Overcoming Barriers to Eco-Efficient PSS

course System Design for Sustainability
subject 3. System design for eco-efficiency

learning resource 3.4
Designing transition paths towards
sustainability

fabrizio ceschin
politecnico di milano . dip. INDACO . DIS . facoltà del design . Italia

Learning Network on Sustainability

Fabrizio Ceschin
Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy

CONTENTS
. ECO-EFFICIENT PSS: DIFFUSION BARRIERS
. ECO-EFFICIENT PSS: HOW TO FACILITATE THE
INTRODUCTION AND DIFFUSION?
. Key factors
. A promising model
. ROLE OF DESIGN IN SUPPORTING THE INTRODUCTION
AND DIFFUSION OF ECO-EFFICIENT PSS
. Design approach
. Examples

Fabrizio Ceschin

ECO-EFFICIENT PRODUCT-SERVICE SYSTEMS
PSS

actors network
product/s service/s
“A system of products, services, supporting networks and infrastructure that is designed to be: competitive [and]
satisfy customer needs”
[Mont, 2001]

IF PROPERLY DEVELOPED AND IMPLEMENTED

a PSS can decouple value creation from material and energy
consumption and therefore reduce (even radically) the
environmental impacts compared to the traditional product-
based offers
Fabrizio Ceschin


(POTENTIALLY) WIN-WIN SOLUTIONS:
IT’S THE ECONOMIC AND COMPETITIVE INTEREST THAT
PUSH COMPANY/IES TO REDUCE THE ENVIRONMENTAL
IMPACT (SYSTEM ECO-EFFICIENCY)

SYSTEM INNOVATION IS POTENTIALLY:
. WINNING FOR THE PRODUCER(S)/PROVIDER(S)
. WINNING FOR THE USER
. WINNING FOR THE ENVIRONMENT

Fabrizio Ceschin

EE-PSS: KNOWLEDGE PRODUCED
ECO-EFFICIENT
PSS

SusHouse, HiCS, Highly MEPSS, MEthodology ProSecCo, SusProNet,
Sustainable Customerised for Product Service Product Service Network on
Household Solutions System development Co-design sustainable PSS
[see Vergragt et [see Manzini et [see van Halen et al. development
al. 2000] al. 2004] 2005] [see Tukker
&Tischner, 2006]
METHODS
DESIGN
TOOLS

Storyboard Diagnosis module
Motivation matrix
SDO toolkit Opportunity module
Polarities System map
diagram Solution elements Offering Implementation module
Poster
System assessment diagram
Interaction table

Fabrizio Ceschin

PSS CONCEPT IS A PROMISING WIN-WIN
SOLUTION

SEVERAL PRODUCT-SERVICE SYSTEM
INNOVATIONS (WITH CHARACTERSITICS OF
SUSTAINABILITY) HAVE BEEN IMPLEMENTED IN
THE LAST YEARS BY COMPANIES

THE CONCEPT OF PSS HAS BEEN DEEPLY
EXPLORED ON A THEORETICAL LEVEL AND IT HAS
BEEN UNDERSTOOD HOW TO DESIGN A
SUSTAINABLE SYSTEM INNOVATION

WHY THE SUSTAINABLE PSS ARE NOT YET
DIFFUSED?
Fabrizio Ceschin

EE-PSS: DIFFUSION BARRIERS

DESIGN IMPLEMENTED
of IMPLEMENTATION
ECO-EFFICIENT PROCESS ECO-EFFICIENT
PSS PSS

IMPLEMENTATION/
DIFFUSION BARRIERS
[UNEP, 2002; Mont, 2002; 2004;
Tukker & Tischner, 2006]
cultural shift

FOR USER/CUSTOMERS FOR GOVERNMENTS
lack of knowledge actual laws may not
about life cycle costs FOR COMPANIES favour eco-efficient
PSS
difficulty in changing lack of design and
the corporate culture management skills
uncertainties about
cash flows

Fabrizio Ceschin

LET’S LOOK AT SOME REAL CASES

Fabrizio Ceschin

EE-PSS: diffusion barriers
PAY-PER-USE (ARISTON+ENEL)
After 2 pilot projects (in 2001) the
partnership decided to not introduce the
solution on the market. Why?

