Your SlideShare is downloading. ×
  • Like
NEW MATERIALS, NEW BUSINESS MODELS FOR SUSTAINABLE INNOVATION 2013
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply

NEW MATERIALS, NEW BUSINESS MODELS FOR SUSTAINABLE INNOVATION 2013

  • 274 views
Published

How can businesses use materials innovation to disrupt markets and create new revenue streams? What are the opportunities, and what are the challenges? Based on the experience of Kyocera, this …

How can businesses use materials innovation to disrupt markets and create new revenue streams? What are the opportunities, and what are the challenges? Based on the experience of Kyocera, this presentation explores the application of new materials to solve resource efficiency challenges and facilitate new business models. Presented at Sustainable Innovation 2013, 4th November 2013.

Published in Technology , Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
274
On SlideShare
0
From Embeds
0
Number of Embeds
2

Actions

Shares
Downloads
11
Comments
0
Likes
1

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. NEW MATERIALS – NEW BUSINESS MODELS Tracey Rawling Church – Head of CSR, Kyocera Document Solutions (UK) Ltd
  • 2. MATERIALS-ORIENTED BUSINESS Kyocera Corporation Core competence: fine ceramics Global headcount: 71,500 Revenue: € 11,172 million Profit: € 745 million “We produce fine ceramics that are more resistant to heat, wear and corrosion than plastics, metals or other conventional materials.”
  • 3. VALUE-CENTRED STRATEGY 3
  • 4. THE STATUS QUO: DESIGNED-IN WASTE Components of a conventional printer cartridge
  • 5. INNOVATION: DESIGNED-OUT WASTE Components of a Kyocera printer consumable
  • 6. RESOURCE EFFICIENT DESIGN CUTS WASTE AND LIFECYCLE IMPACTS Waste produced during a 300,000 page test conducted by Druckerchannel.de Analysis by Best Foot Forward concluded that the carbon footprint of a remanufactured laser cartridge is 46% lower than a corresponding new cartridge, and that the carbon footprint of a Kyocera toner-only cassette is 55% lower than a corresponding conventional cartridge Analysis by TCPGlobal calculated whole-life cost savings of typically 50%
  • 7. PRODUCT DESIGN IS ONLY THE START 1. Design based on lifecycle analysis – identify and design out high impact materials and design features, considering their impacts at every lifecycle stage 2. Streamline manufacturing processes – minimise energy/materials waste 3. Optimise transport and distribution – packaging, routes, modal shift 4. Understand customers’ contribution to use-phase impacts – introduce measures to promote responsible use 5. Close the loop where appropriate – create takeback programmes that offer the most environmentally efficient outcome Kyocera is working on a TSB-funded project to find ways of ensuring that high quality materials can be recovered from its end of life products,- and those of other manufacturers who design for disassembly
  • 8. OPTIMISING BUSINESS MODELS Example: Managed Document Services Paradigm shift – moves the focus from devices to documents The aim of an MDS project is to deliver efficient document flows with • • • • • • • The smallest number of devices, appropriately located in the organisation Proactively maintained to maximise longevity Document management software to reduce the need to print User training to promote the use of energy/paper saving features Management information to continuously optimise the system Free takeback and recycling of hardware and consumables Pay-per-page pricing to discourage wasteful use Kyocera is working with Forum for the Future to understand why the ProductService Shift has worked in our industry, so as to transfer the learning to others.
  • 9. INNOVATION DEMANDS DISRUPTION The mainstream laser printer industry is based around a fundamentally wasteful product design – the single process cartridge – and a “razor and blade” business model The market has settled for a solution which seeks to mitigate the waste impact by re-manufacturing consumables, rather than challenging the fundamental design flaws in the product design and business model Innovators in our industry have numerous barriers to overcome: • Their competitors are not just printer vendors, but also cartridge remanufacturers • Legislation specifically promotes remanufacturing and disregards resource-efficient product design • Established procurement processes focus on securing deep hardware discounts (cap-ex) and rarely consider whole-life costs (op-ex) • Silos in customer organisations don’t support the level of collaboration required to take advantage of innovative consumption models
  • 10. INNOVATIVE BUSINESS MODELS Made to order Collection of used products Peer-to-peer lending Incentivised return to manufacturer Long-term leasing with linked service Short-term rental Service system Peer-to-peer based on existing rental product Dematerialised service Incentivised return to third parties Reducing consumption Durable products Long-term leasing Conventional hire Asset management Closed loop recycling WRAP’s Innovative Business Model Map
  • 11. THE OPPORTUNITIES FOR INNOVATION Opportunity 1: Design products to be more resource-efficient throughout their entire lifecycle Opportunity 2: Design products to be more easily dismantled and reprocessed for resource recovery at end of life Opportunity 3: Create new business models that decouple functionality from physical goods Opportunity 4: Work with customers to ensure they understand how to benefit from the resource-efficient features of the product or service during the use phase Opportunity 5: Collaborate with providers of resource recovery services to close loops locally
  • 12. THE CHALLENGES (B2B PERSPECTIVE) Challenge 1: Manufacturers can only sell in innovative ways if customers are geared up to purchase in innovative ways Challenge 2: Designing-in longevity incurs a price premium which can make hardware appear expensive when in fact whole-life costs (direct and indirect) are lower Challenge 3: Few manufacturers are able to deliver every link in a service-led offer – we must learn to collaborate with new partners and in new ways Challenge 4: Resource recovery/recycling infrastructures are immature and continuity of supply of post-consumer materials is unreliable Challenge 5: Policy landscape doesn’t support disruptive innovation
  • 13. CLOSED LOOP, OPEN LOOP OR HELIX? Ellen Macarthur Foundation
  • 14. PUBLIC SECTOR CHALLENGES The tender process stifles innovation: If an invitation to tender is written around a hardware specification, the supplier cannot bid a dematerialised or service-led offer – he’ll simply be disqualified • Outcome based tenders provide the freedom to innovate around a goal Hardware cost has disproportionate influence on procurement: Sustainability data gathered as part of the vendor selection process rarely plays a part in the final procurement decision • Whole life costs – both direct and indirect – could be embedded in the targets of procurement professionals Smokestacks prevent collaborative consumption: Emerging business models provide extensive opportunities for government departments to share hardware and services, cutting both cost and carbon • A more holistic approach to ICT infrastructures can enable collaborative consumption, dematerialisation of services and improved efficiency
  • 15. IN CONCLUSION Resource inefficiency is a systemic problem which is best addressed by going back to product fundamentals and designing out waste from product designs, supply chains and business models This cannot be resolved by manufacturers alone – we need to collaborate with service providers, policymakers and customers to create conditions that foster disruptive innovation Kyocera is working with Green Alliance on the Circular Economy Task Force – to try to understand how circular business models can be developed in a way that keeps companies profitable, and how the policy landscape can better help to foster a circular, resource secure economy
  • 16. THANK YOU! Tracey Rawling Church Head of Corporate Social Responsibility Kyocera Document Solutions (UK) Ltd trc@duk.kyocera.com http://twitter.com/traceyrc © 2013 ᅳ KYOCERA Document Solutions http://www.kyoceradocumentsolutions.co.uk All rights reserved. Presentation title 04/11/2013 16