Jente Minne - Chris Baelus - Divad Peck - Artesis hogeschool
Sustainable design for the emerging markets
Introduction Research Plan Cases Conclusions
Introduction
Xingu river @ Belo monte
Stuck with infrastructure Polluting Not sustainable Efficient ? Social consequences Path of the “emerged� markets Power plant SA
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Introduction
P.I.M.P
Vestergaard Fransen
August
Lifestraw Child is a smaller and slightly adapted version LifeStraw. The child can drink by sucking, squeezing or tumbling Lifestraw child a combina
Bottom up project Local issues A lot more efficient Improving local economy Ability to scale Influence on Eco design ? The “Chulha” oven
The drinkin is vis the act and m
5 UNDP issues: • Other regulations • Access to financial services • Obtain market information
Introduction
• Infrastructure • Difference in knowledge and skills
Bottom of the pyramid (BoP): 12 innovation principles Ex.: Focus on price performance
Research Plan
Research Plan
Goal: To identify and categorize the threats and opportunities the specific characteristics of designing for the emerging markets offer, to design products and services in a more ecological sustainable way.
Target group: Between 2 and 8 dollars PPP Disposable income
Research Plan
More products Big Eco impact Multinationals’ interests The peculiarities still apply The market income curve
10 biggest emerging markets
Approach
Research Plan
Design principles emerging
The LiDS strategies:
markets
-> Eco design w. 8 strategies
-> Whole life cycle
-> Contain sub strategies (D4S)
-> ex.: “reduction of impact during
Same abstraction layer ?
use�
Methodology Abstract Designing for the emerging markets
Research Plan
Development issues (UNDP)
Designing for the environment
Environmental issues
Innovation principles (BoP) Business plan solutions (BPSEM)
LiDS - Wheel strategies
LiDS (sub-) strategies
Cases
Concrete
Example: Negative correlation
Methodology Abstract Designing for the emerging markets
Research Plan
Development issues (UNDP)
Designing for the environment
Environmental issues
Innovation principles (BoP) Business plan solutions (BPSEM)
LiDS - Wheel strategies
LiDS (sub-) strategies
Cases
Acces to financial services (UNDP)
Price performance (BoP)
BPSEM5: Smaller portions <-> LiDS 2: Reduction of materials
Case :
Concrete Pantene: single serve sachet in India
Example: Negative correlation
Methodology Abstract Designing for the emerging markets
Research Plan
Development issues (UNDP)
Designing for the environment
Environmental issues
Innovation principles (BoP) Business plan solutions (BPSEM)
LiDS - Wheel strategies
LiDS (sub-) strategies
Cases
Acces to financial services (UNDP)
Price performance (BoP)
BPSEM5: Smaller portions <-> LiDS 2: Reduction of materials
Case :
Concrete Pantene: single serve sachet in India
Example: Negative correlation
Methodology Abstract Designing for the emerging markets
Research Plan
Development issues (UNDP)
Designing for the environment
Environmental issues
Innovation principles (BoP) Business plan solutions (BPSEM)
LiDS - Wheel strategies
LiDS (sub-) strategies
Cases
Acces to financial services (UNDP)
Price performance (BoP)
BPSEM5: Smaller portions <-> LiDS 2: Reduction of materials
Case :
Concrete Pantene: single serve sachet in India
Example: Negative correlation
Methodology Abstract Designing for the emerging markets
Research Plan
Development issues (UNDP)
Designing for the environment
Environmental issues
Innovation principles (BoP) Business plan solutions (BPSEM)
LiDS - Wheel strategies
LiDS (sub-) strategies
Cases
Acces to financial services (UNDP)
Price performance (BoP)
BPSEM5: Smaller portions <-> LiDS 2: Reduction of materials
Case :
Concrete Pantene: single serve sachet in India
Example: Negative correlation
Methodology Abstract Designing for the emerging markets
Research Plan
Development issues (UNDP)
Designing for the environment
Environmental issues
Innovation principles (BoP) Business plan solutions (BPSEM)
LiDS - Wheel strategies
LiDS (sub-) strategies
Cases
Acces to financial services (UNDP)
Price performance (BoP)
BPSEM5: Smaller portions <-> LiDS 2: Reduction of materials
Case :
Concrete Pantene: single serve sachet in India
Output
BPSEM / LiDS Matrix
0 Functionality
1 low impact materials
Detect functionality (BoP principle) + NGOs --> market + Local research + Market information Price performance Smaller portions + Focus functionality + Collective payment + Capital ->labor + Time segmentation Price awareness Scale of operations Scale of operations + NGO --> R&D Process innovation (safe costs) Use of cheap labor + Local materials + + Partnerships NGOs + Product -> service Process innovation (infrastructure issues) + Use of local materials Use local labor NGO -->procurement Investment infrastructure