- USER LEVEL: ownerless consumption
did not obtain the foreseen consensus

- COMPANY LEVEL: eco-efficiency
potentials were not understood

Fabrizio Ceschin

EVERGREEN LEASE (INTERFACE FLOORING SYSTEM)
The solution was initially offered in 1995,
but only six lease agreements have been
signed since then [Oliva & Quinn, 2003].
Why?

- USER LEVEL: resistance towards the
ownerless consumption

- REGULATIVE LEVEL: obstacles
regarding tax laws made the leasing of
products like carpet floors not convenient
for the customer

Fabrizio Ceschin

[UNEP, 2002; Mont, 2002; 2004; Tukker & Tischner, 2006]

FOR COMPANIES
. ORGANISATIONAL RESISTANCE: PSS REQUIRES SHIFT IN
CORPORATE CULTURE AND MARKET ENGAGEMENT

. NEW DESIGN AND MANAGEMENT SKILLS ARE REQUIRED

. UNCERTANTIES ABOUT CASH FLOWS: CHANGEOVER FROM SHORT-
TERM PROFIT REALISATION TO MEDIUM/LONG TERM
AMMORTISATION

. CONFLICT OF INTERESTS BETWEEN COMPANIES AND RETAILERS

. DIFFICULTIES IN UNDERSTANDING ECO-EFFICIENCY POTENTIALS

Fabrizio Ceschin


FOR USERS / CUSTOMERS
. DIFFICULTIES IN GAINING CUSTOMER ACCEPTANCE ON OWNERLESS
SOLUTIONS (ESPECIALLY IN B2C MARKETS)

. LACK OF KNOWLEDGE ABOUT LIFE CYCLE COSTS OF PRODUCT
OWNERSHIP, AND CONSEQUENT DIFFICULTY IN UNDERSTANDING
THE ECONOMICAL BENEFITS OF A OWNERLESS CONSUMPTION

Fabrizio Ceschin


FOR GOVERNAMENTAL INSTITUTIONS
. DIFFICULTY IN UNDERSTANDING THE ECONOMICAL AND
ENVIRONMENTAL ADVANTAGES LINKED TO THIS KIND OF
SOLUTION. THIS DETERMINES:

. DIFFICULTY IN MODIFYING CURRENT LAWS AND NORMS THAT MAY
NOT FAVOUR PSS ORIENTED SOLUTIONS

. DIFFICULTIES IN IMPLEMENTING POLICIES TO PROMOTE THE
DIFFUSION OF PSS ORIENTED TO SUSTAINABILITY (FOR EX. COST
INTERNALISATION)

Fabrizio Ceschin


RADICAL INNOVATIONS THAT (IN MOST OF THE
CASES) CHALLENGE:

. USER HABITS (CULTURAL BARRIERS)
. COMPANY ORGANISATION MODELS (CORPORATE
BARRIERS)
. THE REGULATIVE /LEGISLATIVE CONTEXTS
(REGULATIVE BARRIERS)

Fabrizio Ceschin


HIGHLY UNCERTAIN AND RISKY INNOVATIONS

THAT CANNOT BE IMPLEMENTED IN THE SAME
WAY AS INCREMENTAL INNOVATIONS

Incremental innovation development process [Lar do et al. 2002]

STRATEGIC CONCEPT PROTOTYPE MARKET
ENGINEERING
ANALYSIS DEVELOPMENT AND TEST LAUNCH

DESIGN MARKET
LAUNCH

Fabrizio Ceschin

WHICH IS THE MOST EFFECTIVE STRATEGY
TO IMPLEMENT ECO-EFFICIENT PSS?
WHICH ARE THE FACTORS THAT
FACILITATE AND OBSTACLE THIS
PROCESS?

