Abstract
In search of sustainable business models, product innovation must fulfil a double objective: the new product must have a higher (market) value, and at the same time a lower eco-burden. To achieve this objective, it is an imperative that the value, the total costs of ownership, and the eco-burden of a product are analysed at the beginning of the design process (idea generation and concept development). The design approach that supports such a design objective, is called Eco-efficient Value Creation (EVC). This approach is characterised by a two-dimensional representation: the eco-burden at the y-axis and the costs or the value at the x-axis. The value is either the Willingness to Pay or the market price. The eco-burden is expressed in eco-costs, a monetised single indicator in LCA (Life Cycle Assessment): an app for IOS and Android, and excel look-up tables at the internet, enable quick assessment of eco-costs. A practical example is given: the design of a new concept of domestic street lighting system for the city of Rotterdam. This new concept results in a considerable reduction of carbon footprint and eco-costs, and shows the benefits for the municipality and for the residents, resulting in a viable business case.
Highlights
That is why we focus in this paper on value creation in the fuzzy front end of the design process, since that is the moment where the real sustainable innovation can take place
This paper presents the results of a practical case of eco-efficient value creation
Sustainable innovation is the way in which existing technologies, products and services constitute a new sustainable product-service system with a viable business model that adds value to all the three stakeholders: (1) the municipality, by more value for the same costs; (2) the citizens in the street, by adding safety at night in combination with the trees in the street; (3) the owner and/or residents of the building, by reducing the costs of electricity
Summary
Progress in Sustainable Product Innovation, and Circular Business Models. Agreement), and citizens become more and more aware of the severe consequences, business people realise that they should innovate their products and services. New business proposals must have a double objective: the new product must have a higher customer value, and at the same time a lower eco-burden. The higher customer value is needed to make the introduction of the product at the market a success, without the need for state subsidies. The fact is that sustainable product innovation and introduction of circular business models is not easy. The environmental gains of circular business models are often much lower than it is suggested, especially with regard to the shift
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