Lifecycle thinking brought a revolution to the field of industrial design engineering. Today, the rules of the game are changing, and how is money spent at the demand side is key. The presentation includes a case study on Ecovalue. Masterlcass by Oriol Pascual for the course Business, Design & the Enviroment at Technical Univeristy Delft. More at oriolpascual.com

1. Ecovalue
a trip to the
deep rabbit hole
by Oriol Pascual

2. for educational purpose only ;-)

3. Traditional eco-belief or trip
to wonderland?

4. Science
Governments
Technology
MANUFACTURING Voters
Suppliers
COMPANY Customers
Financial
NGOs
community
External Value Chain
The Matrix

5. Overview presentation
Two stop trip

6. Blue
Everybody should
love eco

7. 75%
Global Fortune 500 claim to do Ecodesign

8. Relatively mature 30% Way to maturity 18% First movements 6%
Starter & good intent 6% Publicity driven 14% Not interested 26%
Ecodesign maturity profiles

9. Companies can do more

10. Technology will save us all

11. Eco-solutions
seem not to appeal to mass consumers

12. Consumers can be educated
If not green yet, you will soon get!

13. Consumers are rational
When doing the math, they act accordingly

14. Designers as decision makers
out of control!

15. Strategy
Management
Product
Development Marketing
management
Production Sales
Suppliers Customer
Purchasing Logistics
Internal Value Chain
The Internal Matrix

16. Red
Questioning reality

17. Low-hanging fruit picked
Rapidly reaching the limits of physics

18. What design option is best?
from a value chain perspective

19. 10.000 Tones
of CO2...what do you
mean?
!
Do you understand?
Communication issues with the rest of value
chain

20. What fish are you catching?
For the resources invested, what are the
opportunities?

21. business value
environmental load
Value creation
How is ecodesign contributing to it?

22. To solve the equation
you have to realize that...

23. Ecodesign is not alone

24. Demand side is key
Environmental impact directly related to
consumption power

25. The market is diverse
even within the Guinea Pig food market!

26. How?

27. Ecovalue

28. Eco-efficiency index
Product value
Ecovalue =
Environmental load
Product value
acceptable +
- + Environmental
0
Load
non-acceptable
-

29. Supports decision making
at strategic & product level

30. Setting priorities

31. Action oriented

32. Value = perceived benefit
Functional & intangible benefit

33. Functional value

34. Intangible value

35. 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

36. 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

37. How to make it happen?
Science and technology
Design
Product differentiation
Feelings and emotions

38. Setting priorities
Value creation = Environmental & economic profitability
Addressing;
✤ Product value
✤ Customer value
✤ Business value

39. Product value
Supply side Demand side
Functional value Retail price
Production costs WTP, pricing strategies
Design & tech Marketing competition
wholesale
price
Subjective value Cost of ownership
Organizational costs Efficiency
Design, brand, strategy Energy prices

40. Customer value
Price buyers Feature buyers Experience buyers
Each market segment perceives differently the trade-off product
value/product price

41. Business value
Consumer Value
Market size
group captured
Price buyers 1/3 +
Special feature 1/3 ++
Experience/
1/3 +++
quality buyer

42. Eco-efficiency index
Product value
Ecovalue =
Environmental load
Ratio between environmental load & product’s use value
(functional + intangible)

43. How does it work?
Pick a baseline (given environmental load & economic
value)
Develop all possible scenarios (improve and/or reduce
load & money)

44. 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

45. Visualization
Product value
acceptable +
- + Environmental
0
Load
non-acceptable
-

46. Case study: displays

47. Case study displays
Screen
Model Tech. Market Price
size
1 CRT 29” China 354,63
2 CRT 28” Europe 481,00
3 LCD 23” Europe 972,32
4 LCD 32” Europe 215.592

48. Case study displays
Env. load Shelf price
Model Ecovalue
(mPt) (euro)
1 69732 354,63 5,09
2 54169 481,00 8,88
3 50335 972,32 19,46
4 50595 2155,92 42,61

49. Product #1
4
acceptable + Product value
3
2
10 Environmental
- +
Load
non-acceptable
-

50. Product #2
4
acceptable + Product value
3
20 Environmental
- +
Load
1
non-acceptable
-

51. Product #3
acceptable + Product value
4
30 Environmental
- +
Load
2
1
non-acceptable
-

52. Product #4
acceptable + Product value
40 Environmental
- +
3 Load
2 1
non-acceptable
-

53. 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)

54. oriol.pascual@gmail.com
sustainablerotterdam.com