you transfer the chosen priorities to the Sustainability Radar Diagrams (worksheet 12) and to the sustainability guidelines. Thus you have identified the PSS sustainability guidelines that you should consider most in the PSS development process, i.e. the guidelines for the criteria with high and medium priorities. The priority setting process can also be done by consulting external experts and stakeholders, e.g. in a stakeholder workshop or by sending around a questionnaire. Thus it is possible to get an authentic idea about, what the “outside” world considers as your major problems and the direction they like to see your company developing.

T O O L : CH ECK L IS T F O R A N A L Y S IS O F EXISTING REFERENCE SYSTEM AND SETTING PRIORITIES FOR IMPROVEMENT After working through the tables, please select the criteria that you have given the highest priorities for each Sustainability dimension and fill them into the radar diagrams given below – one for each dimension. Please also add the priority that you have given (high, medium, low, none).

Excursion: Creativity tools (Also see Module D) e.g. scenario and back casting approach: (1) Develop a long term sustainable (!!) vision for your


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company/your system taking into account the trends in society, e.g. consumer behaviour, technological changes, changes in legislation, changes in the global/local economy, changes in demography etc. (2) Develop a short-term approach that leads you to the long-term vision. What do you have to do today, tomorrow, in the next 2 years to go towards the longterm goals? (3) Formulate an implementation strategy to reach the short term approach covering the R&D necessary, the new offers (products and services) you have to place on the market, the new cooperation and partnership you have to establish, the new customers that you want to offer somethingâ&#x20AC;Ś.etc. Important challenges for sustainable PSS:

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> try to figure out what is the best way to fulfill your customerâ&#x20AC;&#x2122;s demand with the lowest negative impact on environment and the most positive effect on social environment > try to identify a way to influence your customers/consumerâ&#x20AC;&#x2122;s demand so that the negative environmental and social effects of consumption are decreased. > try to understand how the environmental, social, economical problems identified in the analysis can be avoided and solved in the future. > try to imagine what would happen to society, environment and economy if your offers were so successful that everybody used them. > try to understand which is more important in your system: supply push or demand pull and think about the consequences for your strategy.

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> try to understand how you could use partnership with other companies and stakeholders, even with customers/consumers to strengthen your position > try to follow the precautionary principle: if there is any plausibility that your activities can cause severe environmental or social damages, even if this is caused by consumer behaviour or end of life processes, avoid these kind of activities > try to respect the polluter pays principle, even if there is not yet a legislation asking you to be responsible for negative environmental impacts, it might well change in the future.

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T OO L : T h e L e a r n i n g N e t w o r k o n Sustainability One ongoing PSS effort is The Learning Network on

Sustainability (LeNS), which is an Asian-European multipolar network for curricula development on Design for Sustainability focused on product-service system innovation. The project duration is expected to be three years (15/12/2007 - 15/12/2010) and is funded by the Asia Link Programme, EuropAid, European Commission, and involves seven design schools in Europe and Asia. The project is coordinated by the Politecnico di Milano. LeNS seeks to develop a foundation of shared experiences on D4S through a series of exchange activities among partner institutions. LeNS consortium will jointly produce an open learning e-package: a modular and adaptable package for curriculum development with teaching materials and tools for design educators and guidelines for course design and implementation in diverse contexts. For more information refer to the fol-


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lowing website: www.lens.polimi.it

c.3. How to integrate PSS activities into daily company practice When a company wants to take up and use the PSS concept as a business model systematically the integration of PSS thinking has to be ensured in every department and along the whole development and innovation process, often even involving external actors, such us consultancy for exploring opportunities, scenario development and/or sustainability evaluation PSS-orientation

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will benefit from multi-functionality and co-operation and requires user/customer focussed innovation and development activities as well as market research. One very important step to shift to PSS is to identify (basic) needs of the customers/clients. A basic need for instance would mean “listening to nice music”, but not “going to a shop buying a music-CD”. So an important question that should be integrated in all market research activities is:What exactly and really do the customers/ consumers, want from us, what is their real need behind the purchase of a product or a service and how can we fulfill these needs in a highly efficient, convenient and sustainable way. These kinds of questions enable the enterprise to

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develop a new business strategy/ offer often consisting of a combination of products and services. In our example the provision of music via Internet/Bluetooth on a small and portable MP3 player would be a highly efficient solution compared to producing and selling CDs and CD players. So in the targets to be formulated for the PSS project fulfillment of consumer/customers demand satisfaction be combined with the most important sustainability aspects, e.g. by using the Sustainability Checklists as shown in chapter B above. When new and promising PSS concepts shall be developed there are different strategies in order to become a successful PSS provider: > developing a new line of business, which integrates PSS from the beginning (PSS start up). > integrating a service (or a set of services and products) into an existing product line. > attaching a product (or a set of products and other services) to an existing service. Furthermore, the PSS could be at the end provided by: > the same company alone. > an alliance of several companies (having the needed expertise and know-how). Depending on the starting and arrival points of the company (product producer/service provider/start up) the ways to PSS development are different. Nevertheless, it is always necessary to establish/find and involve the complimentary expertise: If you start as a product supplier service expertise is needed and vice versa. More precisely a PSS approach requires: > Managerial vision for innovation: the ability to recognise new opportunities, to recognise and design new product service mixes. > An innovative corporate culture capable of promoting new forms of internal organisation > An innovative corporate culture capable of promoting new forms of external partnerships, and having the ability to interact on new levels with different stakeholders > A knowledge of the opportunities offered by the new ICTs to empower the realisation and the application of a PSS (e.g. the maintenance, repair or other typical user services of a PSS can be monitored in eco-effi-

cient ways with new ICTs devices). After the initial analysis of the current market and possible PSS opportunities, a PSS development project can be started just as a normal product development project. However, to be successful, it must be checked carefully if the right company departments/experts and partners are involved and in each phase of the project (idea development, design, implementation) it must be controlled whether the initially defined targets can be achieved. A starting point can be identified about how to go about implementing or improving PSS. This will vary depending on whether a business is entering a new market sector, or shifting within its existing sector from simple product or service providing to a PSS. In the first case, an analysis of the new sector needs to be made to identify the presence of already existing PSS, and of course, the opportunities to introduce a new one. A strategic analysis should be made, envisioning the whole system of products and services that fulfill a given ‘demand’ for ‘result’. In other words, an analysis of the current market situation, the trends in frame conditions, the customer demands and the stakeholders who could be involved in the new PSS, should be made to highlight potential business advantages. In the case of a company wanting to shift from product selling to a PSS in its own sector, a review should be made to identify within the company which activities are most suitable for piloting change. The process of building a new corporate culture could be then implemented by successive steps. Throughout this process, relationships with research institutions, such us universities, could provide fruitful initial opportunities for company involvement in specifically funded Institutional research programmes. The pilot project procedure (see chapter C.2 How to run a PSS pilot project/ approaches, skills and tools), it is a possible practical procedure to accomplish what above. Experience shows that it is very beneficial if the company establishes a PSS steward champion (person driving the project) or a PSS department, which connects the marketing, research, development, design, support/service departments and possibly external partners (supplier, customer, retailer), so that development project and information exchange can be carried out


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successfully. As PSS is a new topic for a lot of companies and requires a change in normal business strategy. Thus it is also quite often very successful to involve an external advisor/ consultant, who is experienced in the field. This person can also have the function of process promoter in PSS projects where a consortium of companies is developing the new PSS together. In such projects a “neutral” entity can facilitate and moderate the process a bit more easily than one of the companies in the consortium. The following matrix shows the company departments and experts (functions) and their regular tasks in PSS projects, and illustrates the process by using the example of an internet-based music store. To conclude: The permanent integration of PSS thinking requires especially: > Familiarising management with the PSS concept > Focussing on fulfillment of customer/ consumer needs rather than products > Appointing PSS stewards or departments > Integrating PSS thinking and aspects into the normal activities and tools used in the company > PSS Training of specific staff, e.g. the sales force > Using the tools introduced in the pilot project (see chapter B) on a regular basis and by the right experts > Expanding the company expertise in the missing direction e.g. by setting up external co-operation > Developing excellent and sustainable PSS > Excellent internal and external communication of the often unusual PSS concepts > And finally: Good business practice

C.4. BEST PRACTICES/ CASES AND EXAMPLES Case 1: MEWA cleaning cloth r e n t a l s er v ic e b y M EW A Wiesbaden, Germany Company: MEWA Wiesbaden, Germany Product: MEWA Cleaning Cloth Rental Service Country: Germany Company Size: Medium Stage: Commercially available

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Web-site: www.mewa.de Main eco-design/ PSS consideration(s): > Solvents contained in the returned rags are used in the cleaning process, water and energy are re-used several times in cascades through the washing and drying stages, and the oils and fats contained in the wastewater are recovered and used for energy production in the MEWA plant. > As well as improving the material aspects of its reusable rag system, MEWA have simplified the rental system, encouraging more businesses to take part. Main environmental benefits: > The company’s plant in Vienna needs no external energy supply due to its energy recovery process. > Wastewater is treated in the plant so that it is sufficiently clean to be accepted by normal municipal wastewater treatment plants without any problems. > In comparison to a one-way cleaning cloth system, the MEWA system reduces hazardous waste by a factor of 7.5, sending 4,000 tons of oil and hydroxide sludge to incineration plants and landfills. Other benefits (economy, social): > Although it is cheaper to use single-use cloths than reuseable ones, the rising disposal costs of cleaning cloths heavily soiled with hazardous waste make MEWA a very attractive option. Because of this, MEWA are the market leader in the cleaning cloth sector in Germany. Main drives/incentives: > Business to Business PSS > Use oriented > Strategically developed as PSS Short description: MEWA hires out cleaning cloths made of recycled cotton to engineering companies, printing plants, automobile repair garages and the German railway company Deutsche Bahn. The rags are delivered to customers and, once soiled, thrown back into the delivery containers to be collected by MEWA. The cloths are washed in giant washing machines before being hired out again. Each cloth completes these cycles up to 50 times. The family-run business, based in Wiesbaden, is increasing its

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economical and ecological success using an idea initially developed by the company’s founder, Hermann Gebauer, in 1908. Source: How to Do Ecodesign: A Guide to Environmentally and Economically Sound Design. Tischner et al., 2000 and www.mewa.de

Company: Call a Bike Product: Call a Bike Country: Germany Company Size: started small, now belongs to Deutsche Bahn Stage: Commercially Available Picture: 1 Website: www.callabike.de Main eco-design/PSS consideration(s): > Special bikes were designed to cope with the heavy usage expected by the system, delaying the implementation of the system from 1998 to 2000. > The bike system is vandal-resistant and theft-proof. Parts such as the seat and the tyres can only be disassembled using special tools and no single component is compatible with any other type of bike. The bikes have a number of European patents. The electronic lock has an especially large number. > Using bikes instead of cars in inner-city transport. Main environmental benefits: > By allowing the modern traveller to use a convenient bike rental system in all major German cities, the amount of inner city car traffic can be reduced drastically, improving traffic flow, reducing air pollution and presenting immediate health benefits for those using the bikes and living in the city.

Figure 5 ___ Advertising slogan of the MEWA company The idea is marketed with the following slogan: “What others extract from the depth of the earth we extract from the depth of our cloths.”

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Case 2: Call A Bike Munich, Frankfurt, Berlin a professional bike rental system

Other benefits (economic, social): > The market success of the concept shows that there is a broad consumer acceptance. Within the first three months of the concept’s introduction in Munich, 30,000 consumers had joined the bike sharing system. > The project began to be developed in 1996, creating 100 new jobs. After its April 2000 launch, the first profit was expected in July 2001.

Main drives/incentives: > Business to Consumer PSS > Use oriented > Strategically developed as PSS. Short description: Call a Bike, now owned by Deutsche Bahn AG, is a pub-


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lic mobility service system that leases bikes to users on a per-minute basis. Registered users can hire and return one of the specially designed CallBikes at any major crossroads, simply by making a telephone call. Bikes can be hired 24 hours a day in Munich, Frankfurt or Berlin. Each Call a Bike is protected by an electronic lock that can be opened with a numerical code, obtained by dialling the telephone number printed on the lock. A blinking green light on the lock indicates that the bike is available for hire. Bikes can be returned at any major crossing in the town centre by locking them to a fixed object and calling the Call a Bike service centre, quoting the code displayed on the lock and informing them of the bike’s location. The standard rate for Call a Bike is 6 Cents per minute with a maximum charge of EUR 15.00 for 24 hours of use. After 24 hours have elapsed, the 6 Cent per minute charge is reinstated. Charging begins from the time of the initial hiring call to the return call. Bikes can be hired for seven consecutive days for the price of four. Source: Nachhaltige Systeminnovationen research project by econcept for German Research Ministry 2000 and www.callabike.de

Figure 6 ___ The Call a Bikes with the computer locking system.

Case 3: Diddi & Gori – Textile Flooring Recyclable Company: Diddi & Gori

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Product Service System: Textile Flooring Recyclable Country: Italy Company size: Medium Stage: Commercial Available Web-site: http://www.diddigori.it Category: Business to Consumer PSS, use oriented, strategically developed as PSS. Company background: Diddi & Gori S.p.A. is an Italian company specialised in producing manufactures for shoe industry and textile flooring. The production of synthetic fibres and chemical products implies oil refining with obvious consequences for the environment. For this reason, Diddi & Gori’s goal is to create manufactures without chemical products or completely recyclable, involving a lower use of raw materials. Following the company target, “d&g project” provides the guidelines for a lower impact on the environment, such as creating recyclable textiles from recycled processes, reusing production waste and managing and discharging any kind of waste. Short description: Digodream is the product-service offered by Diddi & Gori. It consists of textile flooring that can be used during trade fairs and exhibitions, made of waste and completely recyclable, since it returns as the original fibre. The novelty of Digodream is that it is sold as an entire service, from the supply and the installation to the removal. It has become a whole system of services given to the client, who is no longer owner of the product, but he buys its utility. Hence, the new concept of product is clearly moved from the traditional one to the idea of mutually dependent products and services that focus on the utility. Users do not demand the products or services, per se, but what these products and services enable them to achieve. In this perspective, the client obtains the needed utility and pays for product use. Prior to this, similar products were bought, used for a short period of time and then disposed. Digodream, after being used, returns to the producer, who recovers it to make fibre again.

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Main environmental benefits In the case of Digodream, the saving of raw materials in the production cycle is remarkable. Extending material life is the main step to reach, since it enables the recycling. The product service mix given allows the extension of the life of textile floorings materials, in a way that the company itself is interested in increasing longer-terms results. Other benefits This approach produces synergies among profit, competitiveness and environmental benefits. Since Diddi & Gori remains the owner of the product over its life-cycle, there is further economic interest to valorise the material’s lifetime. This new idea of productivity leads to reducing waste and resources consumption. In such perspective, longer term profits are to be found in longer term client relationships, since new market niches are created. In this perspective, the client avoids the disposal costs and Diddi & Gori reduce the cost for raw material acquisition. From the client’s point of view, economic benefits are achieved, because the traditional products need to be disposed, with consequent costs for the process; Digodream provide a complete service, that include the process and the costs of disposal. Such a product-service mix may generate longer term client relationship and brand loyalties: in terms of economic benefits for companies, they are involved in a new concept of market, since clients may be interested in keeping relationship with them and in receiving an improved efficiency of the service itself. Contacts Details Diddi & Gori S.p.A. Via Petrarca, 32 50041 Calenzano (FI) Tel. +39 055886411 E-mail: info@diddigori.it Web: http://www.diddigori.it

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Case 4: Credit for clothing care in New Delhi campus Developed as a degree thesis project by Carlo Proserpio, and

supervised by Prof. Carlo Vezzoli and Prof. G. V. Sumitri Company: Faculty of Design, Politecnico di Milano University; IIT New Dehli, India Product Service System: Credit for clothing care in New Delhi campus Country: India Company size: Medium Stage: degree thesis project Web-site: www.lens.polimi.it Short description: An articulated and sustainable system of products and services (PSS) for the clothing care inside a university campus (IIT Delhi), from their acquisition to the washing and conservation, the use and disposal.

Keypoints - Exchange of services: valorisation of local human resources through an exchange of competencies and services between students and dressmakers coordinated by university institutions: assistance to the implementation and management of the sales of the garments online vs. production/customisation and conservation of the garments. - ”Pluriform”: sharing and exchange of clothes that allows a frequent renovation and customisation of one’s own wardrobe without raising the production of clothes which could also be directed to the use of fibres and dyes of low environmental impact. - Pay per wash: a partnership among washing machine producer, electricity supplier, water company


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and the detergent supplier that would offer: the use (and not the sale) of the machines with the hybrid system solar-gas-electric; the consumption good itself (with water recycling) and the washing machine services such as maintenance, fix, upgrading and collection at the end of its life. The payment is set upon the number of wash loads. - Credit: The university institution manages the economic transition between students and the other actors involved offering the students a credit system that works in two ways: credits to be spent (in the services of clothes washing) and the credits to be gained (by offering his/her services). - Once totally set-up, the system will tend to evolve into: - Higher systemic eco-efficiency: reduction of the resources and substitution for renewable and non-toxic resources. - Valorisation and empowerment of the local human resources. Service provider’s roles: University: Promotes the overall system and coordinates the credits system NGO: Supports the creation of dressmakers’ cooperatives Washing machine producer, electricity supplier, detergent supplier, water company: The companies, working in partnership, will provide the “enabling platforms”, which allow the final user to benefit from the service without having to acquire their products (washing machine, electricity, water and detergent). Students: Support and teach dressmakers in the use of Internet and e-commerce through web. Dressmakers: -Teach and support students in dress up grading and repairing -Co-design new customised dresses. Environmental benefits -Clothes life extension and intensification -Optimised consumption of energy, water and detergent -Use of solar energy -Possibility to control and treat the grey water generated by the washing

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-Optimisation of the washing machine’s use, expanding their life-cycle -Guarantee of the collection of the machine in the end of its life-cycle to reuse or recycle components -Introduction and diffusion of biological cotton in clothes production Other benefit: Service provider’s benefits IIT University: -Decrease in power consumption -Saving money - Image improves as an experimental centre -Improving life conditions for people living on campus Dressmakers -Possibility to exploit their knowledge -Contact with a new background -Learn cultural and technology basics Students -Open up to new markets -Possibility to exploit their knowledge -Contact with a new background Washing machine producer, electricity supplier, detergent supplier, water company - Brand new image as an innovator, a company that cares about social and environmental problems. Service users’ benefits Students -Learn to repair their clothes

Story board Additional Examples

PSS: Microwavable Meals for the E ld e r ly , A p e t it o Z e i t sp r u n g , G e r ma n y , Netherlands, and the UK Company Apetito is one of Europe’s leading suppliers of quality frozen food and catering solutions. They work alongside

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caterers in many social sectors, including Healthcare, Local Authorities, Education and most recently, Care Homes.

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System Microwaveable frozen meals offer a number of advantages over meals-on-wheels services for the elderly: customers have a wider selection of meals, are free to eat at a time that is suits them, and meals retain more of their nutritional value. However, conventional frozen meals still present problems as customers often find it difficult to use such technologically advanced equipment and results can often vary depending on the microwave used. Hence Apetito developed Zeitsprung: a range of microwaveable frozen meals for the elderly designed to eliminate the disadvantages of conventional frozen meals. Each week, customers select seven meals from an easy-to-use catalogue. Apetito then deliver these to the customer. A number from 1 to 30 is printed on the packaging. Customers simply type this number into the compatible microwave specially designed by Sharp for Apetito in order to prepare their meal. Apetito sells the

microwave to end-users. The microwave can also be used to prepare, defrost or reheat other products. Goals Personal motivation: the Zeitsprung project started thanks to the personal experience of an Apetito employee whose elderly father has difficulties in using a microwave oven. This employee thought that probably a lot of elderly people have the same problems as his father and started to think how it was possible to solve it. Results Customers have a wider selection of meals, are free to eat at a time that is suits them, and meals retain more of their nutritional value. Conventional frozen meals still present problems as customers often find it difficult to use such technologically advanced equipment and results can often vary depending on the microwave used. Apetito Zeitsprung eliminates the disadvantages of


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conventional frozen meals.

PSS: Car sharing, StattAuto, Germany Company StattAuto was the first carsharing corporation in Germany and the second worldwide. In 1988 the first German car-sharing company started with one car and an answering machine as part of a scientific research project.Within two years the model had been increased to four cars and approximately 50 participants. As the results had been promising, the researchers decided to set up the StattAuto company in 1990 (the name StattAuto was chosen as a pun on “city-car” and “instead-of car”). System Users can book a car by phone or via the website 24 hours a day, 7 days a week, and if they call with their mobile phone from any one of parking lots of StattAuto, they can drive the car off immediately. Also users can use a car as long and much as they would like (can afford) to. The cars are stationed at 100 distribution points. Each distribution point has between two and seven parking spaces. The distribution system for cars is spread over the city with a concentration in densely populated inner city districts. On average a StattAuto member reaches a distribution point in 10 minutes. Most kinds of car equipment and accessories like snow chains, children’s seats, ski racks, bike racks are available at no extra cost at the central office. The group has a “moonshine rate” for women. Between midnight and 8 a.m., women drive free to their destination and return the car in the morning, avoiding a potentially dangerous walk in the dark. Goals The philosophy of car-sharing companies is to organise the mobility of their customers on the one hand, and to keep the overall cost down on the other hand. Carsharing can be regarded as a supplementary means of transport. Results

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The combined mobility public transport and car-sharing is assumed by StattAuto as the most economical and ecological traffic concept for urban agglomerations in the future. Now the service contributes to the urban eco-balance with a reduction of 510,000 car kilometres and an annual decrease in CO 2 emissions of 80.32 tonnes. A shared car from StattAuto is driven approximately 30,000 km per year compared to the national 14,500 km per year with private cars. On average two persons travel in a StattAuto car compared to the national average of 1.3 persons in private car use.

PSS: Flexible Office Concept, Interpolis, the Netherlands Company Interpolis, a subsidiary of the Rabobank group, is an insurance company with about 6,000 employees. System Interpolis introduced an integral flexible office concept where employees are not offered a fixed working place, but choose one that fits their needs for each day. Equipped with their own personal computer, they can connect to the computer network at any place. Goals A flexible workspace can have many benefits like improving productivity and work-life balance and saving office costs. Besides it may have a positive impact on the environment because less workspace and office equipment is needed. Results Employees have benefited by having an increased satisfaction/ quality of work. Less people have been reported sick and the enrichment of the lives of users has been achieved through work/ life balance. Interpolis has benefited by improving the use of office space by 58% – workspace now accommodates 1500, rather than 950. They have had economic savings related to facilities costs of 30%. Environmental accomplishments have been realised through reducing the office space and energy use.

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PSS: Online auction, eBay Inc. Company eBay is the world’s online marketplace®, enabling trade on a local, national and international basis. The eBay Marketplace creates an online platform for the sale of goods and services by a diverse community of individuals and small businesses. eBay offers an online platform where millions of items are traded each day. The eBay Community is made up of more than 100 million people around the world who buy and sell in the eBay marketplace. Users include individual buyers and sellers, small businesses, and even enterprises. The eBay.com format websites are fully automated, topically arranged, and easy-to-use online services that seek to provide availability 24 hours a day, seven days a week, enabling sellers to list items for sale in either auction or fixedprice formats, buyers to bid for and purchase items of interest. Process By connecting people around the globe in new ways, eBay is enabling people to pursue their passions. A vintage clothing collector is able to source hard-to-find items from the comfort of her own home. A small manufacturer is able to expand by purchasing equipment on eBay. A single mother is able to spend more time with her children by selling products to customers all over the world. Sellers generally enjoy high conversion rates and buyers enjoy an extensive selection of broadly priced goods and services. eBay seeks to attract buyers and sellers to its community by offering buyers selection, value, convenience, entertainment and offering sellers access to broad markets, efficient marketing and distribution costs, ability to maximize prices and the opportunity to increase sales. Goals The role of eBay is to create, maintain, and expand the functionality, safety, ease-of-use, and reliability of their commerce platforms while, at the same time, supporting the growth and success of the community of users.

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Results This strong spirit of camaraderie, based on the eBay

Community Values, continues to thrive. Through the eBay Community hub, members meet and form meaningful relationships with one another via discussion boards, chat rooms, Online Workshops, eBay Groups, and the Answer Centre for member-to-member interactions. Every day, members use these forums to get help from other experienced users, share their best practices with others who are just starting out, or just socialise. Those businesses are unique in their strong partnerships with users. None of these businesses, in fact, would exist without the millions of men and women who have made them part of their everyday lives. With the development of internet technology, traditional marketplace has been realised in virtual online universe.

PSS: Public Charging Platform, Telecommunications Technology Association, Korea Organisation Telecommunications Technology Association (TTA) is an IT standards organisation that develops new standards and provides one-stop services for the establishment of IT standards as well as providing testing and certification for IT products. The number of mobile phone subscribers in Korea is 38 million, more than 80% of the population. To reflect the growing consumer demand for easy charging, Consumer Protection Board appealed TTA to provide a solution. System The public charging platform would be targeted at high traffic areas such as hotels, providing rooms and serving customers, convenience stores, selling everyday goods, and public transportation, delivering passengers. Some public places (e.g. hotels) install the charging deck as a part of customer services free of charge, while some charges small amount of fare (e.g. 24-hour running convenience stores). Filling up a battery costs about 1 euro. The standard charger has been sold separately from mobile phones for approximately €6 to €12 depending


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on retailers. Goals Consumer Protection Board surveyed that customers regard it unnecessary to buy a new charger when they already possess one. To reduce the purchasing cost and resource consumption, TTA combined several types of mobile charger into one standard. Along the rules of procedure in TTA, the standardisation was realised. Results This standardisation was aimed to reduce resource consumption and environmental pollution. As a result, fewer chargers can be shared in more users.The nationwide common unit for mobile equipment increased the convenience in travelling not only by reducing the amount of equipment carried, but also sharing one charger with others.

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System Intersport provides customers with ski/snowboard/bBike rentals. New equipment can be tested. Intersport Rent enables customers to book their skis from their home country and collect them in their chosen destination. Goals A more use-oriented offer than each person buying personal equipment, which results in increased product efficiency. Results Due to the high prices of skiing equipment, ski rental has become more popular. It reduces the customer’s expenses and makes travelling more convenient for them, as they are not responsible for maintenance, transport, and storage. Fewer skis are sold but more consumers can be attracted with rental services and upto-date equipment.

PSS: Surface service: painter instead of paint seller, AURO, Austria

PSS: Sports Equipment Rental, Intersport, Worldwide Company IIC-INTERSPORT International Corporation is the purchasing and management company of the INTERSPORTGroup. With its retail turnover of 7.7 billion euros and more than 4800 associated retailers in 32 countries, INTERSPORT has the worldwide leading position in the sporting goods retail market.

Company AURO is the leading company of natural paints. They have a high claim to their products and whole organisation with regard to sustainability, and to the final results in terms of function and perfection. AURO has 100 products with focus on architectural paints and coatings (impregnations, lacquers, stains, waxes, wall paints), as well as home care products, adhesives and cleaning agents. System AURO provides customers with ‘surface maintenance contract’ which guarantees for a certain surface quality and therefore carries out maintenance activities on demand or regular intervals. A completely different picture occurs when shifting the basis for comparison from product packaging units (e.g.1kg) to units of final result, like square meters of treated surface, preferably monitored over a certain period of use, including necessary maintenance. Higher quality of the final surface, less

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paint per square meter and longer maintenance intervals result in competitiveness of surface treatment solutions based on natural paints. Goals Another important difference between conventional surface treatment technologies and the application of natural paints can be seen in the know-how that is necessary for an appropriate application.To achieve an optimal surface quality, natural paints require appropriate techniques of application including correct drying times and temperatures. Commercial and industrial users like joineries do not always carefully follow the necessary instructions. Resulting deficits in the final surface quality are then often blamed on the product. AURO’s service alleviates these concerns. Additionally, it is well known, that the treatment of wooden surfaces with natural paints has a series of advantages compared to conventional methods with synthetic alternatives. Among the most important benefits are favourable technical properties, outstanding environmental performance and finally high comfort and safety during use due to no release of toxic substances. Results In this case, the application of PSS strategy was following the completion of eco-friendly product development. In other words, the surface management idea was initiated to overcome the current market problem – low price competitiveness of natural paint. For other products in market which were designed in an environmentally-sound way, similar approach may be able to be tried so as to drive the whole market to more ecologically consistent direction.

