1.2 evolution of sustainability in design vezzoli 14-15 (41) (n)
3.1 eco efficient system innovation vezzoli-12-13 (33)
1. course System Design for Sustainability
subject 3. System design for eco-efficency
learning resource 3.1
Eco-efficent system innovation
carlo vezzoli
politecnico di milano . DESIGN dept. . DIS . School of Design . Italy
Learning Network on Sustainability (EU asia-link)
Learning Network on Sustainabile energy systems (EU edulink)
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
2. CONTENTS
. Resume: sustainability and system innovation
. Traditional sales model: eco-efficiency constraints
. Moving towards system eco-efficiency
. E-E Product-Service System (PSS): definition
. Eco-efficient system innovation typologies
. Adding value to the product life cycle
. Providing final results to customers
. Providing enabling platforms for customers
. Not all PSS are eco-efficient + rebound effects
. Barriers to PSS diffusion
. Eco-efficient system innovation: summing up
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
3. SUSTAINABILITY: SIZE OF CHANGE
IN 50 YEARS A WORLD-WIDE EQUITABLE SYSTEMS
OF PRODUCTION AND CONSUMPTION SHOULD USE
~90% LESS RESOURCES THAN THE
INDUSTRIALISED CONTEXTS ARE DOING TODAY
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
4. SUSTAINABILITY: QUALITY OF CHANGE
RADICAL CHANGE (DISCONTINUITY)
PROMOTE (EVEN) SYSTEM INNOVATIONS
broader than product innovation, not only
technological, but even socio-cultural and
organisational innovations
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
5. A KEY CONTEMPORARY QUERRY:
WITHIN THE ENVIRONMENTAL AND ECONOMICAL
CRISIS WHICH ARE THE OPPORTUNITIES?
DO WE KNOW ANY OFFER/BUSINESS MODELS
CAPABLE OF CREATING (NEW) VALUE
DECOUPLING IT FROM THE MATERIALS AND
ENERGY CONSUMPTION?
> significantly reducing the environmental impact
of traditional production/consumption systems?
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
6. ECO-EFFICENT SYSTEM INNOVATIONS
innovations delinking economic interests from
environmental impact increase
broader than process and product product
innovations, not only technological, but even socio-
cultural and organisational ones
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
7. A PRELIMINARY EXAMPLE OF
ECO-EFICIENT SYSTEM INNOVATION
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
8. RICOH: PAY PER PAGE GREEN
photocopiers/printers >
PRINTED PAGES AND COPIES
Ricoh offers a package
deal (Pay per Page Green)
and installs, maintains
and collects at the end-of-
life the printers and
photocopiers (not owned
by the customer); the
customer pays for the
number of delivered
pages and copies.
the innovative interaction between the company and the
client, make the companies’ economic interest to provide (and
design) long lasting, reusable and recyclable photocopiers, i.e.
environmentally friendly.
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
9. ECO-EFFICINET PRODUCT-SERVICE
SYSTEM INNOVATION: A DEFINITION
“an offer model providing an
integrated mix of products and
services that are together able to
fulfil a particular customer demand
(to deliver a “unit of satisfaction”),
based on innovative interactions
between the stakeholders of the value
production system (satisfaction
system), where the economic and
competitive interest of the providers
continuously seeks environmentally
beneficial new solutions
” be published in 2013, by Greenleaf
[to
english, chinese, thailandese,
pdf free of charge and in copy left www.lens.polimi.it]
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
10. SYSTEM ECO-EFFICENCY: moving out of traditional product sales/design
system (life cycle) resources wide system (multiple life cycles)
optimization: product/function-based resources optimization:
demand/satisfaction-based
discrete resources optimization:
phase/stakeholder-based
retailers retailers retailers
r
r
r
cus ent
cus ent
cus ent
uce
uce
uce
cli
cli
cli
tom
tom
tom
prod
prod
prod
designer designer designer
er
er
er
ife ife ife
su -l r su -l r su -l r
pp of e pp of e pp of e
lie d - ag lie d - ag lie d - ag
rs en an rs en an rs en an
m m m
[e.g. detergent] [e.g. washing machine] [e.g. energy supply]
[e.g. satisfaction-syetem= to have cleaned cloths]
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
11. TRADITIONAL PRODUCT SALES MODEL:
ECO-EFFICENCY CONSTRAINTS
low interact. between product-system’s stakeholders
low interact. between satisfaction-system’s stakeholders
- 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
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
12. 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
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
13. TOWARD THE SYSTEM ECO-EFFICIENCY
which characteristics of the offer (company/ies models)?
