Future Centered DesignDesigning for Sustainable BusinessJanaki Kumar, Design and Co-Innovation Center, SAP LabsMay 2013Stanford University, d.school

© 2011 SAP AG. All rights reserved. 2

Enterprise Software Applications vendor

100 Kglobal customers

15 billionrevenue

45 Kemployees worldwide

65% of global GDP flows through SAP systems

About SAP

Sustainability is more than environmentalism

Sustainability is meeting the needs of the present without compromising the ability of future generations to meet their own needs

Brundtland, 1987

© 2011 SAP AG. All rights reserved. 5

Business are starting to pay attention to Sustainability

Population growth accelerates consumption

9 billionpeople by 2050

1 billionmore in the middle class

© 2011 SAP AG. All rights reserved. 6

Key trends and motivators

Accelerated consumption drives price volatility

50%more energy needed by 2030

40%increased price volatility compared to the 90s

© 2011 SAP AG. All rights reserved. 7

Key trends and motivators

Brand risk rises as the world gets more unwired and connected

66%own a cell phone

500 millionuse Facebook

© 2011 SAP AG. All rights reserved. 8

Key trends and motivators

© 2011 SAP AG. All rights reserved. 9

Authorities and your best customers want your compliance

1000sof new legal and supply chain requirements every year

Key trends and motivators

© 2011 SAP AG. All rights reserved. 10

Resources

RegulationReputation

Business Case for Sustainability

© 2011 SAP AG. All rights reserved. 11

Challenges

Change takes time

Missing informationfor decision making – triple bottom line

Low visibilityinto operations of the global supply chain

© 2011 SAP AG. All rights reserved. 12© 2011 SAP AG. All rights reserved. 12

What does all this impact designers?

© 2011 SAP AG. All rights reserved. 13

Future Centered Design

© 2011 SAP AG. All rights reserved. 13

© 2011 SAP AG. All rights reserved. 14

Rethink Process

Rethink Materials

Rethink Product life cycle

Rethink Customer

Experience

Future Centered Design

© 2011 SAP AG. All rights reserved. 14

© 2011 SAP AG. All rights reserved. 15

Rethink Process

Rethink Materials

Rethink Product life cycle

Rethink Customer

Experience

Future Centered Design

© 2011 SAP AG. All rights reserved. 15

Rethink Process

UCD required but not sufficient

Effectiveness,Efficiency,Satisfaction and Sustainability?

© 2011 SAP AG. All rights reserved. 17

Rethink Process

Rethink Materials

Rethink Product life cycle

Rethink Customer

Experience

Future Centered Design

© 2011 SAP AG. All rights reserved. 17

Rethink Materials

45,000,000children’s products recalled in 231 the US in 2007

Packagingaccounts for a significant portion of energy cost

© 2011 SAP AG. All rights reserved. 18

© 2011 SAP AG. All rights reserved. 19

Rethink Process

Rethink Materials

Rethink Product life cycle

Rethink Customer

Experience

Future Centered Design

© 2011 SAP AG. All rights reserved. 19

© 2011 SAP AG. All rights reserved. 20© 2011 SAP AG. All rights reserved. 20

Rethink Product Lifecycle

© 2011 SAP AG. All rights reserved. 21

Rethink Process

Rethink Materials

Rethink Product life cycle

Rethink Customer

Experience

Future Centered Design

© 2011 SAP AG. All rights reserved. 21

Rethink Consumer Experience

If financial,social andenvironmentalimpact of purchases were made visible to consumers, will it alter their buying decisions?

© 2011 SAP AG. All rights reserved. 23

Rethink Consumer Experience

© 2011 SAP AG. All rights reserved. 24

Rethink Process

Rethink Materials

Rethink Product life cycle

Rethink Customer

Experience

Future Centered Design

© 2011 SAP AG. All rights reserved. 24

SummarySustainability is now business relevant

Designing for Sustainability takes a mind shift

To be successful, designers need to:

... Rethink process

... Rethink materials

... Rethink product lifecycle

…Rethink consumer experience

Thank you!

Janaki Kumar | janaki.kumar@sap.com | @janakikumar

www.SAPSustainabilityReport.com

SAP User Experience Locations

Palo Alto,USA

Ra‘anana,Israel

Bangalore,India

Walldorf & Rot,Germany

Sofia,Bulgaria

Paris,France

Vancouver, Canada

São Leopoldo,Brazil

Shanghai, China

Gurguon,India

Boston,USA

CEO Climate Policy Recommendations to G8 LeadersJune 2008

“The ICT (Information and Communications Technology) industry is responsible for 2% of global CO2 emissions. ICT solutions have the potential to be an Enabler to reduce 30-50% of the 98% CO2 emitted by non-ICT industries.”

© 2011 SAP AG. All rights reserved. 29

The Business Case for Sustainability

■ Cost and risk of compliance

■ Customer & legal requirements

►OperationalRisk Mgmt

RiskReduction

■ Cost reductionthrough process efficiencies

■ Supply chain collaboration

►Energy and Environmental Resource Mgmt

ResourceProductivity

■ Competitiveness■ New markets■ Brand value■ Customer Loyalty

►Sustainable Supply Chain and Products

SustainableConsumption

■ Sustain the business model

■ Employability■ Health & diversity■ Higher market cap

►Sustainability Reporting and Analytics

SustainableStrategy

© 2011 SAP AG. All rights reserved. 30

SAP Solution for Operational Risk ManagementGo beyond compliance to protect people and operations, prevent accidents,and boost productivity.

© 2011 SAP AG. All rights reserved. 30

RiskReduction

© 2011 SAP AG. All rights reserved. 31

SAP Solutions for Energy & Environmental ResourcesEnergy Mgmt for Manufacturing: Real-time visibility into plant energy consumption

© 2011 SAP AG. All rights reserved. 31

ResourceProductivity

© 2011 SAP AG. All rights reserved. 32

RiskReductionSustainable

Consumption

© 2011 SAP AG. All rights reserved. 32

SAP Solutions for Sustainable Supply Chainsand Sustainable ProductsMore competitiveness and reduced risk through Sustainable Sourcing, Procurement and Supplier Management

© 2011 SAP AG. All rights reserved. 33

SustainableStrategyStreamline reporting. Focus on execution of your strategy.

For regulated and non-regulated industries.

© 2011 SAP AG. All rights reserved. 33

SAP Solutions for SustainabilityReporting and Analytics

© 2011 SAP AG. All rights reserved. 34

Sustainability Customers

CarbonImpact

Energy & Env. Resource Mgmt.

People Health& Safety

ProductSafety

SustainabilityPerformanceManagement