PSS: Carpet Lease, Interface Inc., North America, Australia, Europe

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Company Specialising in modular floor-covering with carpet tiles, Interface is the world leader in the design, production and sales of modular carpet and commercial fabrics. Ray Anderson, the founder and current chairman of Interface Inc, has fully devoted to sustainability. Their

mission to “be the first company that, by its deeds, shows the entire industrial world what sustainability is in all its dimensions: people, process, product, place and profits – by 2020 – and in doing so, to become restorative through the power of influence. System Among many innovative initiatives, Interface sought to introduce a business strategy of leasing - rather than selling - its carpets, known as “Evergreen Lease”, so as to be able to take them back to recycle. Customers can choose dematerialised or recycled content Interface products for their installation. Through offering ongoing maintenance as part of the lease, the first quality appearance of the product is maintained for longer and hence its length of time on site is increased. Comprehensive maintenance prevents degradation of the fibres and prolongs the product’s life: e.g. carpet tiles can be moved from areas of heavy wear such as corridors to areas of lighter wear such as under desks, increasing the useful first life of the carpet. Interface also controls the installation of the product, meaning that flooring contractors will use the Interface Factor Four adhesive system – an immediate improvement in both the amount used and the environmental impact of the adhesives. Goals The Evergreen Lease is a revolutionary way of meeting customers’ floor covering needs. The Evergreen Lease offers a complete package that increases resource productivity at each stage of the life cycle. Results The Evergreen Lease program prolongs the life of the carpets while proving end of life recycling. By making the carpeting process more efficient and recycling, Interface is greatly reducing the environmental impact of commercial carpeting.

PSS: Biological pest management using natural predators, Koppert, the Netherlands


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Company Koppert is the international market leader in biological crop protection and natural pollination. System Koppert offers their customers crop-protection by the square meter. Their advisors check the condition of the plants and take care of the crop protection. Farmers pay a fixed fee per hectare with no additional charges for the use of natural predators. Goals The goal of this PSS is to provide farmers with an opportunity to address and profit from the growing interests of consumers for eco/bio-food products, therefore increasing user value. Results Pesticides are not used, and as greenhouses have a high consumption of pesticides the environmental gains can be sizeable. Material and energy efficiency are improved, while toxicity and water use are decreased. The produce is free of residue for customers and the biological approach can be marketed along the value chain. Better occupational health for employees is achieved by not using toxic pesticides.

PSS: Reuse of Unit Housing: Sekisui Chemical Co., LTD Company The Japanese housing company, Sekisui Chemical Co., LTD. manufactures and sells “Sekisui Heim” and “Sekisui Two-U Home” modular housing, together with interior and exterior housing products and home renovation services. System Sekisui started its unit-housing business in 1970 with more than 80% of its houses being manufactured under quality control on assembly lines in the plants, just as automobiles were assembled. Using factory-based production technology it solves the weather and builder’s skill problems. Sekisui endeavoured to establish a “resource-recycling housing system” to effectively utilise the units of old houses that have been normally

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demolished, resulting in the launch of “reused System House” in 2002. Old houses are disassembled into units, which are returned to the plants, inspected, repaired as necessary, and sold to new customers to be built on new sites. Goals The URU model was designed to reduce environmental impact of building waste. The company has a fundamental policy regarding the environment; “we contribute to society with our environment-friendly residential houses that can be lived in safely and comfortably for at least 60 years. Through this we carry out our social responsibility as an enterprise in the long life-cycle of our houses. Results Social: Interested customers can look at their website and select from a wide range of houses offered. Such houses can be purchased at 60 to 70% of new-house prices. Economical: A better return of investment and an expansion of new sales areas were achieved, especially in the collective housing market. Consequently, a more effective utilisation of units has been created. Environmental: Through an integral assessment of the effect of each environmental factor which is generated in the whole life cycle of a house, the effectiveness of the rebuilding system has been realised. As a result, it was determined through a comparison of our houses that the cost of damage was reduced by 1.03 million yen by rebuilding.

References Charter, M./ Tischner, U. (Ed.): Sustainable Solutions, designing products and services for the future, Greenleaf Publishing, Sheffield, 2001

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Haksever, C., Render, B., Russel, R.S., Murdick, R.G., Service Management and Operations, 2nd Edition, Prentice-Hall, Upper Saddle River, NJ. 2000. Jungk, R. and Müllert, N. (1987) “Future workshops: How to create desirable futures” London: Institute for Social Inventions Kensing, F. (1987) “Generation of visions in systems development” in Docherty, P., Fuchs-Kittowski, K., Kolm, P. and Mathiassen, L. (eds.) “Systems design for human and productivity-Participation and beyond”, pp. 285301, North-Holland Shostack, G. Lynn, “Understanding Services through Blueprinting” in T. A. Swarts, D. E. Bowen and S.W. Brown (eds), Advances in Services Marketing and Management: Research and Practice, Vol. 1, CT.JAI Press, Greenwich, 1992. Tischner, U. et al: How to do Ecodesign, former: form Publishing Frankfurt, now: Birkhäuser, Basel, 2000 Tischner, U./ Verkuijl, M./ Tukker, A.: PSS state of the art, SusProNet best practice document, online publication via SusProNet website: www.suspronet.org Tischner, U./ Verkuijl, M.: The SME approach to sustainable system innovations. In: Proceedings of High Technology Small Firms Conference 2004, 24 & 25 May 2004 University of Twente, Enschede, The Netherlands Verkuijl, M./ Tischner, U.: Development of Sustainable Product-Service Systems for offices, in: Proceedings of the European Roundtable of Sustainable Consumption and Production, 12. - 14. June 2004, Bilbao, Spain Zeithamal V., Bitner M. J., Services Marketing, Mc Grawl Hill, New York, 2000.

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Bijma A., Stuts M., Silvester S., Developing Eco-efficient Product-Service Combinations in Proceedings of the 6th International Conference ‘Sustainable Services and Systems. Transition towards Sustainability?’, The Surrey Institute of Art and Design, University College. Amsterdam, Netherlands, pp. 239- 245, October 2001.

Cooper T., Sian E., Products to Services, report for the friends of the earth, Centre for Sustainable Consumption, Sheffield Hallam University, June 2000. Goedkoop, M., van Halen C, te Riele, H, Rommes P., Product Services Systems, Ecological and Economic Basics, report 1999/36, VROM, the Hague, 1999. Groenewegen P., De Jong P., Nijhuis L., Scholl G., Creating Ecoefficient Producer Services in Proceedings of the 6th International Conference ‘Sustainable Services and Systems. Transition towards Sustainability?’, The Surrey Institute of Art and Design, University College. Amsterdam, Netherlands, pp. 301- 302, October 2001. Hockerts, K. Eco-Efficient Service Innovation: Increasing Business- Ecological Efficiency of Products and Services, in: Greener Marketing: A Global Perspective on Greener Marketing Practice, Ed. M. Charter, Sheffield, UK: Greenleaf publishing, pp. 95-108; 1998. Jacobsen M.M., Wigum K. S., Sustainable Services & Systems – 3S and the Impact on Eco-design Education in Proceedings of the 6th International Conference ‘Sustainable Services and Systems. Transition towards Sustainability?’, The Surrey Institute of Art and Design, University College. Amsterdam, Netherlands, pp. 147154, October 2001. Krutwagen B., Lindeijer E., LCA Services. An adapted approach including consumer based rebound effects in Proceedings of the 6th International Conference ‘Sustainable Services and Systems. Transition towards Sustainability?’, The Surrey Institute of Art and Design, University College. Amsterdam, Netherlands, pp. 233238, October 2001. Manzini E., Vezzoli C., Clark G. Product-service Systems: Using an Existing Concept as a New Approach to Sustainability, The Journal of Design Research, 2001. Mejcamp, R., Changing consumer behaviour through ecoefficient services, Delft University of Technology, Delft, 2000. Mont, O. Introducing and Developing a Product – Service System (PSS) concept in Sweden, IIIEE Reports


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2001:6., NUTEK and IIIEE, Sweden, 2001. Péro H., Industrial research in the European Research Area and in the Framework Programme, In the Field of ProductServices in Proceedings of the 6th International Conference ‘Sustainable Services and Systems. Transition towards Sustainability?’, The Surrey Institute of Art and Design, University College. Amsterdam, Netherlands, pp. 67- 75, October 2001.

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Sustainability, Cumulus Working Papers Tallinn, University of Arts and Design Helsinki, 2003 ISBN 351558-041-2 Vezzoli C., 2007. System design for sustainability. Theory methods and tools for a sustainable “satisfaction - system” design. Patronized by United Nations (DESD) Rimini: Maqqiolli, ISBN 9788838 74 1005.

PREPARE, Minutes of the PREPARE – Thematic Group, Sustainable Services and Systems Workshop, compiled by Tischner U., Lund, Sweden, 2001.

Zaring O., Creating Eco-Efficient Producer Services, Goteborg Research Institute, Goteborg, 2001.

Sachs W., et al. (2002), The Jo’burg-Memo. Fairness in a Fragile World. Memorandum for the World Summit on Sustainable Development. Heinrich Böll Foundation, Berlin.

i based on the outcome of the EU funded thematic net-

Stahel, W., Sustainability and Services, in Sustainable Solutions – Developing products and services for the future, eds. Martin Charter and Ursula Tischner, Sheffield, UK: Greenleaf publishing, pp. 151-164; 2001.

work SusProNet, see www.suspronet.org ii It is here meant as identifying or customizing the PSS to the context and need in which and to which the solution will be introduced and addressed. iii This is disputable because it may work for some emerging contexts, but it may not work for some others. iv Source DALT and Politecnico Milano for the HICS Project, see www.hicsproject.org

Tischner U., Brezet H., Grablowitz A., Sustainable Services and Systems (3S) – Sustainability in Practice? in Proceedings of the 6th International Conference ‘Sustainable Services and Systems. Transition towards Sustainability?’, The Surrey Institute of Art and Design, University College. Amsterdam, Netherlands, pp. 53-58, October 2001. UNEP (2002), Product-Service Systems and Sustainability. Opportunities for sustainable solutions, UNEP-DTIE United Nations Environment Programme-Division of Technology Industry and Economics, Paris. ISBN 92807-2206-9; free pdf download at: http://www.uneptie.org/pc/sustain/reports/pss/pss-imp7 Van Halen C., Vezzoli C., Wimmer R (ed.) 2005 Methodology for product service system. How to develop clean and competitive strategies in companies. Assen, Netherlands Van Gorkun ISBN 90-232-4143-6. Vezzoli C. (2003), Designing Systemic innovation for

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CREATIVITY TECHNIQUES Mr. J.C. Diehl and Mr. M. Tassoul

What are creativity techniques?

Participants

Creativity can be defined as ‘all the ways of thinking that lead to something new and useful for the thinker’. A creativity technique should help generate new ideas. Creativity tools can: > Come up with new ideas; > Break through fixed ways of thinking; > ‘Think out of the box’ - thinking beyond current solutions; > Build upon each others ideas; and > Develop new inspiring and surprising ideas. To understand how the techniques work and how they can contribute to the product development process it is necessary to put them into practice.

Multidisciplinary teams are important to successful creativity sessions because it provides diversity in interactions and enables building novel associations. In group brainstorming, the free flow of ideas can be stimulated by including open-minded group members from different disciplines that are not afraid to ask ‘stupid’ questions. A group might, for example, select a range of different people: generalists and specialists, and creative people that are not experts in the field.

Group versus individual creativity techniques In general, brainstorming in a group generates more ideas, but sometimes the group culture may hinder revolutionary ideas. Group techniques use the ideas of others for inspiration. Group members can use each other’s information as input for further stimulation. Individual brainstorming can lead to original ideas but there is a danger that the outcomes are predetermined or limited to the idea originator’s way of thinking. In individual brainstorming, free association initially yields seemingly irrational outputs that later can be refined into more recognizable concepts. Given the potential and limitations of these approaches it is recommended to apply both individual and group brainstorming in the same project.

Mind-set In using creativity techniques, one should be as openminded as possible and try to avoid criticism of the ideas that are generated because this can cut off potentially useful ideas. A positive attitude is the strong foundation of a successful creativity session. The following rules can facilitate the creativity process: > Group members should be able to express themselves freely and openly without censorship and should operate with appropriate respect towards others; > There should be no judging of people and; > It should be okay for members to ‘lie’.

Session facilitator Brainstorming can be greatly enhanced by appointing a facilitator to guide the session. The facilitator should guide the session and not let his or her own opinions interfere with the expression of other peoples’ opinions.

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The facilitator should keep track of time and allow everyone who wishes to express an opinion at both the individual and group level. It is very helpful if the facilitator has a good general knowledge of the subject.

The step-by-step process for a creativity session Similar to the steps of product development process, each step of the creativity process has two main phases: a divergent phase and a convergent phase . In other words, each phase starts with a ‘problem’ definition, followed by a divergent phase which includes the ’creation’ or ‘widening’ of a field of possibilities which includes collecting and generating facts, problem statements, and ideas, without criticism. Then resultant solutions are clustered and categorized, followed by a convergent phase in which there is a narrowing of choices based on criteria of what is useful and relevant. (See Figure 1.): 1> Problem definition 2> Divergent phase 3> Clustering / categorizing 4> Convergent phase The four stages of the creativity process each demand a different attitude from the participants.

Problem definition

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The fomulation of the problem definition for the creativity session has a big impact on the outcomes of the creativity session. If the problem is not defined accurately, the created results might be irrelevant for the project. Guidelines for defining a problem include: A_ Formulate the goal of the creativity session in one sentence. Formulate from the project focus (the problem) in a concise and clear way. It forces the team to tackle the core of the problem. Often a problem consists of several sub-problems. It is recommended to tackle the subproblems first, and then to bring the sub-solutions together. B_ Keep a real and tangible focus. If the problem defined is too abstract, the results will be general and will lead to sub-optimal solutions.

Example_ ”How can we generate a more positive attitude towards Photo Voltaic (PV)?” is a broad formulation. It becomes more specific if the statement focuses on children: ”How can we inform children about PV so that they develop a more positive attitude towards it?” An example of an even more focused problem statement would be: “What can children play with that is made of PV?”, or “How can we motivate children to play with outdoor play equipment made from PV?” C_ Start with ‘how’ or ‘invent’. The pronouns ‘who, what, where, when’ and ‘why’ invite data collection. In order to stimulate solution generation, it is better to start with ‘how’ or ‘invent’. The ‘how’question focuses on the way or principle. The ‘invent’ focus more on the end result.

Divergent phase During the divergent phase of the creativity process, a large number of alternatives are identified. At this stage the most important rule is: ‘quality is quantity’ to generate as many solutions and new ideas as possible. Free association plays an important role during this stage. In addition, the rule of not judging ideas is essential. When confronted with new ideas or concepts it is important that participants take a constructive stance.

Figure 1 ___ The creativity process.


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Clustering phase

What kind of creativity techniques?

Done properly, many ideas and solutions will have been generated and collected during the divergent phase. The sheer number of new options will make it hard to come to select the best ones. For that purpose, an additional stage of â&#x20AC;&#x2DC;cleaning upâ&#x20AC;&#x2122; and acquiring an overview of the options generated (over 200 ideas is not unusual!) is useful before moving on to evaluation and selection. In this phase ideas are grouped together based on commonalities. At this stage some ideas may be clarified and/or elaborated upon for clarification.

There are differences between textual and visual creativity techniques. General speaking, it is time (visual creativity techniques require more time than textual) and quantity (textual) versus detail (visual). Both kinds of techniques have advantages and disadvantages. Drawing may cover more of the original ideas because one does not have to reduce the idea into words but one has to be able to draw what one thinks. Textual is faster, but there can be problem with foreign languages and limitations because of the meaning of the words used. As a bottom line, creative techniques should be provocative and force thoughts out of the normal routine and into the open.

Converging phase In the converging phase, all the ideas have the benefit of the doubt (the value of the idea may not be apparent at first), but one should also make decisions and work towards the stated objective. The alternatives chosen are then evaluated and selected.

Examples of creativity tools 1> Classical Brainstorming The term Brainstorming has become a commonly used word in the English language as a generic term for creative thinking. The basis of Brainstorming is generating ideas in a group situation based on the principle of suspending. The generation phase is separate from the judgment phase of thinking. Basic rules for Brainstorming are: > The facilitator writes down all the ideas on a large sheet of paper or board; > The participants call their spontaneous ideas as a reaction on the problem definition; > The participants associate on each others ideas;

79 Figure 2 ___ The creativity process.


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Figure 3 ___ Classical brainstorming session for identifying new applications for renewable energy technologies.

> The participants do not express their critics on each others ideas and; > The participants try to do this at a high speed.

2> BrainWriting BrainWriting is a technique similar to brainstorming. There are many varieties, but the general process is that all ideas are recorded by the individual who thought of them. They are then passed on to the next person who uses them as a trigger for their own ideas. BrainWriting enables people who have ideas but are concerned about voicing them in a broader group to anonymously make them visible. They thus do not have to â&#x20AC;&#x2DC;competeâ&#x20AC;&#x2122; with others to be heard. It also helps that all ideas are visible and can be easily scanned to trigger new ideas. It can

80 Figure 4 ___ 6-3-5 BrainWriting worksheet.

Figure 5___ Participants in a BrainWriting session creating solutions for packaging waste on the street.

speed things up because everyone is offering ideas all of the time. Examples of this include: BrainWriting Pool_ Each person, using Post-it notes or small cards, writes down ideas, and places them in the centre of the table. Everyone is free to pull out one or more of these ideas for inspiration. Team members can create new ideas, variations or piggyback on existing ideas. BrainWriting 6-3-5:_ The name comes from the process of having 6 people write 3 ideas in 5 minutes. Each person has a blank 6-3-5 worksheet (see Figure 4). Every participant writes the problem statement at the top of his or her worksheet (word for word from an agreed problem definition). They then write 3 ideas, on the top row of the worksheet in a complete and concise sentence (6-10 words). After five minutes, the worksheets are passed on to the next person upon which each participant writes down another 3 ideas. The process continues until the worksheet is completed resulting into a total of 108 ideas on the 6 worksheets.


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3> Mind Mapping Mind mapping, also called ‘spider diagrams’ represents ideas, notes, information etc. in far-reaching tree-diagrams. To draw a mind map: > Lay-out a large sheet of paper in landscape format and write a concise heading for the overall theme in the center of the page. > For each major sub-topic or cluster of material, start a new major branch form the central theme, and label it. > Each sub-sub-topic or sub-cluster forms a subordinate branch to the appropriate main branch. > Carry on in this way for every finer sub-branches. It may be appropriate to put an item in more than one place, cross-link it to several other items or show relationships between items on different branches. Coding with colour, character or size can do this. Alternatively, the use of drawings instead of writing may help bring the diagram to life. Software packages, like Freemind (for free downloadable from http://freemind.sourceforge.net/) are available that support working with mind maps, thus making it easier to amend and reshuffle the map.

4> Five Ws and H The ‘Five Ws and H’, are six universal question and are an influential, inspirational and imaginative checklist. The technique uses basic questions generating prompts: Who? Why? What? Where? When? How?

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The ‘Five Ws and H’ is a divergent creativity technique and can be used during the early stages of problem solving to gather information and to define more detailed the main (sub)problems to be solved. The checklist can be useful either as an informal or systematic way of generating lists of questions for which to find answers. A Mind Map, with the ‘Five Ws and H’ as starting nodes can be used to facilitate the process (see Figure 6).

5> SCAMPER The SCAMPER technique is a checklist that will assist in thinking of changes that can be made to an existing product to create a new one. These changes can be used either as direct suggestions of change or as starting points for lateral thinking. ‘SCAMPER’ stands for the following seven kinds of potential product changes: S – Substitute – components, materials, people; C – Combine – mix, combine with other assemblies or services, integrate; A – Adapt – alter, change function, use part of another element; M – Modify – increase or reduce in scale, change shape, modify attributes; P – Put to another use; E – Eliminate – remove elements, simplify, reduce to core functionality; R – Reverse – turn inside out or upside down. Start by isolating the product or subject that will be the focus. Next ask for the seven SCAMPER topic questions about the product or subject. Continue asking “How can…..?”, “What else…..?”, “How else…?” for every idea.

6> Analogies Analogies are used to estrange the participants themselves from the original problem statement and to come up with inspiration for new solutions and approaches. These analogies can take a number of forms, which are presented in Table 1. For more information: see Tassoul, 2005 and http://www.mycoted.com/creativity/techniques/index.php http://creatingminds.org/tools/tools_all.htm Figure 6 ___ Start of using a Mind Map for Five Ws and H.

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Table 1 ___ Types of analogy.

Figure 7 ___ Analogies for creating a foldable cover for a bicyclist.

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D4S RULES OF THUMB

1> Selection of low-impact materials_ a> Cleaner materials 1_ Do not use materials or additives which are prohibited due to their toxicity. These include PCBs (polychlorinated biphenyls), PCTs (polychlorinated terphenyls), lead (in PVC, electronics, dyes and batteries), cadmium (in dyes and batteries) and mercury (in thermometers, switches, fluorescent tubes). 2_ Avoid materials and additives that deplete the ozone layer such as chlorine, fluorine, bromine, methyl bromide, halons and aerosols, foams, refrigerants and solvents that contain CFCs. 3_ Avoid the use of summer smog-causing hydrocarbons. 4_ Find alternatives for surface treatment techniques such as hot-dip galvanization, electrolytic zinc plating and electrolytic chromium plating. 5_ Find alternatives for non-ferrous metals such as copper, zinc, brass, chromium and nickel because of the harmful emissions that occur during their production. b> Renewable materials 6_ Find alternatives for exhaustible materials. c> Lower energy content materials 7_ Avoid energy-intensive materials such as aluminum in products with a short lifetime. 8_ Avoid raw materials produced from intensive agriculture.

d> Recycled materials 9_ Use recycled materials wherever possible, to increase the market demand for recycled materials. 10_ Use secondary metals such as secondary aluminum and copper instead of their virgin (primary) equivalents. 11_ Use recycled plastics for the inner parts of products which have only al supportive function and do not require a high mechanical, hygienic or tolerance quality. 12_ When hygiene is important (as in coffee cups and some packaging) a laminate can be applied, the centre of which is made from recycled plastic, covered with or surrounded by virgin plastic. 13_ Make use of the unique features (such as variations in colour and texture) of recycled materials in the design process. e> Recyclable materials 14_ Select just one type of material for the product as a whole and for the various sub-assemblies. 15_ Where this is not possible, select mutually compatible materials. 16_ Avoid materials which are difficult to separate such as compound materials, laminates, fillers, fire retardants and fiberglass reinforcements. 17_ Preferably use recyclable materials for which a market already exists. 18_ Avoid the use of polluting elements such as stickers which interfere with recycling.

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f> Materials with positive social impact, i.e., by generating local income 19_ Make use of materials supplied by local producers. 20_ Stimulate arrangements for recycling of materials by local companies which can substitute (part of) the raw materials of the company.

2> Reduction of materials usage_ a> Reduction in weight 21_ Aim for rigidity through construction techniques such as reinforcement ribs rather than ‘overdimensioning’ the product. 22_ Aim to express quality through good design rather than over dimensioning the product. b> Reduction in (transport) volume 23_ Aim at reducing the amount of space required for transport and storage by decreasing the product’s size and total volume. 24_ Make the product foldable and/or suitable for nesting. 25_ Consider transporting the product in loose components that can be nested, leaving the final assembly up to a third party or even the end user.

> Optimization of 3> production techniques_ a> Alternative production techniques 26_ Preferably choose clean production techniques that require fewer harmful auxiliary substances or additives (for example, replace CFCs in the degreasing process and chlorinated bleaching agents). 27_ Select production techniques which generate low emissions, such as bending instead of welding, joining instead of soldering. 28_ Choose processes which make the most efficient use of materials, such as powder coating instead of spray painting.

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b> Fewer production steps 29_ Combine constituent functions in one component so that fewer production processes are required. 30_ Preferably use materials that do not require additional surface treatment. c> Lower/cleaner energy production 31_ Motivate the production department and suppliers to make their production processes more energy efficient. 32_ Encourage them to make use of renewable energy sources such as wind energy, water power and solar energy. Where possible, reduce the use of fossil fuels and reduce environmental impact by, for example, choosing low-sulphur coal or natural gas. d> Less production waste 33_ Design the product to minimize material waste, especially in processes such as sawing, turning, milling, pressing and punching. 34_ Motivate the production department and suppliers to reduce waste and the percentage of rejects during production. 35_ Recycle production residues within the company. e> Fewer/cleaner production consumables 36_ Reduce the production consumables required – for example, by designing the product so that during cutting waste is restricted to specific areas and cleaning is reduced. 37_ Consult the production department and suppliers as to whether the efficiency with which operational materials are used during production can be increased – for example, by good housekeeping, closed production systems and in-house recycling. f> Safety and cleanliness of the workplace 38_ Choose production technologies that require fewer harmful substances and generate less toxic emissions. 39_ Use production techniques that generate less wastes, and organize efficient in-company re-use and recycle systems for the remaining waste. 40_ Implement systems for in-company working conditions, health and safety like SA8000.


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> Optimization of 4> distribution system_

> Reduction of impact 5> during use_

a> Less/cleaner/reusable packaging 41_ If all or some of the packaging serves to give the product a certain appeal, use an attractive but lean design to achieve the same effect. 42_ For transport and bulk packaging give consideration to reusable packaging in combination with a monetary deposit or return system. 43_ Use appropriate materials for the kind of packaging – for example, avoid the use of PVC and aluminum in non-returnable packaging. 44_ Use minimum volumes and weights of packaging. 45_ Make sure the packaging is appropriate for the reduced volume, foldability and nesting of products – see strategy 2b.

a> Low energy consumption 54_ Use the lowest energy consuming components available on the market. 55_ Make use of a default power-down mode. 56_ Ensure that clocks, stand-by functions and similar devices can be switched off by the user. 57_ If energy is used to move the product, make the product as light as possible. 58_ If energy is used for heating substances, make sure the relevant component is well insulated.

b> Energy efficient transport mode 46_ Motivate the sales department to avoid environmentally-harmful forms of transport. 47_ Transport by container ship or train is preferable to transport by lorry. 48_ Transport by air should be prevented where possible.

b> Clean energy source 59_ Choose the least harmful source of energy. 60_ Do not encourage the use of non-rechargeable batteries – for example, a portable radio can be supplied with a battery charger, encouraging the use of rechargeable batteries; 61_ Encourage the use of clean energy such as low- sulphur energy sources (natural gas and lowsulphur coal), fermentation, wind energy, water power and solar energy. An example is a solar heater which does not require energy for heating water during the summer.

c> Energy efficient logistics 49_ Motivate the sales department to work preferably with local suppliers in order to avoid long-distance transport. 50_ Motivate the sales department to introduce efficient forms of distribution – for example, the simultaneous distribution of larger amounts of different goods. 51_ Use standardized transport packaging and bulk packaging (Europallets and standard package module dimensions).

c> Fewer consumables needed 62_ Design the product to minimize the use of auxiliary materials – for example, use a permanent filter in coffee makers instead of paper filters, and use the correct shape of filter to ensure optimal use of coffee. 63_ Minimize leaks form machines which use high volumes of consumables by, for example, installing a leak detector. 64_ Study the feasibility of reusing consumables –reusing water in the case of a dishwasher.

d > Involve local suppliers (distributed economies) 52_ Explore options for contracting more local transport/distribution. 53_ Form logistic consortia with fellow companies in the community to jointly outsource distribution and transport in an efficient way and by involving local distributors.

d> Cleaner consumables 65_ Design the product to use the cleanest available consumables. 66_ Make sure that using the product does not result in hidden but harmful wastes – for example, by installing proper filters.

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e> Reduce wastage of energy and other consumables 67_ Misuse of the product as a whole must be avoided by clear instructions and appropriate design. 68_ Design the product so that the user cannot waste auxiliary materials – for example, a filling inlet must be made large enough to avoid spillage. 69_ Use calibration marks on the product so that the user knows exactly how much auxiliary material, such as a washing powder, to use. 70_ Make the default state that which is the most desirable from an environmental point of view – for example, ‘no cup provided by drinks dispenser’ or ‘doublesided copies’. f> Health supporting, social added value 71_ Make sure the product has zero or minimal impact on the health of the user by avoiding use of toxic substances, low radiation levels etc. 72_ Design the product in accordance to the socio-economic needs and possibilities of the user groups. 73_ Assess the opportunities to design products for low-income groups.

> Optimization of 6> initial lifetime_ a> Reliability and durability 74_ Develop a sound design and avoid weak links. Special methods such as the Failure Mode and Effect Analysis have been developed for this purpose.

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b> Easier maintenance and repair 75_ Design the product in such a way that it needs little maintenance. 76_ Indicate on the product how it should be opened for cleaning or repair – for example, where to apply leverage with a screwdriver to open snap connections. 77_ Indicate on the product itself which parts must be cleaned or maintained in a specific way – for example, by colour-coded lubricating points. 78_ Indicate on the product which parts or sub-assemblies are to be inspected often, due to rapid wear. 79_ Make the location of wear on the product detectable so that repair or replacement can take place on time.