INNOVATIVE STAKEHOLDERS’ INTERACTIONS
A. STAKEHOLDER’S INTEGRATION (controll extension)
vertical: one stakeholder > IN Product life cycle
horizontal: one stakeholder > IN Ps + Ss life cycles
B. STAKEHOLDERS’ INTERACTIONS EXTENSIONS
vertical: (multiple) stakeholders > IN Product life cycle
horizontal: (multiple) stakeholders > IN Ps + Ss life
cycles
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
15. KLUBER LUBRIFICATION
offers 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
lubricant > LUBRFIICATION
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
16. KLUBER LUBRIFICATION
E-E PSS of Type I – Adding value to the product life cycle
Kluber sells to engineering industry lubricants and ...
KLUBER CUSTOMER
LUBRICATION Engineering
LAB industry
... a service of analysis for the lubricants effectiveness
and environmental impact reduction (movable lab)
BENEFIT FOR KLUBER BENEFIT FOR ENVIRONMENT BENEFIT FOR CUSTOMER
. Offer diversification
. Reduction ofImproved efficiency > Cost reduction
. lubricants use >
. Customer loyalty reduced environmental impact
. Less environmental issues to solve
Carlo Vezzoli AH-DESIGN, EU PROJECT
Politecnico di Milano / INDACO dept. / DIS / School of Design / Italy
17. E.-E. SYSTEM INNOVATION (TYPE I)
ADDING VALUE TO THE PRODUCT LIFE CYCLE
a 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 customer)
it is reduced the user reaponsibility in the use
and/or disposal of the product/semi-finished
product (own by her/him)
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
18. XEROX
Xerox offers a package deal
and installs and maintain
photocopiers (not owned by
the customer) and may even
makes and delivers copies. The
customer pays for the
package.
the innovative interaction between the company and
the client, make the companies’ economic interest to
provide (and design) long lasting, reusable and
recyclable photocopiers, i.e. environmentally friendly
photocopiers > COPIED PAPER
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
19. XEROX
E-E PSS of Type II – Providing final results to customers
Xerox offers a package deal (products + services).
The customer pays for the package ...
XEROX CUSTOMER
... and Xerox installs and maintain photocopiers (not
owned by the customer), makes and delivers copies.
BENEFIT FOR RANK BENEFIT FOR ENVIRONMENT
XEROX BENEFIT FOR CUSTOMER
. Directly profit from components re-use needmaterial in the machine
. Increased products’ lifespan andto invest
. No and resources
recycling from discardeda photocopier producer only.
Xerox is not reduced environmental impact
efficiency > products
purchase and overall cost reduction in use
. Directly profit from resources efficiency
XEROX: A DOCUMENT COMPANY!
Carlo Vezzoli AH-DESIGN, EU PROJECT
Politecnico di Milano / INDACO dept. / DIS / School of Design / Italy
20. E.-E. SYSTEM INNOVATION (TYPE II)
PROVIDING FINAL RESULTS TO CUSTOMERS
a company (alliance of companies) provides a
customised mix of services, instead of products, in
order to provide a specific final result to the
customer
the 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)
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
21. ARISTON + ENEL: PAY-PER-USE
payment 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 two
companies and the client, make the companies’
economic interest to provide (and design) high
efficient, long lasting, reusable and recyclable
washing machines , i.e. environmentally friendly
washing machine > ABILITY TO WASH
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
22. ARISTON + ENEL: PAY-PER-USE
E-E PSS of Type III – Providing enabling platforms for customers
PARTNERSHIP The partnership offers an
enabling washing platform.
