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3.1 eco efficient system innovation vezzoli-14-15 (42)

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3.1 eco efficient system innovation vezzoli-14-15 (42)

  1. 1. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy course System Design for Sustainability subject 3. System design for eco-efficency learning resource 3.1 Eco-efficent system innovation carlo vezzoli politecnico di milano . DESIGN dept. . DIS . School of Design . Italy Learning Network on Sustainability (EU asia-link) Learning Network on Sustainabile energy systems (EU edulink)
  2. 2. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy CONTENTS . Resume: sustainability and system innovation . Traditional sales model: eco-efficiency constraints . Moving towards system eco-efficiency . E-E Product-Service System (PSS): definition . Eco-efficient PSS types . Adding value to the product life cycle . Providing final results to customers . Providing enabling platforms for customers . Not all PSS are eco-efficient + rebound effects . Barriers to EE.PSS diffusion . Eco-efficient PSS innovation: summing up
  3. 3. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy IN 50 YEARS A WORLD-WIDE EQUITABLE SYSTEMS OF PRODUCTION AND CONSUMPTION SHOULD USE ~90% LESS RESOURCES THAN THE INDUSTRIALISED CONTEXTS ARE DOING TODAY SUSTAINABILITY: SIZE OF CHANGE
  4. 4. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy SUSTAINABILITY: QUALITY OF CHANGE PROMOTE (EVEN) SYSTEM INNOVATIONS broader than product innovation, not only technological, but even socio-cultural and organisational innovations RADICAL CHANGE (DISCONTINUITY)
  5. 5. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy WITHIN THE ENVIRONMENTAL AND ECONOMICAL CRISIS WHICH ARE THE OPPORTUNITIES? DO WE KNOW ANY OFFER/BUSINESS MODELS CAPABLE OF CREATING (NEW) VALUE DECOUPLING IT FROM THE MATERIALS AND ENERGY CONSUMPTION? > significantly reducing the environmental impact of traditional production/consumption systems? A KEY CONTEMPORARY QUERRY:
  6. 6. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy ECO-EFFICENT SYSTEM INNOVATIONS innovations delinking economic interests from environmental impact increase broader than process and product product innovations, not only technological, but even socio- cultural and organisational ones
  7. 7. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy ECO-EFFICENT PRODUCT-SERVICE SYSTEM EXAMPLES AND TYPES
  8. 8. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy offers lubricants + service on-site identification (movable lab) of equipment inefficiency, and the potential reduction of emissions’ impact the innovative interaction between the company and the client, make the companies’ economic interest to be other than only selling higher amount of lubricants lubricant > LUBRFIICATION KLUBER LUBRIFICATION
  9. 9. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy KLUBER LUBRICATION Kluber sells to engineering industry lubricants and ... LAB ... a service of analysis for the lubricants effectiveness and environmental impact reduction (movable lab) BENEFIT FOR KLUBER . Offer diversification . Customer loyalty BENEFIT FOR CUSTOMER . Improved efficiency > Cost reduction . Less environmental issues to solve KLUBER LUBRIFICATION
  10. 10. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy KLUBER LUBRICATION Kluber sells to engineering industry lubricants and ... LAB ... a service of analysis for the lubricants effectiveness and environmental impact reduction (movable lab) BENEFIT FOR ENVIRONMENT . Reduction of lubricants use > reduced environmental impact E-E PSS of Type I PRODUCT-ORIENTED PSS: PSS ADDING VALUE TO THE PRODUCT LIFE CYCLE KLUBER LUBRIFICATION
  11. 11. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy a company (alliance of companies) provides additional services - maintenance, repair, up- grading, substitution and product take back - to guarantee life cycle performance of the product (sold to the customer) it is reduced the customer reaponsibility in the use and/or disposal of the product/semi-finished product (own by the customer) E-E PSS of Type I PRODUCT-ORIENTED PSS: PSS ADDING VALUE TO THE PRODUCT LIFE CYCLE
  12. 12. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy Ricoh offers a package deal (Pay per Page Green) and installs, maintains and collects at the end-of- life the printers and photocopiers (not owned by the customer); the customer pays for the number of delivered pages and copies. the innovative interaction between the company and the client, make the companies’ economic interest to provide (and design) long lasting, reusable and recyclable photocopiers, i.e. environmentally friendly. RICOH: PAY PER PAGE GREEN photocopiers/printers > PRINTED PAGES AND COPIES
  13. 13. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy RICOH offers a package deal (products + services). ... and RICOH installs and maintain photocopiers (not owned by the customer), collects at the end-of life. The customer pays per page... BENEFIT FOR RICOH . Directly profit from components re-use and material recycling from discarded products . Directly profit from resources efficiency BENEFIT FOR CUSTOMER . No need to invest in the machine purchase and overall cost reduction in use RICOH: PAY PER PAGE GREEN
