the role of business drivers in the creation of green products and services.

1. IF PRODUCTS
COULD SPEAK
TOWARDS A MODEL OF SUSTAINABLE DESIGN
JEN VAN DER MEER
NYU ITP
WEEK 5: MARCH 2, 2009

2. RECALLED 2_19_2009

3. RECALLED 2_28_2009

4. OBAMA BUDGET ASSUMES REVENUES FROM CAP AND TRADE

5. 2_25_09
TWEET A WATT WINS GREENER GADGETS COMPETITION
MAKE MAG TO PUBLISH DIY HACK

6. TODAY’S FOCUS:
THE ROLE OF BUSINESS IN THE GREENER
PRODUCTS + SERVICES REVOLUTION
_2 Business models
_Limits to growth

7. REFRESHER:
WEEK 1: Creators of products and services have
a responsibility to know what’s in the stuff that
we make.

8. REFRESHER:
WEEK 2: The greatest environmental impact, in
terms of product life cycle, is often in the hands
of the end consumer – use and disposal of
products and services. To improve
environmental impact, give consumers the tools
to be better owners/operators of their stuff.
Challenge: Create Spimes.

9. REFRESHER:
WEEK 3: Environmental advocates and activists
have a role to play in alerting us to the green
agenda, but often focus on campaigns that isolate
a specific effect, or toxin, rather than a
comprehensive, holistic view.
Consumers feel they are being politically active
when they change their buying behavior.
Challenge: Design for the role of citizen/consumer

10. REFRESHER:
WEEK 4: Attitudes towards regulation are
undergoing a dramatic “sea change,” no longer will
the world allow loose, laissez faire attitude
towards environmental laws. Potential role of
government: embed the “true costs” of
environmental impact into the economic cost of
business.
Challenge: make government choices and impacts
as transparent to citizens as business choices and
impacts are to consumers.

11. 2 BASIC BUSINESS MODELS
Before we begin- this class will condenses an entire MBA down into a
few slides.
Apologies in advance: an MBA teaches you how to become a master
of the obvious.

12. 2 BASIC BUSINESS MODELS:
There are 2 basic ways a company can make money outside of a
monopoly market share….
1. Differentiation to earn higher margin than competitor
2. Drive to be most cost efficient/high performance company in an
industry
Note: neither position is stable over time.

13. “MAKING THE CASE” FOR GREEN:
1. Differentiation to earn higher margin than competitor:
The biggest opportunity for growth from 2000 on has been the
fast revenue and margin growth of organic food, hybrid cars, and
“green” household products.
Whole Foods. Prius. Method Home.
What other products are on your radar?

14. “MAKING THE CASE” FOR GREEN:
1. Differentiation to earn higher margin than competitor:
How the case is made:
Consumer research: pre concept development to understand
motivations and drivers and identify unmet, untapped needs.
Post concept development to ensure there is market and an
appetite for premium (i.e. more expensive) positioning.
Pricing model research to prove the premium positioning.

17. Build or
Buy?
These once
small
companies
were bought
by the large
food
processors -
Because of
their higher
growth rates.

18. “MAKING THE CASE” FOR GREEN:
2. Drive to be the most cost efficient supplier.
Green has not always mean more cost effective, undercutting
the market on price.
Clorox Greenworks. 42% market share in 1 year.

19. “MAKING THE CASE” FOR GREEN:
2. Drive to be the most cost efficient supplier.
How the case is made: cost scenario development and efficiency
reporting to prove that costs can be maintained and even further
reduced.
If consumer testing involved, it is to demonstrate that the
functional performance is equal or better to competitors.

21. “MAKING THE CASE” FOR GREEN:
In tech, the premium exists in the beginning, with diminishing
margins as the product moves along the adoption curve.

22. Case Study: Interface FLOR carpets
Long term commitment to transition the entire company
towards zero environmental impact.
How to make the case to investors that environmental strategy
is a path to profit growth?

23. Case Study: GE ecoimagination
Shift from fossil fuels to more efficient forms of energy.
What was the eco-imagination brand marketing program all
about?

24. Case Study: Beyond Petroleum.
Which green business model is BP pursuing here?

25. WHY GREENWASHING OCCURS
Aim to reap benefits of higher margins consumers attribute to
green products, without understanding the actual environmental
improvements of a product or service.
Desire to neutralize the effect of environmental activists who
have painted a negative picture of company.
How do you know when a company is greenwashing?

26. GOOD IDEAS FOR GREENER GADGETS

27. HEIRLOOM GADGETS: DR. Saul Griffith

28. WATTZON.ORG ENERGY CONSUMPTION:
HEALTHY CHANNELING OF OCD

29. GG COMPETITION: STANDBY MONSTERS

30. GG COMPETITION: WHAT’S WRONG WITH RECOMPUTE?

31. GG COMPETITION: ENVIRONMENTAL TRAFFIC LIGHT

32. GG COMPETITION: POWERHOG

33. GG COMPETITION: ECONEIGHBUZZ

34. GG COMPETITION: ENVIRO’CLOCK BANDAGE

35. HOMEWORK
Project ideas.

36. NEXT CLASS:
Assignment due next class: Write a one page
proposal outlining the commercial benefits of
your product/service idea.