Fabrizio Ceschin

LET’S SEE A PRELIMINARY EXAMPLE

Fabrizio Ceschin

CLEAR CHANNEL OUTDOOR – Bike Sharing System

Fabrizio Ceschin


Implementation and diffusion path

Idea birth The idea is Implementatio End of pilot The PSS
and PSS proposed to n of a small project and concept di
concept the pilot project implementation PSS is
development municipality co-financed by of a full replicated
by Clear of Renne the operative in 13 cities
Channel (France) municipality of service
Outdoor Renne

Fabrizio Ceschin


FACTORS THAT FACILITATED THE IMPLEMENTATION
AND DIFFUSION

. ABILITY IN PRESENTING THE PROJECT IDEA UNDERLINING THE
CHARACTERISTICS OF SUSTAINABILITY (FUNDAMENTAL TO
INVOLVE THE MUNICIPALITY)

. INVOLVEMENT OF OTHER ACTORS (MUNICIPALITY AND PUBLIC
TRANSPORT COMPANY)

. IMPLEMENTATION OF PILOT PROJECTS TO TEST AND IMPROVE THE
SOLUTION (SOLUTION OPEN TO MODIFIES)

. IMPLEMENTATION OF PILOT PROJECTS TO GIVE VISIBILITY TO THE
PROJECT IDEA

Fabrizio Ceschin

WHICH IS THE MOST EFFECTIVE STRATEGY TO
IMPLEMENT ECO-EFFICIENT PSS?
WHICH ARE THE FACTORS THAT FACILITATE AND
OBSTACLE THIS PROCESS?
LET’S ANSWER INTEGRATING INSIGHTS FROM
OTHER DISCIPLINES:

EVOLUTIONARY INNOVATION
ECONOMICS MANAGEMENT
macro perspective micro perspective

Fabrizio Ceschin

EE-PSS IMPLEMENTATION AND DIFFUSION
KEY FACTORS

CLEAR CHANNEL OUTDOOR
Bike sharing system

BUILDING-UP AND
DEVELOPMENT OF A
NETWORKS OF SOCIO-
ECONOMICAL ACTORS
[Latour, 1987; Callon, 1991; Laredo & Mustar, 1996;
Kemp et Al, 1998; Weber et Al., 1999; Cooper, 2000;
Rotmans et Al., 2000; Lar do et al. 2002]

Network of actor aimed at supporting the different steps linked to the
innovation development and diffusion.
A wide network that involves not only the actors strictly related to the
innovation, but even universities and research centres, institutions and
public administrations, but also NGOs and media.

Fabrizio Ceschin

KEY FACTORS

Finnish Energy Service
COmpanies
BUILDING-UP AND
DEVELOPMENT OF A
NETWORKS OF SOCIO-
ECONOMICAL ACTORS


Fabrizio Ceschin

KEY FACTORS

INTERFACE FLOORING
SYSTEM – Green Lease
BUILDING-UP AND
DEVELOPMENT OF A
NETWORKS OF SOCIO-
ECONOMICAL ACTORS


Fabrizio Ceschin

KEY FACTORS

Bike sharing system

LONG TERM VISION
BUILDING
[Akrich, 1992; De Laat, 1996; Kemp et Al, 1998;
Rotmans et Al., 2000; Lar do et al. 2002; Quist &
Vergragt, 2003]

Building-up a long term vision capable to converge actors’ expectations
Foundamental in order to:
- involve actors
- give a direction to the innovation development

Fabrizio Ceschin

KEY FACTORS

QURRENT – Services for
decentralised energy systems

LONG TERM VISION
BUILDING
Vergragt, 2003]

- involve actors

Fabrizio Ceschin

KEY FACTORS

EGO – Ecologico Guardaroba
Organizzato

LONG TERM VISION
BUILDING
Vergragt, 2003]

- involve actors

Fabrizio Ceschin

KEY FACTORS


TRANSITION AGENDA
DEVELOPMENT
[Rotmans et Al., 2000; Quist & Vergragt, 2003; Kemp &
Rotmans, 2004]

Starting from the long term vision, it’s key important to define:
- objectives and actions to be undertaken on short term,
- the roles of each involved actor.