80_ Locate the parts which wear relatively quickly close to one another and within easy reach so that replacements are easy to dismantle for repair or replacement. c> Modular product structure 81_ Design the product in modules so that the product can be upgraded by adding new modules or functions at a later date for example, plugging in larger memory units in computers. 82_ Design the product in modules so that technically or aesthetically outdated modules can be renewed. For example, make furniture with replaceable covers which can be removed, cleaned and eventually renewed. d> Classic design 83_ Design the product’s appearance so that it does not quickly become uninteresting, thus ensuring that the product’s aesthetic life is not shorter than its technical life. e> Strong product-user relation 84_ Design the product so that it more than meets the (possibly hidden) requirements of the user for a long time. 85_ Ensure that maintaining and repairing the product becomes a pleasure rather than a duty. 86_ Give the product an added value in terms of design and functionality so that the user will be reluctant to replace it. f> Involve local maintenance and service systems 87_ Design the product with the possibilities of local service and maintenance companies in mind. 88_ Jointly develop new innovative service and repair centers in the region that can be involved both in servicing the new products an existing products.

> Optimization of 7> end-of-life system_ a> Re-use of product 89_ Give the product a classic design that makes it aesthetically pleasing and attractive to a second user. 90_ Make sure that the construction is sound so that it does not become prematurely obsolete in the technical sense.


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b> Remanufacturing/refurbishing 91_ Design for dismantling (from product to sub-assemblies) to ensure easy accessibility of the product for inspection, cleaning, repair and replacement of vulnerable or innovation-sensitive sub-assemblies or parts. 92_ The product should have a hierarchical and modular design structure; the modules can then each be detached and remanufactured in the most suitable way. 93_ Use detachable joints such as snap, screw or bayonet joints instead of welded, glued or soldered connections. 94_ Use standardized joints so that the product can be dismantled with a few universal tools – for example, use one type and size of screw. 95_ Position joints so that the person responsible for dismantling the product does not need to turn it around or move it. 96_ Indicate on the product how it should be opened non-destructively – for example, indicate where and how to apply leverage with a screwdriver to open snap connections. 97_ Locate the parts that are relatively quickly worn out close to one another, so that they can be easily replaced. 98_ Indicate on the product which parts must be cleaned or maintained in a specific way – for example, by using colour-coded lubricating points.

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e> Taking in consideration local (informal) collection recycling systems 104_ Assess the possibilities of existing formal or informal recycling activities in the community to be involved in the take-back and recycling of the product. 105_Jointly develop and/or support new and efficient collection and recycling systems in the region.

c> Recycling of materials 99_ Give priority to primary recycling over secondary and tertiary recycling. 100_ Design for disassembly (from sub-assemblies to parts). 101_ Try to use recyclable materials for which a market already exists. 102_ If toxic materials have to be used in the product, they should be concentrated in adjacent areas so that they can easily be detached. d> Safer incineration 103_ The more toxic materials there are in a product, the more the responsible party has to pay for its incineration. Toxic elements should therefore be concentrated and easily detachable so they can be removed, paid for and treated as a separate waste stream.

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D4S ORGANISATION & COMMUNICATION Managing the Process Morten Karlsson

Introduction Many of the problems and barriers that occur in a typical D4S project have a solution in management, for instance, improved communication between functions or people in the company. Your company will benefit in thinking through a couple of things regarding how you will manage your work. Organisation, information flow, and competencies, are all factors that need attention. This section is aimed at helping small and medium-sized companies to structure and manage their D4S activities as a process. This will involve a larger part of the company. After having successfully evaluated and perhaps tested the methods and tools in this guide your company will benefit from a structured work process in the organisation as you implement the new approach. Ă?n fact, some elements of such a structured work process might already be required for initiating and testing those methods and tools. To achieve this it is necessary to set up a structure for activities on three levels, of strategic as well as operational nature: > Activities that benchmark, redesign, or innovate D4S products. These activities involve engineering and marketing activities as well as related activities, for instance purchasing and production planning. > Routine management measures that ensure the product portfolios conformance with the stipulated goals and make sure that this is in line with external as well as internal requirements. > Activities on a strategic level that monitors the companyâ&#x20AC;&#x2122;s interest area for D4S and responds to changes in the requirements.

Your company may have many products and are active on different markets? Then you may have to prioritise your efforts. A systematic prioritisation of the environmental work for product portfolio and all activities you have in product development will be necessary but correctly done it can lead to the following benefits: > Increased know-how! The knowledge gained in an D4S project or through eco-benchmarking can be used also in other development projects. For instance, life cycles may look similar or design solutions can be transferred to other products. Documentation and communication with people that works operationally with product development and D4S are important parts of managing the process. > Improving the image! A single product with poor environmental qualities in your portfolio may jeopardise the gains in image you build with the other D4S activities. The chain is not stronger than the weakest link. It is possible to assure a certain baseline of environmental performance for all our products when managing the process. > Stability! The company takes a great risk if responsibilities and know-how are isolated to a single or relatively few individuals. People leave for other jobs, gets ill or perhaps retire. It is important that several individuals of the company share knowledge, responsibilities, and accumulated experience. Product development and innovation are complex tasks that involve many different business functions and professionals. Perhaps the most crucial issue to deal


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with is to carefully think through who will be involved and what information they need to have and from whom they will receive it. A company that seeks to manage product oriented environmental issues will need to integrate new competence to product development. Environmental issues will be included in marketing, design, engineering, and production. For this you will need to establish new activities in the product development process and add new competence through training or recruitment.

What To Do This section will describe what you need to do to manage an D4S process and explain why it is important. The measures described are fully in line with parts of the ISO 14001 standard and the technical report ISO/TR 14062. Managing D4S follows the same general layout as many other management systems or structures. This means that an existing management system can be utilized to cover product oriented environmental issues. The management of an D4S process can be described as a cycle of plan – do – check – act as in the figure below.

A larger company will formalise the working structure to be able to benefit from a well-managed D4S process as previously discussed. A small company with only a few employees will probably not be as formal. But also a single individual will benefit from addressing a problem and work task in a systematic manner. The figure addresses the following phases: > Initial Review If the company has not worked with environmental issues from a product perspective it is advisable to investigate the products’ life cycles as well as the company’s capabilities to work with D4S. > Plan The Activities and Design the Process Most of the work on a management level (or of management character) takes place when planning the actual work. It is advisable not to save efforts during the planning. With a well thought through organisation and communication flow, time and resources will be saved. > Do D4S Redesign, Benchmarking or radical Innovation Your company use the tools and methods described in this guide. Of course, the activities and tools chosen will vary between different companies. > Check the Result To be able to know if efforts pay off if you do the right things in the right way you should check the results and verify the goals set up for D4S. > Act on Issues that can be Done Better One of the major reasons to follow-up on results of your activities is to learn how to make improvements in the future. Environmental issues are complex in nature, and it is often possible to improve efforts over time. Another important reason to “Act” is the possibility, especially for a larger firm, to share experiences and know-how gained by some to other staff working with product development or D4S within the organisation.

92 Figure 1 ___ Typical PDCA management structure


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How To Do It This section describes how the D4S process can be managed in practice. It also gives advice on how practical problems that may occur can be dealt with. You are to implement a system that includes routines for communication, work activities, verification, and documentation in order to support the handling of product oriented environmental issues. The system should allow the organisation to identify improvement needs and to develop products that meet these needs. In addition, the system should stimulate the organisation to assess its own activities and results and to learn how to do this even better and more efficient in the future.

Commit and Establish a Baseline Managing D4S will require active involvement or support from a number of important decision-makers in a company. Often, long-term commitments, such as D4S, are postponed to be dealt with in the future due to the prioritisation of work tasks that are deemed to need more immediate attention. Thus, D4S competes internally with other product development projects and aspirations. It is therefore important to secure resources and commitment at an early stage. Top management must understand the environmental issues and their importance for the company, to be willing to allocate necessary resources of time, money and personnel. Recognition of the advantages and the drivers for D4S, is essential together with a realistic view of what needs to be accomplished by the organisation to reach desired benefits. The outcome of the above should be an environmental policy that includes product development, the formation of an implementation team and a budget that includes the resources judged to be necessary. People will be occupied with other work task of importance in your organisation. It is important to acknowledge the importance of working with D4S and the benefits it leads to. A common baseline will be the key to being able to maintain a certain effort on environmental issues in product development.

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Formation of Implementation Team The first task, after a baseline has been established and necessary funding budgeted, is the formation of an implementation team. The implementation team can consist of employees or other people that are working for the company (for instance a consultant). The implementation team will not necessarily perform all tasks and construct all routines required for the system, but are needed for a complete overview of the development. The implementation team could include one ore more individuals that has some experience or education that gives them: > Competence in D4S. > Competence in product development. > Have a leading position in the company. Someone with credibility and that people are willing to listen to. > Competence in how the company function. Preferably after long experience working for the company. > Competence in management and system building. The members of the implementation team play an important role during the design of the D4S process and during training and implementation. However, the team members can also be assets during the continuation of the work as motivators and culture carriers. In addition, they can play a role in the work to solve problems and work with improvements of the system. Implementation of D4S requires a number of competences in management, product development as well as environmental issues. Even if the responsibility to implement D4S is placed on one co-ordinator it is necessary to assure many competences either as advisory functions or as a team under lead of someone responsible.

Product Portfolio Environmental Review You will need to review the environmental impacts for all products in your portfolio by using the techniques presented earlier in this material. Quite often a company has many similar products. It is then possible to extrapolate and do assumptions based on similarities between the various products.

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The result is used throughout many other activities and should provide a good map of the products life cycles and the associated environmental impacts. The review should additionally consider existing and foreseeable future legislative and policy instruments that are relevant for the products to make certain that compliance is or will be ensured. A review of the product portfolio will allow you to work more effective with more products and utilize their market potential. It will decrease the business risk your company faces on environmental issues.

Organisational Review Another review that will help to manage D4S takes its point of departure in mapping out the product development process. How are products developed today? Who will be involved in the D4S process? What information do they need at hand and with whom do they need to communicate? The following five main questions seeks an answer: 1> Identify the most important actors and functions that are relevant for the D4S process. This can be both external (e.g. suppliers, customers, and authorities) and internal business functions or support staffs. 2> What information do they need and what result do they deliver? 3> From whom do they need to receive information? 4> To whom will they have to provide information? 5> How much of their work time do you think they will be able to allocate to the D4S process? 6> What competencies do they possess today related to environmental issues and D4S? The last two questions are “sanity checks” in order to balance the ambition level of the D4S process with the resources you have at hand. Please refer to “Complementary Comments to Organisational Review” below as well as worksheet on organisational structure and communication flows.

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Complementary Comments to Organisational Review Thinking through this tactically can save a lot of work. The team can divide the portfolio into product groups that has similar environmental characteristics (same material, usage, production processes, etc.) or focus its work on the products with the largest predicted sales volume. For instance, spending time on a product that is at the very end of its commercial life cycle may be unwise. To aid in the future system implementation work it will be beneficially to also look into capabilities (strength and weaknesses) the company has today. This will help the implementation team to work out a suitable training program and also to find the right level of ambition for the system. Too complicated work methods may not be willingly accepted from start if the organisation has little experience on the issue in the beginning. Typical strengths to search for could be; > Personnel is well educated and aware of environmental issues. > A consistent and well-defined process for product development and innovations. While typically weaknesses could be: > Vague connections with suppliers leading to difficulties finding information of the products’ life cycles. > Large investments / long time-periods to change product design. > Looking into the organisations capabilities from a realistic perspective and set the initial ambition on a level that is appropriate will be a good insurance not to loose pace during the implementation. The work efforts needed for the above vary greatly. For instance, a company that has a quality system, will already have done some of the above. A smaller company will probably not have to do an extensive survey to figure out if the personnel are environmentally aware and knowledgeable. It is, however, important that the implementation team acquires this type of information to design training programs and to decide when and how environmental issues should be brought up in the product development process.


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Complementary On Internal Communication Knowing who has what information and who needs it is the key knowledge for successful internal communication. Information can be communicated verbally on project meetings or on request. It can also be advisable to have a master document that follows the ordinary product documentation in a project. This master document requests the project team members and the project leader to fill in specific data and results of the product. Another common way of communicating D4S is to have a D4S guide with guidelines and checklists that helps the product developers in their work. Some companies even have a formal D4S standard that defines a minimum of environmental requirements.

Prioritise Efforts The capacity your company has to develop new products is of course always limited. Your company hopefully already has many development projects and ideas for future products. You will have to prioritise what are the most important issues and products to address for environmental improvements. Products or projects with high priority should be exposed for one or more of the following factors: > High environmental impacts in the life cycle according to the conducted product portfolio review. > Environmentally aware customers. > Existing or future legislation, for instance extended producer responsibility. > Potential cost savings. Perhaps energy saving measures during product use is possible? This could allow for higher profit margins for the product. > Other potential benefits. Perhaps suitability for PSS measures or other means to gain increased added value or customer loyalty. With limited resources for product development a prioritisation among improvement measures will enable you to increase the benefits from the investment.

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Implementation The largest difference when it comes to managing D4S comprehensively carrying out an initial pilot project is that the motive now is to integrate the product oriented environmental issues with the existing processes in the company for innovation and product development. Also in other traditional development projects should environmental issues be considered and incorporated. Hence, the implementation has the goal to incorporate the tools and methods of this guide into the existing product development process where appropriate. The process of an implementation process should include the steps described below in a chronological order: > Setting of objectives_ General objectives are set on the entire product portfolio. The objectives can be of different types. They can be restrictions on usage of certain materials or production methods. Or they can be long-term goals in correlation with the environmental policy or findings in the environmental review of the portfolio. In order to be able to measure the objectives it can be of help to develop quantitative indicators. > Build Awareness not only on environmental issues but the reason why the company benefits from a systematic approach on how to deal with product oriented environmental issues and including this in product development. The aim of this is all personnel at the company and the main working method is information and education. > Build the process with a point of departure in the existing process for product development in the company. This includes the allocation of responsibilities for the D4S process, a work process that leads to the definition of targets, and documentation procedures. > Allocating Responsibilities_ Responsibilities must be allocated so that it corresponds to activities on three different levels, as described in the introduction. At first, responsibility should be allocated for individual development projects. Normally, this responsibility is placed on the project leader. The project leader is then responsible for meeting targets and for documenting the process. Further, responsibility should be given to an individual who acts as a controller.This individual should have the authority to initiate development work and to

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halt a market launch of products that do not face up to the companyâ&#x20AC;&#x2122;s environmental requirements. Finally, responsibility should be determined to ensure that the existing requirements are fully updated and in line with external demands on the company. The responsibility should be so defined that it is possible to anticipate and respond to changes in the stakeholdersâ&#x20AC;&#x2122; requirements on the company. This responsibility can be placed on a staff or expert level. > Setting of targets_ Targets are defined as goals that should be met in development projects or in other activities within the system (such as training). They reflect the objectives. The process of setting of defined targets must be integrated with the product planning phase of product development where other criteria on the product are set. Environmental targets will have an impact not only on the products environmental characteristics but also on other product quality factors. > Documentation procedures_ It should be clear on what should be recorded for the future and how it is to be recorded. The documentation procedures should be a natural part of the D4S process. At least, the productâ&#x20AC;&#x2122;s compliance with regulations and fulfilment with targets should be documented and relevant indicators calculated. It can also be relevant to record issues of interest for stakeholders such as waste managers or recyclers and matters of interest for customer requests (e.g. material content). > Enforce Readiness_ This implementation step includes training of all relevant personnel active with innovation, product design, marketing, etc on the actual work tasks they are to perform. Hands-on training with tools and work processes in D4S is an essential part.

Further Comments on Objectives and Targets

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Setting the objectives and targets for your effort is entirely up to what the company wants to achieve with its efforts. Objectives are goals set with an overall scope while targets are detailed requirements, for instance as a development criteria, that arise from the objective and that needs to be met to reach the goal. Objectives and targets can be set both on activities (such as training) and on products or groups of prod-

ucts. The environmental review of your product portfolio together with a prioritisation among the development projects normally forms the foundation to set objectives and targets. The objective and targets are central in the future activities and should have the following characteristics: > Support the environmental policy and be in line with the baseline established by top management. > Quantifiable and able to measure if possible. > Always be verifiable. > Reflect the findings in the environmental review and outcomes of the prioritisation.

Training The company will have to train and inform its personnel on how they can tackle product oriented environmental issues. It can be a good starting point to assess the existing knowledge level on environmental issues. Perhaps it is necessary to give both basic education on environmental issues as well as specific training on D4S to development personnel? Training will help to set everyone in the company on a baseline understanding on what should be achieved and why. Will save time and help to avoid misunderstandings in the long run.

Documentation Documentation serves three major roles in this context and can be used for both internal as well as external purposes. The primary role of documentation is related to rotation of personnel. It should facilitate for personnel that has not previously been involved working with product oriented environmental issues at the company to introduce themselves to the task. That is, a manual that documents tools and procedures to perform D4S at the company. Secondly, documentation serves the role to allow for verification and follow-up activities through the documentation of actions taken and achieved results for development projects. Generated design solutions and performed assessments and test runs can be valuable information for future development projects. The infor-


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mation can also be used to improve the process of conducting D4S itself. Finally, the documentation can be used to respond to surveys and questions from customers and other stakeholders, or in marketing and product information. Typical issues here could be a bill of materials and instructions for the end of use phase. Stable and consistent documentation routines will help to avoid mistakes and misunderstandings and will save time in the long run.

Follow-up activities and Improvements The activities and achieved results need to be reviewed periodically by the responsible manager and by top management. If D4S is a part of ISO 14001 or ISO 9000 routines and demands stipulated by these management systems must be met. However, even if this is not the case there are rational reasons to make a serious review of the D4S processes and their results. Studying past projects and working methods, learning from failures and successes, will help to work with improvement measures and working methods in the future that are more effective and gives better results.

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tives reflect the environmental impacts associated with the productsâ&#x20AC;&#x2122; life cycles? > Have objectives and targets been met? If not why? > Is the capability of the organisation sufficient to run the D4S process? Can it be enhanced? Are the personnel working with D4S happy with the process and its tools. Are they motivated? > How many product improvement measures have been taken? Number of ideas generated? Is it sufficient? Can the D4S process or its tools be improved to enhance creativity? Etc.

References ISO 14001, ISO/TR 14062, BS 8555

Review and Continuous Improvement Everything needs maintenance to work well in the long run, and this includes a management system. The systems capability to improve productâ&#x20AC;&#x2122;s environmental characteristics through product development and design changes is of course the main issue to evaluate. It is suggested that this is done periodically (for instance annually). The company can improve its capability working with D4S as well as its productsâ&#x20AC;&#x2122; environmental characteristics. In order to evaluate this capability the company may ask itself a series of questions: > Does the current environmental policy and objectives reflect the requirements from legislation and customers? > Does the current environmental policy and objec-

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1 BASIC INTRODUCTION TO RESPONSIBLE EXTERNAL COMMUNICATION 1.1 Environmental and sociocultural oriented external communication The best green and socially responsible product, service or product service system is of no use if it is not successful on the market. Then it is also not sustainable, because Sustainability also includes success in the economic dimension. A suitable external communication strategy helps creating market success because it increases awareness of potential customers and retailers about the offer, its qualities and benefits, its providers, and the benefits of the offer compared to its competitors. Under the term â&#x20AC;&#x153;responsible communicationâ&#x20AC;? we summarise in this text mainly four fields: > environmentally and socially responsible consumer research > environmentally and socially responsible public relations (PR) > environmentally and socially responsible advertisement. > environmentally and socially responsible communication through the product itself. Thus responsible communication stands at the

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D4S External Communication Ursula Tischner and Agim Meta

beginning of a development process (market research) and at the end, when the offer is introduced into the market (advertisement/ PR) and is a permanent activity when it comes to creating or keeping a brand or company identity (advertisement/ PR). Products also communicate through their shape, colour and surfaces/ materials, also known as product semantics which is also part of the external communication of a company. We will cover not only environmental aspects but also include socio-cultural aspects under the heading of responsible communication. The field of internal communication and management is explained more in detail in Module F.

1.2 Responsible Communication as part of the marketing functions The realisation and market introduction of a redesigned or new D4S product or service differ little from usual procedures. In this phase normally activities such as making prototypes, running tests, planning of manufacturing in large series and launch in a test market take place. In the test launch the reactions of the users to the environmental and social qualities of the new product/ service can be assessed together with other criteria. With the gained information final amendments in product/ service design can thus be completed before the final market introduction if necessary Prior to market introduction, the company will need

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to plan a communications strategy (advertising), pricing strategy, distribution strategy – for take back systems the re-distribution strategy as well. In all those fields that normally are managed by marketing and logistic experts environmental aspects need to be considered such as selection of means of transport and packaging. For the communication strategy the company should determine whether the target group is sufficiently environmentally conscious to appreciate the environmental benefits of the new offer. The company will need to decide whether to present and use the environmental and social benefits as a selling point in its advertising and other marketing communications, i.e. when addressing distributors, at fairs etc. The general function of communication as part of a company’s marketing strategy is to show (environmental) advantages of its products and services. It should present the company’s image from inside out (external communication) as well as increase the internal competence for successful (environmental) marketing concepts and business development (internal communication). Here we focus on external communication. Be aware that external communication is not only directed towards the potential customers of a company but also to other stakeholders and media, because they have a huge influence on opinion building of consumers/ customers! For external communication various communication means or platforms are available, in responsible communication one has to pay attention to effectiveness, environment-friendliness and “political correctness” of those means.

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Examples of eco-oriented communication strategies are: > Information about pollution-free products and processes > Using/ showing environmental standards and labels > Sales promotion focused on environmental aspects like energy efficiency, nature protection > Information about environmental effects of the product/ service > Environment related public relation activities

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Examples of socio-oriented communication strategies are: > Information about fair trade activities > Using/ showing social standards and labels > Sales promotion focussing on social aspects like health, equity, fair labour conditions > Information about social effects of the product/ service > Socio-cultural related public relation activities Normally communication as part of the marketing functions is designed and realised without in depth considerations of the environmental and social aspects of the offer that is to be communicated. Generally it is possible to use the tools and methods of normal communication also in responsible communication activities – only the content, the measures and the questions to be asked/ subjects to be communicated might be different. Furthermore there are some additional communication channels available for responsible products, i.e. special eco-oriented magazines, internet sites, communities. It is essential in responsible communication to understand the customer’s/ consumer’s needs and ideas about social and environmental aspects and to translate the positive social and environmental qualities of the offer into clear benefits for the customers/ consumers. Then the potential for market success will increase.

Helpbox 1: Some Definitions Responsible Marketing (Green Marketing, Social Marketing) Responsible Marketing defines the holistic adjustment of a company’s marketing (goals, strategies, concepts) toward environmental and socio-cultural aspects including their necessities and opportunities. It reflects the environmental and social responsibility of an enterprise and its business. All in all business activities shall avoid or at least minimize negative environmental and social impacts with adequate marketing conceptsI.

Corporate Identity

Tischner after Kirchgeorg 2002: in: UmweltWirtschaftsForum 4/02; Hopfenbeck/ Roth 1994


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Corporate Identity describes the unique appearance that a company uses to differentiate from its competitors and generate a unique identity and recognition in the market. It covers all communication means that belong to the company from business cards to letterheads, from advertisement to packaging. Even employee’s outfits, buildings and products can be part of it.The goal is to communicate the company’s image, values and competence to the external world but also to create identification and the right ‘spirit’ internally. Sub categories are Corporate Design (CD), which covers everything that is more or less visual, Corporate Communications (CC), which covers content and management and style of communication, and Corporate Behaviour (CB), which describes rules for the behaviour of employees and others representing the company, internally and externally (especially important for services).

Customer contact/ Relationship management Satisfied customers are the best advertisement for a company and its offers, they recommend the offers and come again. Therefore customers should be treated in a way so that they feel taken serious with their demands and problems. Especially in situations with direct contacts between company and customers it is important to establish routines for good relationship management. Especially with the possibilities of information and communication technologies (ICT), computer and internet the relationship management was established. That ranges from a computer supported customer database to regular customer information through (electronic) letters and includes also tracking the customer behaviour and interest by following their way through websites (cookies) etc. All this should be done carefully and following the motive: less is more, because customers will not like to be overloaded with advertising junk mails.

Sales promotion How to support the direct sales of offers in the

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shops, shopping malls or internet etc. is the subject of sales promotion. For distribution over the “conventional” retail channels one distinguishes staff promotions, channel promotions and consumer promotions. Measures range from flyers and info brochures on the point of sale, over events and tasting offers to lotteries and games or visits at the production facilities etc.

Market launch Market launch involves the delivery of the product or service to the market place. This stage includes presenting and communicating information on the product’s or service’s features and benefits to encourage customers to purchase or procure the product or service.

Communication program At market launch, the product’s relevant environmental aspects can form the basis for a marketing approach. Within the approach, environmental communications can use various instruments and media. A product related environmental communications program could be developed that is coherent with the positioning of product groups or brand families. To develop clear environmental information it can be helpful to follow international and national guidelines (e.g. ISO 14020 series, or the new ISO 14063).

User guidelines A separate category of market communication assists the user in minimizing the products environmental impact during the use and disposal phases. Such communication can be at point of sale or in the instructions supplied with the product.

Product review After market launch, the organization can conduct a review intended to find out whether the expectations of the organization, customers etc. have been met. Feedback and criticism from customers and other stakeholders are an important information source for the organization to improve its cur-

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rent or future products, as well as the design and development process. Therefore, a review of the environmental aspects of the organization’s products and services on the market can be helpful.

1.3 Benefits of responsible communication: Do the right things in the right way and talk about it!

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Generally the consumer awareness about environmental and social aspects is increasing. This is also connected to the media and the environmental and social scandals that are reported. Not only public interest but also the policy includes more and more environmental aspects into decision-making, regulation and legislation. Thus pro-active companies started to deal with these issues already a long time ago. Some of them are communicating their environmentally and socially responsible actions openly and actively, others are doing a lot but only include these activities in their communication in a subtle way. That is directly related to the image a company likes to have and their target group’s expectations about social and environmental responsibility of the company’s offers. If a company’s target groups are interested in environment, health, wellness and connected issues, it is advisable to include these aspects into market communication about the product and the company. If a company’s customers are not interested in these aspects, it has to be decided carefully how much environmental and social aspects should be part of the external communication, respectively if there are arguments connected to the environmental and social benefits of the offer that are highly interesting for the customers, e.g. do they save money because of less energy and material consumption, do they have less risks because of less problematic substances used in the product etc. Normally environmental and social aspects are only additional benefits connected to an offer that is interesting for the customer and not the main argument to buy the product or service. That means that also the other product/ service properties have to fit to the customer’s needs and values. Then the environmental and/

or social benefits can become the main differentiation between the competing offers on the market and thus a convincing sales argument.

1.4 Responsible Market research: Understanding your target groups – and their values and needs Change your point of view: Thinking like the customer The “complete justification to the customers need” – this principle seems to be a tough challenge especially for companies with environmentally and socially friendly offers. It requires an alternation to a customer’s point of view. Not the companies own motives for launching a defined array of products are crucial for the marketing strategy, but the buying motive of an often anonymous target group. It could be necessary to undo certain eco positions in the communication strategy, which are or were part of the corporate identity of the company. But if a company wants to reach target groups outside its eco-niche to substitute products with negative environmental impacts by more sustainable consumption, then they have to accept and learn the mechanism of marketing with all their strategies. The whole business has to act customer oriented, so that the customer can notice the offer to decide on environmental and sustainable products.

Evaluate market acceptance for environmentally friendly offers To win new target groups for eco-offers it is necessary to estimate the openness of the target groups to environmental issues related to the product or service. Therefore the sensitivity of the customer and consumer toward eco-oriented topics has to be evaluated. The characterisation below differentiates environmentalists, people with neutral opinions about environment and opponents. A comparatively simple instrument to analyse the basic position of consumers toward responsible offers is to breakdown possible market reaction in a so called “market-environment-reaction matrix”:


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Table 1 ___ market-environment-reaction matrix after Steger, 1988, http://www.marketing-marktplatz.de/Grundlagen/Oekomkt.htm

This matrix shows, that proactive eco-oriented business can create a declining customer interest, e.g. if it is connected to a decrease in product qualities or an increase of price. Contrariwise the company can expect a positive reaction when using the right package of measures.

