3.1 eco efficient system innovation

Carlo VezzoliPolitecnico di Milano / INDACO dept. / DIS / Faculty of Design / Italy

course System Design for Sustainability

TODAY:3. SYSTEM DESIGN FOR ECO-EFFICIENCY3.1 Eco-efficient system innovation3.2 System design for eco-efficiency3.3 System design for eco-efficiency guidelines and examples4. (SYSTEM) DESIGN FOR SOCIAL EQUITY AND COHESION4.1 Towards social equity and cohesion4.2 System design for social equity and cohesion4.3 System design for social equity/cohesion guidelines examples

carlo vezzolipolitecnico di milano . INDACO dpt. . DIS . faculty of design . Italy

Learning Network on Sustainability


course System Design for Sustainability

TOMORROW:14.15-18.15 CT 68






course System Design for Sustainabilitysubject 3. System design for eco-efficency

learning resource 3.1Eco-efficent system innovation


CONTENTS Traditional sales model: eco-efficiency constraintsMoving towards system eco-efficiencyProduct-Service System (PSS): definition Eco-efficient system innovation typologies

Adding value to the product life cycleProviding final results to customersProviding enabling platforms for customers

Not all PSS are eco-efficient + rebound effectsBarriers to PSS diffusionEco-efficient system innovation: summing up


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: DIMENSION OF CHANGE


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)


PRDUCT-SERVICE SYSTEM DEFINITION “the result of an innovation strategy, shifting the business focus from designing and selling physical products only, to designing selling a system of products and services which are jointly capable of fulfilling specific client demands.”“system innovation can lead, throughout innovative stakeholders’ interactions, to system eco-efficiency.”free pdf at: http://www.uneptie.org/pc/sustain/design/pss.htm


A PRELIMINARY EXAMPLE OF ECO-EFICIENT SYSTEM INNOVATION


ARISTON + ENEL: PAY-PER-USEpayment 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


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


prod

ucer

suppliers

customer

client

end-of-li

fe

manag

er

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]

prod

ucer

suppliers

customer

client

end-of-li

fe

manag

er

retailers

designer prod

ucer

suppliers

customer

client

end-of-li

fe

manag

er

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


- 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 CONSTRAINTSlow interact. between product-system’s stakeholderslow interact. between satisfaction-system’s stakeholders


TOWARD THE SYSTEM ECO-EFFICIENCY which characteristics of the offer (company/ies models)?

innovative “trans-phase” and “trans-cycle” INTERACTIONSA. 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


ECO-EFFICENT SISTEM INNOVATION TYPOLOGIES (EXAMPLES)


KLUBER LUBRIFICATIONoffers 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


E.-E. SYSTEM INNOVATION (TYPE I)ADDING VALUE TO THE PRODUCT LIFE CYCLEa 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)


AMG: SOLAR HEAT SERVICEhot water itself is sold as an entire service (payment x litre); hot water is produced by sun energy + methane;service include: methane supply (not directly paid), equipments and meter (not owned) transportation, installation and maintenance.

the innovative interaction between the company and the user, make the companies’ interest to design equipment minimising methane consumption (maximises the income) and increase solar energy (because of higher income)


E.-E. SYSTEM INNOVATION (TYPE II)PROVIDING FINAL RESULTS TO CUSTOMERSa company (alliance of companies) provides a customised mix of services, instead of products, in order to provide a specific final result to the customerthe 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)


ARISTON + ENEL: PAY-PER-USEpayment 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 companies and the client, make the companies’ interest to design and provide high efficient, long lasting, reusable and recyclable washing machines


E.-E. SYSTEM INNOVATION (TYPE III)ENABLING PLATFORMS FOR CUSTOMERScompany (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)


ECO-EFFICIENT SYSTEM INNOVATION TYPOLOGIES

- adding value to the product life cycleproviding final results to customersproviding enabling platforms for customers


SYSTEM INNOVATION DEVELOPMENT

(POTENTIAL FOR) WIN-WIN SOLUTION:INNOVATIVE STAKEHOLDERS’ INTERACTIONS, (COULD) MAKETHE COMPANY/COMPANIES’ ECONOMIC AND COMPETITIVE INTEREST TO INNOVATE PSS THAT TURNS OUT TO BE ECO-EFFICIENT ON A SYSTEM LEVEL


SYSTEM INN. ECO-EFFICIENT POTENTIALSthe interest of an economic stakeholders foster:. product life cycle optimization. materials life extension. “in use” resources minimization

higher system eco-efficiency given too by: . better adoptable technologies. faster replacement of ware out products with new

and more eco-efficient ones (on equal number of units produced)


> 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!


NOT ALL ECO-EFFICENT SYSTEM INNOVATION ARE WITHOUT (ENVIRONMENTAL) REBOUND EFFECTS!> may generate unwanted (enevironmentaly damaging) side effects

e.g.1 outsorcing, rather than ownership of products, could lead to careless (less sustsinable) behaviour

> some rebound effects are to difficult to be predicted, but as far as they are, design attention should be given to avoid the eventual side effect


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


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, …


DIFFUSED INERTIA (CONSOLIDATED HABITS) IS LIMITING ECO-EFFICIENT SYSTEM INNOVATION

. 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


… ANYHOW A PROMISING WIN-WIN MODEL

“neverthelss, PSS development, seen as a whole, present a potential for generating win-win solution which promote profit, environmental and social business”

“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”

[UNEP, 2002]


SYSTEM INNOVATION MAIN CHARACTERISTICS:

ROOTED IN A “SATISFACTION-BASED ECONOMIC MODELeach offer is developed/designed and delivered in relation to a particular customer “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 POTENTIALinnovations that could lead up to new economic interest convergences between the stakeholders, characterized by an intrinsic eco-efficiency


ECO-EFFICINET SYSTEM INNOVATION DEFINITION:

an environmentally and economically/competitive winning innovation involving at the same time both: the system of products and services that are together able to fulfil a particular demand of (customer) “satisfaction”, and the interaction of the stakeholders directly and indirectly linked to that “satisfaction” system”

[VEZZOLI, 2009]

3.1 eco efficient system innovation

Technology