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3.1 eco efficient system innovation vezzoli-09-10 (33)

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  • 1. 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 . INDACO dpt. . DIS . faculty of design . Italy Learning Network on Sustainability Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 2. CONTENTS . Resume: sustainability and system innovation . Traditional sales model: eco-efficiency constraints . Moving towards system eco-efficiency . Product-Service System (PSS): definition . Eco-efficient system innovation typologies . 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 PSS diffusion . Eco-efficient system innovation: summing up Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 3. SUSTAINABILITY: SIZE OF CHANGE IN 50 YEARS A WORLD-WIDE EQUITABLE SYSTEMS OF PRODUCTION AND CONSUMPTION SHOULD USE ~90% LESS RESOURCES THAN THE INDUSTRIALISED CONTEXTS ARE DOING TODAY Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 4. SUSTAINABILITY: QUALITY OF CHANGE RADICAL CHANGE (DISCONTINUITY) PROMOTE (EVEN) SYSTEM INNOVATIONS broader than product innovation, not only technological, but even socio-cultural and organisational innovations Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 5. ECO-EFFICENT SYSTEM INNOVATIONS > innovation delinking economic interests from environmental impact increase from the design of process and product innovation to the design of system innovation: innovation of the mix of products and services that are together able to fulfil a particular demand of (customer) “satisfaction”, as well as the innovation of the interactions of the stakeholders of the “satisfaction system” (value production system). Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 6. A PRELIMINARY EXAMPLE OF ECO-EFICIENT SYSTEM INNOVATION Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 7. ARISTON + ENEL: PAY-PER-USE payment is based on number of washes (satisfaction) 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 companies and the client, make the companies’ interest to design and provide high efficient, long lasting, reusable and recyclable washing machines Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 8. EC SYSTEM: A DEFINITION “designing and providing a system of products and services (and related infrastructure) which are jointly capable of fulfilling client needs or demands more efficiently and with higher value for both companies and customers than purely product based solutions. […] PSS could decouple the creation of value from consumption of materials and energy and thus significantly reduce the life-cycle environmental load of current product systems.” [UNEP, Tischner, Vezzoli, 2009] free pdf: http://www.d4s-sbs.org/ Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 9. SYSTEM ECO-EFFICENCY: moving out of traditional product sales/design system (life cycle) resources wide system (multiple life cycles) optimization: product/function-based resources optimization: demand/satisfaction-based discrete resources optimization: phase/stakeholder-based retailers retailers retailers designer designer designer [e.g. detergent] [e.g. washing machine] [e.g. energy supply] [e.g. satisfaction-syetem= to have ceaned cloths] Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 10. TRAD. SALES MODEL: ECO-EFFICENCY: CONSTRAINTS low interact. between product-system’s stakeholders low interact. between satisfaction-system’s stakeholders - 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 Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 11. TOWARD THE SYSTEM ECO-EFFICIENCY (delinking economic interests from environmental impact increase) shift/allocate on the stakeholder responsible for the products and/or the services development, the direct economic and competitive interest to reduce their environmental impacts Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 12. TOWARD THE SYSTEM ECO-EFFICIENCY which characteristics of the offer (company/ies models)? innovative “trans-phase” and “trans-cycle” INTERACTIONS A. STAKEHOLDERS’ INTEGRATION (controll extension) vertical: one stakeholder > Product life cycle horizontal: one stakeholder > Ps + Ss life cycles B. STAKEHOLDERS’ INTERACTIONS EXTENSIONS vertical: (multiple) stakeholders > Product life cycle horizontal: (multiple) stakeholders > Ps + Ss life cycles Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 13. ECO-EFFICENT SISTEM INNOVATION TYPOLOGIES (EXAMPLES) Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 14. KLUBER LUBRIFICATION 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 Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 15. KLUBER LUBRIFICATION E-E PSS of Type I – Adding value to the product life cycle Kluber sells to engineering industry lubricants and ... KLUBER CUSTOMER LUBRICATION Engineering LAB industry ... a service of analysis for the lubricants effectiveness and environmental impact reduction (movable lab) BENEFIT FOR KLUBER BENEFIT FOR ENVIRONMENT BENEFIT FOR CUSTOMER . Offer diversification . reduction and optimisation of lubricants Cost reduction . Improved efficiency > . Customer loyalty > reduced environmental impact issues to solve use . Less environmental Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 16. E.