Fabrizio Ceschin

KEY FACTORS

SOCIO- QURRENT – Services for
TECHNICAL
EXPERIMENTATIO
N EXECUTION
[Schot & Rip, 1996; Lynn et Al.,
1996; Kemp et Al., 1998;
Hoogma, 2000; 2002]

Implementation of socio-technical experimentations, in order to:
- verify the technical and usability aspects;
- verify and favour acceptability by the various socio-economical actors;
- identify diffusion barriers;
- identify the most effective policy measures to support the innovation
- give visibility

Fabrizio Ceschin

KEY FACTORS

SOCIO- EGO – Ecologico Guardaroba
Organizzato
TECHNICAL
EXPERIMENTATIO
N EXECUTION
1996; Kemp et Al., 1998;
Hoogma, 2000; 2002]

- give visibility

Fabrizio Ceschin

KEY FACTORS

SOCIO-
Bike sharing system
TECHNICAL
EXPERIMENTATIO
N EXECUTION
1996; Kemp et Al., 1998;
Hoogma, 2000; 2002]

- give visibility

Fabrizio Ceschin

KEY FACTORS


EVALUATION AND
LEARNING
[Fleck, 1994; Kemp et Al, 1998; Hoogma, 2000;
Brown et Al., 2004; Loorbach, & Rotmans, 2004;
van de Kerkhof & Wieczorek, 2005]

Crucial, for the innovation success, is operating a continuous evaluation of
the undertaken activities, in order to bring to a continuous learning
process.

Fabrizio Ceschin

KEY FACTORS

Bike sharing system

EVALUATION AND
LEARNING
[Fleck, 1994; Kemp et Al, 1998; Hoogma, 2000;
Brown et Al., 2004; Loorbach, & Rotmans, 2004;
van de Kerkhof & Wieczorek, 2005]

Crucial, for the innovation success, is operating a continuous evaluation of
the undertaken activities, in order to bring to a continuous learning
process.

Fabrizio Ceschin

KEY FACTORS
who
BUILDING-UP AND
DEVELOPMENT OF A
NETWORKS OF SOCIO-
ECONOMICAL ACTORS
PLAN
LEARN 1
what
LONG TERM VISION
EVALUATION 5 2 BUILDING
AND LEARNING

4 3
SOCIO-TECHNICAL TRANSITION AGENDA
EXPERIMENTATION DEVELOPMENT
EXECUTION
TEST Fabrizio Ceschin
how

TRANSITION PATH
STAKEHOLDERS ARENA (AND ITS EVOLUTION IN TIME)

TRANSITION PATH

Pilot Niche
Incubation Scaling-up Diffusion
projects introduction

VISION (AND ITS EVOLUTION IN TIME)

Fabrizio Ceschin

IMPLEMENTAZIONE E DIFFUSIONE DI EE-PSS
A dynamic and cyclical
approach based on the
setting up of protected socio-
technical experiments (to
be reinforced, scaled up and
branched) and continuous
learning by actor networks
is promising to incubate,
manage and diffuse eco-
efficient PSS.

AND DESIGN?
WHAT ROLE?
Fabrizio Ceschin

ROLE OF DESIGN IN EE-PSS
IMPLEMENTATION AND DIFFUSION
DESIGN APPROACH:
DESIGN TRANSITION PATHS TOWARDS
SUSTAINABILITY

The apprach is aimed at designing not only eco-efficient
PSS concepts, but also the transition path to support and
facilitate the incubation, niche introduction, scaling-up
and branching of the concept itself.
A path oriented by a vision (eco-efficient PSS concept),
and based on continuous socio-technical
experimentations (supported by a dynamic network of
actors).

Fabrizio Ceschin

ROLE OF DESIGN IN EE-PSS
IMPLEMENTATION AND DIFFUSION

ROLE OF DESIGN:

> DESIGN the SEQUENCE OF SOCIO-TECHNICAL
EXPERIMENTATIONS that bring to reinforce the solution and
facilitate its social embedding

> IDENTIFY and INVOLVE (in time) the SOCIO-ECONOMICAL
ACTORS thst can support the different transition steps, and
orient their actions

> FACILITATE the BUILDING-UP OF A VISION (and its evolution
in time) capable to converge stakeholders’ expectations

Fabrizio Ceschin

FIRST APPLICATIONS OF THE DESIGN
APPROACH
(DIS/INDACO PROJECTS)

Fabrizio Ceschin

SYSTEM DESIGN FOR Politecnico di
Milano
SUSTAINABLE PILOT PROJECT
AIMING AT AN
INTRODUCTION OF LOCALLY-
BASED AND LONG LASTING
MOBILITY SYSTEM FOR LOW
INCOME CONTEXTS IN AFRICA
United Nations Industrial
Development Organization

A Global UNIDO Cape Peninsula University of
Technology
Network of University Chairs on
Innovation

product design sustainable
system design
system innovation
introd. and diffusion
path