1.5 Responsible PR By public relations (PR) measures companies try to inform the public, stakeholders and the media about their philosophy, performance and offers. PR aims at establishing trust and a good relationship, respectively image of the company in the public. This is important because the buying decisions of the customers are very much influenced by the general opinion and stakeholder opinions about the company and its offers. Thus PR must be in line with the Corporate Identity of the company. The more the product/ offer is oriented towards lifestyle and prestige, the more important the image of a brand or a company gets. Particularly in the field of sustainability, confidence in a product, brand or company plays a major role. Therefore possibilities to create confidence by direct, continuous and positive publicity should be used. Examples for PR activities: > Build up contacts to the press and media > Provide photo material and user oriented text, which can be used for editorial reports > Newsletter about news, changes, recent development regarding the companyâ&#x20AC;&#x2122;s politics and offers

> Participate and present company and offers at workshops, conferences, public events > Organise non commercial events for the press and public > Organise workshops about relevant environmental/ social topics > Inform the media/ public about membership in responsible associations, NGOs etc > Sponsor environmentally/ socially relevant activities, e.g. by NGOs > Website containing business philosophy and also environmental/ social topics/ activities > Participate in research projects related to environmental/ social topics and innovation. All these measures, which are addressed to the public, should communicate the corporate identity to be recognized by the reader, audience and visitor. Time after time a stable positive image can be developed. A company should be careful not to risk destroying this positive image, e.g. by acting not so responsible in foreign countries. Nike, Shell and others had to realise that NGOs and consumer organisations can play an important role in uncovering bad business practice in developing countries and thus generating public awareness and even boycotts against unsustainable business. On the other hand quite often the social and environmental activities and innovations of companies are especially interesting for the media and are very welcomed by journals, TV and radio programmes as interesting stories for reports, and thus free advertisement.

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1.6 Responsible Advertisement The aim of advertisement is to inform existing customers about new offers of a company or win new customers. For successful advertisement strategies it is necessary to analyse and identify promising advertisement means and content for the specific offer and target group. Thus advertising a company and its offers is nothing else but exchanging information between the company and its potential customers by using different advertisement means and content. This can be sound, e.g. radio advertisement, image and text, e.g. posters, advertisements in newspapers/ journals, or moving images and sound, e.g. websites, TV and cinema advertisement etc., and three dimensional displays, figures, or give always etc. Content and design of advertisement must be adapted to the values and needs of the specific target groups, the qualities of the offer, and the core competences and marketing strategy of the company. Responsible advertisement > includes environmentally and socially relevant aspects in the content of the advertisement > uses environmentally and socially responsible advertisement means, e.g. preferring material and energy effi-

cient media, using recycled paper, environment-friendly printing ink and methods etc. > is basically honest, and informative but can of course be seductive and emotional.

.1.7 Keeping products/ services under review after their market introduction Well-managed companies keep their products and services under review after they have been introduced to the market. > In fulfilment of voluntary or statutory warranty obligations (guarantee, product liability etc.), and > to secure customer loyalty and maintain the product. Feedback and criticism from customers are also an important resource for companies. They show whether the planned environment-related product qualities prove to be valid in practice. In this way one can determine whether, e.g. > the energy saving potential of the product is used to the extent envisaged, > the product entails a loss of comfort, possibly resulting in its rejection by the user, > there are difficulties in understanding how to use certain functions of a device, or

104 Figure 1 ___ Examples of green advertisements


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> unforeseen changes in user behaviour (possibly triggered by the product itself!) are more or less run counter to the original ecological intent of the product designers (known as ‘rebound effects’). A small, fuel saving city car, for example, sold at a low price will probably fail to achieve the positive environmental effects intended by its environmentally conscious planner if it is used by many of its buyers as an additional second or third car to go shopping in the city at the weekend. Insights from practical experiences should be fed back into the planning process for product revision and the development of new products. This can lead to a continuous improvement of the company’s product range.

1.8 External communication through the product itself Every product communicates with its user/ buyer through shape, colour, surface, symbols, icons etc. that is also discussed as product semantics. In responsible external communication this field has especially three dimensions: > Is the product designed in a way that its functions are understandable to the users and does it encourage using it in the “right” environmentally and socially friendly way? > Is the product designed in a democratic, barrier free way whenever possible, i.e. does it not exclude or discriminate specific target groups from its use, e.g. handicapped people, illiterate people…? > Is the product designed in a way that the aesthetic appeals to the customers/ users and enables him/her establishing a positive relation to it, putting a high (emotional) value to it? Be aware that the understanding especially of symbols, icons, the symbolic meaning of colour etc. is different in different cultures and regions and the aesthetic expectations of consumers can be very different in different target groups. Thus the product semantic has to

be specified to target groups and regions. In the section 3 we describe principles and means for creating responsible product semantics.

1.9 What does this guide offer to successfully implement responsible communication? We introduce a pragmatic approach in this handbook and try to keep the methodology simple and straightforward. Nevertheless we refer to other sources for more detailed information and tools whenever suitable. So this guide can be your initial step into the world of responsible communication and will encourage you to test and elaborate the field further.

2 MORE BACKGROUND INFORMATION State of the art of eco awareness in different countries Europe In North-Western Europe the environmental movement saw a rise after the beginning of the 1970ies, a hype in the 1990 and a decline respectively stabilisation after 2000.

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That goes together with a professionalisation and normalisation of the environmental responsibility of companies and consumers. It is more normal for consumers to integrate specific activities for environmental protection into their daily choices and behaviour and they expect from the companies a minimum amount of environmental protection. That is also supported by a lot of national and/or European environmental legislation and standardisation. The public is a little bit tired related to environmental problems, but with every new scandal the public awareness rises again. Nevertheless the environmentalists had to acknowledge that companies are not “the enemy” but sometimes even very good partners for co-operation, and the hard core environmentally friendly companies had to realise that the environmental soundness is not the only and most important sales argument, but quality, price and aesthetics have to be designed in line with the needs of the target groups. Following these movements also marketing has changed and included more and more environmental and social aspects. Marketing experts saw new chances by focussing more on environmentally beneficial offers

and including emotionally relevant topics like health, nature, natural beauty, pureness etc. in advertisement concepts. That was the birth of eco-marketing or green marketing. It only seems that in the last years the environmental movement became less important. Actually surveys found out that environment just has changed from a highly spectaculous topic to something which is more normal and integrated much more into the daily life of the consumers and producers alike. Today, environmental aspects are an integrated element of the quality of products and services in NorthWestern Europe 2.

Table 2 ___ Developments in Eco-Marketing in Northern/ Western Europe Source: Frank-Martin Belz, Institut für Wirtschaft und Ökologie der Universität St. Gallen

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Media & marketing 12/2000


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if these three elements are related to each other the appearance of the company on the market will be authentic and credible.This is especially true for companies that would like to position themselves as responsible. The following table 3 describes how these three elements are related and can be combined in a marketing plan. The following text describes the main steps important for external communication: Finding the right target groups, bringing offer and target group needs and values in line, finding the right external communication strategy for offer and target group.

3. How to create a responsible Communication plan, APPROACHES, SKILLS AND TOOLS Combining three elements: To develop a holistic communication strategy it is necessary to combine (at least) three elements: the target group(s), the company offers (products and services) and communication of offers and company image. Only

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107 Table 3 ___ Steps in a successful marketing plan


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STEP 1: Identifying the right Target Groups for the offer Helpful Target group models At the beginning of the target group models target groups were described according to demographic and economic data, e.g. age, sex, education, family status, income etc. but experience showed that with a more and more individualised society this is not sufficient to describe and predict consumer choices. Thus life style models were developed for target group analysis such as the Sinus Milieus.

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Sinus Milieus: see www.sociovision.com Since 1978 the Sinus Institute in Heidelberg Germany is working on consumer research. The target group definition of Sinus is based on the values and entire system of references that make up a person’s world. Differences in life styles are often more important for the realities of daily life than are differences in respect to the socioeconomic situation. Today, social groupings are based less on class distinctions and more on common life styles and the perception thereof. The Sinus model takes into account the dimensions of the social situation as well as value orientation, life-style, and aesthetic preferences. The Sinus milieu models are available for Germany, Austria, Switzerland, other European countries, GUS, and the US. Based on the real life situation and life style of consumers, Sinus milieus supply a methodical approach for the understanding of target groups for marketing and communications planning. As compared to conventional planning approaches, the Sinus milieus make qualitative target group descriptions possible, thereby improving the accuracy of such descriptions considerably. There are seven Sinus Lifestyle Segments in Western Europe. They are arranged according to their social status in society (lower middle and higher class) and their basic values (from traditional to very modern). From experiences in Germany and other European countries we know, that especially the “leading” segments of the “Established” and “Intellectual” prefer eco-oriented offers. Also the upperend of the “Traditionals” and part of the “Modern performing” and “Sensation Orientated” segments 3 Research

chose sometimes some eco-friendly offers. The Sinus Institute provides extensive information and data about the different segments including their lifestyle and the magazines they read, TV shows they watch etc (cf. www.sociovision.com).

How to define your target groups Companies can either use existing target group models or develop their own for their specific product types and offers and specific regions. In any case the basic question is: Which target groups are open to the company’s specific sustainable products and/ or services and how should a company communicate with these target groups? The following tables give an overview about value orientations, the preferences in product style, sustainable design strategies, advertising approach that are related to the main target groups identified by Sinus3 that are more open to environmentally friendly offers. With the help of these tables a rough impression can be gained, what aspects are important when addressing the specific target group. As mentioned earlier in different cultures and different parts of the world the target group typologies are completely different. Thus it is necessary to specify target groups also according to the region and culture where the products and services are offered. A first step should be to investigate what kind of consumer typologies are already available in the target region e.g. by Internet or literature research. Then it should be analysed either by using existing typologies or by conducting or commissioning new market research which of the identified target groups are interested in the offer of the company and are open for environmentally and socially relevant arguments. Alternatively the current customers of the company can be analysed to find out what kind of needs, demands and values they have related to environmental and social aspects, simply by asking them directly or the retailers via a questionnaire. To do so consumer research checklists are helpful as shown in the example below:

by econcept in the framework of a German research project, based on the SINUS methodology.


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Helpbox 2: Very helpful for identification of target groups... ...is to really imagine the customer groups in their daily life, how they live, what kind of car they drive, how their family looks like, what they do in their free time etc. Thus an “Ideal Image”/ a cliché of the customer types can be pictured even using mood charts as shown below. These will rarely exist 100% in reality but are used to differentiate the main motives of the different target groups. Checklist 1: Who are your actual customers? If you have a lot of different customers for a specific offer, please fill in one table for each cluster of customers that you can identify. Checklist 2: How much are the customers/ consumers interested in environmental and social issues? Please specify whether and in what sense your customers or target groups are open for environmental and social issues. Fill in one table for each cluster of customers and target groups.

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Checklist 3: Existing and potential target groups e.g. in the SINUS graph Please try to identify your actual customers/ in the SINUS graph or other target group typologies that you like to use. For this you also have to use the descriptions of the target groups that are given together with

the graphs.Then please check, which ones are most similar to your existing customers first. In a next step please identify which target groups you would like to address with your offers, which could potentially be interesting for you. Please mark as follows: x these are our actual customers ! these target groups are interesting in addition ? these target groups are difficult to address for us – these target groups are not interesting for us With the help of these checklists you can identify your real and your potential customers and their interest in environmental issues. This kind of information enables you to adapt your offers and your communication better to the needs and values of your target groups. This information should be integrated in your customer database and adapted regularly. Thus you can follow up developments and changes in the structure of your customers, as well as in their environmental and social values. If you do not have a systematic and detailed customer database yet, we suggest you establish one. It should consist of all information that you can get about your customers including values and life styles and all the interactions that you had with them. A very helpful measure to get to know more about your customers is to run workshops with well-known or potentially new customers to discuss the offers of the company or develop new product/ service innovations. Well prepared and organised customer and stake-


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holder workshops are an excellent source of information for companies. Next all communication direct and indirect has do be designed to fit to your identified target groups. How to do that is described in the next paragraphs.

Helpbox 3: How to win new customers What are interesting opportunities to extend the current offer and win new customers? Using the price policy: offer a product range that is more cost efficient for low price oriented customers (often not recommendable for sustainable products),

or high quality/ high price offers to go upmarket with your offer â&#x20AC;&#x201C; a strategy that is often applied with sustainable products and services. Using the design/ aesthetics: Especially with lifestyle and design oriented products an opportunity to offer different design styles for different target groups Varying the quality of the offer (connected with price): when the quality demands of the different target groups vary, some quality aspects can be changed to suit better to a specific target group. Environmental and social aspects are part of the quality aspects. Extending the product with a new service (or the other way round): especially for products connected

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with a high risk or with fast technological changes or if convenience is important additional services can increase the attractiveness of an offer (cf. chapter 7 PSS). Environmentally sensible can be e.g. sharing systems (car sharing), repair, maintenance, recycling and re-use services etc. Via new distribution channels: alternative and new ways of distribution, e.g. internet shops, subscription and delivery systems etc. By covering different life phases of the customers: from parents as customers to their children, from young families to the empty nest phase (when kids left their parents house). In different phases of your customerâ&#x20AC;&#x2122;s life also needs and values change. Sometimes companies have to grow up with their customers, e.g. IKEA. Result Now you identified which target group is interesting for

your company and its offer and investigated their interest in environmental and social aspects. You analysed what kind of needs the target group has and what they want from your offer, and you gained a feeling for their aesthetical and other preferences. Now you have to check if your offer is designed to suit the chosen target group, refine it or design a new offer that fits better to the target groupâ&#x20AC;&#x2122;s needs.

STEP 2: Finding the right offer for the target group For the real design and development process of sustainable products and services please refer to the chapters 6 and 7. Here in the following paragraph especially product semantics and aesthetics are discussed, which are the means to communicate with the buyer/ user


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through the design of the product. We distinguish between obviously environmentfriendly product semantics or style and subtle environment-friendly semantics or style. This is because green products used to have a very obvious green design style but that was only interesting for a small green niche. Nowadays successful eco- or sustainable design has to translate the inherent environmental and social qualities of an offer into a design or style that is attractive to the targeted group of customers. Otherwise the offer will have difficulties to sell.That means that sometimes these

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qualities are very obvious in the product and sometimes they are more hidden The target of responsible design should be to differentiate from the (conventional) competitors on the market by a design that is attractive for the target groups and at the same time expresses more or less obviously the special qualities of the offer. In eco product semantics the following design means can be used: Influencing the user behaviour by design For the responsible design of product semantics it is not

113 Figure 2___ means of design with more or less eco-identity


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Figure 3___ aesthetic orientation of sustainable designs, more or less obviously eco

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ket success of the product. Now it is necessary to develop a suitable communication/ advertisement strategy for target group and offer.

only the goal to make the product and its (environmental) functions) visible and understandable and appealing to the specific target groups but also to influence their behaviour in a sustainable way. E.g. by using shape, icons and symbols designers can encourage consumers to use the products more or less environmentally friendly. The following examples show some positive solutions:

STEP 3: Finding the right arguments and communication means for target groups and offer

Result By using the suitable product semantics for the chosen target groups that is also able to communicate the environmental and social product qualities in such a way that it is understood and valued by the target groups designers have created the best conditions for the mar-

Advertisement There are many possibilities and strategies to design advertisement. A whole profession â&#x20AC;&#x201C; communication design â&#x20AC;&#x201C; is engaged with this field. Responsible advertisement has basically two sides: (a) to communicate the environmental and social qualities of the offers and the consequences of its use,


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Figure 4___ Examples for product semantics that encourages eco-friendly user behaviour

(b) to be responsible in the choice of advertisement means and content. The current environmental advertisement can be categorised according to its position between the poles objective-informative and emotional. The objective-informative style mainly uses objective argumentation (text) and only little colours and images – unfortunately still a lot of eco-oriented small companies use this kind of advertisement. The objective-emotional style combines objective argumentation with emotional images. The emotional style mainly communicates with colours and images to create (positive) emotions that can be connected with the advertised subject. The latter is the principle a lot of large companies and multinational brands use. The next figure shows three eco-advertisements from German companies on the axis between objective-informative and emotional. According to the target group the responsible advertisement should translate sustainable benefits of the company’s offer into group-specific values and use an adequate design of the advertisement. The above mentioned advertisement strategies are not suitable for all products and target groups. Objective-informative advertisement will only be

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successful, if a product is well known and more information is required. This strategy will not necessarily motivate a new clientele. If your aim is to reach new target groups outside of the eco-niche, the moralistic-rational style, that consciously aims at a rational and ethical decision but offers no pleasure promise or personal benefit, is not recommendable. If it is the goal to win new customers it is necessary to achieve a positive emotional reaction of the consumer. One example for objective-emotional advertisement is the using of testimonials (advertising with VIPs) by combining personal statements and emotion with information. Requirements for this “technique” are well known persons and an authentic fit of product and VIP, e.g. in Germany a well known TV weather forecast actor, was asked to advertise for eco-insulation materials for houses. Further examples for more emotional communication is the use of pictures, which show e.g. relaxing atmosphere, beautiful landscape or love of life. In the past, advertisement for sustainable products was often boring and colourless. One motivation was to avoid colour prints because of environmental reasons. But when colour is set aside, it will be difficult to evocate emotions, or it requires excellent advertisement design skills and the use of very emotional photographs etc. By using emotional advertisement for sustainable products, the common expectation that environmental behaviour is colourless, without humour, related to abandonment, and very serious is disproved. In the last years more and more sustainable advertisement is humorous and emotional (Katz 1998). In this case it is also important to address the target group with their specific sense of humour. How to design a suitable advertisement for sustainable offers Strategic steps for designing sustainable communication are: > Analysis of the environmental and social benefit of the new product/ offer. > Translation of product benefits into customer benefits, e.g. cost saving, health, wellness, tradition (supporting local companies), image, innovation, fun, individual/customized solutions. > Choosing the right and sustainable channels to reach

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estly, it should pick the customers up “where they are” and offer new interesting knowledge, and it should definitely not be moralistic and threatening. > Credibility/ Authenticity: Advertisement must fit to the company’s philosophy and offers. “To be” is more important then “to look like”. Responsible advertisement printed on shiny very environmentally unfriendly paper does not work. Nice green advertisement campaigns, when the production is done by children in Indonesia will fail. Nike, Shell and other companies had to make that painful experience. If the image is damaged once it costs a lot of activities and money to repair it.

the consumers (magazines, TV/ Radio shows, shops, internet) > Designing the suitable advertisement in line with the target group values and the qualities of the offer

Helpbox 4: Sustainability in advertisement > Efficiency: Advertisement should be efficient, and that is not just related to the use of paper or colour. Advertisement should be designed so that the specific target groups are reached efficiently and effectively. > Aesthetics: Environmental pollution can also be caused by advertisement. Too much, too loud, too flashy advertisement should be avoided. Otherwise our senses are overloaded by too much information and impressions. Search for interesting, adequate and unconventional but highly aesthetic ways to address your target groups. > Information: Generally the question should be asked, how much information about environmental and social aspects a customer wants to have. Maybe he prefers to delegate the environmental and social responsibilities to the company and does not like to be bothered at all. Maybe he is very much interested in environmental technology, maybe in health aspects, etc. If environmental and social aspects are integrated in external communication, it should be done hon-

Check 4: Responsible Advertisement Please work through the following questions to design responsible advertisement strategies.

Further measures for external communication Beside of advertisement there are more possibilities for external communication. Possible other measures that are especially interesting for responsible communication are:

116 Figure 5___


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Figure 6___

> use suitable and innovative ways for market communication, e.g. Internet > develop also strategies for customer relationship management, e.g. the green customer club > publish eco-product declaration or corporate social responsibility declarations > use eco-labels, e.g. the German Blue Angel, the European Eco Label etc.

4. How to integrate responsible communication into daily company practice Systematic strategy to combine target group, offer and marketing/communication Here we describe the successful linking of target group analysis, development of the supply range, generating concepts of distribution and communication / advertisement. Two starting points are possible: > Model A: the company is already putting its offer to the market and has regular clients. It wants to expand

its target group to enlarge or assure success on the market. > Model B: the company wants to introduce a new product or service to the market but is not sure about the target group. Both strategies are demonstrated in the following. If you follow these schemes you will organise a kind of plan-do-check-act cycle with which companies are able to organise a continuous improvement process. Integrating responsible communication regularly in a company requires to include all the steps describe in module F. However, below we summarize the most important activities that have to be carried out on a day-by-day basis.

The most important permanent activities for successful responsible communication > Be careful to ask the right questions in market research that also include information about environmental and social interest of the potential target groups. > Take care that internal communication between the marketing, product/ service development and communication departments/ experts works well (see also module F on D4S management). So that the information

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about the needs of the target groups are integrated into the specifications for product/ service development and design. > Furthermore the input from design and development about specific eco and social benefits of the offer has to be fed back to marketing or communication (the people who plan the external communication). > Essential in communication is to translate the positive environmental and social qualities of the offer into positive and valuable arguments for customers (the people who plan the external communication > Design suitable communication means and content > Control success of external communication

D. BEST PRACTICES/ CASES AND EXAMPLES Responsible external communication activities by producers and retailers

RICOH See www.ricoh.com/environment/global/advertisement/page_ 01.html Slogan: Ricoh handles every colour of the rainbow. But we’re especially partial to green.

Hess Natur Environmental communication and marketing at the German company Hess Naturtextilien GmbH This medium-sized company sells natural clothing bearing the label ‘hess natur’ via a mail-order catalogue. In its catalogue the company points out the health-related and ecological advantages of its products. Each article of clothing in the catalogue describes the origin and processing method, and the use of chemicals, etc. In addition, the catalogue provides background information on the company’s ecological innovation projects and tips for environmentally benign textile care.

Manufactum This sustainable catalogue retailer advertises mainly in its catalogue and on the internet site.The catalogue tells

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a story about all its products, the origin and the way of (often handicraft) production. That makes the goods very authentic and valuable for the customers.


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Slogan: â&#x20AC;&#x153;The still exist, the good old productsâ&#x20AC;?

External communication activities by NGOs ADBUSTERS See http://adbusters.org/home/ This internet site offers a platform for people, who are annoyed by advertisement and multi-national companies that try to rule the world, and like to act against it.

The imug company test: See www.unternehmenstest.de/en/ The imug-Institut fĂźr Markt-Umwelt-Gesellschaft e.V., Hanover, has worked since 1992 on the content and implementation of socio-environmental company tests. The results of the investigations into the socio-environmental behaviour of companies can be used in the consumer information field (purchasing behaviour) as well as a basis for ethical financial investment (investor behaviour). The company test analyses the problematic area of socially and environmentally orientated corporate performance and reporting. It is an instrument with which companies can be independently analysed and evaluated on the basis of specific criteria in an unsolicited manner to determine the extent to which they behave in a socially and environmentally responsible way in certain selected areas (socio-environmental company test). The collected information is published in summary form and is therefore available to interested parties as a decisionmaking aid.

ANNEX Sources: Literature and

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aus der Integrierten Produkpolitik ziehen, in Müllmagazin 2/2002, p.1517, Rhombos-Verlag, Berlin, 2002 ISO 14063 Environmental Communication (publication expected end of 2004, source www.globalreporting.org/about/iniiso14063.asp) Katz, G.: Grüne Welle für die Werbung? Ökologische Fragen in der Werbung von Publikumszeitschriften – Eine Inhaltsanalyse, in : Publizistik, 1/1998, 1998 Kleinhückelkotten, S.: Soziale Milieus in der Umweltkommunikation, in Impulse für umweltpolitischen Engagement No. 3, Mai 2003, Informationsdienst des Deutschen Naturschutzring DNR, Lüneburg, 2003 Kuckartz, U.; Grunenberg, H.: Umweltbewußtsein in Deutschland. Ergebnisse einer repräsentativen Bevölkerungsumfrage. Herausgegeben und im Auftrag des Umweltbundesamtes: Berlin, 2002 Niedergesäß, U.; Winkler, S.: Marketing für ökologisches Bauen und Wohnen, in Elektrizitätswirtschaft, 100. Jg (2001), Heft Nr. 6, p. 48-54, 2001 Niedergesäß, U.;Winkler, S.: Lebensstile als Möglichkeit der ZielgruppenSegmentierung für ökologisches Bauen und Wohnen – Die SynergieHaus-Studie von PreussenElektra. In: Günter, C. / C. Fischer / S. Lerm [publ.]: Neue Wege zu nachhaltigem Konsumverhalten. Eine Veranstaltung der Deutschen Bundesstiftung Umwelt zur EXPO 2000. Initiativen zum Umweltschutz, Bd. 22, S. 125-134, Berlin. 2000 Schaltegger, S.; Petersen, H.: “Ecopreneure”: Nach der Dekade des Umweltmanagements

das

Jahrzehnt

des

nachhaltigen

Unternehmertums? in “Das Parlament” Aus Politik und Zeitgeschichte

Websites

(B 31-32/2002) http://www.bundestag.de/dasparlament/2002/33_34/, accessed 2/2004), 2003

Buck, A.; Herrmann, C.; Lubkowitz, D.: Handbuch Trend Management innovation und Ästhetik als Grundlage unternehmerischer Erfolge, Frankfurter Allgemeine Zeitung, Verlagsbereich Buch, Frankfurt, 1998 Charter, M.Tischner, U.: Sustainable Solutions - Developing products and services for the future, Greenleaf Publishing, Sheffield, UK, 2001 Empacher,

C.;

Götz,

K.;

Schultz,

I.;

Birzle-Harder,

B.:

Demonstrationsvorhaben zur Fundierung und Evaluierung nachhaltiger Konsummuster und Verhaltensstile. Endbericht des Teilprojektes 2: Haushaltsexploration der Bedingungen, Möglichkeiten und Grenzen nachhaltigen Konsumverhaltens. Im Auftrag des Umweltbundesamtes. Frankfurt am Main, 2000 Gottschalk, S.; Janz, N.; Peters, B.; Rammer, C.; Schmidt, T.: Innovationsverhalten der deutschen Wirtschaft: - Hintergrundbericht zur Innovationserhebung 2001, Dokumentation Nr. 02-03, Zentrum für Europäische Wirtschaftsforschung GmbH (ZEW), Mannheim, 2002 Hutchinson,A; Chaston, I.: Environmental Management in Devon and Cornwalls Small and Medium -sized Enterprise Sktor: Some Implications of SME Response to BS 7750, in Greener Management International 9,

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January 1995, p.73-84, 1995. Quoted in Charter, M.; Tischner, U. [publ.]: Sustainable Solutions, Greenleaf Publishing, Sheffield, UK, 2001 Hutterer, P.; Lindemann, U.: Auf die Praxis abgestimmt - Mit geringem Aufwand können kleine und mittlere Unternehmen direkten Nutzen

Scheidewind, U.; Goldbach, M.; Fischer, D.; Seuring, S. [publ.]: Symbole und

Substanzen

-

Perspektiven

eines

interpretativen

Stoffstrommanagements, p. 69ff, metropolis-Verlag, Marburg, 2003 Sinus - TdW Intermedia, BAC Burda Advertising Center GmbH [publ.]: Die Sinus Milieus in Deutschland, Strategische Marketing- und Mediaplanung mit der Typologie der Wünsche intermedia, Offenburg, 2002 Tischner, U.; Nickel, R.; Farken, A.; Meta, A.; Simbriger, a.; Birzle-Harder, B.; Götz, K.; Zahl, B.; Steffen, D.: Nachhaltige Güter erfolgreicher gestalten und vermarkten, Leitfaden, draft - not yet published, Köln, approx. 2005 Tischner, U.; Schmincke, E.; Rubik, F.; Prösler, M.: How to do Ecodesign? A Guide for environmentally and economically sound Design, Verlag form GmbH (Birkhäuser), Frankfurt, 2000 Weller, I.; Hayn, D.; Schultz, I.: Geschlechterverhältnisse, nachhaltige Konsummuster und Umweltbelastungen, Vorstudie zur Konkretisierung von Forschungsfragen und Akteurskooperationen BMBF-Sondierungsstudie,

Förderkennzeichen:

07SOE34,

Abschlussbericht, Bremen/Berlin, 2001 Förster, D./ Mäser, W. et al,: KundInnen des Naturkosthandels. Verlag gesund essen/Sinus-Institut, 1995 Marketing and Advertisement (Websites):


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www.bau-marketing.de/neu/trend www.weleda.de Target Groups (Website) www.sinus-milieus.de www.sociovision.com iswb (2002): http: / / www.iswb.at / openspace / wohntraeume / empfehlungen_det.htm (Stand: 18.12.2002) sinus (2002): http: / / www.sinus-milieus.de / (Stand: 19.12.2002)

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H

1. Basic introduction of eco-materials 1.1 What are eco-materials Eco-materials are defined as those materials that enhance the environmental improvement throughout the whole life cycle, while maintaining accountable performance (Halada and Yamamoto 2001). Eco-materials play a key role in material science and technology to minimize environmental impacts, enhance the recyclability of materials, and to increase energy and material efficiency. In North America and Europe, eco-materials are often called “environmentally-friendly materials” or “environmentally preferable” materials.