  14. 14. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy RICOH offers a package deal (products + services). ... and RICOH installs and maintain photocopiers (not owned by the customer), collects at the end-of life. The customer pays per page... BENEFIT FOR ENVIRONMENT . Increased products’ lifespan and resources efficiency > reduced environmental impact RICOH is not a photocopier producer only. RICOH: A DOCUMENT COMPANY! RICOH: PAY PER PAGE GREEN E.E. PSS (TYPE II) RESULTS-ORIENTED PSS: PROVIDING FINAL RESULTS TO CUSTOMERS
  15. 15. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy a company (alliance of companies) provides a customised mix of services, instead of products, in order to provide a specific final result to the customer the client does not own the products and does not operate on them to obtain the final satisfaction (the client pays the company to provide the agreed results) E.E. PSS (TYPE II) RESULTS-ORIENTED PSS: PROVIDING FINAL RESULTS TO CUSTOMERS
  16. 16. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy payment is based on number of washes and includes: delivery of a washing machine at home (not owned), electricity supply (not directly paid), maintenance, up-grading and end-of-life collection. the innovative interaction between the two companies and the client, make the companies’ economic interest to provide (and design) high efficient, long lasting, reusable and recyclable washing machines , i.e. environmentally friendly washing machine > ABILITY TO WASH ARISTON + ENEL: PAY-PER-USE
  17. 17. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy The partnership offers a package deal (product + services). BENEFIT FOR CUSTOMER . No need to invest in the machine purchase and overall cost reduction in use ARISTON Household appliances The customer pays for the number of washes he/she will do ... ENEL Energy provider PARTNERSHIP + ... and delivers the washing machine (not owned by the customer) and supply energy (not directly paid by the customer), maintenance, up-grading and end-of-life collection. BENEFIT FOR THE PARTNERSHIP . Directly profit from energy efficiency . Re-use of components from discarded products ARISTON + ENEL: PAY-PER-USE
  18. 18. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy The partnership offers a package deal (product + services). ARISTON Household appliances The customer pays for the number of washes he/she will do ... ENEL Energy provider PARTNERSHIP + ... and delivers the washing machine (not owned by the customer) and supply energy (not directly paid by the customer), maintenance, up-grading and end-of-life collection. BENEFIT FOR ENVIRONMENT . Increased energy efficiency and products’ lifespan > reduced environmental impact ARISTON + ENEL: PAY-PER-USE E-E PSS (TYPE III): USE-ORIENTED PSS ENABLING PLATFORMS FOR CUSTOMERS
  19. 19. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy company (alliance of companies) provides access to products, tools, opportunities enabling clients to get their “satisfaction” the client does not own the product/s, but operates on them to obtain the “satisfaction” (and pays only for the use of the product/s) E-E PSS (TYPE III): USE-ORIENTED PSS ENABLING PLATFORMS FOR CUSTOMERS
  20. 20. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy ECO-EFFICIENT PSS INNOVATION TYPOLOGIES - adding value to the product life cycle - providing final results to customers - providing enabling platforms for customers
  21. 21. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy “an offer model providing an integrated mix of products and services that are together able to fulfil a particular customer demand (to deliver a “unit of satisfaction”), based on innovative interactions between the stakeholders of the value production system (satisfaction system), where the economic and competitive interest of the providers continuously seeks environmentally beneficial new solutions” [Vezzoli et al., 2014] ECO-EFFICINET PRODUCT-SERVICE SYSTEM INNOVATION: A DEFINITION
  22. 22. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy producer suppliers customer client end-of-life m anager retailers designer [e.g. washing machine] [e.g. satisfaction-syetem= to have cleaned cloths] discrete resources optimization: phase/stakeholder-based [e.g. detergent] [e.g. energy supply] producer suppliers customer client end-of-life m anager retailers designer producer suppliers customer client end-of-life m anager retailers designer SYSTEM ECO-EFFICENCY: moving out TRADITIONAL PRODUCT SALES/DESIGN wide system (multiple life cycles) resources optimization: demand/satisfaction-based system (life cycle) resources optimization: product/function-based
