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3rd International Business Servitization Conference 
SERVITIZATION AS A STRATEGY FOR THE DEVELOPMENT OF MORE ECO-EFFICIENT PRODUCTS AND SERVICES 
Bilbao, 14th November 2014 
Founding member of: 
Jose Mª Fernandez Alcala 
Nerea Sopelana
2 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
About the Basque Country 
and Ihobe: 
Ihobe is a public agency belonging to the Department of the Environment and Territorial Policy of the Basque Government. 
Its mission is to support the Basque 
Government in developing environmental 
policy and spreading the culture of environmental sustainability in the Basque Country.
3 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
 140 SMEs working on ecodesign 
 90 enterprises certified under ISO 14006 
(more than 50% of total amount in Spain) 
 89 enterprises with certified products 
(12 with EPDs and 77 with EU Ecolabel) 
 Ecodesign information services 
 Ecodesign guidance and training services 
 Ecodesign action support services 
 Recognition services 
About Ihobe’s work on ecodesign:
4 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Introduction to the Basque 
Ecodesign Center: 
Created in 2011, the Basque Ecodesign Center is a partnership framework between companies from the private sector and the Basque Government, and whose purpose is to design and execute ecodesign innovative projects, with: 
 79,738 jobs 
 €56,205 million in revenue 
 12,788 suppliers, 2,200 of whom are based in the Basque Country
5 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Introduction to Product Service System: 
What is the product’s life cycle?
6 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Introduction to Product Service System: 
What is Ecodesign? 
1 
Select low impact materials 
Clean material 
Renewable materials 
Low energy content materials 
Recycled materials 
2 
Reduction of material use 
Reduction in weight 
Reduction in volume 
4 
Distribution optimisation 
Less/clean/reusable packaging 
More energy efficient means of transport 
More efficient logistics energetically 
3 
Alternative production techniques 
Fewer manufacturing process stages 
Lower energy consumption/clean energy 
Waste reduction 
Use of fewer or cleaner consumables 
5 
Reduction of environmental impact during use 
Ensure low energy consumption 
Clean energy sources 
Reduction of consumables 
Cleaner consumables 
6 
Optimise the 
product life 
High reliability and durability 
Easy maintenance 
Modular product structure 
Obtain a "classic" design 
Strong product-user relationship 
7 
Optimise the system 
end of life 
Favour reutilisation of whole product 
Re-manufacturing or reconditioning 
Favouring recycling 
Safe incineration 
Safe disposal 
0 
New business concept 
Dematerialisation 
Shared use of products 
Integration of features 
Servitization
7 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Introduction to Product Service System: 
Are short lifespans good or not? 
5 10 15 20 
Time 
(Years) 
Environmental 
impact 
(EI99 pt) 
D 
C 
B 
A 
A+ 
A++ 
A+++ 
350 
300 
250 
200 
150 
100 
50
8 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Time 
(Years needed to counteract the env. Impact of a new one) 
Introduction to Product Service System: 
Are short lifespans good or not?
9 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Introduction to Product Service System: 
What about lifespan of products? 
(Source: http://productsthatlast.nl and Wang et al., 2013)
10 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Introduction to Product Service System: 
What about lifespan of products? 
Decades 
Revenue 
Revenue from product sales 
Revenue from product sales 
90´s 
2000´s 
Lifespan 
Units manufactured 
Energy 
efficiency
11 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Time 
(Years needed to counteract the env. Impact of a new one) 
Introduction to Product Service System: 
Are short lifespans good or not?
12 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Introduction to Product Service System: 
What about lifespan of products? 
Durability
13 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Introduction to Product Service System: 
What about lifespan of products? 
Decades 
Revenue 
Revenue from product sales 
Revenue from product sales 
2010´s 
2020´s 
Durability 
Units manufactured 
Durability
14 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Introduction to Product Service System: 
We need to change business models 
ECO Product Service System 
Ecodesign
15 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Introduction to Product Service System: 
What about lifespan of products? 