2 Reduce materials
3 optimize production
4 optimize distribution
5 impact during use
6 Optimize initial lifetime
7 optimize end of life
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Output
Methodology Abstract
Research Plan
Designing for the emerging markets
Counts for each UNDP issues Counts for each innovation principle
Matrix + 53 BPSEMs
Verification
Development issues (UNDP)
Designing for the environment
Environmental issues
Innovation principles (BoP)
Business plan solutions
LiDS - Wheel strategies
LiDS (sub-) strategies
Cases
Concrete
Output
Methodology Abstract
Research Plan
Designing for the emerging markets
Counts for each UNDP issues Counts for each innovation principle
Matrix + 53 BPSEMs
Verification
Development issues (UNDP)
Designing for the environment
Environmental issues
Innovation principles (BoP)
Business plan solutions
LiDS - Wheel strategies
LiDS (sub-) strategies
Cases
Concrete
BPSEM / LiDS Matrix
0 Functionality
1 low impact materials
Detect functionality (BoP principle) + NGOs --> market + Local research + Market information Price performance Smaller portions + Focus functionality + Collective payment + Capital ->labor + Time segmentation Price awareness Scale of operations Scale of operations + NGO --> R&D Process innovation (safe costs) Use of cheap labor local materials + Partnerships NGOs + Product -> service Process innovation (infrastructural Use of local materials Use local labor NGO -->procurement Investment infrastructure
2 Reduce materials
3 optimize production
4 optimize distribution
5 impact during use
6 Optimize initial lifetime
7 optimize end of life
+ + + -
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+ + issues) +
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-
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Output
Methodology Abstract
Research Plan
Designing for the emerging markets Counts for each UNDP issues
Counts for each innovation principle
Matrix + 53 BPSEMs
Verification
Development issues (UNDP)
Designing for the environment
Environmental issues
Innovation principles (BoP)
Business plan solutions
LiDS - Wheel strategies
LiDS (sub-) strategies
Cases
Concrete
Output
Methodology Abstract
Research Plan
Designing for the emerging markets Counts for each UNDP issues
Counts for each innovation principle
Matrix + 53 BPSEMs
Verification
Development issues (UNDP)
Designing for the environment
Environmental issues
Innovation principles (BoP)
Business plan solutions
LiDS - Wheel strategies
LiDS (sub-) strategies
Cases
Concrete
Cases
Case 1: The Chulha oven by Philips -> Health benefits -> Locally available materials -> Local entrepreneurs
Cases
-> Cooperation with NGOs -> Corporate social responsibility
The Chulha oven in India
Business plan solution
Influence on LiDS strategies
Local research
--> LiDS 0: Optimize functionality Matrix
Cases
--> LiDS 1: Low impact materials
-> Way of cooking
--> LiDS 2: Reduction materials
-> Harsh environment
--> LiDS 3: Optimize production
-> health concerns
--> LiDS 4: Optimize distribution
--> LiDS 5: Optimize impact during use
--> LiDS 6: Optimize initial lifetime
--> LiDS 7: Optimize end of life
Business plan solution
Influence on LiDS strategies
Local research Case 0 1
7
Cases
2
6
5
3 4 Begin status Influence of local research (BPSEM)
--> LiDS 0: Optimize functionality
--> LiDS 1: Low impact materials
--> LiDS 2: Reduction materials
--> LiDS 3: Optimize production
--> LiDS 4: Optimize distribution
--> LiDS 5: Optimize impact during use
--> LiDS 6: Optimize initial lifetime
--> LiDS 7: Optimize end of life
Business plan solution
Influence on LiDS strategies
Robust Product
-> Lifetime > 5 years
Matrix
--> LiDS 6: Optimize initial lifetime
Cases
Business plan solution
Influence on LiDS strategies
Robust Product Case 0 1
7
Cases
2
6
5
3 4 Influence of local research Influence of Robust products
--> LiDS 6: Optimize initial lifetime
--> LiDS 1: Low impact materials
Cases
Case 2: The 100 dollar laptop -> Dream: every child a laptop -> Usability research -> Fit infrastructure -> Price performance -> Obtaining monopoly position
Business plan solution
Influence on LiDS strategies
Greenfield innovation
-> Manually rechargeable -> More Efficient
Matrix
-->LiDS 1: Low impact materials -->LiDS 5: Optimize impact during use
Cases
Business plan solution
Influence on LiDS strategies
Greenfield innovation Case 0 1
7
Cases
2
6
5
3 4
Begin status Influence of â&#x20AC;&#x153;Greenfield innovationâ&#x20AC;?