1.2 How do eco-materials differ from conventional materials? One of the most comprehensive definitions for ecomaterials was proposed by Professor Yagi in 2000 (Yagi 2002). From the view point of material science and engineering, an eco-material should pose at least one among ten superior properties compared to conventional materials. A more detailed explanation of each superior property of eco-material can be found in box 1. As a result, there is a very wide range of eco-materials developed in various industries such as iron and steel, electronics, chemicals, paper, construction, textile and polymers. Some examples of commercialized eco-

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Eco-Materials

Nguyen X.H., Honda T., Wang Y., and Yamamoto R., University of Tokyo

materials are given in table 1 and in the examples section. Eco-materials are those that can contribute to reduction of environmental burden through their life cycles” (Shinohara 2004). In other words, any material could be an eco-material as long as it could satisfy prerequisites (I) and necessary conditions of eco-materials (II and/or III) (see figure 1). The pre-requisites of ecomaterials include the optimization of physical and/or chemical properties and best technical performance (I). The necessary conditions are as follows: > Significant environmental improvements compared to conventional materials (II), > No tradeoff of environmental load through the whole life cycles, and > If there is a tradeoff, whole life cycle environmental data must be available to verify the improvement of environmental performance (III). It should be noted that the whole life cycle impacts of eco-materials must be considered and be improved. The conditions (II) include six vectors: as 1) green resource profile; 2) minimal environmental impact during the material manufacturing process; 3) high productivity in use; 4) minimal hazardous substance; 5) high recyclability; and 6) high environmental purification efficiency. More details of these six vectors are described in the eco-materials guideline section. An eco-material is not necessary to meet all these six vectors, but at least one must be satisfied, while the others should be similar

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to the reference material Textbox 1> Definition of superior properties of eco-materials 1> Energy saving ability to reduce total life cycle energy consumption of a system or device. 2> Resource saving ability to reduce the total life cycle material consumption of a system or device. 3> Reusability to allow the reuse of collected product as similar functions. 4> Recyclability l to allow the use of collected product of material as a raw material. 5> Structural reliability to be used on the basic of its reliable mechanical properties. 6> Chemical stability to be used over long term without chemical degradation. 7> Biological safety ability to be used without causing negative effects to the ecological system. 8> Substitutability to be used as an alternative of “bad” materials. 9> Amenity to ensure the comfort of working environment 10> Cleanability to separate, fix, remove and detoxify a pollutant for environmental treatment process.

2. More background information 2.1 The development of eco-materials A study by Nguyen reported a list of eco-materials based on the environmental reports or responsible care reports in 2002 of more than 40 Japanese companies in several industrial sectors including metals, cement, chemicals, and others (Nguyen, Honda et al. 2003). A total of 359 different eco-materials were identified and further investigated for the eco-material classification.

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Figure 1 ___ Conceptual model of eco-materials within the context of material science

2.2 Eco-material classification Some authors have been tried to classify eco-materials from the view point of life cycle concept. New development of materials or eco-materials should be viewed in the full context of sustainability. This classification method of eco-materials was based on the four sustainable principles: (i) ”cyclic” materials; (ii) materials for ecology and environmental protection; (iii) materials for society and human health; and (iv) materials for energy based on the two main criteria as their sources and functions. These four main categories were then classified further to ten sub-categories (see table 1).

Green resources profile This aspect is related to both the new resource and recycling stages. The main question is if “materials are from resources of green resource profile” (Shinohara 2004). Four major issues for this aspect are including: > Reducing use of non-renewable resources; > Substituting non-renewable by well-managed renewable natural resources; > Reducing use of renewable natural resources, and > Increasing use of recycled resources.


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Table 1 ___ Some examples of eco-materials which are currently commercialized in Japan

125 Figure 2 ___ Classification model for eco-materials


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Several quantitative indicators could be used including total material requirement (TMR), material intensity (MI), ecological footprint (EF), and ratio of recycled materials used.

Production process of minimal environmental impacts This aspect is related to four life cycle stages including material manufacturing, product manufacturing, recycling, and waste disposal. The main question is if “materials are fabricated, disposed of and recycled through the process of low environmental impact” (Shinohara, 2004). Seven major issues for this aspect are: > Reducing CO2 emission at material manufacturing process; > Reducing emissions of pollutants at material manufacturing process; > Increasing production yield; > Reducing energy and input materials at product manufacturing process; > Reducing energy and input materials at recycling process; > Reducing energy and input materials at waste disposal stage, and > Saving the landfill area. Quantitative indicators for this aspect could include the CO2, SOx, NOx emission, energy consumption, and material productivity.

lection and recycling stages. The main question is if “material could reduce emission of hazardous chemical substances from the product and waste” (Shinohara 2004). Major issues are: > Reducing use of hazardous or potentially hazardous substances, and > Establishing a collection system for hazardous chemical substances from used products. Quantitative indicators of this aspect could be total amount of hazardous substances used and released in these life cycle stages. Information of hazardous substances could be obtained using a pollutant release and transfer register (PRTR) approach.

High recyclability This aspect is related to the material manufacturing and recycling stages. The main question is if “material could contribute to efficiency recycling” (Shinohara 2004). Major issues in this aspect are: > Increasing ratio of recycled resources, > Enhancing separation and recovery ability of other products, > Establishing a closed-loop recycling system, and > Enhancing a open-loop recycling system. Quantitative indicators for this aspect could be the ratio of recycled over virgin material.

High environmental treatment efficiency

High productivity This aspect is related to the consumption stage of the whole life cycle of materials. The main question is if “materials can exhibit high productivity in the applied product” (Shinohara 2004). Major issues in this aspect are: > Reducing energy and input material at consumption stage, and > Enhancing reuse and longevity of materials and products. Quantitative indicators in this aspect could be energy and material efficiency during the consumption stage.

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Minimal hazardous substances This aspect is related to the material manufacturing, col-

This aspect is related to the consumption stage. The main question is if “material can increase efficiency of environmental treatment or purification process” (Shinohara, 2004). Major issues of this aspect are: > Purifying volatile organic compounds (VOCs) or sickhouse syndrome organic compounds in the living environment, > Removing hazardous substances in contaminated environment (air, water, and soil), and > Removing hazardous substances from exhaust gas.


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2.3 Eco-materials examples

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30000 yen per square meter (Taiheiyo, 2003).

Eco-cement (I.A) Eco-cement is a product of Taiheiyo Cement Corporation. This eco-cement is manufactured using municipal wastes as its substitute for raw materials. The municipal waste can be used as raw materials for ecocement in two different ways, in the form of incinerated ash, and in the form of municipal sludge. In the ecocement, approximatetly 50% of municipal wastes has replaced the cement raw materials (table 2). Quality of

TABLE3 ___

M-Wood2 (I.B)

Table 2 ___ Raw materials in eco-cement and Portland cement

eco-cement is similar to ordinary Portland cement. Use of eco-cement has two benefits, reducing non renewable raw material extraction and reducing the waste released to the environment. A life cycle assessment result of ecocement indicated that CO2 emissions are reduced up to 50%, energy consumption is reduced up to 89%, and prolongation of landfill could save up to

M-Wood2 is a synthetic wood blend product combining various types of plastics (polyvinyl chloride or polypropylene) with wood chips. The wood composition in this material is about 51-55% or less (by weight). The other components consist of about 25-30% of plastic wastes such as polypropylene trays, automobile bumpers, agricultural PVC, and less than 20% of pigments and additives which are normally used in olefin resins. The production of this M-Wood2 will not produce any VOCs. In addition, 100% recycled materials are used for the production of M-Wood2. Furthermore, the testing phase reported that M-Wood2 could be recycled 10 times

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Table 4 ___ Water resistance property of M-Wood 2

without losing its characteristics. M-Wood2 has superior characteristics compared to normal wood, such as ease to process, light, natural color and pattern. The material which is used PP resin can be incinerated without any formation of dioxin. Some material characteristics of M-Wood2 are explained below. Water resistance: Water absorption coefficient (%) (The weight change rate is due to water absorption.The greater the value is, the easier to absorb water). Weather resistance: The time span of outdoor home products of general wood is normally about 10 years. The deterioration of wood material is due to rain and ultraviolet radiation. However, M-Wood2 is proved to be more weather resistant than normal wood. Heat resistance: polyvinyl chloride has self-extinguishing properties. When M-Wood2 is produced by mixing wood chip with PVC, the material will also has this characteristic. PP M-Wood2 will have the same heat resistance property with natural wood. Abrasive resistance: M-Wood2 is proven to be more

Table 5 ___ Flooring abrasion proof test (as for method of exam in JIS flooring conformity)

abrasive resistance than natural wood as shown in table 5.

ZAM (I.C)

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ZAM is a zinc-aluminum-magnesium high-corrosionresistance hot-dip coated steel sheet. It is a three-layer coated steel sheet. The first two corrosion protective layers are magnesium-zinc and a zinc-aluminum with magnesium. Its flat section is 10 to 20 times more corrosion-resistant than conventional Zn steel and 5 to 8


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times more corrosion resistant than Zn-5% Al steel, and its cut end has greater corrosion resistance than previous coated steel sheets. Its high corrosion resistance and hence longer life contributes to waste reduction, resource conservation, and energy saving. It eliminates coating process after forming, and contributes to environmental protection. (ZAM won the 2000 Nikkei prize for superior product and service (Nihon Keizai Shimbun award).

introduced worldwide. Installation of exhaust gas controlling systems has two constraints, removal of particulate matters (PM) and NOx while maintaining the engine system. Normally, exhaust gas control system will reduce the performance of engine. The ceracat material produced with world class technology enables more than 95% removal of PM while minimizing pressure loss in the control system. Some of characteristics of Ceracat are shown in table 6.

CeraCat™ (II.A)

Folium® Photocatalyst coating agent (II.B)

This material is a ceramic honeycomb catalyst carrier use for exhaust gas purification and energysaving heat reservoirs. This ceramic honeycomb resembles a bee’s nest with its many chambers separated by thin walls and is capable of a variety of functions depending on the materials used and the cell structure. Materials that can be used in high-temperature environments include alumina (Al2O3), mullite (3Al2O3·2SiO2) and cordierite (2MgO ·2Al2O3 ·5SiO2). Recently, more and more strict regulation on the exhaust gas emission from diesel engines has been

Folium is a titanium dioxide photocatalyst coating agent which is used in building (external and internal wall, transparent glass), and transportation (car body, roads). The Folium will help to protect environment byreducing the concentration of formaldehyde and CO2 in the atmosphere under the exposure of UV radiation. Immediately after exposure to ultraviolet light irradiation, formaldehyde concentration is decreased sharply to almost zero in about 20 minutes.

129 Table 6 ___ Properties of Ceracat™ for exhaust gas filter


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In addition, the use of titanium oxide as anti-bacteria could dramatically reduce the contamination of bacteria such as colon bacillus (Escherichia col) and Staphylococcus. An anti-bacteria effect test reported that after 24 hours, the Coliform and Staphylococcus count have fallen to less than 10 while the untreated samples shown about millions counts from coliform and thousand counts for Staphylococcus. Another function of Folium is to protect the coated surface from dirt: A folium-coated surface will be able to remain clean, while a non coated surface will become dirty and deteriorate. The mechanism of this function is shown in the figure.

Toyota Super Olefin Polymer (II.C) One method to reduce the total weight of a vehicle is to replace steel by other materials such as aluminum or plastics as much as possible without reducing the safety. Car bumpers and interiors are now made of plastic. Recently, Toyota Company introduced their TSOP (Toyota Super Olefin Polymer) which had excellent recyclability in their car bumper. The TSOP is a polypropylene based blend material. The bumper could reduce plastic use by 18-30% compared to the traditional plastic bumper with similar safety properties. At the moment, TSOP is used in a wide range of interior and exterior parts in Toyota cars such as the new model of Corolla.

Volatile organic compounds-free adhesives (III.A)

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These adhesives are free from all VOC (volatile organic compounds) including formaldehyde, toluene and xylene as sickbuilding syndrome gases. Two types are available: one for film installation and the other for wood and paper. These have outstanding adhesiveness and durability equivalent to the best conventional products.

Bone-Ceram (III.B) Boneceram is a highly processable apatite hydroxide bone substitute material which plays an active role in medical fields. This material has an excellently biocompatible property to human tissue. The material is so highly processable that it could be made into complicated shape to fit to specific part. Boneceram is now essential for orthopedic surgery and brain surgery.

Ultra-light steel for automobile (IV.A) In Japan the automobile industry is greatly involved in the development of eco-materials including steel, non-ferrous and bioplastics for their â&#x20AC;&#x153;eco-carâ&#x20AC;?. For energy efficiency, some studies indicated that a 10% decrease in automobile weight would improve fuel efficiency by 10-12% . Whole life cycle energy consumption of a passenger car was mainly due to driving (7580%) and material production, ( 1 5 - 2 0 % ) (Marukawa and Edwards 2001). In addition, about 75% (by weight) of a car was made of steel. It was obvious that if the weight of steel was reduced, energy efficiency of the car would increase. This could be achieved by selecting a high tensile strength steel without any reduction in safety of vehicle. According to Ultra-Light Steel Auto Body (ULSAB) project, a car body could reduce by 23% its weight contributing to a 5% weight reduction of a passenger car (Kawai 2001). High strength steel specifications range from 210 to 800 MPa yield strengths with thickness range from 0.65 mm to 2.0 mm. Further more, the use of materials which enable high-efficiency power generation would also improve the whole life cycle energy consumption.


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Table 7 ___

High hydrogen absorbing alloy (IV.B) Hydrogen-absorbing alloys have a comparatively short history which dates back about 20 years to the discovery of NiFe, MgNi and LaNi5 alloys. They are capable of absorbing hydrogen equivalent to about a thousand times of their own volume (or about 3% by mass), generating metal hydrides and also releasing the hydrogen that they absorbed. More than 65% of hydrogen absorbed could be utilized. These hydrogen-absorbing alloys combine metal (A) whose hydrides generate heat exothermically with metal (B) whose hydrides generate heat endothermically to produce the suitable binding energy so that hydrogen can be absorbed and released at or around normal temperature and pressure levels. Depending on how metals A and B are combined, the alloys are classified into the following types: AB (TiFe, etc.), AB2 (ZnMn2, etc.), AB5 (LaNi5, etc.) and A2B

(Mg2Ni, etc.). From the perspective of charge and discharge efficiency and durability, the field of candidate metals suited for use as electrodes in storage batteries is now being narrowed down to AB5 type alloys in which rare-earth metals, especially metals in the lanthanum group, and nickel serve as the host metals; and to AB2 type alloys in which the titanium and nickel serve as the host metals. This hydrogen absorbing alloy has several potential applications such as heat utilization systems, hydrogen storage systems, actuators, hydrogen purification equipments, nickel-metal hydride secondary batteries, and catalysts. Recently, Sanyo electric has developed nickelmetal hydride secondary batteries, a portable fuel cell for notebook computers and a refrigeration system using this alloy. Toyota has also developed a new fuel cell system which combines with hydrogen-absorbing alloy to make a hydrogen storage device.This promises to be a more efficient, faster charging and farther travelling fuel cell.

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3.1 Defining type of products (A)

3. Four step approach for eco-material selection for eco-redesign and eco-innovation A conceptual model of eco-material selection guidelines is illustrated in figure 3. The four steps are defining type of products, gathering eco-material information, defining product requirements, and selecting eco-material. This process is also considered as a back-casting approach or ABCD analysis of TNS (Robert 2002).

The first step of the eco-material selection process is to define product type with a consideration of whole life cycle concept. Figure 4 illustrates the four general product types with a full consideration of life cycle concepts (Young 2002). A type I product normally has a very short lifespan and material intensiveness. A single use of package is a typical example of a type I product. In comparison to a type I product, a type II product has relatively longer lifespan, but has more manufacturing-intensiveness. Notebook computers and digital cameras are typical examples of type II products. In contrast, a type III product has a comparatively long lifespan. Energy and/or resource consumption during the use phase are the main concerns of type III products. Automobiles and washing machines are some typical examples of type III products. The last type of product is that with special end-of-life or disposal characteristics. Typical examples of this type of product are disposal diapers and Ni-Cd battery. Defining the right product type is crucial in D4S and material selection. An eco-material appropriate for one application might not be suitable for another application. For instance, high tensile strength steel is not

132 Figure 3 ___ Four step model of eco-material selection process

Figure 4 ___ Four general product types with life cycle concept


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appropriate for type II product like digital cameras, as the lifespan of this product is relatively short (about 25 years). Another example is that the use of readily biodegradable polymers as a construction material is not appropriate. Renewable material is appropriate for type I products, while material that is most efficient to process is appropriate for type II products. Lightweight or high tensile strength steel should be used for type III products, while biodegradable or recyclable materials should be used for type IV products.

3.2 Gathering eco-material information (B) The second step in eco-material selection guidelines is to obtain as much eco-material information as possible. In this step, all necessary information on eco-materials is collected and verified. Necessary information should cover all “triple bottom line” aspects, including social, economic and environmental aspects. The classification and database of eco-materials in previous sections are among the crucial information needed. By studying the information, product designers would have a better understanding on the state-of-theart of eco-material development. From then, product designers should be able to direct themselves towards sustainability. In addition to information on eco-material classification, life cycle impact assessment or eco-efficiency or other similar assessment results of the related materials should also be collected. Some assessment results like LCA are difficult to obtain, while some others like qualitative assessment are relatively easier to conduct. Besides environmental and social information, economic information is also vital information. One of the economic issues in material selection is the cost of material or the market price.The cost of eco-materials could be influenced by many factors and normally fluctuates in the market. Thus collecting cost of materials should be carefully carried out.

3.3 Defining product requirements (C) The third step of eco-material selection process is defining product requirements. In this step, five main

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properties of a particular product including physical, mechanical, electrical, thermal, and chemical properties need to be defined. Information of these properties could be found in various sources such as IDEMAT, MATWEB, literature, handbooks, or company brochures. Relative importance of each property will depend on the application. Different classes of material will have different specific properties. Metals, for instance, tend to have high stiffness and strength while having a high density. Polymers are lower in density with relatively low strength and stiffness.Thus defining appropriate product requirements will ease eco-material selection.

3.4 Selecting eco-materials (D) The final step in the eco-material selection process is to select appropriate eco-material for eco-products. In this step, eco-material is strategically evaluated and selected. The objective of this step is to optimize the number of these product requirements during the product design phase. Several performance metrics or product requirements will be involved in selecting eco-materials. This step, therefore, requires a multi-criteria optimization process for eco-material choice.

4. References > Halada, K. and R. Yamamoto (2001). “The current status of research and development on eco-materials around the world.” MRS Bulletin 26(11): 871-878. > Kawai, J. (2001). Materials and Design. 22: 111-122. > Marukawa, K. and K. L. Edwards (2001). Materials and Design. 22: 133-136. > Nguyen, X. H., T. Honda, et al. (2003). Classification of eco-materials in the perpectives of sustainability. Proceedings of eco-design 2003: Third International Symposium on Environmental Conscious Design and Inverse Manufacturing, Japan. > Robert, K.-H. (2002). The Natural Step Story. Canada, New Society Publishers. > Shinohara, Y. (2004). Eco-materials guideline project in Japan. Proceedings of the 1st Japan-China Symposium on Eco-materials, Recycling-oriented Industry and

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Environmental Management, Suzhou, China. > Yagi, K. (2002). Concept and Development of Ecomaterials. Proceedings of International Workshop on Eco-materials, Tokyo, Japan, National Institute for Materials Science. > Young, S. B. (2002). Materials Eco-selection. Proceedings of International Workshop on Eco-materials, Tokyo, Japan, National Institute for Materials Science.


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1. Energy and the environment Can a product design be made â&#x20AC;&#x2DC;sustainableâ&#x20AC;&#x2122;? To answer this question one has to go back to the origin of Sustainable Product Design. In the drive towards Sustainable Product Design, a good balance has to be found between sustainability, functionality and the user context. To accomplish this, the designer should be aware of the environment and incorporate ongoing trends. On of these new (technology) trends is the application of Sustainable Energy technologies.

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Sustainable Energy Technologies

J.C. Diehl & Ana Mestre

1.1 What are the general environmental and social problems in connection to energy consumption? 1.1.1 Energy scenarios/statistics World energy production rose 42% between 1980 and 2000 and will grow 150-230% by 2050. Renewable resources like solar and wind account for only 11,5% of current consumption. The Western world consumes much more energy per capita than do developing countries. For example the electricity consumption per capita: It can be observed almost a factor of 30 in difference in use of electricity between the high and the lowincome countries.

Table 1 ___ Electricity consumption per capita (World Resource Institute)


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1.1.2 Energy consumption and CO2 CO2 production and the amount of energy consumption per capita is the main problem in developed countries.

FIGURE 1 ___ Tons of Carbon per Capita. Source http://earthtrends.wri.org/

1.1.3 Energy Consumption in Developing Countries: Problem Fuel wood With a lack of access to fossil fuels and sustainable renewable energy resources, the people in developing countries use a serious amount of fuel wood for cooking and heating. This one of the main energy related problems in developing countries. Fuelwood, charcoal, and other wood-derived fuels (collectively known as woodfuels) are the world’s most important form of nonfossil energy. Production and

consumption are concentrated in low-income countries, with five countries — Brazil, China, India, Indonesia, and Nigeria — accounting for about 50 percent of the total.

1.2 The need for energy and the relation to products. The world is facing a continuous increase in use of energy consuming products. Therefore, one of the hot topicsnow and in the future will be how to optimize the electrical power consumption of these products. At this moment electrical energy is obtained from the mains, primary and secondary or rechargeable batteries. The exploding portable products market shows a trend in the consumer and professional market towards increasing mobility. In all these products, rechargeable energy storage media play an important role. So there is a demand to recharge these storage media anywhere at anytime, not to be limited by the availability of a mains socket. Many consumer electronics products nowadays function on low voltage DC (8-20V) instead of the 220 (or 110) V AC. This has lead to an increase use of batteries and adaptors. To cope with these trends, it is a logical step to combine the energy storage media with a recharger powered by a mobile energy converter, i.e. photovoltaic (PV) cells.

1.2.1 Energy use during the life cycle

1.3 What is renewable energy 136 FIGURE 2 ___ The impact of use of fuel wood Source http://earthtrends.wri.org/

Renewable Energy (RE) technologies like BiomassInstallations, Hydro-Power and Wind-Energy have their application often on a system level. Other RE technologies like Photo Voltaic (PV), Human Power (HP) and Fuel


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Cells (FC) are also being applied on a product(-system) level. This paragraph will describe in short the technological aspects and the potential benefits & disadvantages of PV, FC and HP in product(-system) applications.

1.3.1 When is an energy resource sustainable? The application of RE technologies like PV cells, FC and HP might be a more sustainable alternative. The application of these new energy technologies into product design is moving from an experimental phase towards a discipline in Industrial Design. At this point structural knowledge regarding identifying and integrating of renewable energy technologies into products is needed for both technology developers as well as industrial designers. > Renewable > Low emission (CO2) > Efficiency > The total life cycle

1.3.2 What are the new emerging sustainable technologies of interest for product development? RE technologies like: > Wind > Solar > Bio-mass > Solar: PV and heating > Human power > Fuel cells RE systems can be distinguished into grid-linked systems and stand-alone systems. In the case of a grid-linked system there is a connection between the RE system and the local electricity network. They can therefore be used to meet part of the immediatly needed electricity, or can export power to the networks at moments when the local need is low. Stand-alone systems are independent of the local electricity network. These systems are often used in areas without a local electricity distribution net or to make a product independent of the electricity project (like in the case of portable products). Within our research we focus on the stand-alone applications of RE systems.

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1.3.3 Human Power (HP) HP, as the name implies, uses the (physical) energy of the user to support the (electronic) function of the product. There are two ways of generating electricity by means of human interaction: thermal (only low wattage) and physical. The physical human power of the users can be transferred by piezo technologies (0-0,5 Watt), linear (0,5-5 Watt) and rotation (0,5 â&#x20AC;&#x201C;50 Watt) induction into electricity. This can be done e.g. by pushing, shaking, pulling, turning a part of the product which is connected to the electricity generating technology. The amount of produced energy depends on the power, frequency and period of the movements of the user and the efficiency of the applied energy conversion technology. Often the generated energy is stored between the energy generation and use in rechargeable batteries, capacitors or mechanical storage systems like springs and fly-wheels. To make use of the HP, an interaction between the user and the product is needed. This interaction can take place in different manners: 1> The human power is integrated in the normal use of the product. For example a piezo element could be integrated in the keys of a keyboard of a laptop. By using the product it will create its own needed electricity.This is the most ideal situation. 2> En-passant movements of the user create energy for the use of the product. For example some watches use the kinetic energy of the natural movement of the arm to charge the watch batteries. 3> Additional movements like turning a crank is needed to power the products. This is the case in most HPproducts. With HP technologies only a limited amount of energy can be produced up to around 50 watt. This makes the technology more suitable for low-energy consuming products. Also should be taken into consideration that the operations needed to create the HPenergy should not conflict with the normal use of the product.

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> Monocrystalline Silicon PV cells are made from a single, continuous crystal lattice structure. These cells are complicated and relatively expensive to manufacture, with a typical conversion efficiency of 12-15%. > Multicrystalline Silicon PV cells are cast from molten silicon obtained, using many different lattices of Monocrystalline Silicon. The manufacturing process is simple and quite cheap. The average conversion efficiency is lower (11-14%) compared to Monocrystalline PV cells. > Amorphous Silicon PV cells use a homogeneous layer of silicon atoms rather a crystal structure. They absorb light more efficiently than crystalline silicon and can be deposited as a thin film on a rigid or flexible structure. They are cheaper to produce than crystalline silicon cells, however, the average conversion efficiency is lower, around 6-7%.

Figure 3 ___ Examples of Human Powered Rotation Induction Technologies.

1.3.4 Photo-Voltaic Technology (PV)

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Solar Power is produced by the conversion of sunlight into DC (Direct Current) electrical power using PV cells. PV cells are modular and light, have no moving parts, have no direct impact on the environment, and require only minimal maintenance. They therefore offer many potential advantages compared with more conventional power generation systems, including easy installation, long life and durability and low operating costs. PV cells were originally developed in 1970s, at the time they were expensive and quite inefficient. Since then, PV technology has been further developed to improve the efficiency and to reduce costs. During the last decade an efficiency increase of PV cells from 4% to 16% has been achieved. Nowadays, three main types of PV cells are available:

The efficiency of amorphous silicon cells is significant lower than the efficiency of monocrystalline silicon cells (7% versus 15%). To produce the same amount of energy with amorphous silicon, twice as big a surface of PV cells is needed. This is the reason that these cells are primarily used in low power equipment like watches or as fascade elements (in buildings where a big area is available). On the other hand, Amorphous Silicon has the potencial to function better at lower light intensities and to be less sensitive to temperature variances. These PV cells also can produce useful quantities of power in

Figure 4 __ Examples of Monocrystalline Silicon cell, Multicrystalline Silicon cell, Amorphous Silicon cell, a PV panel and flexible PV-cells.


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less than ideal conditions such as cloudy weather or indoors. Photovoltaic technology continues to develop rapidly, and several alternatives to silicon are already under development. These include Gallium Arsenide (GaAs), Cadmium Telluride (CdTe) and Copper Indium Diselenide (CIS). PV cells made from these new materials could be manufactured in the near future more cheaply than Crystalline Silicon cells and are more efficient than Amorphous Silicon cells. Each crystalline silicon PV cell generates around 0.6 V and cells are combined in series and in parallel to make modules to meet the higher power and voltage demands of typical applications. A typical module may produce 50 W of power at 24 V (DC). The output from a PV module varies depending on the amount of incident light and other factors such as temperature and the cleanliness of the cell surface. Modules are rated in terms of their peak output (peak Watts or Wp), which is the maximum power that they will produce given optimum solar input and operating conditions.The average power produced will be closer to the rated (peak) output in locations where there is a high level of incidental radiation during the year like for example in South European countries. “Thin Film“ technologies have made it possible to make PV-cells flexible (see fig 4). These Amorphous cells hold a niche position in lower than 50 W appliances and in consumer electronics. Often they exist of multi junction cells, several amorphous layers on top of each other. Each layer is sensitive to a specific part of the light spectrum and the efficiencies of these multi junction cells are higher. These cells are also suitable for different kinds of light like indoor and outdoor light. It is difficult to estimate the general cost for all type of PV cells applications. However, considering the new technologies under development which will use less material and energy in production (dematerialization) and are becoming at the same time lighter and more efficient, the costs of energy produced by PV cells will become lower. From this introduction to the PV technologies presently available, one can conclude that the appropriate type of PV cells to be used in design depends on the type of use (intensity) by the product-user and the contextual influences like light intensity, environment tem-

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perature and indoor/outdoor light.

