Download - Ecodesign; a trip to the deep rabbit hole
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Ecovaluea trip to the deep rabbit hole
by Oriol Pascual
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for educational purpose only ;-)
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Traditional eco-belief or trip to wonderland?
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ScienceTechnology
Financialcommunity
NGOs
MANUFACTURING COMPANY
Governments
SuppliersVoters
Customers
External Value ChainThe Matrix
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Two stop trip
Overview presentation
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BlueEverybody should love eco
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75%Global Fortune 500 claim to do Ecodesign
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Relatively mature 30%
Not interested 26%
Way to maturity 18%
Publicity driven 14%Starter & good intent 6%
First movements 6%
Ecodesign maturity profiles
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Companies can do more
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Technology will save us all
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Eco-solutionsseem not to appeal to mass consumers
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Consumers can be educatedIf not green yet, you will soon get!
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Consumers are rationalWhen doing the math, they act accordingly
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Designers as decision makers out of control!
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StrategyManagement
Suppliers Customer
Product management
Development Marketing
Production Sales
Purchasing Logistics
Internal Value ChainThe Internal Matrix
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RedQuestioning reality
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Low-hanging fruit pickedRapidly reaching the limits of physics
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What design option is best?from a value chain perspective
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Do you understand?Communication issues with the rest of value chain
10.000 Tones of CO2...what do you
mean?
!
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What fish are you catching?For the resources invested, what are the opportunities?
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Value creation
business valueenvironmental load
How is ecodesign contributing to it?
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To solve the equationyou have to realize that...
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Ecodesign is not alone
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Demand side is keyEnvironmental impact directly related to consumption power
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The market is diverseeven within the Guinea Pig food market!
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How?
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Ecovalue
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Environmental load
Product valueEcovalue =
acceptable
non-acceptable
Product value
EnvironmentalLoad
-
-
+
+0
Eco-efficiency index
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at strategic & product level
Supports decision making
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Setting priorities
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Action oriented
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Value = perceived benefitFunctional & intangible benefit
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Functional value
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Intangible value
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Paradigm shift
Traditional ecodesign (blue) is about reducing product environmental load only
Unbalanced with customer values
New paradigm (red) shift asks for products with low environmental load and high value - reduced environmental load per monetary unit
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Why Ecovalue?
The environment is not alone, market forces apply
Sustainability is about how we produce and consume
Consumers have limited amounts of money in their pockets
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How to make it happen?
Science and technology
Design
Product differentiation
Feelings and emotions
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Setting priorities
Value creation = Environmental & economic profitability
Addressing;
✤ Product value
✤ Customer value
✤ Business value
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Product value
Functional valueProduction costs
Design & tech
Subjective valueOrganizational costs
Design, brand, strategy
wholesaleprice
Retail priceWTP, pricing strategiesMarketing competition
Cost of ownership Efficiency
Energy prices
Supply side Demand side
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Customer value
Price buyers Feature buyers Experience buyers
Each market segment perceives differently the trade-off product value/product price
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Business valueConsumer
groupMarket size
Value captured
Price buyers 1/3 +
Special feature 1/3 ++
Experience/quality buyer
1/3 +++
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Eco-efficiency index
Environmental load
Product valueEcovalue =
Ratio between environmental load & product’s use value (functional + intangible)
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How does it work?
Pick a baseline (given environmental load & economic value)
Develop all possible scenarios (improve and/or reduce load & money)
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Ecovalue scenarios
Price Env. load Ecovalue Target group
1 ++ + +++ experience
2 ++ - + feature
3 + ++ +++ experience
4 + -- - feature
5 - ++ + price
6 - -- --- not applicable
7 -- + - price
8 -- - --- not applicable
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Visualization
acceptable
non-acceptable
Product value
EnvironmentalLoad
-
-
+
+0
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Case study: displays
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Case study displays
Model Tech. Screen size
Market Price
1 CRT 29” China 354,63
2 CRT 28” Europe 481,00
3 LCD 23” Europe 972,32
4 LCD 32” Europe 215.592
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Case study displays
Model Env. load (mPt)
Shelf price (euro)
Ecovalue
1 69732 354,63 5,09
2 54169 481,00 8,88
3 50335 972,32 19,46
4 50595 2155,92 42,61
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Product #1acceptable
non-acceptable
Product value
EnvironmentalLoad
-
-
+
+012
3
4
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Product #2acceptable
non-acceptable
Product value
EnvironmentalLoad
-
-
+
+023
1
4
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Product #3acceptable
non-acceptable
Product value
EnvironmentalLoad
-
-
+
+03
2
1
4
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Product #4acceptable
non-acceptable
Product value
EnvironmentalLoad
-
-
+
+04
2 1
3
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Conclusions
The environment is not special; traditional market forces also apply to ecodesign
It is possible to reduce a product's environmental load and increase its final value
How consumers perceive product value, determines ecodesign strategy: tailor-made solutions
Ecovalue helps to set up priorities based in profitability (environmental & economic)