-E. SYSTEM INNOVATION (TYPE I) ADDING VALUE TO THE PRODUCT LIFE CYCLE 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 client) it is reduced the user reaponsibility in the use and/or disposal of the product/semi-finished product (own by her/him) Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 17. RANK-XEROX Rank Xerox offers a package deal and installs and maintain photocopiers (not owned by the customer) and may even makes and delivers copies. The customer pays for the package. the innovative interaction between the company and the client, make the companies’ interest to provide (and design) long lasting, reusable and recyclable photocopiers. photocopiers > COPIED PAPER Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 18. RANK XEROX E-E PSS of Type II – Providing final results to customers Rank Xerox offers a package deal (products + services). The customer pays for the package ... RANK XEROX CUSTOMER ... and RX installs and maintain photocopiers (not owned by the customer) , makes and delivers copies. BENEFIT FOR RANK BENEFIT FOR ENVIRONMENT XEROX BENEFIT FOR CUSTOMER . Directly profit from components re-use needmaterial in the machine . Increased products’ lifespan andto invest . No and resources Rankefficiency > reduced environmental cost reduction in use Xerox is not a photocopier producer only. recycling from discarded products and overall impact purchase . Directly profit from resources efficiency RANK XEROX: A DOCUMENT COMPANY! Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 19. E.-E. SYSTEM INNOVATION (TYPE II) PROVIDING FINAL RESULTS TO CUSTOMERS 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) Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 20. ARISTON + ENEL: PAY-PER-USE 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’ interest to provide (and design) high efficient, long lasting, reusable and recyclable washing machines Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 21. ARISTON + ENEL: PAY-PER-USE E-E PSS of Type III – Providing enabling platforms for customers PARTNERSHIP The partnership offers an enabling washing platform. ARISTON The customer will pay for Household the number of washes he/she will do ... + appliances CUSTOMER Household ... and the partnership delivers the ENEL washing machine (not owned by the Energy customer) and supply energy (not provider directly paid by the customer), maintenance, up-grading and end-of-life collection. BENEFIT FOR THE PARTNERSHIP ENVIRONMENT BENEFIT FOR BENEFIT FOR CUSTOMER . Increased energy efficiency and products’ . Directly profit from energy efficiency need to invest in the machine . No lifespan > reduced environmental impact . Re-use of components from discarded products cost reduction in use purchase and overall Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 22. E.-E. SYSTEM INNOVATION (TYPE III) ENABLING PLATFORMS FOR CUSTOMERS 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) Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 23. ECO-EFFICIENT SYSTEM INNOVATION TYPOLOGIES - adding value to the product life cycle - providing final results to customers - providing enabling platforms for customers Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 24. SYSTEM INNOVATION WIN-WIN POTENTIAL SYSTEM ECO-EFFICIENCY innovation in which is the company/companies’ economic and competitive interest that leads to an environmental impact reduction (system eco- efficiency) Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 25. SYSTEM INN. ECO-EFFICIENT POTENTIALS the economic interest of a stakeholders foster: . product life cycle optimization . materials life extension . “in use” resources minimization higher system eco-efficiency given too by: . provider: higher available investiment to allowing most advanced and effcient technologies . product sharing > faster replacement of ware out products with new and more eco-efficient ones (on equal number of units produced in time) Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 26. NOT ALL SYSTEM INNOVATION ARE ECO-EFFICENT! > CRITERIA AND GUIDELINES ARE NEEDED > METHODS AND TOOLS ARE NEEDED to orientate design towards system eco-efficent stakeholder interactions Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 27. NOT ALL ECO-EFFICENT SYSTEM INNOVATION 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 to difficult to be predicted, but as far as they are, design attention should be given to avoid those eventual side effects Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 28. 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 WHY EE-PSS ARE NOT YET DIFFUSED? Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 29. 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 companies, … Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 30. 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 Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 31. … 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] Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 32. SYSTEM INNOVATION 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 innovations that could lead up to new economic interest convergences between the stakeholders, characterized by an intrinsic eco-efficiency Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy
  • 33. ECO-EFFICINET SYSTEM INNOVATION DEFINITION: “an offer model providing the integrated mix of products and services that are together able to fulfil a particular demand of (customer) “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 seek after environmentally beneficial new solutions” [VEZZOLI, 2010] Carlo Vezzoli Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy