2.1 European-Italian perspective on PSS design for sustainability

Carlo VezzoliIndian Institute of Technology New Delhi / India

carlo vezzoliPolitecnico di Milano

Learning Network on Sustainability

course Product-Service System Design for Sustainabilitysubject 2 System Design for Sustainability

learning resource 2.1

SYSTEM DESIGN FOR SUSTAINABILITY: THE EUROPEAN / ITALIAN APPROACH


1. Sustainable development and system innovation2. The evolution of sustainability in design (Europe)3. Eco-Efficient Product-Service System (PSS)4. System design for eco-efficiency5. System design for social equity and cohesion

CONTENTS


1. SUSTAINABLE DEVELOPMENT AND SYSTEM INNOVATION


THE SUSTAINABLE DEVELOPMENT:

A SOCIAL AND PRODUCTIVE DEVELOPMENTthat takes place within the limits set by the “nature” and meets the needs of the present without compromising those of the future generation within a world-wide equitable distribution of resources

1987, UN “our common future”; 1992 UN conf. Rio; 2002 UN conf. Johannesburg; 2006 UE Sustainable Development Strategy; etc…


ENVIRONMENTAL- not to exceed the biosphere and geosphere

“resilience”

SOCIO-ETHICAL- same resources (satisfaction) level for future

generations - equity in the distribution of resources (satisfaction)

ECONOMIC- economically practicable solutions

THE SUSTAINABILITY DIMENSIONS


EU DEFINITION OF ENVIRONMENTAL SUSTAINABILITY

ENVIRONMENTAL PROTECTION“safeguard the earth's capacity to support life in all its diversity, respect the limits of the planet's natural resources and ensure a high level of protection and improvement of the quality of the environment. Prevent and reduce environmental pollution and promote sustainable consumption and production to break the link between economic growth and environmentaldegradation.”

[EU, SDS, 2006]


SOCIAL EQUITY AND COHESION “promotion of a democratic, socially inclusive, cohesive, healthy, safe and just society with respect for fundamental rights and cultural diversity that creates equal opportunities and combats discrimination in all its forms”

[EU, SDS, 2006]

EU DEFINITION OF SOCIO-ETHICAL SUSTAINABILITY


ECONOMIC PROSPERITY“Promote a prosperous, innovative, knowledge-rich, competitive and eco-efficient economy which provides high living standards and full and high-quality employment throughout the European Union.”

[EU, SDS, 2006]

EU DEFINITION OF ECONOMIC SUSTAINABILITY


IN 50 YEARS A WORLD-WIDE EQUITABLE SYSTEMS OF PRODUCTION AND CONSUMPTION SHOULD USE ~90% LESS RESOURCES THAN THE HIGHLY INDUSTRIALISED CONTEXTS ARE DOING TODAY

SUSTAINABILITY: DIMENSION OF CHANGE


SUSTAINABILITY: QUALITY OF CHANGE

PROMOTE (EVEN) SYSTEM INNOVATIONS

RADICAL CHANGE (“DISCONTINUITY”)

DIFFUSED INNOVATION

PROMOTE PLAUSIBLE AND “ATTRACTIVE” (SYSTEM) INNOVATIONS


2. THE EVOLUTION OF SUSTAINABILITY IN DESIGN (IN EUROPE)


low impactmat./energies

design for social equity and

cohesion

Product-Service System design for

eco-efficiency

Product Life Cycle Design

ecodesign

widening the “o

bject” to be desig

ned

SUSTAINABILITY IN DESIGN: EVOLUTION (EUROPE)


CONSOLIDATION(research achievements)

(educa

tion a

nd p

ract

ice)

DIS

SEM

INA

TIO

N

100%

100%

0new research frontier …

low impactmat./energies

design for social equity and

cohesion

Product Life Cycle Design

ecodesign

widening the “o

bject” to be desig

ned

… aim atSUSTAINABILITY IN DESIGN: STATE OF ART (EUROPE)

Product-Service System design for

eco-efficiency


3. ECO-EFFICIENT PRODUCT-SERVICE SYSTEM (PSS)


PRODUCT-SERVICE SYSTEM: DEFINITION

pdf available at: http://www.uneptie.org/pc/sustain/design/pss.htm

“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 (satisfactions).”

“system innovation can lead,throughout innovative stakeholders’ interactions, to system eco-efficiency.”

[UNEP, 2002]


ECO-EFFICENT PRODUCT-SERVICE SYSTEM EXAMPLES (AND TYPOLOGIES)


KLUBER LUBRIFICATIONoffers lubricants + service on-site identification (movable lab) of equipment inefficiency, and the potential reduction of emissions’ impact

the innovative interaction between the company and the client, make the companies’ economic interest to be other than only selling higher amount of lubricants


E-E PSS INNOVATION (TYPE I)ADDING VALUE TO THE PRODUCT LIFE CYCLE

a company (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)


AMG: SOLAR HEAT SERVICEhot water itself is sold as an entire service (payment x litre); hot water is produced by sun energy + methane; service include: methane supply (not directly paid), equipments and meter (not owned) transportation, installation and maintenance.

the innovative interaction between the company and the user, make the companies’ interest to design equipment minimising methane consumption (maximises the income) and increase solar energy (because of higher income)


E-E PSS INNOVATION (TYPE II)PROVIDING FINAL RESULTS TO CUSTOMERS

a company (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 product and/or does not buy the resources for its functioning and does not operate on it to obtain the final satisfaction, i.e. the client pays the company to provide the agreed final results


ARISTON + ENEL: PAY-PER-USEpayment is based on number of washes and includes: delivery of a washing machine at home (not owned), electricity supply (not directly paid), maintenance, up-grading and end-of-life collection.

the innovative interaction between the companies and the client, make the companies’ interest to design and provide high efficient, long lasting, reusable and recyclable washing machines


E-E PSS 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 and/or does not buy the resources for its functioning, but operates on it to obtain the “satisfaction”, i.e. the client pays only for the use of the product


BUTONLY SOME PSS TYPES ARE ECO-EFFICIENT!

IN FACT, PSS IS NOTHING NEW! (IN EUROPE)

NOWADAYS every most of the products involve services and vice versa and change towards service economy is happening anywayservices (not products) generate: . more than 50 % of GDP in Europe (. more than 75% of GDP in USA)


ECO-EFFICIENT PSS TYPOLOGIES

- adding value to the product life cycle

- providing final results to customers

- providing enabling platforms for customers

(THESE ARE NOT SO DIFFUSED IN EUROPE)


E-E PSS INNOVAT. MAIN CHARACTERITICS:

radical innovations, not much as technological ones, but as new interactions/partnership between the satkeholders of the particular offer-demand (satisfaction) system

business model potentially delinking economic interests from environmental impact increase, i.e. win-win potential


4. SYSTEM DESIGN FOR ECO-EFFICIENCY


… introducing eco-efficient PSS innovation in design ...

REQUIRES NEW DESIGNDEFINITION, APPROACHES, SKILLS, METHOD/TOOLS


“the design for eco-efficiency of the system of products and services that are together able to fulfil a particular demand of “satisfaction”, as well as the design of the interaction of the stakeholders taking part to this offer-demand satisfaction system”

(VEZZOLI, Maggioli, Milan, 2007)

SYSTEM DESIGN FOR ECO-EFFICIENCY: DEFINITION


. “SATISFACTION-SYSTEM” APPROACH DEMAND-SATISFACTION DESIGN

. “STAKEHOLDER INTERACTIONS” APPROACH STAKEHOLDER CONFIGURATION DESIGN

SYSTEM DESIGN FOR ECO-EFFICIENCY: APPROACHES


STAKEHOLDERS’ INTERACTIONS DESIGN


. “SATISFACTION-SYSTEM” APPROACH DEMAND-SATISFACTION DESIGN

. “STAKEHOLDER INTERACTIONS” APPROACH STAKEHOLDER CONFIGURATION DESIGN

. SYSTEM ECO-EFFICIENCY APPROACH ECO-EFFICIENCY-ORIENTED SYSTEM DESIGN

SYSTEM DESIGN FOR ECO-EFFICIENCY: APPROACHES


- design an integrated system of products and services fulfilling a particular demand for “satisfaction”