Decades 
Revenue 
Revenue from product sales 
Revenue from product sales 
2010´s 
2020´s 
Durability 
Units manufactured 
Durability 
Revenue from new business models
16 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Introduction to Product Service System: 
How to work on PSS? 
PRODUCT based 
value 
SERVICE based 
value 
Pure 
PRODUCT 
Pure 
SERVICE 
PSS – PRODUCT SERVICE SYSTEM 
PRODUCT 
SALE 
PRODUCT ORIENTED SERVICES 
USE 
ORIENTED 
SERVICES 
RESULT ORIENTED SERVICES 
SERVICE PROVIDING 
(Source: Arnold Tukker – 2004 - Business Strategy and the Environment)
17 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
METHODOLOGY OBJECTIVE
18 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
Double life cycle concept
19 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
Double life cycle concept
20 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
Double life cycle concept
21 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
Double life cycle concept
22 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
Double life cycle concept
23 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
Double life cycle concept
24 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
Double life cycle concept
25 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
Double life cycle concept
26 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
SERVICES applicable to the product
27 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
SERVICES applicable to the product
28 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
USER of the product
29 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
OWNERSHIP of the product
30 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
OWNERSHIP of the product
31 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
Product’s ENV. IMPROVEMENT
32 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
Product’s ENV. IMPROVEMENT
33 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
Product’s ENV. IMPROVEMENT
34 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
Product’s ENV. IMPROVEMENT
35 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
METHODOLOGY
36 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Ihobe’s methodology for Eco-PSS: 
Analyzed aspects of new business model
37 
3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE 
Servitization as a strategy for the development of more eco-efficient products and services 
Conclusions: 
 In the next years, the key point about environmental considerations associated to product design, is going to be the “DURABILITY”. 
The traditional business model associated to manufacturing and selling products needs to be rethought. 
Product Service System is an opportunity to improve the design of the involved product in these new business models. 
 These topics are in the European roadmap to a resource and energy efficiency society, promoting new ways of production and consumption. 
The pioneers in this transition will have a competitive advantage in the market.
Thank you!! Eskerrik asko!! Gracias!! 
jose_maria.fernandez@ihobe.net

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Servitization Jose María Fernández

  • 1. 3rd International Business Servitization Conference SERVITIZATION AS A STRATEGY FOR THE DEVELOPMENT OF MORE ECO-EFFICIENT PRODUCTS AND SERVICES Bilbao, 14th November 2014 Founding member of: Jose Mª Fernandez Alcala Nerea Sopelana
  • 2. 2 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services About the Basque Country and Ihobe: Ihobe is a public agency belonging to the Department of the Environment and Territorial Policy of the Basque Government. Its mission is to support the Basque Government in developing environmental policy and spreading the culture of environmental sustainability in the Basque Country.
  • 3. 3 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services  140 SMEs working on ecodesign  90 enterprises certified under ISO 14006 (more than 50% of total amount in Spain)  89 enterprises with certified products (12 with EPDs and 77 with EU Ecolabel)  Ecodesign information services  Ecodesign guidance and training services  Ecodesign action support services  Recognition services About Ihobe’s work on ecodesign:
  • 4. 4 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Introduction to the Basque Ecodesign Center: Created in 2011, the Basque Ecodesign Center is a partnership framework between companies from the private sector and the Basque Government, and whose purpose is to design and execute ecodesign innovative projects, with:  79,738 jobs  €56,205 million in revenue  12,788 suppliers, 2,200 of whom are based in the Basque Country
  • 5. 5 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Introduction to Product Service System: What is the product’s life cycle?
