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3rd International Business Servitization Conference 13-14 November 2014 Bilbao
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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!!