  23. 23. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy - phase’s transformation (processes): interest in reducing resources consumption - phase’s transaction (semi-finished/products): indifference in reducing resources consumption or interest in increasing resources consumption - cycles’ combinations (products/services): indifference in reducing resources consumption or interest in increasing resources consumption TRADITIONAL PRODUCT SALES MODEL: ECO-EFFICENCY CONSTRAINTS low interact. between product-system’s stakeholders low interact. between satisfaction-system’s stakeholders
  24. 24. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy … a paradigm shift from traditional offer model … E-E PRODUCT-SERVICE SYSTEMS (EE.PSS): product SELLING “unit of satisfaction” individual ownership CUSTOMER VALUE access technological INNOVATION stakeholder an offer/business models capable of creating (new) value decoupling it from resources consumption and reducing the environmental impact
  25. 25. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy WHAT HAPPEN? PSS ECO-EFFICIENT POTENTIALS (1) if: the producer/provider offers the products/s retaining the ownership and being paied per unit of satisfaction (or offers on a turnkey basis the product with its maintenance, rapair and substituotion in case of malfunctioning) then: she/he is economically interested to have them to last as long as possible (the product/s or its components) because: she/he avoids the cost of pre-production, production and distribution of a new product to sobstitute the one that need to be disposed the producer/providers is continuosly driven by economic interests to: design/offer product/s with an extended lifespan
  26. 26. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy WHAT HAPPEN? PSS ECO-EFFICIENT POTENTIALS (2) if: the producer/provider offers a product/s (or some product’s components) to be shared by various users (or products) then: she/he is economically interested to have them to be used by users the most of the time, i.e. as intenively as possible because: she/he icreases the income proportionally to the overall use time the producer/providers is continuosly driven by economic interests to: design/offer product/s intensively used (e.g. shared)
  27. 27. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy WHAT HAPPEN? PSS ECO-EFFICIENT POTENTIALS (3) if: the producer/providers offers both the products/s and the resources it consumes, being paied per unit of satisfaction (remaining the product’s owner or offereing it on a turnkey basis with the resources consumed in use) then: she/he is economically interested to provide the most resource efficent product/s because: her/his gains are given by the payment minus (among others) his/her costs of resources in use the producer/providers is continuosly driven by economic interests to: design/offer product/s minimising resources consumption during use
  28. 28. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy WHAT HAPPEN? PSS ECO-EFFICIENT POTENTIALS (4) if: the producer/providers offers the products/s retaing its ownership and collecting it at the end-of its life cyle, being paied by unit of satisfaction (or is offereing on a turn key basis the product with its end-of-life traetement/s) then: she/he is economically interested to have them to be recyclcled, incenerited with energy recovery, or composted because: she/he avoids the cost of landfilling, and avoid the costs of either material, enregy, or compost purchase (those obtained from the disposed product) the producer/providers is continuosly driven by economic interests to: design/offer product/s with materials easy to be recyled, incenerited with energy recovery, or composted:
  29. 29. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy WHAT HAPPEN? PSS ECO-EFFICIENT POTENTIALS (5) if: the provider remain the owner of the product/s then: most advanced and effcient technologies with lower resources consumption per unit of satisfaction could be purchsed because: higher initial investiment costs are affordable to providers, as compared to everage final user the producer/providers is continuosly driven by the competitive interests of gaining market share via: redusing resource consumption in use
  30. 30. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy WHAT HAPPEN? PSS ECO-EFFICIENT POTENTIALS (6) if: the provider remain the owner of the product/s and is responsible on a turnkey basis about life cycle services then: the product/s are a accessible to a wider type of users because: the user don’t have the initial investment coosts nethier unespected running cost duet to services for maintenance, rapair, etc. the producer/providers is continuosly driven by the competitive interests of gaining market shares to: increase the diffusion of Sustainable PSS
  31. 31. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy WHAT HAPPEN? PSS ECO-EFFICIENT POTENTIALS (7) if: the provider remain the owner of the product/s and is responsible on a turnkey basis about life cycle services then: she/he improves customerr’s fidelity because: she/he the raelationship with the customer doesn’t stop at the act of sale, but continuos along all the product/s lifespan the producer/providers is increasing its market share: it is increased the diffusion potentials of Sustainable PSS
