presentation ecological sustainable design for the emerging markets

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Sustainable design for the emerging markets

Introduction

Research Plan

Cases

Conclusions

Intro

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Stuck with infrastructure

Polluting

Not sustainable

Efficient ?

Social consequences

Path of the “emerged” markets

Xingu river @ Belo monte

Power plant SA

Intro

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Bottom up project

Local issues

A lot more efficient

Improving local economy

Ability to scale

Influence on Eco design ?

The “Chulha” oven

Lifestraw childP.I.M.P

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Company Graduation date Personal Water Puri erRoelie Bottema

The problem with

drinking 'dirty' water is visualized. Also,

the actions for using and maintaining the

products are explained step by step.

Lifestraw Child is a smaller and slightly adapted version of the current LifeStraw. The child can drink by sucking, squeezing or tumbling the bottle, or

a combination of these.

For 1.1 billion people, access to safe drinking water is

limited. Poor people suffer most, because they cannot

afford to buy drinking water. This results in more illnesses

and more pressure on women to transport the water. The

Danish company Vestergaard Frandsen (VF) has developed

LifeStraw, a product that puri es surface water for personal

use with lters. People can carry the mobile LifeStraw

anywhere, which is complemented by another water

purifying product at home. For Ghana, LifeStraw could be

lifesaving since 38% of the people do not have access to

safe drinking water and the majority of the people live in

rural areas.

Roelie Bottema investigated several aspects of the

implementation of LifeStraw, focused on children under

the age of ve. Also, she developed instruction manuals

and posters. In this way health workers can instruct people

better and more complete about the use and other issues

concerning the LifeStraw.

DrinkingHer user research demonstrated that people are not used

to pay for their water or treat their drinking water. Water is

rare and often polluted and women have to walk far to get

the water, especially in the dry season. Even though people

are aware of that, they do not have a choice rather than

using this water.

Regarding LifeStraw, users did notice they need it:

‘everyone should have one’ and ‘I do not have diarrhoea

any more’. Also, the appearance appealed to them and they

associated status to the product user. When asked about

Vestergaard Fransen August 4, 2006€

Intro

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5 UNDP issues:• Other regulations

• Access to financial services

• Obtain market information

• Infrastructure

• Difference in knowledge and skills

Bottom of the pyramid (BoP): 12 innovation principles

Ex.: Focus on price performance

Research Plan

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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.

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Target group:

Between 2 and 8 dollars PPP

Disposable income

More products

Big Eco impact

Multinationals’ interests

The peculiarities still apply

The market income curve

10 biggest emerging markets

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Approach

Design principles emerging

markets

The LiDS strategies:

-> Eco design w. 8 strategies

-> Whole life cycle

-> Contain sub strategies (D4S)

-> ex.: “reduction of impact during

use”Same abstraction layer ?

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Concrete

Business plan solutions (BPSEM)

LiDS (sub-)strategies

Cases

Development issues (UNDP)

Environmental issues

Innovation principles (BoP)

LiDS - Wheelstrategies

Abstract

Designing for the emerging markets Designing for the environment

Methodology

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Concrete



Cases





Abstract


Methodology

BPSEM5: Smaller portions <->

LiDS 2: Reduction of materials

Case :

Price performance (BoP)

Example: Negative correlation

Pantene: single serve sachet in India

Acces to financial services (UNDP)

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Cases





BPSEM5: Smaller portions <->

LiDS 2: Reduction of materials

Case :

Price performance (BoP)

Pantene: single serve sachet in India

Acces to financial services (UNDP)

Concrete

Abstract


Methodology Example: Negative correlation

Output

BPSEM / LiDS Matrix 0 Funct- ionality

1 low impact

materials

2 Reduce materials

3 optimize production

4 optimize distribution

5 impact during use

6 Optimize initial

lifetime

7 optimize end of life

Detect functionality (BoP principle)NGOs --> market + +

Local research + +

Market information + +

Price performanceSmaller portions - -Focus functionality + + +

Collective payment +

Capital ->labor + +

Time segmentation + +

Price awareness +

Scale of operationsScale 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 - + +

