3. carlo vezzoli politecnico di milano . INDACO dpt. . DIS . faculty of design . Italy Learning Network on Sustainability course System Design for Sustainability subject 3. System design for eco-efficency learning resource 3.1 Eco-efficent system innovation

4. CONTENTS Traditional sales model: eco-efficiency constraints Moving towards system eco-efficiency 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

5. IN 50 YEARS A WORLD-WIDE EQUITABLE SYSTEMS OF PRODUCTION AND CONSU M PTION SHOULD USE ~ 90% LESS RESOURCES THAN THE INDUSTRIALISED CONTEXTS ARE DOING TODAY SUSTAINABILITY: DIMENSION OF CHANGE

6. SUSTAINABILITY: QUALITY OF CHANGE PROMOTE (EVEN) SYSTEM INNOVATIONS broader than product innovation, not only technological, but even socio-cultural and organisational innovations RADICAL CHANGE (DISCONTINUITY)

7. PRDUCT-SERVICE SYSTEM DEFINITION “ the result of an innovation strategy, shifting the business focus from designing and selling physical products only, to designing selling a system of products and services which are jointly capable of fulfilling specific client demands.” “ system innovation can lead, throughout innovative stakeholders’ interactions , to system eco-efficiency.” free pdf at: http://www.uneptie.org/pc/sustain/design/pss.htm

11. discrete resources optimization: phase/stakeholder -based SYSTEM ECO-EFFICENCY: moving out of traditional product sales/design producer suppliers customer client end-of-life manager retailers designer [e.g. washing machine] [e.g. satisfaction-syetem= to have ceaned cloths] [e.g. detergent] [e.g. energy supply] producer suppliers customer client end-of-life manager retailers designer producer suppliers customer client end-of-life manager retailers designer wide system (multiple life cycles) resources optimization: demand/satisfaction -based system (life cycle) resources optimization: product/function -based

16. E.-E. SYSTEM INNOVATION (TYPE I) ADDING VALUE TO THE PRODUCT LIFE CYCLE a c ompany ( 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 client)

18. E.-E. SYSTEM INNOVATION (TYPE II) P ROVIDING FINAL RESULTS TO CUSTOMERS a c ompany ( 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)

20. 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)

23. SYSTEM INN. ECO-EFFICIENT POTENTIALS the interest of an economic stakeholders foster: . product life cycle optimization . materials life extension . “in use” resources minimization higher system eco-efficiency given too by: . better adoptable technologies . faster replacement of ware out products with new and more eco-efficient ones (on equal number of units produced)

24. > CRITERIA AND GUIDELINES ARE NEEDED > METHODS AND TOOLS ARE NEEDED to orientate design towards system eco-efficent stakeholder interactions NOT ALL SYSTEM INNOVATION ARE ECO-EFFICENT!

25. NOT ALL ECO-EFFICENT SYSTEM INNOVATION ARE WITHOUT (ENVIRONMENTAL) REBOUND EFFECTS ! > may generate unwanted (enevironmentaly damaging) side effects e.g.1 outsorcing, rather than ownership of products, could lead to careless (less sustsinable) behaviour > some rebound effects are to difficult to be predicted, but as far as they are, design attention should be given to avoid the eventual side effect

26. WHY EE-PSS ARE NOT YET DIFFUSED? 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

27. 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 companies, …

28. DIFFUSED INERTIA (CONSOLIDATED HABITS) IS LIMITING ECO-EFFICIENT SYSTEM INNOVATION . 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

29. … ANYHOW A PROMISING WIN-WIN MODEL “ neverthelss, PSS development, seen as a whole, present a potential for generating win-win solution which promote profit, environmental and social business” “ 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” [UNEP, 2002]