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Building an innovation culture, steering individual and team behavior (by Möbius Business Redesign)
The document discusses the importance of building a sustainable innovation culture, focusing on product design that mitigates environmental impact and promotes sustainable behaviors. It highlights the role of circular economy business models in aligning economic incentives with ecological goals, emphasizing the need for a shift from traditional sales-based models to service-oriented models. Key strategies for sustainable product design and business practices are also outlined, encouraging innovation that prioritizes lifecycle impacts and customer engagement.
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Building an innovation culture, steering individual and team behavior (by Möbius Business Redesign)
- 1. 1 Template Innovation Day2019CONFIDENTIAL 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
- 2. 2 How to builda sustainable innovation culture The power of desired behaviour Offre remise le 22-03-2018
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- 4. 44 Innovation • Renewable energyis 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...
- 5. 55 Innovation • We areaware of and tackling the energy challenge But what about our material footprint?!
- 6. 66 Culture 80% of productemissions throughout the lifecycle are fixed in the design phase
- 7. 77 In some casesthe producer has control of the product lifecycle impact, in other cases the customer Voorbeeld share-of-carbon footprint verdeling (ex. tapijttegel)
- 8. 88 Why can’t weinnovate and redesign products to help customers make sustainable choices?
- 9. 99 Riding the energyefficiency wave gives us a weird sense of comfort 9 The LED- revolution 90% 35%
- 10. 1010 A design led-systemchange – a watercooker in the UK 97% 65%
- 11. 1111 A design-led systemchange – a refrigerator in the US 30% 40%
- 12. 1212 Some key pointson 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
- 13. 1313 We can relyon innovation and design to steer use, but how to solve the material conundrum? Voorbeeld share-of-carbon footprint verdeling (ex. tapijttegel)
- 14. 1414 The elephant inthe room – 45% of emissions are attribute to how we make products
- 15. 1515 The circular economyaligns 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%
- 16. 1616 The product asan “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
- 17. 1717 Why are circularbusiness 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
- 18. 1818 The power ofdesign 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
- 19. 1919 Product-as-a-service systems comein different flavours “pay per move”“pay per month” “pay per tonne dried chlorine”
- 20. 2020 Source McKinsey: ImranAmed, Anita Balchandani, Marco Beltrami, Achim Berg, Saskia Hedrich, and Felix Rölkens
- 21. 2121 Keeping clothes inuse for an extra 9 months can reduce carbon, water and waste footprints by 20-30%.
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- 23. 2323 Some key pointson 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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