-->LiDS 1: Low impact materials -->LiDS 5: Optimize impact during use
Business plan solution
Influence on LiDS strategies
Scale of operation
Cases
--> LiDS 2: Reduction materials
--> LiDS 3: Optimize production
- Scaling to lower the price
--> LiDS 4: Optimize distribution
--> LiDS 5: Optimize impact during use
--> LiDS 6: Optimize initial lifetime
--> LiDS 7: Optimize end of life
Matrix
Business plan solution
Influence on LiDS strategies
Scale of operation Case 0 1
7
Cases
2
6
5
3 4 Influence of “Greenfield innovation” Influence of “Scale of operations”
--> LiDS 2: Reduction materials
--> LiDS 3: Optimize production
--> LiDS 4: Optimize distribution
--> LiDS 5: Optimize impact during use
--> LiDS 6: Optimize initial lifetime
--> LiDS 7: Optimize end of life
Conclusions
Conclusions: • Opportunities and threats • Radical ecological innovation
Conclusions
• Relation BoP terms • Cases -> few contradictions • Few negative correlations • Scope LiDS strategies
Conclusions: • Opportunities and threats • Radical ecological innovation
Conclusions
-> Ecological
-> Economical
-> Easier adaptation
• Relation BoP terms • Cases -> few contradictions • Few negative correlations • Scope LiDS strategies
Conclusions: • Opportunities and threats • Radical ecological innovation is necessary
Conclusions
• Relation BoP terms
--> BoP principles <-> the emerging markets
--> Relation different sources
• Cases -> few contradictions • Few negative correlations • Scope LiDS strategies
Bottom of the pyramid
Emerging markets
Conclusions: • Opportunities and threats • Radical ecological innovation is necessary
Conclusions
• Relation BoP terms • Cases -> few contradictions
--> No hard contradiction
--> Potential threats/opportunities
--> Unforeseen influences
• Few negative correlations • Scope LiDS strategies
100 dollar laptop
Conclusions: • Opportunities and threats • Radical ecological innovation
Conclusions
• Relation BoP terms • Cases -> few contradictions • Few negative correlations
--> Design principles
--> Threat -> opportunity
--> Radical innovation
• Scope LiDS strategies
BPSEM / LiDS Matrix
0 Functionality
1 low impact materials
Detect functionality (BoP principle) + NGOs --> market + Local research + Market information Price performance Smaller portions + Focus functionality + Collective payment + Capital ->labor + Time segmentation Price awareness Scale of operations Scale of operations + NGO --> R&D Process innovation (safe costs) Use of cheap labor local materials + Partnerships NGOs + Product -> service Process innovation (infrastructural Use of local materials Use local labor NGO -->procurement Investment infrastructure
2 Reduce materials
3 optimize production
4 optimize distribution
5 impact during use
6 Optimize initial lifetime
7 optimize end of life
+ + + -
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+ +
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issues) +
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LiDS -BPSEM matrix
+
Conclusions: • Opportunities and threats • Radical ecological innovation
Conclusions
• Relation BoP terms • Cases -> few contradictions • Few negative correlations • Scope LiDS strategies --> Consumers’ awareness ? --> Marketing ?
Influence on LiDS strategies
Further research: • More detailed
Recommendations
• Quantification correlation • Region/cases based research • Testing BPSEMs
Further research: • More detailed
Recommendations
• Quantification correlation • Region/cases based research • Testing BPSEMs
Further research: • More detailed
Recommendations
• Quantification correlation • Region/cases based research • Testing BPSEMs
Further research: • More detailed
Recommendations
• Quantification correlation • Region/cases based research • Testing BPSEMs