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Ecodesign; a trip to the deep rabbit hole

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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 …

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

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  • 1. Ecovalue a trip to the deep rabbit hole by Oriol Pascual
  • 2. for educational purpose only ;-)
  • 3. Traditional eco-belief or trip to wonderland?
  • 4. Science Governments Technology MANUFACTURING Voters Suppliers COMPANY Customers Financial NGOs community External Value Chain The Matrix
  • 5. Overview presentation Two stop trip
  • 6. Blue Everybody should love eco
  • 7. 75% Global Fortune 500 claim to do Ecodesign
  • 8. Relatively mature 30% Way to maturity 18% First movements 6% Starter & good intent 6% Publicity driven 14% Not interested 26% Ecodesign maturity profiles
  • 9. Companies can do more
  • 10. Technology will save us all
  • 11. Eco-solutions seem not to appeal to mass consumers
  • 12. Consumers can be educated If not green yet, you will soon get!
  • 13. Consumers are rational When doing the math, they act accordingly
  • 14. Designers as decision makers out of control!
  • 15. Strategy Management Product Development Marketing management Production Sales Suppliers Customer Purchasing Logistics Internal Value Chain The Internal Matrix
  • 16. Red Questioning reality
  • 17. Low-hanging fruit picked Rapidly reaching the limits of physics
  • 18. What design option is best? from a value chain perspective
  • 19. 10.000 Tones of CO2...what do you mean? ! Do you understand? Communication issues with the rest of value chain
  • 20. What fish are you catching? For the resources invested, what are the opportunities?
  • 21. business value environmental load Value creation How is ecodesign contributing to it?
  • 22. To solve the equation you have to realize that...
  • 23. Ecodesign is not alone
  • 24. Demand side is key Environmental impact directly related to consumption power
  • 25. The market is diverse even within the Guinea Pig food market!
  • 26. How?
  • 27. Ecovalue
  • 28. Eco-efficiency index Product value Ecovalue = Environmental load Product value acceptable + - + Environmental 0 Load non-acceptable -
  • 29. Supports decision making at strategic & product level
  • 30. Setting priorities
  • 31. Action oriented
  • 32. Value = perceived benefit Functional & intangible benefit
  • 33. Functional value
  • 34. Intangible value
  • 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)
  • 44. Ecovalue scenarios Price Env. load Ecovalue Target group 1 ++ + +++ experience 2 ++ - + feature 3 + ++ +++ experience 4 + -- - feature 5 - ++ + price 6 - -- --- not applicable 7 -- + - price 8 -- - --- not applicable
  • 45. Visualization Product value acceptable + - + Environmental 0 Load non-acceptable -
  • 46. Case study: displays
  • 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
  • 49. Product #1 4 acceptable + Product value 3 2 10 Environmental - + Load non-acceptable -
  • 50. Product #2 4 acceptable + Product value 3 20 Environmental - + Load 1 non-acceptable -
  • 51. Product #3 acceptable + Product value 4 30 Environmental - + Load 2 1 non-acceptable -
  • 52. Product #4 acceptable + Product value 40 Environmental - + 3 Load 2 1 non-acceptable -
  • 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)
  • 54. oriol.pascual@gmail.com sustainablerotterdam.com