ARISTON The customer will pay for
Household
+ appliances the number of washes he/she will do ...
CUSTOMER
Household
... and the partnership delivers the
ENEL washing machine (not owned by the
Energy
customer) and supply energy (not
provider
directly paid by the customer),
maintenance, up-grading and end-of-life
collection.
BENEFIT FOR THE PARTNERSHIP ENVIRONMENT
BENEFIT FOR BENEFIT FOR CUSTOMER
. Increased energy efficiency and products’
. Directly profit from energy efficiency need to invest in the machine
. No
. Re-use of components from discarded productsimpactreduction in use
lifespan > reduced environmental cost
purchase and overall
Carlo Vezzoli AH-DESIGN, EU PROJECT
Politecnico di Milano / INDACO dept. / DIS / School of Design / Italy
23. E.-E. SYSTEM INNOVATION (TYPE III)
ENABLING PLATFORMS FOR CUSTOMERS
company (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)
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
24. ECO-EFFICIENT SYSTEM INNOVATION TYPOLOGIES
- adding value to the product life cycle
- providing final results to customers
- providing enabling platforms for customers
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
25. SYSTEM INNOVATION WIN-WIN POTENTIAL
SYSTEM ECO-EFFICIENCY
innovation in which is the company/companies’
economic and competitive interest that leads to an
environmental impact reduction (i.e. system eco-
efficiency)
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
26. SYSTEM INN. ECO-EFFICIENT POTENTIALS
the economic interest of a stakeholders foster:
. product life cycle optimization
. materials life extension
. “in use” resources minimization
system eco-efficiency given too by:
. provider: higher available investiment allowing
most advanced and effcient technologies
. product sharing > faster replacement of ware out
products with new and more eco-efficient ones (on
equal number of units produced in time)
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
27. NOT ALL SYSTEM INNOVATION ARE
ECO-EFFICENT!
> CRITERIA AND GUIDELINES ARE NEEDED
> METHODS AND TOOLS ARE NEEDED
to orientate design towards system eco-efficent
stakeholder interactions (and related mix of products
and services)
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
28. NOT ALL ECO-EFFICENT SYSTEM INNOVATION ARE
WITHOUT (ENVIRONMENTAL) REBOUND EFFECTS!
> may generate unwanted (enevironmentaly
damaging) side effects
e.g.1 access to product, rather than their ownership,
could lead to careless behaviour (shorter product lifespan
> higher environmental impact)
> some rebound effects are too difficult to be predicted,
but as far as they are, design attention should be given
to avoid those eventual side effects
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
29. 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
WHY ECO-EFFICIENT-PSS ARE NOT YET DIFFUSED?
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
30. 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 EE-PSS oriented
companies, …
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
31. DIFFUSED INERTIA (CONSOLIDATED HABITS) IS
LIMITING ECO-EFFICIENT SYSTEM INNOVATIONS
DIFFUSION
. 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
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
32. … ANYHOW A PROMISING WIN-WIN MODEL
“nevertheless, PSS development, seen as a whole,
present a potential for generating win-win solution
which promote profit, environmental and social
benefits”
“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 of living”
[UNEP, 2002]
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy
33. SYSTEM INNOVATION MAIN CHARACTERISTIC
ROOTED IN A SATISFACTION-BASED ECONOMIC MODEL
each offer is developed/designed and delivered in relation to a
particular customer “satisfaction” (unit of 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 POTENTIAL
innovation in which is the company/companies’ economic and
competitive interest that may leads to an environmental
impact reduction (system eco-efficiency: decoupling the
creation of value from resources consumption)
Carlo Vezzoli
Politecnico di Milano / DESIGN dept. / DIS / School of Design / Italy