1.3.5 Fuel Cells Technology Over the last ten years, there has been a huge global effort to develop fuel cells. Originally driven by the prospect of improved electrical efficiency and of improving air quality in urban and indoor environments, fuel cells are now seen as an important potential option for improving the sustainability of energy consumption, reducing emissions of greenhouse gases and reducing emissions in energy use in sectors like transport or portable electronic products. Fuel cells are electrochemical devices similar, in principle, to primary batteries, except that the fuel and oxidant (e.g. hydrogen and oxygen) are stored externally; they produce both electricity and heat directly. Individual fuel cells typically generate a DC voltage of 0.7-0.8 volts and a power output of a few tens or hundreds of watts. Cells are assembled in modules known as stacks to provide larger voltage and current. There are several types of fuel cells with their specific characteristics, in different stages of development categorised according to their electrolyte and operating temperature. In the high temperature range (600-800˚ Celsius) Solid Oxide Fuel Cells (SOFC), and Molten Carbonate Fuel Cells (MCFC) have a very high efficiency (55-70%), and are mainly used for stationary electricity generation. In the low temperature range (80-200˚ Celsius) Proton Exchange Membrane (PEM FC) and Direct Methanol Fuel Cell (DMFC) are the most promising. Fuel cells have a typical electric efficiency from 40% to 50% and 70% to 80% of the global efficiency of cogeneration insulations or combined cycle with really good results in environmental standards: low emissions of NOx, no emissions of SOx, low emissions of CO2 and low noise. The flexibility in the type of fuel in use is an added value of this technology, being possible (depending on the type of fuel cell) to use hydrogen, natural gas, coal, ethanol, biogas and diesel. The challenge is, of course, to use a sustainable type of fuel. Because of this acceptance of different types of fuel from different non-and renewable resources, fuel cells can became the ideal solution to switch from a fossil fuel economy to a widespread

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Figure 5 ___ A Fuel Cell, its working principles and a stack existing of a series of PV-cells.

use of sustainable and renewable resources as hydrogen. Fuel cells have, to overcome the economical handicap to became more competitive than solutions that are presently available in the market. In the last years, according to the characteristics of for example the PEM fuel cells opportunities of Fuel Cells applications with low and medium power ranges like (consumer) products have been explored. However ,bigger range power uses like automotive industry have spurred interest in use of PEM FC as an alternative for the conventional combustion engine. One of the specific qualities of fuel cells is the high energy density compared to other conventional energy technologies.

storage is the capacitor. This solution is used, for example, in calculators and endoscopic robot capsule (Norika, 2003). Capacitors exist in various sizes (from a few pF up to 1 F). In the last years special energy storing ‘super’ capacitors have been developed which can store up to several hundred farads. The difference between batteries and capacitors concerns both their charge and discharge characteristics.

1.3.6 Characteristics of RE technologies Each of the three described RE technologies have their own advantages and disadvantages for their application in product -systems. It depends of course on the specific application if the RE technology has an added value or not. However, in general, we can make some remarks on the characteristics of RE technologies in relation to product -systems.

1.3.7 Storage media

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Batteries are at present the most common media for storing electrical energy. Two types can be distinguished: primary or non rechargeable and secondary or rechargeable. Commercially available rechargeable batteries are: NiCd, NiMH and Li-Ion batteries (Stibat, 2003). Another less common medium for electrical energy

Figure 6 ___

1.4 Current applications of Renewable Energy Systems A serious amount of RE product-system applications have been collected in order to learn from earlier experiences and problems encountered with the application of RE. These applications can be separated into 4 categories: > Existing product designs with an “added” RE source; > Redesign of existing products with “integrated” RE source; > New products based upon RE technologies and > New product-systems based upon RE technologies.


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Table 2 ___ Characteristics of HP, PV and FC

141 Within the next paragraphs these four categories will be described and will be illustrated by product

examples. The PV applications will be described in more detail followed by HP and FC application in short. In


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general the following main findings could be made on the observation of “non-successful” integration of Renewable Energy sources in products: > There is not always an added value for the user created by the RE technology (compared to conventional energy sources). > There is no match between the generated energy by the RE technology and the consumed energy by the product. > PV-technology is not properly integrated into the product design resulting in an unattractive product aesthetics. > There is no insight into the environmental impact or benefits of the PV-technology in the new function.

1.4.1 PV-powered product-systems Of the three presented RE technologies, the PV-cells are the most applied on product(-system) level. During the last decade the amount of applications of PV-cells connected to products has rapidly increased . A wide variety of electronic products are being powered by PV-cells, like solar chargers, outdoor lightning, calculators, gadgets and ticket machines. 1> Existing product designs with an “added” PV source: In the case of a PV-powered weight-scale (see fig. 7) the PV cells have been “pasted” to the product by adding an additional surface. The added PV-cell is not integrated in the total design of the product (neither by shape or colour) and does not create an essential added value for the user (the battery normally only has to be replaced once in 3 years). 2> Redesign of existing products with “inte-

grated” PV source: If PV-cells replace another type of energy source in a product, it is very likely that the product design and the configuration have to be adapted and optimised for the new situation. The solar battery pack from Nokia (see fig. 7) is a product in which the solar cells, despite constraint in the size and shape of the battery pack, are integrated well by choosing transparent plastic and hitech styling for the surface into which the PV cells are integrated. The added value of this product–technology combination is clear. However, the problem is the balance between generated and consumed amount of energy. Although the PV cell area is small, a sufficient amount of energy can be produced in a full day of sun for the proper functioning of the mobile telephone. In reality, however, the mobile telephone will most of the time be away from sunlight. The PV-cells characteristics and positioning are not optimal for the user context and energy need. 3> New products based upon PV technologies: Based upon the characteristics of the new RE technologies and the needs of the user new PV-powered products are being developed. For example several solar chargers (see fig. 7) take advantage of creating energy everywhere independent from batteries or the electricity grid. The design is often developed around the new function and technology in shape and colour and is an appropriate match between the energy generation and consumption. 4> New product-systems based upon PV technologies: One can observe a rapid increase of low voltage and

142 Figure 7 ___ Examples of PV-powered products; weight scale, mobile telephone, PDA and a solar charger for mobile telephones.


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Figure 8 ___ Examples of human-powered products: two torches and a mobile charger.

Direct Current (DC) appliances (like mobile telephones, Discmans etc.) in the household. In order to power these products the 220 Alternating Current (AC) has to be converted two times (with efficiency losses) to the low-voltage DC. Renewable Energy technology like PV panels produce directly low voltage DC electricity that make them more appropriate to power these kinds of appliances. One of the current solutions under research is to integrate a PV-powered low voltage DC electricity grid in houses to power these products more efficiently and to abandon the need for adaptors.

1.4.2 Human Powered Products Human-powered products have existed for a long time. Since the introduction of the Freeplay radio in 1996 a new interest in HP has been created and a range of HP products have been introduced into the market (see fig. 8) In the case of the first example, a Freeplay wind-up torch with a metal spring for storage of the energy, one

might question if the HP source is not creating any inconvenience because of added weight and largedimensions. In the second example, the technology has been integrated more elegantly into the product (by shaking the torch linear induction within the torch will create energy). Finally several new HP-products have been developed to charge low power products like mobile telephones.

1.4.3 Fuel Cell Powered Products Since the miniaturisation and commercialisation of fuel cell technology is more recent, the amount of product examples is much more restricted. Most of the examples (see fig. 9) are still in an experimental or prototype stage. This can be seen in the first example, a PDA fuelled by a fuel cell. As can be observed easily, the fuel cell source is big in relation to the product and not integrated in the design. Within the second example, a racing cart, the fuel cell has been integrated in the design,

143 Figure 9 ___ Examples of FC-powered products; PDA, racing cart and a FC-powered Laptop.


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however it does not yet match the characteristics of competing technologies like combustion engines. The last one provides the cart with more speed and acceleration power. In the case of the integrated fuel cell power unit into a laptop the fuel cell technology creates an interesting added value for the user: because of the high energy-density of the fuel cell, the user will be able to work at least the double amount of hours independent from the electricity grid.

2. Sustainable Energy Technology and product development RE Technologies might be an interesting alternative. However, to be sustainable, the technology should have an added value for user (to make the products attractive, appropriate and useful) and reduce the environmental impact of the function fulfilment. There are several approaches to integrate renewable energy technologies into product systems. Looking at the D4S Lids wheel (fig. 10) and its strategies, one can observe that as a direct continuation, RE technologies can contribute to the solution of some of the biggest impacts of the life cycle of the product, especially the ones regarding energy use during the use phase of the product. This is especially a concern related to electronic consumer products (e.g. batteries of all DC products), electric home appliances (e.g. big appliances like a refrigerator), transport and vehicles. There are several situations than can direct the

design process of a product towards a final product. Mainly, and not different from other types of products, electronic consumer products should be designed by taking into consideration the external criteria of the product aswell as the internal criteria of the product: > External criteria as the identification of the needs of the user (functional, operative, economical, social, psycho-semantic, etc) and the potential consumer market. Here, the designer identifies his target group. > Secondly, Internal criteria for the product are defined; here all decisions for the final product are fixed, mainly by the product development team or the designer. In parallel the Aesthetics, Ergonomics, Sustainable criterias are recommended as priority and technological solutions have to be found to power a specific product. â&#x20AC;&#x153;How to find the better sustainable technology to potentialize the functionality, the correct operation and the utilization of the product ? Different kinds of information are needed to find the answer to this question. However the main intent should be focused on energy generation and energy

Figure 11 ___ Overview of the energy flows within a RE-powered product-system

consumption. The following scheme outlines this concept. Approaching this topic, and depending on the daily practice of the target group, different methods can be applied that lead to different types of solutions. We will introduce the following three approaches:

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What are the approaches? Figure 10___ D4S strategy Wheel (also see chapter

1> Redesign: the first approach, adding or integrating


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RE technologies in existing products (to replace batteries or electricity from the main (via adaptors)). In this the focus is on how to integrate RE technology in the best possible technical way. 2> New technologies as starting point: the second approach is to create total new visions for the integration of RE technologies in product development. Here new sustainable technologies are being considered from the beginning as a starting point for product development. 3> Product System Solutions: This third approach , related to the second is how to design new productsystem solutions in order to find new solutions for the energy problem within the product.

2.2 Sustainable Energy Redesign approach In the case of a redesign approach one should try to replace non-renewable energy technologies with RE technologies. The product and the function that it should fulfil is already known. An approach for integrating RE technologies in products in described below:

2.3 Redesign approach for RE powered product-systems Based upon experience with the integration of RE technologies in product-systems and by evaluating other REbased products, a checklist for designers has been developed. This checklist is meant to support the designer to understand the energy flows and to select appropriate RE technology. This is just one way to integrate RE technologies into products. Many other approaches are suitable depending on the design context and the characteristics of the product. The Checklist has been split up into 5 steps.

Step 1. Product, user and context identification The starting point of the product development process. > What are the characteristics and the functions of the

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selected product? > Who will be the user of the product? > In which context will the product be used? Outcome: A general description of the use of the product, the user and the context.

Step 2. Energy consumption by productuser The goal is to analyse the energy patterns in order to identify the â&#x20AC;&#x153;energy needâ&#x20AC;? of the product when it is being used by the user. For some products the energy patterns are very predictable (a tooth brush will be used twice a day for 5 minutes), for other products the use might differ per person per day (like for example a PC mouse). > What is the maximum power used? > What is the frequency of use of the product indicated in amount of times per hour/day/week? > What is duration each time of the use of the product indicated in minutes per time? Outcome: Energy pattern of the energy use over time by the product.

Step 3. Identifying the appropriate REtechnology Based upon the outcome of step 2, the designer can start to identify a RE-technology that can fulfil the needed energy pattern of the product. There are no strict guidelines in this step, but the characteristics of the three technologies as described in table 1 can be used to select the most relevant RE technology. For example: > What are the characteristics of the RE-technology that one is looking for? > If the average needed energy power is more than 40 Watt than Human Power is not the appropriate technology. > If there is a need for a high energy-density than FC will probably be the appropriate technology. Outcome: Selection of RE-technology

Step 4. Potential energy generation by selected RE-technology After the RE technology has been selected it is neces-

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sary to identify the potential characteristics of the technology and energy pattern that could be generated. These questions are often more specific for the selected RE Technology for example: > What is the maximum power output? > What is the pattern of the energy output? > For PV: What is the light intensity? What is the light source (indoor or outdoor)? What is the efficiency of the PV-cell? How are the PV-cells positioned? What area is available for the PV-cell? What are the climate conditions? > For HP: What is the efficiency of the system? Can the product be used while creating HP-energy? How often and for how long is the user willing to create HP energy? > For FC: etc. Outcome: Energy pattern of the energy use over time by the product.

quantified and finally in step 5 they have been matched

Figure 12 ___ Diagrams of the Energy Consumption pattern and the Energy Generation of a PV-powered product

Step 5. Matching the generated and consumed energy In order to be in balance, the generated amount of energy of energy should be at least the same or more as the consumed amount of energy. By matching the results of step 2 and 3, design decisions can be made on, for example, the needed surface of PV-cells, the needed power of the FC, the appropriate HP technology or the need for integration of storage components like batteries. > Is the total amount of potentially generated the same or more than the expected need for energy? > Is the energy being consumed at the same time as it is being generated? Is there a need for storage? > If there is a need for storage, what is the most relevant technology? Outcome: Specification for the specific type of RE technology and the need for storage.

Example of the integration of PV technology

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To illustrate the approach an example of the energy patterns of a toothbrush and mouse based upon PV-technology will be shown in the underneath figures. In step 2 and 4 first a diagram has been drafted of the energy patterns (see figure 8). Next they have been

Figure 13 ___ Quantified graphs of the energy generation and use of a PV-powered toothbrush and mouse


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(see figure 9).

2.4 New sustainable technologies as starting point New emerging sustainable energy technologies also can lead to new product systems. They can create new opportunities for new products with an added value for the user and in the meantime reduce the environmental impact. In this case one looks for appropriate products to apply a new technology to fulfil needs that exist in society. Here the focus is to identify a need that can be fulfilled with RE. Important in this approach is to understand the state of the art of the development of the new technologies. When will they become commercially available on the market against what price. In this approach it is essential to have intensive contact with the developers of the new technologies and experts in this field.

2.5 Design for (radical) new solutions with RE technologies Within the 2nd proposed methodology, the user is the central point for the design decisions. Within the context of this approach, the concepts for Sustainable Energy Design Solutions should match the needs of the user of the 21st century in three complementary ways: > First, by creating scenarios of appropriate solutions for the user: flexible product utilization, independent power and multi-functional small systems that fulfil needs, but of any product, for any reason, everywhere. > Secondly, an extensive dissemination by commercialization of these products-systems on common places. This will bring the user in close connection with the technology by the proximity to the technology and by the personal experience of the technology. > Thirdly, by designing these product-systems in such a way that they can provide real solutions for the user and not just gadget solutions for the moment. These solutions should be identified in close and/or together with different universes of users. In this way, for exam-

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ple, modular, multi-target oriented solutions can directed to different optimisations of the use situations. A method is proposed here taking in consideration the Design for (radical) New Solutions. However this method is just one of many possibilities, and maybe useful to use, as a guide for others.

Figure 14

Phase 1 â&#x20AC;&#x201C; User oriented Design > Analyze the userâ&#x20AC;&#x2122;s context (focus group) as support for the Design options and usability in an active way close to the user (comprehension of the universe of experiences of the user) by methods of empiric user research. It is important that a detaiedl description of the use of the product, the user and the context of use should be done. > The methods for the empiric user research are session groups with users, Individual interviews, questionnaires and other creativity tools.

Phase 2 â&#x20AC;&#x201C; Use of Sustainable Resources and Technologies

> Analyze the technological context of the resource in

use. For example, in the context of the vision presented, the Photovoltaic technology will support the use of Solar Energy in the products, by understanding the technology, and finding technical ways to apply in a correct and optimized way the technology to the product. This phase leads to a list of sub-steps that correspond to the technological requirements for the integration of RE technologies in consumer Products: a) Identifying the Energy consumption pattern by product-user The goal is to analyse the energy patterns in order to

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identify the “energy need” of the product when it is being used by the user. b) Identifying the appropriate Sustainable Energy technology Based upon the “energy need”, the designer can start to identify a Sustainable Energy Technology that can fulfil the needed energy pattern of the product. c) Potential energy generation by selected Sustainable Energy technology After the Sustainable Energy technology has been selected it is necessary to identify the potential and the characteristics of the technology and energy pattern that can be generated. d) Matching the generated and consumed energy In order to be in balance, the generated amount of energy of energy should be at least the same or more than the consumed amount of energy. By matching the results of “energy need” and “potential energy generation”, design decisions can be made for example, the needed surface of PV-cell.

Phase 3 – Find marketing opportunities for technology-based solutions > Analyze the market opportunities according to the

different type of created solutions. It is recommended that the Design of Sustainable Solutions should be focused on different user groups. In this way solutions with the same concept and different characteristics can be adapted to and appreciated by different users. Next a comprehensive study in which three different marketing approaches using technological solutions is presented:

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1> Technology oriented Marketing (design only based on technology) Here the focus is on the technological aspects of the product; in this way the technologically superior values of the design of the product are considered. 2> Experiences oriented Marketing (design for

an experience) In this case, the focus is on the experience that the product can stimulate in the user. The market strategy and the resulting Design Solutions dominates the creation of the experiences that a technology-based product can create. 3> Ambiences oriented Marketing (design for ambience) Here the focus is on the creation of intelligent environments, where the technology is incorporated in the environment, not visible, but capable of answering the wishes of the user, generating high levels of comfort. Here Design Solutions add to the technological and experience parameter, a third level that is the generated stimulation based on the user emotions, wishes and needs.

Phase 4 – Mass Dissemination of the use of Renewable Energy Resource > This phase leads to an invisible or Meta moment of the approach. It is not related with the created solution itself, but with the results that a disseminated utilization of the product or solution can leads to.

3. Cases 3.1 Developing Countries Cases This case has been taken from the web-site Intermediate Technology Consultants: http://www.itcltd.com/solar.

Glowstar: PV-powered lantern for Africa Solar Home Systems of 20-50 Watts are not affordable for the majority of rural people in Africa, nor in many countries in Asia and Latin America. In Kenya, for example, 80 % of rural people possess kerosene hurricane lamps and spend between $3 and $8 per month on kerosene plus batteries for torches and radios, and candles. Battery charging is an increasingly common service in towns. For most of these homes a small power source for lighting using modern compact fluorescent


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lamps, power for a radio and possibly other electronic appliances would do much to improve living conditions if it was affordable.

Consumer research with existing models While the study demonstrated that there was a real demand for solar lanterns, customers highlighted a number of technical shortcomings with all of the products tested. Most of these shortcomings are related to the poor construction of the lanterns, the quality of light and the relatively sharp drop off in performance after a period of months of use. The most important features were identified wer e as follows; Service characteristics; > The price of the lantern should be between $75 and $100 if possible > The lantern should provide light for up to 4 hours each evening. > Customers should have access to affordable and readily available spares > Customers expect an overall lifetime of the lantern of 6 years > An indicator to show that lamp is charging, > A warning light to show that the lamp is about to switch off when the battery is low, > A power socket to allow a small radio to be connected to the unit. The findings of this initial survey were used to form a

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into available battery technologies to identify a battery which; has the capacity to store charge sufficient for the required period of lighting, is suitably robust to withstand the heavy duty cycle required for daily charge and discharge, requires no customer maintenance (also spill and leak proof), has minimum impact to the environment if disposed of at the end of its life cycle, could be manufactured locally in the medium term in developing countries, and provides a cost effective solution. As a result a Valve Regulated Lead Acid (VRLA) battery with a gel electrolyte has been selected as the battery technology with which to prototype the lantern.

How does it work? The solar lantern kit consists of a Photo-Voltaic panel, and a lantern containing a high efficiency lamp, a rechargeable battery and a charge control circuit. The concept is a simple one – during daytime, sunlight falling onto the Photo-Voltaic Panel generates a small electrical voltage. This is used to charge the lantern battery so that the lamp can provide light during darkness. The charge control circuit housed within the lantern is the “brain” of the unit. Not only does it ensure that the battery is charged and discharged correctly so that it gives a lifetime of maintenance free service, but it can also “decide” to give the battery an extra top-up charge if the panel has gone without its full quota of sunlight for a few days. Its on-board microprocessor will even store information (which can be downloaded later after using) on how the lantern has been used. This information is extremely useful and will help the designers build

design brief and as a result, the team produced a new design for a lantern which incorporates all of these features. http://itcltd.com/glowstar/gallery.htm A crucial component for any rechargeable device is the battery.The project activities have included research

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a picture of how customers use their lanterns. This information will be used to design better lanterns in future. A similar project on a solar powered lantern in Cambodia is described in Chapter 8 (on the web).

4. References > Kan, S.Y. Energy Matching – key towards the design of sustainable photovoltaic powered products. Thesis TU Delft, 2006 > Kan, S.Y., PhotoEnergy, State of the art in photo energy conversion and storage. TU Delft, 2002 Kruijsen, J.H.J., Photovoltaic Technology Diffusion, Contact & Interact. Delft, 1999 > Rogers, E.M., Diffusion of innovation, Free Press. New York, 1983 > Rijckevorsel, P.P.L.M. van, The Solar Project, Photovoltaic technology in consumer applications. TU Delft, 2001 > Reinders, A., ‘Options for photovoltaic solar energy systems in portable products’. TMCE, 2002 > Weitjens B., Met de zon in de rug, Master thesis at Industrial Design Engineering, TU Delft, 2002 > Beers, S. Zonnemobiliteit DCMR, Milieudienst Rijnmond, Master thesis at Industrial Design Engineering, TU Delft, 2002 > Flipsen, B. Et al. “In search for application fields of Fuel Cells”, TU Delft, 2000 > Kan, S., Silvester, S. & Brezet, H. (2004) Design Applications of Combined Photovoltaic and Energy Storage Units as Energy in Mobile/Wireless Products. TCME 2004 Conference,

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J

1 introduction. ICT as a source of innovation – devices and systems . Information and Communications Technology (ICT) is widely credited with bringing about significant improvements in the resource efficiency of industrial economies over the last few decades, though this is very hard to determine with any accuracy. What is clear is that any contribution to the environmental efficiency of the economy has essentially been as a ‘by-product’ of the main focus on the application of ICT – improving economic efficiency (through transforming management systems, transaction processes and so on). ICT is included as a specific technological area in this Guide because of its potential to contribute to the development of more innovative designs for new products, services and systems. The idea is to utilise the technology, intentionally, as a way of realising new sustainable solutions. Of course ICT is already a critical ingredient in most design work today. Design processes rely on ICT and software tools for calculation, visualization, documentation and so on. Most production processes have been improved by the incorporation of ICT and many goods and services depend on information systems to operate. New product-service systems are very likely to involve a substantial incorporation of information and communication systems. When we talk about ICT we tend to think in terms of ‘hardware’ devices (computers, mobile phones, video-

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INFORMATION AND COMMUNICATION TECHNOLOGY

Chris Ryan

cameras, sensors, and so on) or in terms of software and networks, (the web, internet, browsers, email and so on). Any contribution to the development of new ecodesigned products and services that comes from thinking about ICT will involve the application and use of hardware devices along with software and communications networks. Like any other area of technology, some new innovations will originate from a desire to exploit new possibilities which originate from new software or hardware devices. This ‘technology inspired approach’ is described below. Innovation of this kind involves the exploration of questions such as ‘what can we do with this device that we could not do before it existed’. Such innovation can be environmentally focused if the ‘what can we do’ focuses on reducing the consumption of resources (or the production of waste) - for example by thinking ‘what could you do to reduce physical travel by using an information technology device or communications system?’ But, there is another way in which ICT can be a starting point or a facilitator for design or innovation which does not focus on the hardware or software but on the ‘systems potential’ of the technology. All those ICT devices and software and networks are technologies for acting on information, to transform its value or utility. The devices are just tools to work on the real substance of economic value – information. The ‘information systems approach’ starts from a focus in information flows and the potential to ‘re-shape’ them to deliver different outcomes (substitution of material flows, new user behaviour, new functionality and so on.)

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In this approach the hardware or software is selected to deliver outcomes which are first defined. This section of D4S is also more focused on ways of thinking about the potential of ICT – in terms of ecodesign and eco-innovation - than about particular hardware or software devices. The ‘ways of thinking about ICT’ have been drawn from research and case studies.

2 Technology Inspired Approaches – exploiting new potentials of ICT devices. ‘Seeing’ new possibilities opened up by new technological devices is a less systematic, more ‘inspirational’ way in which (eco)innovation can take place. It is very hard to provide any guide to assist that process. ICT devices change rapidly; new devices enter the market, the capacity of most existing devices changes rapidly (think how fast the capacity of a personal computer is out-dated by new models). There are many reliable sources of prediction about the appearance of new devices. Since the producers of such equipment want to see their success in the market, they generally support many magazines and web-sites ‘showing’ new concepts well before they are available for consumers. Scanning such magazines and web-sites on a regular basis is therefore about the only systematic starting point for inspiration. Of course there are also regular, international, trade exhibitions (such as CeBit – www.cebit.de) which can also be valuable sources of new ‘technology–inspired’ thinking. It is often difficult in retrospect to know whether a particular new innovation began as an inspiration for the new use of a device (or whether the device was found to support a new innovative system (see next section). Clearly the existence of mobile information and communication devices (mobile phones , Personal Digital Assistants, note-book computers etc) has inspired many new services. Sensors and monitoring devices also open up new possibilities to be exploited.

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The internet as an open communications system has transformed business-to-business and business-to-con-

sumer relationships and is probably the most obvious example of new innovative solutions abased on the exploitation of a new technical capacity. BOX The rate of change of the technical capacity of devices. One attribute of most ICT devices can be predicted with some confidence. Whatever the key capacity or attribute of a device - its memory size, its communication speed, its processing power – it will double roughly every 18 months for a given level of investment/cost. There is a related and similar (but inverse) effect in relation to the energy consumption of some devices (and possibly even their physical size) which will decrease significantly every 18mths to 2 yrs. For either the technology inspired approach or the information systems approach, this regular improvement can be anticipated in any design/innovation development. Some innovative solutions will require ‘pushing’ the boundaries of technology in terms of the capacity; with these rough laws in mind system performance can be related to ICT capabilities and cost at a future time.

3 Information systems approach. Exploiting the systems potential of ICT starts with information flows. This is presented as two step process. NOTE: In practice whilst starting with ‘step one’ (defining the information flows for you system) is the most logical, a quick review of step two (categorisation and examples of ICT system potentials) can actually help clarify existing information flows as well as suggest innovative alternatives. The best process is probably to move iteratively back and forth between steps one and two until a suitable solution is found.

3.1 Step One: Define the information flows.


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For your project, using a version of a system list or system map (see module B), identify and mark the information flows that are required for the system (or product) to operate. Begin with the existing system/product. Mark in all the information flows, noting: >What they do (what information is being transferred) >What form the information takes and how it travels (remember it might be physical or digital in the existing system) >What devices and resources are used to support information flows. >What outcomes result from the information flows. Then, consider the intended outcome (or the aim or brief) for a new (innovative) system or product and: define what information could make the intended performance of the new concept most efficient and effective (economically and environmentally). (It is best to do this without regard to whether that information appears to be easily available or not.) If you already have an initial idea for a new concept, the on its system map mark in the information flows as above. The design/innovation aim for the next step is then to: Configure an information and communications technology system that will support the efficient and effective operation of the system/product. NOTE: this will entail identifying and choosing (or, in some cases where there is sufficient investment available, specifying the characteristics for) a set of ICT devices and/or software to handle the information and communications processes to achieve the desired outcomes.

3.2. Step Two: Identify any ICT ‘system potentials’ that could be relevant to your concept. The information that follows is intended to provide both a guide and an inspiration for developing new ICT based system/product solutions. The first part of this section provides a framework

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of six different (but often overlapping) ways of thinking about the potential for ICT to ‘transform’ systems and products. These have been developed from a large study of actual system/product changes. These six approaches should be considered as possible design directions for developing new sustainable systems and products. They suggest ‘ways of thinking’ about eco-design and ecoinnovation. The second part focuses on ‘smart systems and imbedded eco-intelligence’ and includes a set of approaches to the development of ‘smart’ ICT based systems.

