Ecodesign; a trip to the deep rabbit hole

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Information about Ecodesign; a trip to the deep rabbit hole

Published on January 10, 2008

Author: onsustain



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

Ecovalue a trip to the deep rabbit hole by Oriol Pascual

for educational purpose only ;-)

Traditional eco-belief or trip to wonderland?

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

Overview presentation Two stop trip

Blue Everybody should love eco

75% Global Fortune 500 claim to do Ecodesign

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

Companies can do more

Technology will save us all

Eco-solutions seem not to appeal to mass consumers

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

Consumers are rational When doing the math, they act accordingly

Designers as decision makers out of control!

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

Red Questioning reality

Low-hanging fruit picked Rapidly reaching the limits of physics

What design option is best? from a value chain perspective

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

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

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

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

Ecodesign is not alone

Demand side is key Environmental impact directly related to consumption power

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



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

Supports decision making at strategic & product level

Setting priorities

Action oriented

Value = perceived benefit Functional & intangible benefit

Functional value

Intangible value

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

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

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

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

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

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

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

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

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

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

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

Case study: displays

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

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

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

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

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

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

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)

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