- design new socio-economic stakeholders’ interactions

- promote/facilitate participated design between different stakeholders

- ORIENTATE THE ABOVE PROCESSES TOWARDS ECO-EFFICENT SOLUTIONS

SYSTEM DESIGN FOR ECO-EFFICIENCY: SKILLS


SYSTEM DESIGN FOR ECO-EFFICIENCY: METHODS AND TOOLS

EU RESEARCHES WITH METHOD/TOOLS OUTCOMES:

van Halen, Vezzoli & Wimmer, Methodology for product service system innovation,Van Gorcum, Assen, The Netherlands, 2005

MEPSSManzini, Collina & Evans, Highly Customerised Solutions, Cranfield University, 2006

HiCS

MSDS: Method for System Design for Sustailabilityadopted by Polimi-dis: company consulting + teaching


SYSTEM DESIGN FOR ECO-EFFICIENCY CRITERIA . system life optimisation. transportation/distribution reduction . resources reduction. waste minimisation/valorisation. conservation/biocompatibility. toxic reduction

[DEVELOPED WITHIN MEPSS PROJECT WITH A RELATED SET OF GUIDELINES ANDINTEGRATED INTO THE SDO TOOLKIT]


the 6 environmental criteria

... a set of stakeholders'’ interactions promising guidelines

(criteria-related)

type stakeholders’

interactions idea

SUSTAINABILITY DESIGN-ORIENTING (SDO)/IDEA TABLE

for each criteria …


AN ONGOING POLIMI DIS APPLIED RESEACRH ON SYSTEM DESIGN FOR ECO-EFFICIENCY (USING THE MDSD METHOD)


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20%

40%

60%

80%

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0%

20%

40%

60%

80%

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and productionPre

-production- Distribution Disposal

Imp

att

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ela

tivo (

%)

abridged LCA

ABRIDGED LIFE CYCLE ASSESSMENT

DESIGN OF THE SYSTEM INNOVATION INTRODUCTION AND DIFFUSION PATH

ECO-EFFICIENT SCENARIOS ELABORATION

commissioned by:

system innovation introd. and diffusion path

eco-efficient scenarios elaboration

PSS concept design

PSS engineering

PSS CONCEPT DESIGN AND ENGINEERING


5. SYSTEM DESIGN FOR SOCIAL EQUITY AND COHESION


1° REMARK:

(in Europe) Product-Service System innovations have received concern mainly:. for their environmental win-win potential. in relation to industrialised contexts

A RECENT RESEARCH QUESTION: WHAT ABOUT PSS POTENTIALS FOR SOCIAL EQUITY AND COHESION?


2° REMARK:

a promising economic model to couple environmental and socio-ethical sustainability

DISTRIBUTED ECONOMIES: “selective share of production distributed to regions where activities are organized in the form of small scale, flexible units that are synergistically connected with each other” [IIIEE, SWEEDEN, 2006]


key example of Distributed Economies

“DISTRIBUTED ENERGY GENERATION”(RENEWABLE RESOURCES SUN, HYDROGEN…)

environmental sustainability: non-exhaustable + greenhouse effect reduction + lower environmental impact for extraction, transformation, distribution

socio-ethic sustainability: sun (and hydrogen) acquisition: local + with simple processes > micro-plants installable/manageable by small economic entity > user-producer > energetic micro network building > global network > access, self-sufficiency, power (and interdependency) local communities/households > resources democratisation > inequality reduction


group of 40 personsorganised to acollective purchase anddebating on consumption:. preference for local, season/biological produces. preference for small local producer/social coop.. direct contact with suppliers + production site. cost reduction duet to de-intermediation

other examples of Distributed Economies(not energy related)