3.2.1 Six Transformative Potentials of ICT 1> Aware-sense - smart senses for system status. ICT provides new opportunities for the development of (real-time) sensing systems for monitoring ecological conditions. Satellite systems can monitor changes at the earths surface; new sensors can monitor many environmental factors and communicate information wirelessly; very small sensors (often called ‘smart-dust’ – see BOX below) are being developed which can be spread over a terrain and operate like a ‘sense net’ requiring little or no maintenance. Sensors can deliver real-time information on conditions via networks including the internet. Sensors do not have to be based on digital data streams; they could be, for example, smart materials which change colour in different environmental conditions (e.g. responding to air quality). 2 > Intelligent feedback. (Re)connecting key elements of the environmental system broken by the scale of physical conditions. “Feedback” means the provision of information on the outcomes, or the environmental impacts of actions, behaviour, decisions, functions. This feedback can be at the product/ component level: sensors providing real-time data to optimally change product operation (see next section). Feedback can be at product/user interface (‘selecting this option will consume so much resources’). Feedback can be at the macro scale: information on

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household or neighbourhood resource consumption; or a another scale still - information on the current environmental conditions of a community of city (air quality, water consumption, waste production levels, UV/sunlight levels, etc) 3> Tele-presence and virtual extension. Through the use of visual and audio information ICT provides opportunities for ‘virtual transportation’ to another environment, replacing material transportation for whatever purpose. This can replace personal travel ‘to’ somewhere, such as for meetings, conferences (e.g video or teleconferencing) or with web-cameras etc, this could also be ‘visiting’ some place, such as a home (to check security) or a café (to check who is there), or a nature (for a virtual holiday or bird-watching) and so on. Virtual extension can change the apparent spatial configurations beyond physical boundaries - extending the experienced dimensions of a home or office (satisfying spatial needs and connectivity) without increasing the real one. 4> Virtualising /Visualising potential realities. ICT (computing hardware and software) has provided enormous opportunities to create simulations and models of new systems, products and environments. These models can help in the design of systems but also in their (efficient) operation (another form of ‘feedback’). With the development of new display systems (including 3D) ‘simulation’ can involve new immersive virtual environments to explore new systems potentials. This could be called ‘transformative simulation’, providing users with the experience of ‘living-in’ some future conditions or of current conditions of a space that cannot be safely or conveniently visited.

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5> From ‘atoms’ to ‘bits’ - reversing the hardware / software balance. One overriding aim of eco-innovation is to reduce material flows and to ‘dematerialise consumption’. ICT systems can be used to shift the value or utility of products from atoms to bits, from physical material to information. This is one important strand of intelligent systems/products where what is valued is the intelligence

rather than the material resources (see next section). Sustainable products, systems and services can rely heavily on software rather than hardware. Product life can be extending without prohibiting upgrading and functional innovation if they are viewed as a system of ‘eternal hardware’ combined with ‘mutable software’: eternally yours but ever changing, through up-grading only the ‘operating system’. (Some washing machines, cars and sewing machines, which depend on software to deliver operational efficiency and effectiveness, are already able to benefit from up-grading their ‘operating system’). 6> Eco-logistics - eco-efficient resource tracking. Major shifts in industrial production - remanufacturing, just-in-time delivery, efficient (shorter) transport networks - depend on the power of new logistics systems, with information flows to track vehicles, define transport routes, monitor the conditions of goods in transport etc. This delivers economic benefit from reduced inventory and higher transport utilization factors, with potentially large increases in resource efficiency. With closed cycle production systems with product take back at end of life, logistics systems will probably come to include product transponders or identity chips to track products/components through their life. BOX Motes and Smart Dust are different names given to miniaturised sensors, able to communicate wirelessly, sending data on specific conditions. These are small enough that a large number can be spread out as a net covering an area or volume to be monitored. Sensors can monitor temperature, pressure, moisture, vibration, magnetic fields, in fact any form of data collection that can be easily miniaturised. Motes are already smaller than half a match box and rapidly reducing in size, with new prototypes about the size a grain of rice. These devices, running a tiny software operating-system, handle communications through radio links to other motes, operating as a network, transferring data along the net. The motenet is smart enough to reconfigure after the loss of a device or with the introduction of additional


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devices. To reduce power, devices sleep for most of the time, waking periodically to take a reading, sending data only when there is a change of conditions. New devices use so little power that they will soon run from micro-miniature batteries and may eventually not need batteries at all, being able to ‘scavenge’ energy from light and heat and even vibration. Recent demonstrations have shown that such a net can track the movement of a vehicle and relay that information fast enough to guide a following robot vehicle.

BOX Distributed Computing. Millions of PC users are volunteering the idle or unused processing power of their home or office computers to help analyse data and perform computer simulations for research that is seen as socially and environmentally valuable. Conservative estimates put the processing power available in this way at over 10 billion megahertz and with over 10 thousand terabytes of memory and storage. Software for distributing such tasks between idle computers has moved from the initial system for SETI@home (the search for extraterrestrial intelligence that has over 4.5 million users) based on a new platform called Boinc from the University of California. Data analysis and simulation now extends to climate change (climateprediction.net) to analysing DNA sequences and folding proteins for issues with Alzheimer’s and Parkinson’s diseases) – (folding @home).

BOX RFID Tags - digital product identification systems. Product identification systems have grown in sophistication based around improvements to the standard printed/optical ‘bar codes’. The traditional ‘one dimensional’ bar codes could store around 100 bits of information; more recent two dimensional printed codes can increase informa-

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tion density to around 1000 bits. All these codes need to be read with a line-of-sight optical (laser) reader. Radio frequency (RFID) tags use an electronic reader that does not require line-of-sight. Most of these small flat devices measure about 35 cm across. Cost per tag is currently around 25cents, but industry estimates that this will fall to 5 cents, when quantities reach 5-10 billion.Tags are mostly ‘passive devices’ having no battery and only responding to signals from a reading scanner. They respond to a reader by returning their identification code. Current systems use a 64 bit code although there are schemes for 96 bit codes, with data on manufacturer, product and serial number. These have a range of about a metre (although less if they are covered by metal). Some battery backed tags (in use for toll-roads for example) have ten times that range. KSW-Microtec, a German company, has invented a washable RFID tag designed to be sewn into clothing and clothing companies such as Benetton have floated plans to use these tags in all their clothing for inventory processes. Some countries are considering embedding RFID tags into banknotes. Pira in the UK has established an on-line database comprising a directory of over 9000 RFID products and manufacturers world wide and regularly up-dated news about new applications. [http://www.pira.co.uk/]

BOX Embedded intelligence. Only 2 percent of the approximately 8 billion microprocessors produced in 2000 ended up in computers. The rest went into production machinery, home appliances and white-goods, toys, cars and other transport systems, mobile phones and PDA’s , audio and video equipment etc. All these microprocessors are increasingly becoming interconnected with each other and with the internet forming new pervasive networks. Estimates are that there could be as many as 10,000 telemetric devices per person by 2010. Within a decade more things will be using the internet than people. [Rejeski 2002 (a)]

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BOX Trash That Thinks At the end of 2001 the City of Barcelona in Spain put microprocessors and RFID tags in their public city litter bins at a cost of 20 million pesetas. The memory chips in these bins are designed to store data on how full the containers are and when they were last emptied. The system is intended to reduce problems of overflowing bins and inefficiency in collection logistics based on fixed routes and schedules. With the new system, sanitation employees, with the aid of a portable computer, will be able to record and retrieve data including the last three times a particular bin was emptied, how full it was each time and even when it was last maintained and painted. The data, along with specially-developed software, will help plan the most efficient routes and schedules for trash collection. To begin with, the system is being installed on 600 containers in Barcelonaâ&#x20AC;&#x2122;s Old Town, after which it is scheduled to be expanded to all 18,000 of the cityâ&#x20AC;&#x2122;s public waste bins. Trash collection systems currently have little flexibility to vary schedules or routes, even though patterns of waste disposal may vary significantly over time. The Barcelona experiment is expected to dramatically improve the effectiveness and the efficiency of collection, reducing the total distance travelled at the same time as increasing the service to high-intensity-use areas. As sensing systems with radio communications capabilities become cheaper and smaller these monitoring systems could send in data on the level of trash in each bin and efficient routes for collection could be calculated each day. [IDG News 2001. www.idg.com]

3.2.2 Intelligent systems and embedded eco-intelligence.

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Eco-innovation can derive from the contribution of ICT to the improved function and environmental performance of products or services resulting from the incorporation of ICT systems and intrelligence. Many ordinary mass-produced products now imitate

the sophisticated performance once possible only in advanced systems, using sensors and controls to ensure that functionality is delivered efficiently and only when needed. This has also delivered resource efficiencies through more efficient operation. The potential for such improvements is significant. A new set of eight approaches to eco-innovation through embedded ecointelligence in shown in the following table. Examples from existing products, new concept developments, research into product-service systems and other future-concept speculations are shown.


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159 Table 1 ___ Embedded Intelligence and Eco-Innovation Strategies for products and product-services.


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Table 1 ___ Embedded Intelligence and Eco-Innovation Strategies for products and product-services.

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161


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>


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>>>

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Resources and Further reading Information is provided on additional available resources and on sources used and/or referenced in each of the chapters. Information includes internet sites and publications and is not exhaustive.

UNEP DTIE UNITED NATIONS ENVIRONMENT PROGRAMME Division of Technology Industry and Economics UNEP has a history of working with companies to identify and promote best practices â&#x20AC;&#x201C; among them- the development of more sustainable products and services. Examples include a collection of best practice product service systems examples, the Efficient Entrepreneur Calendar (which outlines a simple step-by-step approach that companies can use to understand how their activities affect the environment); awards schemes, support to reporting initiatives such as the Global Compact and the Global Reporting Initiative, and the promotion of dialogue fora for companies to exchange experience. UNEP also works in specific sectors such as mobility, telecommunications, advertising, retail and sustainable construction to facilitate change through business-to-business channels. UNEP is also active in promoting life cycle thinking and innovation strategies through its Life Cycle Initiative. The Initiativeâ&#x20AC;&#x2122;s activities aim to develop and disseminate practical tools for evaluating the opportunities, risks, and trade-offs associated with products and services over their entire life cycle to achieve sustainable development. UNEP is also supporting the recently launched United Kingdom supported International Task Force on Sustainable Products, which is a result of the Implementation Plan of the World Summit of Sustainable Development. On the right is a selection of relevant UNEP web-sites and publications.

Web-sites www.unep.fr www.unep.fr/pc/sustain/ www.talkthewalk.net www.unep.fr/en/branches/partnerships.htm (see comments on the left)

Publications Products and services Brezet, J. C. and C. G. v. Hemel (1997). Ecodesign: A promising approach to sustainable production and consumption. UNEP, Paris. UNEP (in collaboration with the Interdepartmental Research Centre Innovation for the Environmental Sustainability (C.I.R.I.S)) (2002). Product Service Systems and Sustainability: Opportunities for Sustainable Solutions. UNEP, Paris. UNEP (in collaboration with Delft University of Technology (expected 2006)).Design for Sustainability: A Global Guide. UNEP, Paris.


Worksheets accompanying chapter 5

D4s Redesign


D4s redesign worksheets


R1

Worksheet

Creating the D4S team and planning the project

> Which departments and staff members will be involved in the D4S Redesign team? What will be his or her specific role in the team?


> Will it be useful to involve or contract external experts or stakeholders within the project or team? If yes what kind of experts or stakeholders, and what will be there role?

> Will it be useful to involve students from (local) universities within the project?


> Discuss the proposed timeframe of the project and how often the D4S team will meet

> How will the D4S team communicate?

> How will the team communicate with the rest of the organization?


R2

Worksheet

SWOT Matrix, drivers and goals for the company

Company SWOT Matrix > Identify the internal and external conditions of the company and fill in the SWOT Matrix. Use each of the four quadrants of the SWOT Matrix in turn to analyze the current position of the company. List all the strengths that exist now.Then, list all weaknesses that exist now. Next, list all the opportunities that exist in the future. Opportunities are potential future strengths. Finally list all threats.


> Strengths need to be maintained, built upon, or leveraged; > Weaknesses need to be remedied or stopped; > Opportunities need to be prioritized and optimized; > Threats need to be countered or minimized.

> Does the company have a product development department or do they normally contract out designer services for product development?

Product development capacity > What is the main activity of the companies? Developing and producing its own products (product-company), or does it use its production capacity for producing products for other companies (capacity-company)?

> On the average, how many redesigned products and how many totally new products are launched into the market annually?

> What is the general conclusion on the â&#x20AC;&#x2DC;product development capacityâ&#x20AC;&#x2122; of the company?


Internal and external D4S drivers for the company > Identify which internal and external D4S drivers are relevant to the company.


> Prioritize the internal and external drivres. Indicate by

if the drives are related to People

, Profit

> Discuss if people, planet or profit should be balanced for the project or if one or two should be prioritized.

> What is the goal of the D4S demonstration project? 1. 2. 3.

, or Planet

or a combination.


R3

Worksheet

Product Selection

> Based on Step 2, what are the product selection criteria?

> Select a product out of the company portfolio that fits defined D4S product selection criteria.

1_ Selected Product_ 2_

3_

4_

5_

6_

Second Best Product_


R4

Worksheet

D4S drivers for the selected product

> Determine which internal and external drivers are relevant for the selected product and prioritize them. Indicate by

if the drivers are related to People

, Profit

, or Planet

or a combination.


R5

Worksheet

D4S Assessment

1> Outline the phases of the product process tree and write them down (left column). Indicate for these phases their physical location (right column).


2> Define the user scenario and functional unit of the product. The functional unit is the combination of the function of the product and the user scenario of the product.

Function

User Scenario

Make sure that the functional unit is taken into account when filling in the following worksheets.


3> Identify the D4S criteria that should be included in the D4S Impact Matrix: 1_ Materials use 2_ Energy use 3_ Solid waste 4_ Toxic emissions 5_ Social responsibility 6_ ……….. 7_ ……….. 8_ ………..

> Write the above D4S criteria into the first column in the D4S Impact Matrix on the right.

> Write the earlier identified life cycle process tree stages into the first row.

> Fill in the D4S Impact Matrix and highlight the cells or activities with relatively high impact(s).


R6

Worksheet

D4S sTRATEGY & DESIGN bRIEF

> Based upon the results of the D4S Impact Matrix, what are the ‘top two’ D4S strategies for improvement options? Indicate them in D4S wheel A. > Based upon the results of the D4S drivers selection, what are the ‘top two’ D4S strategies for improvement options? Indicate them in D4S wheel B. > What D4S strategies will the company and project team focus on in the idea generation and concept development stages? Indicate them in D4S wheel C.

A

B

C


> Work out the D4S Design Brief.


R7

Worksheet

Idea generation and selection

> Collect the obvious improvement options during analysis of the D4S Impact Matrix and D4S drivers.


> Organize a creativity session (see Chapter 9) and come up with D4S improvement options using selected D4S strategies.

> Check the D4S rules of thumb (see Chapter 8) to see if they stimulate other improvement options


> Cluster all the generated improvement options according to the D4S strategies


> Which criteria should be included to prioritize improvement options?

> List the options and rate each one based on the time implications â&#x20AC;&#x201C; short (ST) or long-term (LT)


R8

Worksheet

Concept development and selection

> Determine which criteria should be included to select the best concept

> List the concepts and rate them according to the criteria


R9

Worksheet

D4S eVALUATION

> Compare the profile of the new design with that of the old product, using the criteria from worksheet R7 and R8.


> Evaluate the benefits of the new design in relation to the drivers and goals identified in worksheet R2.


Worksheets accompanying chapter 6

D4s Benchmarking


D4s Benchmarking worksheets


â&#x20AC;&#x153;all-in-oneâ&#x20AC;? Worksheet

Light Version D4S Benchmarking > Use this worksheet if benchmark version A or B (see Chapter 6.4 and Worksheet B1) is chosen or once it is understood how a D4S Benchmarking exercise is done. It contains the most relevant information from the separate worksheets combined into one.


B1

Worksheet

Benchmarking Objectives


If A_ In the next worksheet, make sure to include 2-3 products from global competitors, preferably from ‘A-brand’ multinationals. If B_ In the next worksheet, make sure to include 2-3 products from local competitors, preferably those that have the largest market share in the market segments that are most important to the company. If C_ In the next worksheet, make sure to include 2-3 products from competitors that are known to produce products with good environmental performance, that have a good environmental image, and/or that operate in an environmental niche market. If D_ In the next worksheet, make sure to choose products from brands that will be affected by the same legislation. If E_ In the next worksheet, make sure to choose products from the company’s own brand’s previous generations.Also, several products of the main competitor can be included in order to benchmark the rate of improvement . > Determine the appropriate type of D4S Benchmark for the company - light version versus extended version and information versus physical version. Indicate the selected type in the table below.

Arguments for this selection_

1_

2_

3_

4_


B2

Worksheet

Selection of products

> Choose the products for the benchmark and describe their features following the selection criteria_

Result of this worksheet a set of products upon which the D4S benchmarking exercise will be performed.


B3

Worksheet

Definition of a functional unit

> Determine the functional unit (this is a combination of the function of the product in combination with the use scenario of the product)_

Function

User Scenario

Make sure that this functional unit is taken into account when filling in the following worksheets.


B4

Worksheet

Identification of focal areas for a Benchmark

> Determine the focal areas for the benchmark process. Relevant focal areas will depend on the product to be benchmarked and the objectives of the benchmark. Relevance is reflected by product characteristics that are important_ 1> 2> 3> 4>

from an objective, scientific perspective, e.g. causing a relatively large environmental impact; from a government perspective; e.g. (upcoming) legislation; from a customer perspective; other reasons (which can include aspects other than sustainability).

Use this worksheet to determine the benchmark variables that are most applicable for this exercise.


B5

Worksheet

Definition of Benchmark parameters

> Describe measurable parameters for the focal areas. In many cases it will be necessary to use more than one parameter to express a single focal area.


B6 a

Worksheet

Disassembly Session

> Organize a disassembly session. A disassembly session is often a good idea to learn more about the target product and competitorsâ&#x20AC;&#x2122; products and to get ideas for environmental improvement. Use this worksheet to structure the disassembly session.

Basic requirements_ A product(s) to be disassembled (preferably the companyâ&#x20AC;&#x2122;s products and some of the competitorsâ&#x20AC;&#x2122; products) > A balance (0.1 g precise), > A stopwatch, > Simple tools (to pry, cut, screw), > A magnet, > Pen and paper, > (Digital) camera (to make pictures). Other useful tools_ Multometer (to measure energy consumption).

Steps before the start_ > Make a work plan, > Make a list of evaluation criteria for the disassembly session, > Weigh the complete product before dismantling it, > Measure energy consumption before dismantling it, and > Do not forget to analyze packaging.


Packaging

Energy Take in mind the Functional Unit / User Scenario as determined in worksheet B3


Product


B6 B

Worksheet

Preliminary list of improvement options

During the disassembly session and the other steps of the benchmark “smart solutions” of competitors and “silly solutions” in the company’s own product will be encountered. It is very useful to write these observations directly down!


B7

Worksheet

Report of benchmark exercise data

> Summarize all benchmark findings with the help of the following table:

Using a marking or a color code can help identify which product scores best for a particular focal area or from an overall perspective. For example the best scores green and the bad ones red.


B8

Worksheet

Identification of improvement options

> Review all benchmark results and identify improvement options One of the aims of performing a D4S benchmark exercise is to identify green improvement options. There are several ways to get triggered when identifying green improvement options. In addition to solutions that the redesign module of this manual may yield, one can think about. 1> Using worksheet B6 (Issues that are obvious) to identify smart solutions from competitor’s products that may be improvements for the company’s products. 2> Using the same worksheet to identify silly solutions that need improvement in comparison to a competitor’s products.The competitor shows that these solutions are feasible in his case, so they are likely to be feasible in the company’s product as well. 3> Trying to obtain a perspective on technological advancements; these could yield improvements as well. One can think about: a> alternative energy sources b> use of materials, such as plastics, with less environmental impact 4> Trying to look for alternatives that have not been considered before, such as: a> components and subassemblies from other suppliers b> changes in product architecture that result in less material use (wiring, integration of functions, sharing of connections)


B9

Worksheet

Evaluation and ranking of improvement options

> Select the best improvement options by evaluating them against the potential benefits and feasibility. Each option is evaluated based on a number of criteria listed below. Criteria can be split in: (i) Benefits (ii) Feasibility

Benefits Let it be noted that: (i) Most benefits can in principle be quantitatively assessed, but in general, various aspects will play a role in the evaluation of a single criterion, including issues that can not be enumerated using a single dimension. (ii) Benefits can be of a tangible as well as of an intangible nature.

> Benefits from the customer perspective can include_ _ Money saved because of lower power consumption, _ Less hassle, _ More comfort, _ Lower purchase price, or _ More fun. > Benefits from the company perspective can include_ _ Reduction in assembly costs, _ Reduction in material use/costs, _ Reduction in transportation costs, _ Image improvement, _ Beneficial in terms of (future) legal compliance, _ New market potential, or _ Higher profit margins for the product,

Feasibility > General environmental benefits (from a societal perspective). If applicable, for this environmental perspective it may be useful to discriminate between different environmental impact categories (for example, resource perspective, emissions perspective, toxicity perspective, or for example CO2 generation, (cost for cleaning up) waste generation) when improvement options affect more than one stage of the productâ&#x20AC;&#x2122;s life cycle.

Apart from benefits, the feasibility of implementing improvement options is also important when choosing which options to implement. Improvement options may show great environmental benefits, but many practical reasons may exist why feasibility could be a problem. In general these can be divided as:


(i) Technical feasibility a_ Technology might not be present, b_ Knowledge might not be present in the company, c_ Reliability may be a problem, d_ Testing procedures might take too long, or e_ Existing company standards might be out-of-date but unlikely to change. (ii) Financial feasibility; a_ Too big an investment is needed (changes to a production line, new facilities, new moulds too expensive, general budget limitations), b_ Existing contracts may prevent use of new materials/components, or c_ Transportation/distribution might yield problems. (iii) Managerial feasibility: a_ Solutions might not fit in companyâ&#x20AC;&#x2122;s product development process, b_ Sales and Marketing departments might not want to cooperate, c_ Company culture might be too big an obstacle, or d_ Solutions can be generally perceived as too risky.

Evaluation matrix The next worksheet can be used to get an overview of both benefits and feasibility.There are a few issues to take into account: > Remember that filling in the worksheet is not a matter of absolute truth, but rather of relative scores. > Remember that the main objective is to select improvement options that have the best chances to be implemented and yield benefits.This can be accomplished without exact scores. > Remember to evaluate each improvement option against each criterion separately. For example, do not let the evaluation of company benefits be clouded by the financial feasibility of that particular solution.


Ranking improvement options The next issue is to select improvement options that have the best chance to be implemented and yield benefits. When this is accomplished, in principle the company can start working down the list as long as resources to do so remain available. For selection of the most promising improvement options it may be relevant to differentiate between short - and long - term options. > Short-term options are only likely to be successfully implemented when practical considerations are sufficiently addressed.Therefore, in order for improvement options to be feasible in the short-term, the criteria â&#x20AC;&#x2DC;company benefitsâ&#x20AC;&#x2122; as well as all three feasibility criteria should be given sufficient weight. In this case, consideration of customer and environmental benefits is relevant. > Long-term options: For selection of feasible long-term options, the environmental and customer benefits can be given more weight.


D4S Global Guide Worksheets Product Service Systems 1

Worksheets......................................................................... ¡Error! Marcador no definido. Worksheet 1: Sustainability SWOT .................................................................................2 Worksheet 2: Checklist for analysis of existing reference system and setting priorities for improvement ..............................................................................................................3 Worksheet 3: PSS sustainability guidelines, Level 1, A – Environmental .......................6 Worksheet 4: PSS sustainability guidelines, Level 1, B – Socio-Cultural .......................8 Worksheet 5: PSS sustainability guidelines, Level 1, C – Economic ...........................10 Worksheet 6: Format of description of PSS Concept ...................................................12 Worksheet 7: PSS Sustainability Screening Tool for new PSS concepts .....................13 Worksheet 8: Portfolio Diagram Sustainability and Feasibility ......................................15 Worksheet 9: PSS sustainability guidelines, Level 2, A – Environmental .....................16 Worksheet 10: PSS sustainability guidelines, Level 2, B – Socio-Cultural ...................18 Worksheet 11: PSS sustainability guidelines, Level 2, C – Economic ..........................20 Worksheet 12: PSS Sustainability Radars ...................................................................22 Worksheet 13: List of specification for PSS Implementation ........................................24


Worksheet 1: Sustainability SWOT SWOT

Current Situation Strengths Weaknesses

Future Situation Opportunities Threats

A. Environmental Dimension B. Socio-cultural dimension C. Economic dimension - for the company/ies - for the customer D. Technology, Feasibility E. Legislation, Regulation, Public Infrastructure

Ranking 1 2 3 ...

problems

opportunities


Worksheet 2: Checklist for analysis of existing reference system and setting priorities for improvement

A) Environmental dimension

Questions

Are disposable systems used? Are disposable products packaging or support products used? Do parts of the A.1 system life system tend to be technologically obsolete? Do parts of the system tend to be culturally/aesthetically obsolete? Do optimisation some parts of the system tend to wear out easily (than other)? A.2 Is there any heavy transportation of goods? Is there any Transportation/distribution heavy transportation of semi-finished products or by reduction products? Is there any heavy transportation of people? Is there any un-useful (empty) use of transportation means? A.3 resources reduction

Priority High Medium Low No

H M L N Is the system consuming in use high quantity of energy? Is H the system consuming in use high quantity of natural M resources? Is the system absorbing high quantity of L consumables? Are products, packaging or support N products of high materials intensity?

A.4 waste minimisation/ valorisation

Is every waste going to landfill? Is the system at the end of its life producing high quantity of waste in landfill? Is the production of system products, packaging and support products producing high quantity of waste in landfill?

A.5 conservation/ biocompatibility

Are all the energy in use from fossil flues? Are all the energy form exhausting resources? Are most of materials for products, support products, packaging, infrastructure exhausting and/or non-renewable?

A.6 a-toxicity

Are the resources used toxic or potentially toxic in production for the workers? Are the resources used toxic M or potentially toxic distribution? Are the resources used toxic or potentially toxic for the user? Are there any toxic or L potentially toxic effects of the products, support products, N packaging or infrastructure for any end of life treatments?

H M L N H M L N H

Impr.


B) Socio-cultural dimension

Questions

Priority ?

B.1 Possibility of customers to consume socially more responsible (Sufficiency)

Does the consumption in the system (use phase) cause major environmental or social problems?

High Medium Low No

B.2 Health and safety (of employees, customers, stakeholders...)

Are there any health and safety problems in the supply/ the value chain, i.e. from raw material production to use, recycling and disposal)?

B.3 Living conditions/ quality of life (customers/users perspective)

Are there any problems with customer/ consumer acceptance? Are the customers unsatisfied with the offer? Are there any needs of the customers NOT met through the current system? Does the offer contribute to the 'enrichment' of life of users (by giving learning opportunities, enabling and promoting action rather than passiveness, etc.) Does it solve real customer needs and socially acceptable demands? Are there any negative social impacts related to the offer in the existing system? Are there any problems with the quality of work in production and supply chain (Supportive environment, enriching the life of workers by giving learning opportunities, social aspects like child labour etc)? Is the workforce shrinking in the current system? Are there any problems with intra- and intergeneration justice (equal wealth and power distribution between societal groups, North-South, not postponing problems to the next generation, etc.) in the current reference system? Are stakeholders and public media NGO's etc. satisfied with the offer, or do they criticise the system? Has the company/ offer a bad or somehow critical image? Are cultural values, cultural identities diminishing in the current reference system? Does the current system offer only one solution/ few varieties for all regions and cultures? Does the current system have a negative impact on social well being of communities, regions etc.?

H M L N H M L N

B.4 Employment/ working conditions (employee perspective)

B.5 Equity and justice/ Relation to stakeholders (society/global perspective)

B.6 Respect cultural diversity (society/local perspective)

H M L N H M L N

H M L N


C) Economic dimension

Questions

C.1 Market position and Competitiveness

High Do you have a weak market position in the current system? Are there possibilities to improve your market Medium position that you do not use at the moment? Do you see Low current and future threats for your market position? No

C.2 Profitability/ Added Value for companies

Is the profitability of the current system low for your company and other external partners? Is there anyone producing better offers than you in a cheaper way? Are there missed opportunities to create more value in the whole value chain/ system? Is somebody else using this opportunity? E.g., selling your products second hand?

