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Design – Tool of Management

How global Global Future Trends and business models influence product design and development

Global Future Trends

Daniele Pozzo

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Reasons why

• Global Future Trends strongly affect the function, meaning and target of products and services

• In the same way, new Global Future Trends open markets which were only niches in the past or even didn’t exist

• Companies shall consider one or several of the design-driven innovation modules provided by this course (some here suggested), to turn it into an opportunity

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What you will learn

• To intercept Global Future Trends for the design of new products / services

• To implement within their companies a «Design for Megatrend» approach

• To use the provided examples as a reference for the Project Work to be presented during the final Face-to-Face event

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Global Future Trends - definition

• Global Future Trends are macro drivers for development that impact business, economy, society, cultures and personal styles, thereby defining our future world and its need for changes

• The analysis of Global Future Trends and their implications in the design phase of products and services represents an important component of a company’s strategy, development, design and innovation process

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Three Fundamental Pillars

Biosphere and natural resources

Demography and society

Globalized economy,

new technologies

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Three Fundamental Pillars

• Which of the three pillars most affect your company or your business?

• Only one or several?

• Think about it!

• Let’s discuss them in details………

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Biosphere and natural resources

• Biosphere under attack: scarcity of water, higher demand of materials, energy, climate changes will bring to migrations, new lifestyles and new technologies for environment protection.

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Opportunities for SMEs

• SMEs shall design new products and services focused on the reduction of energy consumption

• New eco-friendly products or technologies (using bio or recycled materials, low-impact packaging and logistics) are opening business opportunities

• Design choices regarding production and logistics should be optimized, as they represent the greatest potential for reducing CO2 emissions

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s Cibitex is an excellence in the design and production of textile

machinery for pre-treatment and finishing of printed, dyed and ink-jet-printed fabrics.

Cibitex recently designed and developed a new line of products named EASY, a set of innovative, eco-friendly, compact and flexible machines for the post digital printing treatment of textiles.

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s Key success indicators

• initial investment - 70%

• waste and production costs -30%

Key success indicators

• water -30%, energy -50%

• faster and smoother

customisation, floor optimization,

full control over the quality

Design approach

• Concepts of Lean design to avoid

any kind of inefficiencies and waste

during the production phase;

• Design for LCA and LCC, to

maximize and clearly calculate the

energy efficiency of the machine,

keeping overall costs as low as

possible.

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• New design shall consider the future use of energy, since the market is privileging efficient products

• Products should be designed to require less materials, less energy, though without reducing quality

• Companies should try to use less or substitute resources that are critical (list of Critical Raw Materials http://ec.europa.eu/growth/sectors/raw-

materials/specific-interest/critical/index_en.htm)

• Life Cycle Thinking: production shall consider the entire life cycle of the product, optimizing maintenance, dismantling and recyclability

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s • Aceteam GmbH is German small enterprise that designs and

produces wooden bicycles, e-bicycles with electric drive and e-rollers.

• Aceteam Gmbh in 2015 won the Green Product award, an annual international competition for sustainable products and services.

AceTeam Wooden E-bike © AceTeam

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• Eye-catching shape:

traditional material versus

«future concept» shape


• Coupling «green product with

green material» allowed the

company to enter the e-bycicles

market that is expected to grow

from 31.7 million annually in

2014 to 40.3 million in 2023, with

a breakthrough product

Design approach

• Design for future products and

design for shaping allowed a eye-

catching aestetic

• Design for LCA allowed to evaluate,

during the design phase, the actual

impact on environment, considering

also the end-of-life phase

AceTeam Wooden E-bike © AceTeam

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Opportunities for SMEs Emission and global warming

• The vision for SMEs:

Set ambitious goals for your business to 2030 regarding sustainability. Green energy production, sustainable industry processes and green consumer goods have better chances to stay competitive across global markets

• In Europe , the global warming will cause: scarcity of fresh water, low crop yields, flood damages, health problems (due to the heat and disease): the society will need products and services to face these changes!!