SOLIDARITY PURCHASINGGROUPS (GAS)


DISTRIBUTED ECONOMIES MAIN SUSTAINABLE CHARACTERISTICS

LOCALLY-BASED: start from sustainable local resources and needs, but could become open non-local or global systems

+NETWORK-STRUCTURED: gain critical mass and potential by their connections in network


>DISTRIBUTED ECONOMIES ARE IN FACT PRODUCT-SERVICE SYSTEM INNOVATION WHICH ARE COMMUNITY-BASED AND COUPLING ECO-EFFICIENCY WITH SOCIAL EQUITY AND COHESION

RESEARCH QUESTION:IS THERE A POTENTIAL ROLE FOR THE DESIGN IN SYSTEM DESIGN FOR SOCIAL EQUITY AND COHESION WHEN AND IF PSS INNOVATION ARE LACALLY-BASED AND NETWORK STRUCTURED?


POLIMI DIS CO-PROMOTED SOME RESEARCH/PROJECTS ONEE PSS DESIGN POTENTIALS FOR SOCIAL EQUITY AND COHESION


workshop 1 (1.2006)workshop 1 (1.2006) ITCP-USP, Sao PaoloITCP-USP, Sao Paolo

method/tool method/tool developmentdevelopment

DEVELOPMENT OF SYSTEM DESIGN FOR SUSTAINABILITY TOOLS/METHODS FOR SOCIAL INCUBATOR

Incubadora Tecnológica de Cooperativas Populares ITCP NETWORK University of Sao PaoloFederal University of Paraná, CuritibaPolitecnico di Milano - DIS

workshop 2 (8.2006) workshop 2 (8.2006) ITCP-UFPR, CuritibaITCP-UFPR, Curitiba


sustainable sustainable system designsystem design

product designproduct design

system innovation system innovation introd. and diffusion introd. and diffusion pathpath

Politecnico di Milano

Cape Peninsula University of Technology

United Nations Industrial Development Organization

A Global UNIDO Network of University Chairs on Innovation

- FARKA, a system for drinkable water transportation in Burkina Faso;- DUMBO, a system for vegetable’s transportation in Zambia – NIGO, a system for disabled students transportation in South Africa.

SYSTEM DESIGN FOR SUSTAINABLE PILOT PROJECT AIMING AT AN INTRODUCTION OF LOCALLY-BASED AND LONG LASTING MOBILITY SYSTEM FOR LOW INCOME CONTEXTS IN AFRICA


SYSTEM DESIGN FOR SOCIAL EQUITY AND COHESION CRITERIA . improve employment/working conditions. increase equity and justice in relation to stakeholders. enable a responsible/sustainable consumption. favor/integrate the weak and marginalized. improve social cohesion. empower/enhance local resources

[DEVELOPED BASED ON EXPERIENCES MATURED INUNIDO, ITCP AND INFORMAL LENS (2003 IIT) ANDINTEGRATED INTO THE SDO TOOLKIT]


the 6 environmental criteria

... a set of stakeholders'’ interactions promising guidelines

(criteria-related)

type stakeholders’

interactions idea

SUSTAINABILITY DESIGN-ORIENTING (SDO)/IDEA TABLE

for each criteria …


“the design for social equity and cohesion of eco-efficient system of products and services that are together able to fulfil a particular demand of (community) “satisfaction”, as well as the design of the locally-based and network-structured interaction of the stakeholders directly and indirectly linked to that “satisfaction” system””(VEZZOLI, Maggioli, Milan, 2007)

A POTENTIAL ROLE FOR THE DESIGN?:

SYSTEM DESIGN FOR SUSTAINABILITY(ENVIRONM. + SOCIAL EQUITY)

2.1 European-Italian perspective on PSS design for sustainability

Technology

energies design

design europe

evolution of sustainability

sustainability dimensions

social equity

attractive system innovations

forms eu

future generations equity