  • 6. 6 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Introduction to Product Service System: What is Ecodesign? 1 Select low impact materials Clean material Renewable materials Low energy content materials Recycled materials 2 Reduction of material use Reduction in weight Reduction in volume 4 Distribution optimisation Less/clean/reusable packaging More energy efficient means of transport More efficient logistics energetically 3 Alternative production techniques Fewer manufacturing process stages Lower energy consumption/clean energy Waste reduction Use of fewer or cleaner consumables 5 Reduction of environmental impact during use Ensure low energy consumption Clean energy sources Reduction of consumables Cleaner consumables 6 Optimise the product life High reliability and durability Easy maintenance Modular product structure Obtain a "classic" design Strong product-user relationship 7 Optimise the system end of life Favour reutilisation of whole product Re-manufacturing or reconditioning Favouring recycling Safe incineration Safe disposal 0 New business concept Dematerialisation Shared use of products Integration of features Servitization
  • 7. 7 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Introduction to Product Service System: Are short lifespans good or not? 5 10 15 20 Time (Years) Environmental impact (EI99 pt) D C B A A+ A++ A+++ 350 300 250 200 150 100 50
  • 8. 8 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Time (Years needed to counteract the env. Impact of a new one) Introduction to Product Service System: Are short lifespans good or not?
  • 9. 9 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Introduction to Product Service System: What about lifespan of products? (Source: http://productsthatlast.nl and Wang et al., 2013)
  • 10. 10 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Introduction to Product Service System: What about lifespan of products? Decades Revenue Revenue from product sales Revenue from product sales 90´s 2000´s Lifespan Units manufactured Energy efficiency
  • 11. 11 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Time (Years needed to counteract the env. Impact of a new one) Introduction to Product Service System: Are short lifespans good or not?
  • 12. 12 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Introduction to Product Service System: What about lifespan of products? Durability
  • 13. 13 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Introduction to Product Service System: What about lifespan of products? Decades Revenue Revenue from product sales Revenue from product sales 2010´s 2020´s Durability Units manufactured Durability
  • 14. 14 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Introduction to Product Service System: We need to change business models ECO Product Service System Ecodesign
  • 15. 15 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Introduction to Product Service System: What about lifespan of products? Decades Revenue Revenue from product sales Revenue from product sales 2010´s 2020´s Durability Units manufactured Durability Revenue from new business models
  • 16. 16 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Introduction to Product Service System: How to work on PSS? PRODUCT based value SERVICE based value Pure PRODUCT Pure SERVICE PSS – PRODUCT SERVICE SYSTEM PRODUCT SALE PRODUCT ORIENTED SERVICES USE ORIENTED SERVICES RESULT ORIENTED SERVICES SERVICE PROVIDING (Source: Arnold Tukker – 2004 - Business Strategy and the Environment)
  • 17. 17 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: METHODOLOGY OBJECTIVE
  • 18. 18 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: Double life cycle concept
  • 19. 19 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: Double life cycle concept
  • 20. 20 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: Double life cycle concept
  • 21. 21 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: Double life cycle concept
  • 22. 22 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: Double life cycle concept
  • 23. 23 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: Double life cycle concept
  • 24. 24 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: Double life cycle concept
  • 25. 25 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: Double life cycle concept
  • 26. 26 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: SERVICES applicable to the product
  • 27. 27 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: SERVICES applicable to the product
  • 28. 28 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: USER of the product
  • 29. 29 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: OWNERSHIP of the product
  • 30. 30 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: OWNERSHIP of the product
  • 31. 31 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: Product’s ENV. IMPROVEMENT
  • 32. 32 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: Product’s ENV. IMPROVEMENT
  • 33. 33 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: Product’s ENV. IMPROVEMENT
  • 34. 34 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: Product’s ENV. IMPROVEMENT
  • 35. 35 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: METHODOLOGY
  • 36. 36 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Ihobe’s methodology for Eco-PSS: Analyzed aspects of new business model
  • 37. 37 3RD INTERNATIONAL BUSINESS SERVITIZATION CONFERENCE Servitization as a strategy for the development of more eco-efficient products and services Conclusions:  In the next years, the key point about environmental considerations associated to product design, is going to be the “DURABILITY”. The traditional business model associated to manufacturing and selling products needs to be rethought. Product Service System is an opportunity to improve the design of the involved product in these new business models.  These topics are in the European roadmap to a resource and energy efficiency society, promoting new ways of production and consumption. The pioneers in this transition will have a competitive advantage in the market.
  • 38. Thank you!! Eskerrik asko!! Gracias!! jose_maria.fernandez@ihobe.net