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Opportunities for SMEs Energy demand

• Global primary energy demand will increase of 23% by 2030

increased request for green power generation

• Until 2030, the vast majority of the world's primary energy demand is projected to continue to be met by fossil fuels increased request for anti-pollution devices

• The sun delivers far more energy than we will ever need to use increased demand for solar power

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Opportunities for SMEs Water and food demand

• Global water demand will increase by almost 40% from 2013 to 2050 increased request for water treatment devices (fresh water and for sanitary facilities)

• At the moment agriculture is the biggest water user, accounting for nearly 70% of global water usage increased request for precision farming products and services

• Demand for food will rise by about 23% until 2030 and 55% until 2050 increased demand of natural, vegan, bio-products

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Opportunities for SMEs Water and food demand

• Raw materials such as metals are an important basis for economic development and growth. By 2020 and beyond especially the demand of heavy rare earths will strongly grow

• The existing recycling rate for the rare earth metals, is only 1%

threat for technology dependence of European SMEs!

• By 2030, the European Commission plans to achieve a recycling target of 70%

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Opportunities for SMEs Tools and utilities for SMEs

• Do you think your products and services can help these challenges?

• How?

• Do you think this could be an added value for your customers?

• How can you communicate to your customers your “green” choice?

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Tools and utilities for SMEs

• There is a number of opportunities for certifying a certain product as “green”

• With a certification, SMEs could have the chance to work in the so-called “green procurement” or propose their products as compliant to certain environmental directives

• A list of labels and certifications is here reported, that could help SME in increasing the market share of their “green” products

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• EU Ecolabel (http://ec.europa.eu/environment/ecolabel/): The EU Ecolabel helps you identifying products and services that have a reduced environmental impact throughout their life cycle, from the extraction of raw material through to production, use and disposal

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• Environmental Product Declaration (http://environdec.com/): An EPD® (Environmental Product Declaration) is an independently verified and registered document that communicates transparent and comparable information about the life-cycle impact of products

• EU Environmental Technology Validation Pilot programme (http://iet.jrc.ec.europa.eu/etv/): ETV is a Pilot program by EU Commission for collecting and co-financing industrial products verification. It is a type of environmental certification programme launched in 2014

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• Do you want to discover the design approaches for challenging biosphere megatrend?

• Check the following modules!

Design

for LCA

Design

for LCC

Lean

design

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Demography and society

• In 2030 there will be 8,4 billion persons. Society will be older, multi-racial and urbanized. Boom of Alzheimer and Parkinson. Public health and pension systems are under pressure.

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• The design of new products shall consider the local taste and traditions of growing regions, to help SMEs acquiring new customers (Business culture)

• In many developed countries, companies suffer from a shortage of qualified staff but…..

• …A significant percentage of immigrants to developed countries are highly qualified: companies should use this talent to design products that could integrate the “taste” and needs of foreign countries and establish new channels

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• Design shall consider the increasing customer segment of people aged 60 and over, with products aligned with their needs:

• Domotic devices for monitoring older people

• Domestic medical machines for home-assistance

• “Fashion” version of old people garments and accessories

• Sport goods for aged people (new sports)

• Simplified electronic devices for communication (e.g. big buttons), entertainment, web navigation

Source ICIO Scooter - kickstarter

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• On the other side, there are countries with very youthful populations to witch selling frugal products to them: low-cost smartphones and tablets, sport goods, furniture, appliances

• Frugal products are designed for low-end and mid-end market segments, with performance limited to a narrow set of functions

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s • S.E.D. develops and produces small series of

specialized software and hardware in the field of industrial electronics

• In 2011 they proposed a new idea for colonoscopy on aged people, which guarantees less invasiveness and lower costs for public health. They submitted a patent and started the development of a pre-competitive prototype in a European project named SUPCAM

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• Lower costs of medical test,

respect to actual (-40%)

• Less invasiveness: the test is

easier to perform on the

increased aged population

• High-tech design and micro-

manufacturing

Design approach

• Design for materials: bio-

compatible design shall be

selected; the choice of

materials defined also the

business model: disposable

or re-use device?