Fabrizio Ceschin

POLIMI-DIS ROLE WITHIN THE PROJECT
SYSTEM DESIGN FOR Politecnico di Milano
SUSTAINABLE PILOT PROJECT
AIMING AT AN
INTRODUCTION OF LOCALLY-
BASED AND LONG LASTING
MOBILITY SYSTEM FOR LOW
INCOME CONTEXTS IN AFRICA

- FARKA, a system for
drinkable water
transportation in Burkina
Faso;
- RASMIZ, a system for
vegetable’s transportation
in Zambia
– KANGA, a system for
disabled students
transportation in South Cape Peninsula
Africa. University of Technology

Fabrizio Ceschin

AIM OF THE PROJECT

DESIGN AND IMPLEMENT A SUSTAINABLE MOBILITY
SYSTEM FOR THE TRANSPORTATION OF PEOPLE WITH
DISABILITIES
This mobility system is especially thought for the suburbs of Cape
Town, usually characterised by mobility problems; in these areas in
fact public transport services are limited and most of the time
absent, and for people with disabilities becomes difficult to move
(go to school, hospital, work, etc.)

Fabrizio Ceschin

OFFERING DIAGRAM

Fabrizio Ceschin

STAKEHOLDERS SYSTEM MAP
DESIGN /
DESIGN PRODUCTION
SUPPORT PARTNERSHIP

info / knowledge
request of transportation
POLIMI HOUSES OF
CAPE PENINSULA
UNIVERSITY OF DISABLED PEOPLE
TECHNOLOGY

disabled people transportation
payment for
IPSIA
transportation
info/knowledge

training
DESIGN /
COMPONENTS THE
RECONSTRUCTED LOCAL SCHOOL
SUPPLY SUPPORT
DWDE TEAM

energy
ENERBLU

payment for the transportation
vehicles

payment for the energy
SHONAQUIP MAINTENANCE / LOCAL HOSPITAL
components
components

SE PROJECT PARKING SPACE

energy

ENERGY
SUPPLIER TOURISTS

Fabrizio Ceschin

TRANSITION PATH

THE APPROACH FOCUSES NOT ONLY IN DESIGNING THE PSS
SOLUTION, BUT ALSO THE PROPER CONDITIONS TO FOSTER
THE DISSEMINATION OF THE SOLUTION ITSELF. IN OTHER
WORDS WE ALSO DESIGN THE TRANSITION PATH TO SUPPORT
THE EXPERIMENTATION, INTRODUCTION AND SCALING-UP OF
THE SOLUTION

Fabrizio Ceschin
Politecnico di Milano / Faculty of Design / INDACO Dept. / Italy

TRANSITION PATH
1
START-UP
Setting-up of
two multi-
stakeholder
networks (one
African and one
Italian); the aim
is to set the
basis for the
development of
the solution

Fabrizio Ceschin

TRANSITION PATH
2
PILOT
PROJECT/S
DEVELOPMENT
To test and
experiment the
designed solution
but also to create
visibility around
the project (to
attract new
partners, funds,
etc.)

Fabrizio Ceschin

TRANSITION PATH
2
PILOT
PROJECT/S
DEVELOPMENT
To test and
experiment the
Athlone District
designed solution
but also to create
visibility around
the project (to
attract new
partners, funds,
etc.)

Fabrizio Ceschin

TRANSITION PATH
3
SELF-STANDING
SOLUTION
DEVELOPMENT
The solution
become self-
standing and
economically
sustainable

Fabrizio Ceschin

TRANSITION PATH
4
BRANCHING
AND SCALING-
UP
local partner
could act as a
platform to
facilitate the
diffusion of the
solution (and its
consequent
adaptation) in
other similar
contexts.

Fabrizio Ceschin

SUSTAINABILITY:
NEXT STEPS

Fabrizio Ceschin

SUSTAINABILITY

NEXT STEPS:

> DEVELOP SPECIFIC METHODS AND TOOLS to
effectively support designers

> TESTR THE DESIGN APPROACH, METHODS AND
TOOLS (for example project in collaboration with
Tetra Pak)

Fabrizio Ceschin

Overcoming Barriers to Eco-Efficient PSS

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