Lifecycle thinking brought a revolution to the field of industrial design engineering. Today, the rules of the game are changing, and how is money spent at the demand side is key. The presentation includes a case study on Ecovalue. Masterlcass by Oriol Pascual for the course Business, Design & the Enviroment at Technical Univeristy Delft. More at oriolpascual.com
8. Relatively mature 30% Way to maturity 18% First movements 6%
Starter & good intent 6% Publicity driven 14% Not interested 26%
Ecodesign maturity profiles
15. Strategy
Management
Product
Development Marketing
management
Production Sales
Suppliers Customer
Purchasing Logistics
Internal Value Chain
The Internal Matrix
35. Paradigm shift
Traditional ecodesign (blue) is about reducing product
environmental load only
Unbalanced with customer values
New paradigm (red) shift asks for products with low
environmental load and high value - reduced
environmental load per monetary unit
36. Why Ecovalue?
The environment is not alone, market forces apply
Sustainability is about how we produce and consume
Consumers have limited amounts of money in their
pockets
37. How to make it happen?
Science and technology
Design
Product differentiation
Feelings and emotions
38. Setting priorities
Value creation = Environmental & economic profitability
Addressing;
✤ Product value
✤ Customer value
✤ Business value
39. Product value
Supply side Demand side
Functional value Retail price
Production costs WTP, pricing strategies
Design & tech Marketing competition
wholesale
price
Subjective value Cost of ownership
Organizational costs Efficiency
Design, brand, strategy Energy prices
40. Customer value
Price buyers Feature buyers Experience buyers
Each market segment perceives differently the trade-off product
value/product price
41. Business value
Consumer Value
Market size
group captured
Price buyers 1/3 +
Special feature 1/3 ++
Experience/
1/3 +++
quality buyer
42. Eco-efficiency index
Product value
Ecovalue =
Environmental load
Ratio between environmental load & product’s use value
(functional + intangible)
43. How does it work?
Pick a baseline (given environmental load & economic
value)
Develop all possible scenarios (improve and/or reduce
load & money)
47. Case study displays
Screen
Model Tech. Market Price
size
1 CRT 29” China 354,63
2 CRT 28” Europe 481,00
3 LCD 23” Europe 972,32
4 LCD 32” Europe 215.592
48. Case study displays
Env. load Shelf price
Model Ecovalue
(mPt) (euro)
1 69732 354,63 5,09
2 54169 481,00 8,88
3 50335 972,32 19,46
4 50595 2155,92 42,61
53. Conclusions
The environment is not special; traditional market forces
also apply to ecodesign
It is possible to reduce a product's environmental load and
increase its final value
How consumers perceive product value, determines
ecodesign strategy: tailor-made solutions
Ecovalue helps to set up priorities based in profitability
(environmental & economic)