• The design for LCC

showed to stakeholders the

convenience in adopting this

solution instead of the

traditional test, from a cost-

benefit perspective

• Design for additive

manufacturing allowed to

re-design and produce the

micro-frame and supports in

a cost-effective way

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Opportunities for SMEs Growth, young vs. old countries and migration

• The world population is projected to increase to 8.4 billion in 2030 new potential customers for SMEs

• The median age will also rise, reaching 33.2 years in 2030 different customers’ needs

• While the share of young people aged 0-24 will decrease from 43% in 2013 to 39% in 2030, while the share of over-60s will increase from 12% in 2013 to 16% higher number of elderly customers, with high spending power

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Opportunities for SMEs Fat and sick society

• In 2040 has been foreseen that will be 642 million of people with diabetes in the World with consequent increasing of worldwide health costs (about 800 Billion USD, +19% with respect to 2015) increased request for soles and medical equipment

• Boom of Alzheimer - 74,7 million people worldwide will be living with dementia in 2030. Parkinson’s disease will increase from 3.2m people in 2012 to 4.3m people in 2022, driven by an aging population in all markets increased request for domotic devices and home-hospital machines

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Opportunities for SMEs The role of design

• Do you want to discover the design approaches for challenging demography and society megatrend?


Customer-

centered design

Design of innovative

services

Design for future

products&services

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Globalized economy, innovation and new

technologies

• Boom of emerging Countries, Social economy, collaborative knowledge (Wikinomics). Impact of innovative technologies (Key Enabling Technologies). New type of ownership, sharing economy. Smart accessories for smart economy.

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• Due to the strong economic growth in many developing countries, their demand for international brands adapted to new markets is rising fast

• Companies should take advantage of this by focusing on those markets via exports or reassessing their global footprint strategy

• Besides their ambitious economic prospects, these countries also entail certain risks, such as political instability and diverse social and cultural aspects

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Business culture

• Culture illustrates the accepted norms and values and traditional behaviour of a group, that evolves over time

• Culture is a key component, supporting strategic direction of business: it influences management, decisions and all business functions from accounting to production

• For a SME, business culture could become a strong ally in the global market challenges

• ….but how???

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Business culture – Products & Services

• Different countries = different needs!

check other products or services sold in that country: are they similar to yours? Why did they succeed (or fail)?

which are the strongest (or unique) selling point of your products or services? Are they still necessary? Are they an added value in that country?

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Business culture – customers

• Different countries = different customers!

Does your potential customer understand your product or service? Think about how to train him!

Are your salesmen ready for other cultures? Their words, body language and actions can all be adapted to better suit those of the customers!

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Business culture – communication

• Different countries = different culture!

The conservatism, gender issues, religion vary greatly between cultures. A communication campaign not aligned with specific cultural norms can hurt potential customers!

The strong sense of nationalism of some culture makes customers preferring local companies. Have you ever tried to establish contacts with local authorities and participate to local events (e.g. sponsorship)?

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s AeroVironment, Inc., designs, develops, produces, supports and

operates a portfolio of products and services for Government agencies, businesses and consumers. The Company supplies unmanned aircraft systems (UAS)

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• Identification of drones as a

potential dual technology

• Leveraging on already available

platform (e.g. smartphones’ app

to drive the drones)

• High-tech appealing of the

product

Design approach

• The company followed the

ideas of the design-driven

innovation, as a mean for

changing the rules of

competition: aerial videos

and scanning were not

performed with drones

• The company applied a

military technology for

solving a «civil» need. It

could also be seen as a

technology-transfer

approach

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• Dealing with globalized economy, the innovation of products and services, shall be built on a design-roadmap, considering also the implementation of new business models and technologies in a progressive manner, driven by the market acceptance and feedbacks

• A way to extend research and design activities without considerable investment is to establish or seek out and join cooperative research partnerships and networks

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s Founded in August of 2008 and based in San Francisco, California, Airbnb is a

trusted community marketplace for people to list, discover, and book unique accommodations around the world — online or from a mobile phone or tablet. Airbnb connects people to travel experiences in more than 34,000 cities in 190 countries.