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Counts for each

UNDP issues

Counts for each

innovation principle

Matrix + 53 BPSEMs

Verification

Business plan solutions


Cases

Development issues (UNDP) Environmental issues



Output Methodology

Concrete

Abstract



1 low impact

materials

2 Reduce materials



5 impact during use

6 Optimize initial

lifetime



Local research + +




Capital ->labor + +


Price awareness +



local materials + + +



Process innovation (infrastructural issues)Use of local materials + + +




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Counts for each

UNDP issues

Counts for each


Matrix + 53 BPSEMs

Verification



Cases




Output Methodology

Concrete

Abstract


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Counts for each

UNDP issues

Counts for each


Matrix + 53 BPSEMs

Verification


Cases




Output Methodology

Concrete

Abstract



Case

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Case 1: The Chulha oven by Philips

-> Health benefits

-> Locally available materials

-> Local entrepreneurs

-> Cooperation with NGOs

-> Corporate social responsibility The Chulha oven in India

Case

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Local research

-> Way of cooking

-> Harsh environment

-> health concerns

--> 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

Matrix

Business plan solution Influence on LiDS strategies

Case

s

1

0

2

3

4

5

6

7

Begin statusInfluence of local research (BPSEM)

Local research --> LiDS 0: Optimize functionality

--> LiDS 1: Low impact materials







Business plan solution

Case

Influence on LiDS strategies

Case

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Robust Product

-> Lifetime > 5 years

--> LiDS 6: Optimize initial lifetimeMatrix


Case

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1

0

2

3

4

5

6

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Influence of local research

Influence of Robust products

Robust Product --> LiDS 6: Optimize initial lifetime

--> LiDS 1: Low impact materialsCase


Case

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Case 2:

The 100 dollar laptop

-> Dream: every child a laptop

-> Usability research

-> Fit infrastructure

-> Price performance

-> Obtaining monopoly position

Case

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Greenfield innovation

-> Manually rechargeable

-> More Efficient

-->LiDS 1: Low impact materials

-->LiDS 5: Optimize impact during useMatrix


Case

s

1

0

2

3

4

5

6

7

Begin status

Influence of “Greenfield innovation”

Greenfield innovation -->LiDS 1: Low impact materials

-->LiDS 5: Optimize impact during useCase


Case

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Scale of operation

- Scaling to lower the price







Matrix


Case

s

1

0

2

3

4

5

6

7

Influence of “Greenfield innovation”

Influence of “Scale of operations”

Scale of operation --> LiDS 2: Reduction materials






Case


Conclusions

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Conclusions:

• Opportunities and threats

• Radical ecological innovation

• Relation BoP terms

• Cases -> few contradictions

• Few negative correlations

• Scope LiDS strategies

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Conclusions:



-> Ecological

-> Economical

-> Easier adaptation





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Conclusions:


• Radical ecological innovation is necessary


--> BoP principles <-> the emerging markets

--> Relation different sources




Bottom of the pyramid Emerging markets

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Conclusions:


• Radical ecological innovation is necessary



--> No hard contradiction

--> Potential threats/opportunities

--> Unforeseen influences



100 dollar laptop

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Conclusions:






--> Design principles

--> Threat -> opportunity

--> Radical innovation



1 low impact

materials

2 Reduce materials



5 impact during use

6 Optimize initial

lifetime



Local research + +




Capital ->labor + +


Price awareness +



local materials + + +



Process innovation (infrastructural issues)Use of local materials + + +




LiDS -BPSEM matrix

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Conclusions:







--> Consumers’ awareness ?

--> Marketing ?

Influence on LiDS strategies

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Further research:

• More detailed

• Quantification correlation

• Region/cases based research

• Testing BPSEMs

presentation ecological sustainable design for the emerging markets

Documents

safe drinking water

drinking dirty water

implementation of lifestraw

current lifestraw

mobile lifestraw

poor people

puri es surface water

eco design