Your SlideShare is downloading. ×
  • Like
1new   Sustainable Innovation
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

1new Sustainable Innovation

  • 560 views
Published

Innovation

Innovation

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

Views

Total Views
560
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
13
Comments
0
Likes
0

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. Sustainable Innovation BCSD - TAIWAN 30th September 2004 Taipei, Taiwan Professor Martin Charter Director The Centre for Sustainable Design Martin Charter & Associates (c) Martin Charter (2004)
  • 2. Sustainable Innovation Terminology No common understanding - Products (Eco-innovation – Fussler et al) - Technologies - contaminated land remediation - air pollution - monitoring and control - waste management - recycling - noise and vibration - energy management - consultancy (c) Martin Charter (2004)
  • 3. Type 4: System 20 Sustainable innovation level Eco-efficiency improvement/ Type 3: Function organisational complexity innovation Type 2: Product redesign Type 1: Product improvement 5 10 20 Tim (years) e Eco-efficiency curves (c) Martin Charter (2004)
  • 4. Sustainable Innovation Types • Product/services/technologies • Process • Organisational (c) Martin Charter (2004)
  • 5. Sustainable Innovation Barriers to sustainable innovation Background • Weak understanding and knowledge over how to integrate sustainability into innovation policies • Lack of clear drivers for sustainable innovation • A focus on eco-efficiency and dematerialisation will not deliver sustainable innovation • To move towards higher levels of sustainable innovation (systems) will require long-term, strategic change in societies • Existing focus on incremental improvements or (eco)re-design, rather than functional or system innovation • Limited uptake of sustainable product/eco-design outside of transnationals • Value and supply networks are increasingly geographically disparate (c) Martin Charter (2004)
  • 6. Sustainable Innovation Barriers to sustainable innovation Markets • Green often seems to suffer from a poor perception • Most markets are still dominated by price • Green markets are still niche markets • Lack of green mass markets • Awareness:action gap • There is a wide variation of awareness of sustainability/ environmental issues • B2C customers tend to be wedded to ownership • Developing countries lack good quality information • 3 billion people live on less than $2 per day (c) Martin Charter (2004)
  • 7. Sustainable Innovation Barriers to sustainable innovation Organisational • There is a lack of senior level vision and commitment to sustainability • Nervousness over taking a pioneering or leadership role on sustainable innovation • Sustainability is not seen as area of business opportunity • Green is generally seen as a threat-based, compliance agenda • Sustainability issues are rarely included in the corporate strategy, business development and/or the ‘opportunity search’ process • There is a lack of awareness of sustainability/environmental awareness amongst key business functions • Organisational systems and procedures are often inflexible • Product designers and design consultancies still have a poor understanding of sustainability (c) Martin Charter (2004)
  • 8. Sustainable Innovation Barriers to sustainable innovation Entrepreneurship and funding 1 • Poor linkages between experts, investors, entrepreneurs and inventors • Lack of sustainable innovation catalysts • Academia has not been successful at transferring radical concepts (e.g. functional, systems) of sustainable innovation • Need for bridges between inventors, investors, entrepreneurs and academia • Little recognition of sustainable innovation opportunities amongst • successful entrepreneurs (c) Martin Charter (2004)
  • 9. Sustainable Innovation Barriers to sustainable innovation Entrepreneurship and funding 2 • Sustainable technologies/product/services are not viewed as major opportunities by investors: - business concepts/technologies often seen as too risky - financial returns often not seen as significant enough to justify investment - not enough successful entrepreneurs with track-records in the area • Inventors/entrepreneurs: lack of start-up funding and business skills (c) Martin Charter (2004)
  • 10. Sustainable Innovation Barriers to sustainable innovation Marketing • Weak interaction between marketing and sustainability/ environmental professionals • Marketing's role in the product development/innovation process differs from company to company • Sustainability/environmental are rarely involved in the innovation process. • Green product failures due to a lack of involvement of marketing skills and tools • Green is integral to the brand/product/company • Responsible products/brands from responsible companies (c) Martin Charter (2004)