Key success

indicators

• Adoption of a «social»

way for communicating

and sharing a product

(an apartment)

• Use of nice and user-

friendly app

Design approach

• The growth of the «social network»

society stimulated Airbnb to apply the

concepts of service design, to

provide users with a «old-new»

service: renting a room with a bit of

adventure and unknown

• The website and the service is very

«catchy», created by applying the

user-centered design approach

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Opportunities for SMEs Globalization and emerging countries

• Globalization will continue throughout next years, with worldwide exports growing faster than the worldwide gross domestic product (GDP)

• The economic growth of the BRIC (Brasil, Russia, India, China) countries up to 2030 is overwhelming as their real GDP will annually grow by almost 6%

• Between 2013 and 2030 the nominal GDP of Next111, MINT2 and MIST3

will grow between 6.4% and 6.9% annually

increased request for different products, targeted on different cultures

1Bangladesh, Egyst, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, Turkey, South Korea and Vietnam 2Mexico, Indonesia, Nigeria, Turkey 3Mexico, Indonesia, South Korea, Turkey

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Opportunities for SMEs New technologies

• Our economy is going to get digital. The digital transformation takes effect through four drivers:

– Digital data to better predictions and facilitate decisions to be taken

– Automation to create systems that work autonomously and organize themselves

– Internet of things. Sensors embedded in objects create a network of interfaces between real and digital life

– Digital customer access. The (mobile) internet gives new intermediaries direct access to customers to whom they can offer full transparency and new kinds of services

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• Implementation of the KETs (Key Enabling Technologies) that are “knowledge and capital intensive technologies associated with high research and development (R&D) intensity, rapid and integrated innovation cycles, high capital expenditure and highly-skilled employment”

• Six KETs have been identified by European Commission:

– Nanotechnology (N-T),

– Micro-nano-electronics (M/N-E),

– Industrial biotechnology (IB-T),

– Photonics (PhT),

– Advanced materials (AM),

– Advanced manufacturing systems/technologies (AMS)

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KETs are strategically important because they enable the development of new goods and services and the restructuring of industrial processes required to modernise EU industry and to secure the research, development and innovation base in Europe

Some example of KETs: • New materials / surface treatments • Internet of Things • Advanced sensors • Biotechnologies • Nanotechnologies • Robotics

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• Sharing economy is becoming an increasingly accepted feature of the business landscape

• The five main sharing sectors (peer-to-peer finance, online staffing, peer-to-peer accommodation, car sharing and music video streaming) have the potential to increase global revenues from around $15 billion now to $335 billion by 2025

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• Innovative fund raising tools: Crowdfunding allows funding a project by raising funds from a large number of people, tipically performed via internet

• SMEs can easily and immediately access to several crowdfunding platform and use them to show a preview of their project and raise funds from followers

• It is important to manage the confidential data of the product/service to be developed

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Opportunities for SMEs Crowdfunding platforms

• Crowdcube (www.crowdcube.com/) - UK

• OurCrowd (www.ourcrowd.com/ ) – Israel

• Ulule (fr.ulule.com/) – France

• FundedByMe (www.fundedbyme.com/en/) – Sweden

• MyMicroInvest (www.mymicroinvest.com) – Belgium

• Symbid (www.symbid.nl/) – The Netherland

• Goteo (http://goteo.org/) – Spain

• Booomerang (www.booomerang.dk) – Denmark

• Kickstarter (www.kickstarter.it/) – Italy

• Companisto (www.companisto.com) – Germany

• Invesdor (www.invesdor.com) – Finland

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Opportunities for SMEs The role of design

• Have you experienced other Global Future Trends ? Are there any incoming in the next future? Is your company ready to react?

• Do you want to discover the design approaches for challenging globalization megatrend?


Design for opening

new markets

Product&service- Its

design and

development

Design for additive

manufacturing

Design for materials

Thank you for your attention

www.designforenterprises.eu #Design4Enterprises

Design – Tool of Management

Global Future Trends

[email protected]

design tool of management - utile courses...flexible machines for the post digital printing...

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