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

1. 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

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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.

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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:

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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

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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?

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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

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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

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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?

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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)

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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

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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?

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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

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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

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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

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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

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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)

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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.

38. Thank you!! Eskerrik asko!! Gracias!!
jose_maria.fernandez@ihobe.net