The human aspect in driving innovation is not to be underestimated. Driving innovation is done by implementing the necessary tools and structures. However driving desired behavior on individual and team level is at least equally important. Möbius will share insights in how to build an innovation and continuous improvement culture.

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Template Innovation Day 2019CONFIDENTIAL
HOW TO BUILD A SUSTAINABLE INNOVATION CULTURE
Mathias Fahy, Strategy and Sustainability Expert
Gert Linthout, Industry Team Lead
mathias.fahy@mobius.eu
gert.linthout@mobius.eu
TRACK 3
MyStartUp
The power of desired behaviour

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How to build a
sustainable
innovation culture
The power of desired behaviour
Offre remise le 22-03-2018

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Sustainable

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Innovation
• Renewable energy is cheaper than
coal in US
• By 2021, 1 in 4 products bought will
be sustainable
• Sweden eliminates fossil fuels by
2040 and challenges other countries
• Germany’s renewables outstrips coal
and generates 77% of the need
But still...

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Innovation
• We are aware of and tackling the
energy challenge
But what about our material
footprint?!

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Culture
80% of product emissions throughout the
lifecycle are fixed in the design phase

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In some cases the producer has control of the product
lifecycle impact, in other cases the customer
Voorbeeld share-of-carbon footprint verdeling (ex. tapijttegel)

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Why can’t we innovate and redesign products to help
customers make sustainable choices?

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Riding the energy efficiency wave gives us a weird
sense of comfort
9
The LED-
revolution
90%
35%

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A design led-system change – a watercooker in the UK
97%
65%

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A design-led system change – a refrigerator in the US
30%
40%

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Some key points on sustainable product design
• Start from the product lifecycle impact and design to mitigate
• Fool proof design to trigger sustainable behaviour
• Think about the net effect from a systems perspective
• Communicate the customer value your sustainable design brings
• Let this information trickle down onto the design table

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We can rely on innovation and design to steer use, but how to
solve the material conundrum?
Voorbeeld share-of-carbon footprint verdeling (ex. tapijttegel)

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The elephant in the room – 45% of emissions are attribute to
how we make products

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The circular economy aligns economic and ecological
incentives
Recycled content
Modular designs deliver
parts
Product refurbishment
Extended lifetime /
maximize use (sharing,
mantenance, ...)
Circular
strategy Examples
Profit
potential*
PhilipsSenseo
Philips Pay per Lux
Medical asset sharing
35%
24%
10%
$ 1-2 mio/y on medical
equipment spend
(hospital level)
11%

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The product as an “organized problem” – why not offer it as a
service?
Putting power and
responsibility together at the
producer’s side aligns incentives
Moreover: the customer is
“protected” and doesn’t need to
make choices anymore

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Why are circular business models strategically relevant?
Competition shifts discussion
to price (& lower quality)
State-of-the art (ETAP) lighting
technology puts pressure on a
sales-based business model
LED lifetime
ETAP performance (LLMF)
Bringing sustainability closer to
the business
• Find ways to connect sustainability to
economics & valorize it in the market
• Ecodesign (doing less bad) > circular
design (doing more good)
Build relationship with end-
customer (vs. installer)
Unlocking customer value
• Customers are outsourcing all non-core
spend (focus)
• Easier to obtain OPEX than CAPEX-
budget
• Products are becoming increasingly
complex

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The power of design in a circular business model
€ -
€ 200,00
€ 400,00
€ 600,00
€ 800,00
€ 1 000,00
€ 1 200,00
LAAS model (20Y) with Reman-
sale - Design 4 Maintenance & Remanufacturing

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Product-as-a-service systems come in different flavours
“pay per move”“pay per month” “pay per tonne
dried chlorine”

20. 2020
Source McKinsey: Imran Amed, Anita Balchandani, Marco Beltrami, Achim Berg, Saskia Hedrich, and Felix Rölkens

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Keeping clothes in use for an extra 9 months can reduce carbon, water and waste
footprints by 20-30%.

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Let the

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Some key points on sustainable business design
• Explore circular economy business models to link power and responsibility in
your value chain
• Gauge for strategic signals that the customer is in need of a product instead
of a service
• Use the circular economy and smart product design as a lever under the
economics of your business model

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