  32. 32. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy WHAT HAPPEN? PSS ECO-EFFICIENT POTENTIALS (8) if: the provider remain the owner of the product/s and is responsible on a turn key basis about life cycle services then: she/he improves competitiveness with a strategic positioning because: she/he is differentiating form traditional product sale (saturated) market, as well as gain in customers’ fidelity
  33. 33. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy IN SYNTHESYS WHEN THIS HAPPEN? when the product OWNERSHIP and/or the economic responsability on its LIFE CYCLE PERFORMANCE remain by the producer/providers WHY THIS HAPPEN? becuse in these ways, we shift/allocate, on the stakeholder responsible for the products and/or the services design/development, the direct economic and competitive interest to reduce their environmental impacts
  34. 34. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy TOWARD THE SYSTEM ECO-EFFICIENCY which characteristics of the offer (company/ies models)? INNOVATIVE STAKEHOLDERS’ INTERACTIONS A. STAKEHOLDER’S INTEGRATION (responsibility extension) vertical: one stakeholder > Product life cycle int. horizontal: one stakeholder > Ps + Ss life cycles int. B. STAKEHOLDERS’ INTERACTIONS EXTENSIONS vertical: (multiple) stakeholders > Product life cycle int. horizontal: (multiple) stakeholders > Ps + Ss life cycles int.
  35. 35. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy EE.PSS INNOVATION: A WIN-WIN POTENTIAL innovation in which is the company/companies’ economic and competitive interest that leads to resouces consumption reduction and more in general a environmental impact reduction
  36. 36. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy > CRITERIA AND GUIDELINES ARE NEEDED > METHODS AND TOOLS ARE NEEDED to orientate design towards system eco-efficent stakeholder interactions (and related mix of products and services) NOT ALL PSS ARE ECO-EFFICENT!
  37. 37. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy NOT ALL ECO-EFFICENT PSS ARE WITHOUT (ENVIRONMENTAL) REBOUND EFFECTS! > may generate unwanted (enevironmentaly damaging) side effects e.g.1 access to product, rather than their ownership, could lead to careless behaviour (shorter product lifespan > higher environmental impact) > some rebound effects are too difficult to be predicted, but as far as they are, design attention should be given to avoid those eventual side effects
  38. 38. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy WHY ECO-EFFICIENT-PSS ARE NOT YET DIFFUSED? IN FACT, PSS IS NOTHING NEW every most of the products involve services and vice versa and change towards service economy is happening anyway services (not products) generate: . more than 50 % of GDP in Europe . more than 75% of GDP in USA
  39. 39. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy BARRIERS FOR THE ECO-EFFICIENT PSS DIFFUSION: . for the customers/users: in industrialized contexts the cultural shift necessary in accepting behavioural change, e.g. a ownerless consumption, … . for companies: the difficulty in changing the corporate culture and the traditional business model, … . for governments: the difficulty in defining and implementing policies to facilitate EE-PSS oriented companies, …
  40. 40. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy DIFFUSED INERTIA (CONSOLIDATED HABITS) IS LIMITING ECO-EFFICIENT SYSTEM INNOVATIONS DIFFUSION . PSS are not simply leapfrog business strategy: a transition path is many time needed . there is a lack of knowledge on SPSS development: we need a new generation of designers (and design educators) and other professionals capable of operating for (complex) system research and innovation
  41. 41. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy … ANYHOW A PROMISING WIN-WIN MODEL “nevertheless, PSS development, seen as a whole, present a potential for generating win-win solution which promote profit, environmental and social benefits” “they have the potential to provide the necessary, if not sufficient, conditions to enable communities to leapfrog to less resources intensive system of social and economical standards of living” [UNEP, 2002]
  42. 42. Carlo Vezzoli Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy PSS MAIN CHARACTERISTIC ROOTED IN A SATISFACTION-BASED ECONOMIC MODEL each offer is developed/designed and delivered in relation to a particular customer “satisfaction” (unit of satisfaction) STAKEHOLDER INTERACTIONS-BASED INNOVATION radical innovations, not so much as technological ones, as new interactions/partnerships between the stakeholders of a particular satisfaction production chain (life cycle/s) INTRINSIC ECO-EFFICIENCY POTENTIAL innovation in which is the company/companies’ economic and competitive interest that may leads to an environmental impact reduction (system eco-efficiency: decoupling the creation of value from resources consumption)

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