  • 11. Sustainable Innovation Opportunities for sustainable innovation 1 • ‘Producer responsibility' laws in Europe and Japan may stimulate series of new (sustainable) business concepts • Emerging opportunities for sustainable/greener technologies/ products/services in B2G markets e.g. Japan • A smarter use of demand and supply-side government policy tools may start to create opportunities (e.g. Integrated Product Policy (IPP)) • Various companies exploring new business models in attempt to open up the market of the 3 billion people who live on less than $2 per day (c) Martin Charter (2004)
  • 12. Sustainable Innovation Product-Service-Systems (PSS) (c) Martin Charter (2004)
  • 13. Sustainable Innovation PSS: strategies Product - oriented services • Service integration e.g. additional functionality • Product extension e.g. upgrades and repairs Use - oriented service (selling function) e.g. leasing or rental of computer and office equipment Result - oriented service • Product-substituting service e.g. virtual answering machine • Vertical integration e.g. downloadable music Source: www.suspronet.org (c) Martin Charter (2004)
  • 14. Sustainable Innovation Opportunities for sustainable innovation 2 Product Service Systems (PSS) are a promising new business development approach that may help create more sustainable solutions. However, - Business do not recognise the terminology of PSS - PSS are not developed in a systematic and structured manner - PSS often means a closer focus on: - customer needs - maintaining good customer relations - PSS will require a shift in corporate culture from ‘product- orientation’ to ‘service-orientation ‘ - Sustainable PSS solutions are likely to industry/need specific - Defining the sustainable/environmental performance is complex due to lack of good quality lifecycle data and information - PSS does not always deliver sustainability benefits - There are a lack of successful sustainability-driven PSS cases (c) Martin Charter (2004)
  • 15. Sustainable Innovation Opportunities for sustainable innovation 3 Organisational: lessons from Philip’s approach to eco-design management 1 • Focus on the eco-design management process • Product-level environmental considerations should be left to Business Units (BUs) to determine • Clear demarcation of responsibilities of: - Corporate - BUs • Both Corporate + BUs need a shared vision of the proposed outputs of the process e.g. Green Flagship products • Systematic and continuous integration of environmental considerations into the Product Creation Process (PCP) • Sell the commercial benefits of eco-design in the language of different business functions (c) Martin Charter (2004)
  • 16. Sustainable Innovation Opportunities for sustainable innovation 4 Organisational: lessons from Philip’s approach to eco-design management 2 • Mechanisms to share and communicate information/knowledge throughout global value or supply chain or networks • More mature eco-design management systems are likely to produce more eco-innovation Organisational: lessons from SC Johnson’s approach to eco-design management • Innovation tends to be frequent e.g. month-to-month and incremental • Internal branding of sustainable product/eco-design programmes e.g. Greenlist ™ • Institutionalise sustainable product/eco-design programmes through integration into existing processes (c) Martin Charter (2004)
  • 17. (c) Martin Charter (2004)
  • 18. (c) Martin Charter (2004)
  • 19. Sustainable Innovation Types • Product/services/technologies • Process • Organisational (c) Martin Charter (2004)
  • 20. Sustainable Innovation Action plan • Senior level commitment • Director with responsibility • Project director • Taskforces: technology/product/service; process; management • Define ‘opportunity zones’ • Complete research + pilots • Selection process • Launch sustainable innovation culture • Develop strategy, programmes, responsibilities • Implementation, monitoring and control (c) Martin Charter (2004)
  • 21. (c) Martin Charter (2004)
  • 22. Contact Details Professor Martin Charter Director The Centre for Sustainable Design Tel: 00 44 1252 892772 Fax: 00 44 1252 892747 email: mcharter@surrart.ac.uk web: www.cfsd.org.uk Martin Charter & Associates Tel: 00 44 1252 722162 Fax: 00 44 1252 722162 email: martincharter@compuserve.com (c) Martin Charter (2004)