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

Carlo Vezzoli

Politecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy

carlo vezzoli politecnico di milano . INDACO dpt. . DIS . faculty of design . Italy

Learning Network on Sustainability

course System Design for Sustainability subject 3. System design for eco-efficency

learning resource 3.1

Eco-efficent system innovation

Carlo Vezzoli


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


IN 50 YEARS A WORLD-WIDE EQUITABLE SYSTEMS

OF PRODUCTION AND CONSUMPTION SHOULD USE

~90% LESS RESOURCES THAN THE

INDUSTRIALISED CONTEXTS ARE DOING TODAY

SUSTAINABILITY: SIZE OF CHANGE

Carlo Vezzoli


SUSTAINABILITY: QUALITY OF CHANGE

PROMOTE (EVEN) SYSTEM INNOVATIONS broader than product innovation, not only technological, but even socio-cultural and organisational innovations

RADICAL CHANGE (DISCONTINUITY)

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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


A PRELIMINARY EXAMPLE OF

ECO-EFICIENT SYSTEM INNOVATION

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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


“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]

EC SYSTEM: A DEFINITION

free pdf: http://www.d4s-sbs.org/

Carlo Vezzoli


retailers

designer

[e.g. washing machine]

[e.g. satisfaction-syetem= to have ceaned cloths]

discrete resources optimization: phase/stakeholder-based

[e.g. detergent] [e.g. energy supply]

retailers

designer

retailers

designer

SYSTEM ECO-EFFICENCY: moving out of traditional product sales/design

wide system (multiple life cycles) resources optimization: demand/satisfaction-based

system (life cycle) resources optimization: product/function-based

Carlo Vezzoli


- 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

TRAD. SALES MODEL: ECO-EFFICENCY: CONSTRAINTS

low interact. between product-system’s stakeholders

low interact. between satisfaction-system’s stakeholders

Carlo Vezzoli


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


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


ECO-EFFICENT SISTEM INNOVATION TYPOLOGIES (EXAMPLES)

Carlo Vezzoli


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


KLUBER LUBRICATION

CUSTOMER Engineering industry

Kluber sells to engineering industry lubricants and ...

LAB

... a service of analysis for the lubricants effectiveness and environmental impact reduction (movable lab)

BENEFIT FOR KLUBER . Offer diversification . Customer loyalty

BENEFIT FOR CUSTOMER . Improved efficiency > Cost reduction

. Less environmental issues to solve

BENEFIT FOR ENVIRONMENT . reduction and optimisation of lubricants

use > reduced environmental impact

E-E PSS of Type I – Adding value to the product life cycle

KLUBER LUBRIFICATION

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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


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.

photocopiers > COPIED PAPER

the innovative interaction between the company and the client, make the companies’ interest to provide (and design) long lasting, reusable and recyclable photocopiers.

Carlo Vezzoli


Rank Xerox offers a package deal (products + services).

... and RX installs and maintain photocopiers (not owned by the customer) , makes and delivers copies.

CUSTOMER RANK XEROX

The customer pays for the package ...

BENEFIT FOR RANK XEROX . Directly profit from components re-use and material

recycling from discarded products . Directly profit from resources efficiency

BENEFIT FOR ENVIRONMENT . Increased products’ lifespan and resources efficiency > reduced environmental impact

BENEFIT FOR CUSTOMER . No need to invest in the machine

purchase and overall cost reduction in use Rank Xerox is not a photocopier producer only.

RANK XEROX: A DOCUMENT COMPANY!

E-E PSS of Type II – Providing final results to customers

RANK XEROX

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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



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


BENEFIT FOR CUSTOMER . No need to invest in the machine

purchase and overall cost reduction in use

ARISTON Household appliances

The customer will pay for the number of washes he/she will do ...

ENEL Energy provider

CUSTOMER Household

PARTNERSHIP

+

The partnership offers an enabling washing platform.

... and the partnership delivers the washing machine (not owned by the customer) and supply energy (not

directly paid by the customer), maintenance, up-grading and end-of-life

collection.

BENEFIT FOR ENVIRONMENT . Increased energy efficiency and products’ lifespan > reduced environmental impact

BENEFIT FOR THE PARTNERSHIP . Directly profit from energy efficiency . Re-use of components from discarded products

E-E PSS of Type III – Providing enabling platforms for customers


Carlo Vezzoli


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)

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ECO-EFFICIENT SYSTEM INNOVATION TYPOLOGIES

- adding value to the product life cycle

- providing final results to customers

- providing enabling platforms for customers

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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)

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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


> CRITERIA AND GUIDELINES ARE NEEDED > METHODS AND TOOLS ARE NEEDED to orientate design towards system eco-efficent stakeholder interactions

NOT ALL SYSTEM INNOVATION ARE ECO-EFFICENT!

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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


WHY EE-PSS ARE NOT YET DIFFUSED?

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

Carlo Vezzoli


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


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


… 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


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


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]

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

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