H M L N

C.3 Added Value for Customers

Is the profitability/ value low for customers/ consumers? Do you fail to offer concrete, tangible savings in time, material use etc. for the customer? Do you fail to offer ‘priceless’, intangible added value like esteem, experiences, etc. for which the customer is willing to pay? Are competitors creating more value for money for the customers? Are there any threats in the current system for your business in the longer term? Do you foresee that the customer’s needs for your offer will disappear? Are there any major risks from external sources (clients, government, legislation, NGOs…) for your offer? Is your offer more a short term business, will it disappear soon? Is your offer threatened by technological or fashion changes? Is your financial background sound? Is your market position in danger? Do you have a weak market position that you want to improve? Can you use strategic partnership and co-operation? Are your competitors co-operating and therefore have a better market position? Are you missing competencies internally that you need today and in the future?

H M L N

Are there problems on a macro economic level, e.g. disclosure of participants in economy, monopolistic structures, rebound effects...?

H

C.4 Long term Business Development/ Risk

C.5 Partnership/ Co-operation

C.6 Macro-economic effect

Priority ?

H M L N

H M L N

M L N


Worksheet 3: PSS sustainability guidelines, Level 1, A – Environmental

A1. system life optimisation priority H M L N Guidelines level 1  Can you offer services for shared use of products/infrastructures ?  Can you add to product/infrastructure offer, services for their maintenance, reparability, substitution ?  Can you add to product/infrastructure offer, services for their technological up-gradeability ?  Can you add to product/infrastructure offer, services for their aesthetic/cultural up-gradeability ?  Can you add to product/infrastructure offer, services for their adaptation to new contexts (sight of use) ?

A2. transportation/distribution reduction priority H M L N Guidelines level 1  Can you use infrastructures for digital transfer/access of information ?  Can you seek for partnership enabling long distance activities ?  Can you seek for partnership for local resources use (info/data transfer) ?  Can you seek for partnership for on-site production (info/data transfer) ?  Can you add to product/infrastructure offer, services for their on-site assembly ?  Can you seek for partnership to reduce/avoid products or semi-finished products transportation and packaging ?

A3. resources reduction priority H M L N Guidelines level 1  Can you add to energy or material or semi-finished products, support services for their optimal use ?  Can you offer the access/availability to products/infrastructures through payment based on the unit of utility/satisfaction ?  Can you offer collective use of products/infrastructures ?  Can you outsource activities when higher specialisation and technological efficiency of products/infrastructures are available ?  Can you outsource activities when higher scale economies are feasible ?  Can you seek for partnerships aiming at the use/integration of existing infrastructures/products ?  Can you add to product/infrastructure offer design of their adaptation to the context of use aiming at resources optimisation ?  Can you add to product/infrastructure offer design services for their adaptation to use variations of resources requirements ?

A4. waste minimisation/valorisation priority H M L N Guidelines level 1  Can you add to product/infrastructure offer, take back services aimed at re-using or re-manufacturing ?  Can you add to product/infrastructure offer, take back services aimed at recycling ?  Can you add to product/infrastructure offer, take back services aimed at energy recovery ?  Can you add to product take back services aiming at composting ?  Can you seek for localised alliances/partnership aiming at symbiotic/cascade approach for secondary resources’ use ?


A5. conservation/bio-compatibility priority H M L N Guidelines level 1  Can you seek for partnership aiming at decentralised renewable/passive energy resources use ?  Can you within services offer introduce products/infrastructure based on non-exhausting/renewable and bio-degradable materials ?  Can you seek for partnership aiming at the use of local non-exhausting/renewable and bio-degradable materials ? A6. a-toxicity priority H M L N Guidelines level 1  Can you seek for alliances with other producers aiming at toxic/harmful resources reuse or recycling ?  Can you add to product/infrastructure/semi-finished products- offer, services for the recovery/treatment of the toxic/harmful emissions they are responsible off ?


Worksheet 4: PSS sustainability guidelines, Level 1, B – Socio-Cultural B1. Enable the customer to consume socially priority H M L N more responsible (sufficiency) Guidelines level 1  Can you increase your customer’s awareness about Sustainability by new PSS?  Can you offer more individual ways of fulfilling needs in a more socially responsible way, by new PSS?  Can you enhance the transparency of your offer and how it contributes to Sustainability?  Can you avoid possible social rebound effects of your offer (socially counterproductive effects)?  Can you create enabling platforms/ increase the capacity of your customers through new PSS, e.g. let them participate in the design and production process...  Increase customer’s satisfaction, participation/ involvement, motivation and awareness. B2. Health and safety (of employees, customers, stakeholders...) Guidelines level 1 Can you improve health and safety conditions - in production - in use - in recycling - in disposal and generally/indirectly connected with the offer.

priority

H

M

L

N

priority H M L N B3. Living conditions/ quality of life (customers/users perspective) Guidelines level 1  Can you fulfil more socially acceptable needs or solve social problems by offering a new PSS?  Can you do “something good” for the individual and the society as a whole, increase welfare on an individual and society level by offering a new PSS?  Can you offer the new PSS with affordable prices for the specific target groups you are aiming at?  PSS may focus much more on the needs and values of customers’ e.g. through the possibility to customise PSS offers individually.  PSS may integrate customers directly in the generation of the PSS and by that increase value of the offer and satisfaction of the customers. B4. Employment/ working conditions priority H M L N (employee perspective) Guidelines level 1  PSS may create better, more interesting and more secure jobs in PSS delivery compared to product manufacturing.  Can you improve quality of jobs, and secure jobs by new PSS offer?  Will you be able to pay fair wages (regional standards) in the whole value chain of new PSS offer and offer adequate amount of working hours (regional standards)?  Can you increase employee’s satisfaction, motivation, participation through new PSS offers?  Can you offer work in line with the capacity of employees and offer training and personal development if not?  Can you influence also other companies in the value chain to care for good labour conditions, e.g. through new partnerships?


B.5 Equity and justice priority H M L N (society/ global perspective) Guidelines level 1  Does your new PSS help to avoid negative effects like discrimination and exploitation of people, regions, countries?  Can you influence also other organisations involved to apply acceptable social standards?  Can you involve and respect minorities and target groups with special needs, like parents, elderly people, handicapped people, children, singles, illiterate...?  Do you have any opportunities to support partners in developing countries, e.g. through fair trade, partnership etc.  Can you help to support democratic structures through your new PSS, e.g. in developing countries?  Can you help to increase communication and understanding of people through new PSS offers?  Can you involve stakeholders, NGOs and others in the development of the PSS? Do you understand and listen to their needs and concerns? priority H M L N B6. Respect cultural diversity (society/ local perspective) Guidelines level 1  Can you increase stakeholder participation and satisfaction through new PSS, e.g. your neighbours, NGOs, the families of your employees’ etc.  Can you offer them participation in decision making in new PSS?  Can you also increase their capacity, e.g.  Can you offer more education and information to stakeholders through new PSS? Take care for honest and adequate information of stakeholders, help to improve their education especially regarding sustainability issues  Can you use partnerships and synergies with other (stakeholder) organisations, to improve the PSS offer?  Globalisation is a challenge but nevertheless it is also important to have cultural and regional diversity. Can you support that by new PSS?  PSS can strengthen the role of local economy because services are created at the same time and often at the same place when and where they are consumed. Can you use this effect?  Can your PSS offer be adapted to the different regional cultures, does it respect and support regional identity and local structures?  Can you support cultural identity and diversity, e.g. customise your offer for different target groups?  Can you increase divers aesthetics and beauty through your PSS?


Worksheet 5: PSS sustainability guidelines, Level 1, C – Economic priority H M L N C.1 Market position and Competitiveness Guidelines level 1  Can you improve/secure your market situation by a new PSS offer?  Can you develop PSS that are better than the offers of your competitors, e.g.,. lower prices, better quality, meet customers demands better...?  Can you fulfil demands of your customers that have not yet been fulfilled?  Can you gain new customers by offering a PSS?  If you look at the trends and how the market is developing which PSS will be needed over the long run? Can you offer them already today?  Can you profit from diversification through a new PSS offer, make business in a new field with new partners, get more flexible, (especially important in saturated markets).  Can you improve your position in the value chain through new PSS?  Can you improve your image by offering innovative PSS? priority H M L N C.2 Profitability/ Added Value (companies) Guidelines level 1  Can you make your company more profitable (decrease cost increase turnover) through new PSS Strategies and therefore increase investor satisfaction/ shareholder value etc.?  By analysing and re-designing the production and consumption system the PSS improvement can be beneficial for all participating actors, not just for manufacturers.  Can you optimise the value/production chain by offering a new PSS?  Can you reduce the material elements in the system and therefore pay less for materials and products and increase the immaterial elements in the system, but with a very efficient organisation?  Can you solve some recycling disposal problems through the new PSS and therefore reduce cost? priority H M L N C.3 Added Value (customers) Guidelines level 1  Can you save your customer’s money because your offer is cheaper then competitor’s offer and you save also other cost of your customers, like disposal, measures to avoid risks etc. (make sure you mention these effects in advertising).  Can you offer your customers more material benefit e.g. creating more income, debt/tax reduction, increasing funding opportunities, saving cost...  Can you offer customers more immaterial benefit, e.g. satisfaction, take negative responsibilities out of his/her hands, offer highly customised solutions that are very valuable for the individual customer etc. priority H M L N C.4 Long term Business Development/ Risk Guidelines level 1  Can you increase your capabilities to be innovative and react more flexible on changing market trends by introducing new PSS offers?  Also consider long term trends, when thinking about business development and try to understand how a new PSS offer will make you more flexible.  Do you have (or know) methods how to measure the success of the PSS on the market?  Do you have measures how to learn from the success/problems of new PSS offers and use this knowledge for adaptation of the offer and new business development?  PSS are often based on efficient information, knowledge and organisation management. Do you have the right skills and experts to manage that? If not where can you find alliances?  Can you reduce your liability risk through a new PSS offer?  Can you reduce your investment risk?  Can you avoid to be hit by existing and upcoming legislation by offering new PSS, e.g. avoid product take back and recycling legislation, avoid toxicity problems etc.?  Can you reduce the risk to damage your image by offering innovative and sustainable PSS, e.g. by ...


priority H M L N C.5 Partnership/ Co-operation Guidelines level 1  Can you search for partnership with other companies, organisations and even your customers to improve the PSS offer, or to generate new PSS ideas?  Can you use simple and efficient ways to manage partnership and co-operation, e.g. ICT facilities etc. priority H M L N C.7 Macro-economic effect Guidelines level 1  Can you generate positive economic impacts on communities and regions through the new PSS?  Can you avoid possible rebound effects of the PSS offer?  Can you internalise external cost through the new PSS?  Can you contribute to diverse market structures through new PSS, avoid monopolistic systems?


Worksheet 6: Format of description of PSS Concept Format to describe a

SUSTAINABLE PSS CONCEPT No [

]

TITLE of concept:

SHORT DESCRIPTION of the new PSS: How does the PSS work for the customer (a story board)

Short list of key product elements

System Map (a first rough sketch)

Short list of key service elements

Sustainability description A. Is solution ENVIRONMENTALLY SUSTAINABLE? Why? .... B. Is solution SOCIO-CULTURALLY SUSTAINABLE? Why? .... C. Is solution ECONOMICALLY SUSTAINABLE? Why? ....

DESCRIPTION OF THE VALUE NETWORK/ACTORS AND ROLES Actor Role

.... DESCRIPTION OF THE TECHNOLOGICAL ARCHITECTURE/ MATERIAL INFRASTRUCTURE .... DESCRIPTION OF THE ORGANISATIONAL ARCHITECTURE/ IMMATERIAL PROCESSES .... DESCRIPTION OF REVENUE MODEL/ MONEY FLOWS ....


Worksheet 7: PSS Sustainability Screening Tool for new PSS concepts A) Environmental dimension

Score A: ++ = much better, + = better, 0 is equal, â&#x20AC;&#x201C; means worse than reference system

A.1 system life optimisation: How good is the new system in terms of generating long term value life cycles of products and infrastructures? Does it avoid technological, or aesthetic obsolescence? Does it create material cycles? A.2 mobility reduction: How good is the new solution in terms of transport efficiency (transportation of goods and people including transport distances, transportation means, volume and packaging A.3 resources reduction: How good is the new solution in terms of material efficiency (including inputs and outputs/waste)? How good is the solution in terms of energy efficiency (energy input and recovery of energy without transportation)? A.4 waste minimisation/ valorisation: How good is the new system in terms of minimising waste creation? How much re-use and recycling is dome in the system? Does it create a lot of landfill? A.5 conservation/ biocompatibility: How good is the new system in terms of avoiding the use of scarce non-renewable resources (materials and energy). Is it supporting the protection of natural resorts and endangered species? A.6 a-toxicity: How good is the new solution in terms of reducing toxicity (including input/ output of hazardous substances and emissions without transport)

TOTAL B) Socio-cultural dimension

B.1 Possibility of customers to consume socially more responsible (Sufficiency): Does the consumption in the new system cause major environmental or social problems? B.2 Health and safety (of employees, customers, stakeholders...): Are there any health and safety problems in the supply/ the value chain? B.3 Living conditions/ quality of life (customers/users perspective). Does the new PSS contribute to the 'enrichment' of life of users (by giving learning opportunities, enabling and promoting action rather than passiveness, etc.)? Does it solve real customer needs and socially acceptable demands? Is the customer satisfied with the offer? B.4 Employment/ working conditions (employee perspective): Does the new solution contribute to quality of work in production and supply chain (Supportive environment, enriching the life of workers by giving learning opportunities, social aspects like child labour etc? B.5 Equity and Justice/ Relation to stakeholders (society/ global perspective): Does the new solution contribute to intra- and intergeneration justice (equal wealth and power distribution between societal groups, North-South, not postponing problems to the next generation, etc.)? Are stakeholders and public media NGOs etc. satisfied with the offer? Are they involved in important decisions? B.6 Respect cultural diversity: How much does the new solution

Score B: ++ = much better, + = better, 0 is equal, â&#x20AC;&#x201C; means worse than reference system


contribute to respect of cultural values ad cultural diversity, e.g. customised solutions, contributing to the social well being of communities, regions etc. (cultural values)

TOTAL C) Economic dimension

Score C: ++ = much better, + = better, 0 is equal, – means worse than reference system

C.1 Market position and Competitiveness: How good is the new solution in terms of improving the market position for the company/companies? Does it give the consortium that puts the PSS on the market now and in the future a crucial and dominant position in the value chain? C.2 Profitability/ Added Value for companies: How profitable/ valuable is the new solution for the providers? (can be a consortium of companies), including cost of production, cost of capital and market value of the solution for the provider(s)? Is it cheaper to produce than the competing product? C.3 Added Value Customers: How profitable/ valuable is the new solution for customers/ consumers? Are there concrete, tangible savings in time, material use etc. for the customer? Does it provide ‘priceless’, intangible added value like esteem, experiences, etc. for which the customer is willing to pay highly? (both in comparison to a traditional product system) C.4 Long term Business Development/ Risk: How difficult to implement and risky is the new solution for the providers? Can a promised result be measured and delivered with a high probability, or has the client a high and uncontrollable influence on the costs? When is the return on investment expected? How much does the solution contribute to the ability to sustain value creation in the future? C.5 Partnership/ Co-operation: How good is the new solution in terms of providing opportunities for co-operation? Is it based on a strong network of companies that are able to provide all the necessary competencies that you need today and in the future? Is it offering flexibility through the network to react to changes in the market? C.6 Macro-economic effect: How good is the new solution in terms of positive influences on a macro-economic level? Are there problems on a macro economic level, e.g. disclosure of participants in economy, monopolistic structures, rebound effects...?

TOTAL SUMMARY (Please transfer results to form with PSS description, WS 6) Sustainability Dimension A) Environmental dimension B) Socio-Cultural dimension C) Economic dimension

Score ++

+

=


Worksheet 8: Portfolio Diagram Sustainability and Feasibility

Sustainability potential (all three dimensions) high

high

low

low

Solution 1 Solution 2 Solution 3 Solution 4 Solution 5

Feasibility/ Implementation


Worksheet 9: PSS sustainability guidelines, Level 2, A – Environmental

A1. system life optimisation priority H M L N Guidelines level 2  offer aesthetic/cultural up-gradeability of support products  offer shared use of support products and infrastructures  favour user care for long lasting of physical supports products and infrastructures  introduce services for support products adaptability to context/environment changes  introduce services for technological up-gradeability of support products and infrastructure  introduce service for maintenance, reparability and substitution of supports products and infrastructures  introduce take back services for supports products re-using  introduce take back services for supports products re-manufacturing  use digital riconfigurable supports products

A2. transportation/distribution reduction priority H M L Guidelines level 2  enable local resources use  enable the use of local support products  introduce long distance activities or access to info/data for client to reduce transportation  introduce services for on-site production/assembly  introduce logistic integration/optimisation with other services   adopt minimal packing 

N

A3. resources reduction priority H M L N Guidelines level 2  introduce collective use for support products/infrastructures  introduce services with payment based on the unit of satisfaction/function  introduce services for optimal use of the provided energy/materials  introduce service for adaptation of infrastructures and support products to contexts-specific material/energy optimisation  adopt existing infrastructures (different types) for service functioning  adopt existing support products for service functioning  favour eco-efficient consumption patterns  provide environmental feedback on resources consumption orienting client's decision to lower options  facilitate the user in the material/energy saving for service functioning  introduce service automation for resources optimisation   reduce the service requirements of consumption goods  reduce support products for service functioning  adopt system with a variable material/energy consumption for different functioning requirements  use sensors for the adaptation of material/energy consumption to different functioning requirements  set the default as the minimum material/energy consumption option  adopt self-shutoff system  facilitate the user in the material/energy saving for maintaining A4. waste minimisation/valorisation priority H M L N Guidelines level 2  introduce take back services aimed at energy recovery from support products and consumption goods  introduce take back services aimed at recycling from support products and consumption goods  introduce take back services aimed at composting from consumption goods


A5. conservation/bio-compatibility priority H M L N Guidelines level 2  provide services/functionalities to let the client select renewable, bio-compatible and non exhausting materials/energy resources for service functioning  provide services/functionalities to let the client select passive energies/materials for service functioning  introduce service/functionalities for the recovery/treatment of toxic/harmful resources (to client)  introduce support products/infrastructures based on renewable, bio-compatible and non exhausting materials/energy resources  introduce passive materials/energy based-system for the service delivery A6. a-toxicity priority H M L N Guidelines level 2  introduce service/functionalities for the recovery/treatment of toxic/harmful resources (to client or other service providers)  provide services/functionalities to avoid/minimise toxicity/dangerousness of materials/energy


Worksheet 10: PSS sustainability guidelines, Level 2, B – Socio-Cultural B.1 Enable the customer to consume socially priority H M L N more responsible (sufficiency) Guidelines level 2 - create enabling platforms for customers/consumers - involve customers/consumers in the development and decision processes when possible and sensible - do serious market research to understand your customer’s (social) demands - education and inform the consumer/customers about new PSS offer - influence consumer behaviour towards less material and energy consumption (qualitative instead of quantitative consumption) - explicit values the service is based on in order to motivate to new behaviours (the level of people activation in a service interaction or the level of people adhesion to a brand depends on the direct recognition of its value) - qualitative consumption also implies that in “renting” or “leasing” or “sharing” formulas people take care of the stuff he/she’s not owner of. - assess and avoid possible rebound effects (counterproductive changes in consumption patterns that might be caused by your offer) B.2 Health and safety (of employees, customers, stakeholders...) Guidelines level 2 Improve health and safety conditions - in production - in use - in recycling - in disposal and generally/indirectly connected with the offer.

priority

H

M

L

N

priority H M L N B.3 Living conditions/ quality of life (customers/users perspective) Guidelines level 2 - meet a defined need positive for society - fulfil a demand positive for society - solve an existing (or upcoming) problem - do serious market research to understand your customer’s demands - price policy: offer products/services with affordable prices for target group - involve the customer in the design of the PSS and offer something customised to individual needs, that generates a high value for the customer B.4 Employment/ working conditions priority H M L N (employee perspective) Guidelines level 2 - design workplaces that facilitate the interaction with users (the workplaces in services are also the frontoffices) - offer education, training and information of employees especially regarding the PSS innovation - create a positive and supportive working environment - involve employees in decision making - pay fair wages for adequate working hours (regional standards) - create a climate that allows for creativity and innovations suggested by employees - work with your partners (upstream and downstream) to offer equally good working conditions in the whole value chain. B5. Equity and Justice/ Relation to Stakeholders (society/ global perspective)

priority

H

M

L

N


Guidelines level 2 - include stakeholder perspective in market research - create enabling platforms for stakeholders - enable services operators to facilitate the relation with users (if any): the environment, the information and orientation system, the tools, the ergonomics, the quality of information sources, support the work - enable users to efficiently interact through tools, information, atmosphere and the quality of the relation towards empowerment goals - empower employees and users towards fruitful interactions - favour the multiplication of occasions for social contacts and knowledge exchange within the service interaction (even among different users and other stakeholders) - improve the situation of „weaker“ members of society: e.g. children, elderly people, handicapped people, illiterate.... at least do not exclude them from participation in your PS system - formulate social standards for your organisation and suppliers, upstream and downstream actors, check with suppliers e.g. no child labour, no forced labour, health and safety, working hours... also to avoid social risks and bad image - include in PSS whenever possible fair trade activities/ development aid activities/ co-operation projects with developing countries etc. - care for equal rights for people in your system or concerned by your system, regardless of their sex, religion etc. priority H M L N B6. Respect cultural diversity (society/local perspective) Guidelines level 2 - try to understand the different needs of different target groups in different countries and regions - offer PSS concepts adapted to the values and cultural differences of your target groups and stakeholders in different regions - create an emotionally positive user interface, - care for sensible integration of the PS system in its environment - increase aesthetics and beauty by excellent design of the system, - aesthetics and beauty can help the acceptance of service formulas that are based on “different” habits or communitarian usage of resources. - aesthetics and beauty also favour the respect for collective and shared places and tools.


Worksheet 11: PSS sustainability guidelines, Level 2, C â&#x20AC;&#x201C; Economic priority H M L N C.1 Market position and Competitiveness Guidelines level 2 - identify exactly the target groups and their needs that you are going to fulfil with the new PSS - compare new PSS with existing and competitive solutions and find ways to make the new solution more attractive. - offer a PSS that is cheaper, more flexible, more attractive for the customers than buying products. - tackle target groups that are especially open for PSS e.g. do not want to own products. - can the new PSS be a complement or add on to your existing offers, can it help you to diversify your offer? - take care that you have the right position in the value chain and the right partners on board to deliver a PSS with the right quality - care for connectivity of the new PSS to your current company image and strategy or found a new organisation to deliver PSS if connection is not possible or favourable. priority H M L N C.2 Profitability/ Added Value Companies Guidelines level 2 - increase the value creation in the whole system: (a) for material products: in the whole production chain from raw material extraction to distribution, for customer/consumer and at end-of-life stage, (b) for immaterial services: in supply and use of service - outsource activities to somebody else because he/she is more specialised and efficient in that field - Can you decrease the capital that you have to invest in the system through a new PSS, e.g. because you do not need machines and stock keeping etc.? - Can you minimise your cost by outsourcing, eliminating material goods, improving organisation etc.? - Can you thus increase and speed up Return on Investment? - Maybe you also find new partners for sharing investment? - Can you increase your profit margins, because the customer is willing to pay more for the new PSS (and your cost is lower)? - Can you increase the work productivity in the new PSS because your employees are more motivated and you offer them better working conditions/training etc.? priority H M L N C.3 Added Value Customers Guidelines level 2 - create a PSS that is cheaper for your customer than competitive solutions, e.g. because lower price, saving other cost (disposal, measures to avoid risks etc.) - make sure you mention these effects in market communication - offer PSS with material benefits for the customers, e.g. creating more income, debt/tax reduction, increasing funding opportunities, saving cost... - offer PSS with immaterial benefits for the customer, e.g. satisfaction, take negative responsibilities out of his/her hands, risk reduction, offer highly customised solutions that are very valuable for the individual customer etc. - create PSS that offer more flexibility to the customer (e.g. in car sharing you have a car pool with a lot of different vehicles that you can use) C.4 Long Term Business Development/ Risk Guidelines level 2

priority

H

M

L

N


- learn from new partners in the new PSS - improve your continuous improvement processes by offering PSS, e.g. by introducing a direct monitoring and feedback scheme - create climate and incentives for innovation, give employees space for future visions - information and training of employees and upstream-downstream partners, establish simple routines for knowledge collection and management - share liability with more partners, avoid goods you are used to be liable for, substitute them by others or services. - share investment with other companies, or develop PSS that do not need that much investment - avoid critical products with a negative image in public, or that are included in current or upcoming legislation - take care for the complete lifecycle of products that you use etc. priority H M L N C.5 Partnership/ Co-operation Guidelines level 2 - use partnership with other companies/organisations to improve the offer, make it cheaper, make it more professional, improve organisation, improve market appearanceâ&#x20AC;Ś. - establish a pragmatic method to organise partnership. Check, which are the right partners for you (fit in size, content and capacity). - take care that partnership strengthens your position in the value chain. Check if all partners willing and able to co-operate, and are clear about their motivation. priority C.6 Macro-economic effect Guidelines level 2 - create jobs in a specific region, - use local, regional products, - create local business opportunities - offer market and PSS access to all sort of different actors

H

M

L

N


Worksheet 12: PSS Sustainability Radars

ENVIRONMENTAL system life optimisation

transportation reduction

a-toxicity

– = + ++ resources reduction

conservation/ biocompatibility

radical improvement: ++

H Higher priority

incremental improvement: +

M Medium priority L Lower priority N No concern

waste minimisation valorisation

existing: = worsening:

SOCIO-ETHICAL socially responsible consumption

respect for cultural diversity

health and safety

– = + ++ equity and justice Stakeholder relation

living conditions/ quality of live radical improvement: ++

H Higher priority

incremental improvement: +

M Medium priority L Lower priority N No concern

employment/ working conditions

existing: = worsening: –


ECONOMIC market position competitiveness

macroeconomic effect

profitability/ added value companies

â&#x20AC;&#x201C; = + ++ partnership/ co-operation

added value customers radical improvement: ++

H Higher priority

incremental improvement: +

M Medium priority L Lower priority N No concern

long term business/ risk

existing: = worsening: -


Worksheet 13: List of specification for PSS Implementation IMPLEMENTATION ISSUES Issue A) (Lead) Company strategy, experience and culture Examples of issues (define yourself !!): - High/low relation with existing unique selling points - Company culture (open for PSS, motivated to learn about new business models, customer-oriented, ability/willingness to cooperate) - Company organisation, development stage (are there departments and persons who logically can start to work on PSS development?) - Company organisation, implementation stage (Are e.g. retail and sales personnel open for PSS? Is their award system fit for PSS?) - Company management and strategy (motivated to explore new ideas like PSS?) .... IMPLEMENTATION ISSUES Issue B Issues related to building the Value network, technological architecture, and revenue model Examples of issues (define yourself !!): - Availability of the right set of complementary partners - Trust and motivation between the prospective partners in the business network - Extent to which relations with current business partners helps or hinders shift to PSS - Length and complexity of the PSS development process - Problems, complications and risks related to the revenue model - Problems, complications and risks related to the technological architecture (partly already judged in the

Obstacles

Drivers

Controll Proposed solution able ? strategy? Clarification: often there are cultural and organisational bottlenecks in the lead company that wants to put the PSS on the market. yes/ no E.g. company is very product-oriented

E.g. company has a strong after-sales organisation that already understands PSS

Obstacles

Controll Proposed solution able ? strategy? Clarification: Putting a PSS on the market usually implies that a number of firms have to co-operate in setting up a technological architecture and revenue model. This can result in company-overarching drivers and obstacles.

E.g. do not know how to find partners

E.g current retail channel has to be abandoned

Drivers

E.g. Develop a structured approach that gives specifications of desired partners (â&#x20AC;&#x2DC;partner search toolâ&#x20AC;&#x2122;)


IMPLEMENTATION ISSUES Issue

Obstacles

Drivers

Obstacles

Drivers

Obstacles

Drivers

Controll able ?

Proposed solution strategy?

priority setting) ....

IMPLEMENTATION ISSUES Issue C: External (Government) support

Controll Proposed solution able ?? strategy? Clarification: sometimes PSS that in principle have a high market potential cannot be realised due to all kinds of regulatory or other institutional blockades. And on the other hand various PSS that can contribute highly to sustainability will only make it on the market if the regulatory or economic incentives will be put in place.

Examples of issues (define yourself!): - Existing (ISO) standards, regulations, perverse tax systems or subsidies give the PSS no fair chance - The PSS is very sustainable but will loose competition of existing products since the current market incentives support unsustainability. .... IMPLEMENTATION ISSUES Issue D: Issues related to the PSS development process as such ....

Controll Proposed solution able ? strategy? Clarification: In the PSS development process, e.g. Analysis, Idea generation, PSS Design, and Implementation. Please note here any problem in this development process (as far you could not place it under A) or B).