Sustainable Design_alternative Strategy_product Innovation (leong) 2005

Sustainable Design as an Alternative Strategy for Product Innovation Benny Ding Leong book chapter, Leong B.D. (2005) Sustainable Design as an Alternative Strategy for Product Innovation, ‘Better by Design’, published by Hong Kong Polytechnic University, China

Strategy and Design Today, design in the West is in general use as a strategic tool(1) in the manufacture and delivery of consumer goods. As competition in the manufacturing industry is becoming keener and the pace of product innovation swifter, for most systemised corporations the use of strategy is necessary to improve operational efficiency, resource optimisation, and financial gain. Strategy is most popularly defined as planning, managing, and directing the operation of a campaign. Yet, to devise strategies for business innovation in manufacturing is another matter. A thorough knowledge of the business context may offer a better picture for planning. An in-depth understanding of the corporate culture and system may allow better management. Yet, without a clear vision it is certainly not easy to direct a business to innovate and grow. The notion of vision, though often thought to be based on subjective belief, has to be forward-looking, based on objective input, and involves a micro-transition. The ‘Two Transitions’ Two obvious macro-transitions are taking place in the world economy. (i) Transition towards a service economy, from the production of physical commodities to the production and delivery of services. (ii) Transition towards sustainable development, the impulse to improve the quality of life by means of drastic reduction in consumption of natural resources. The convergence of these two transitions is resulting in a global economic and ecological system that is based on knowledge and services (Manzini & Leong 2001). This rapid change is dramatically altering the practices of manufacturing industry globally, particularly those of Hong Kong and the mainland. Rather than being a threat, this drastic alteration offers local manufacturers the opportunity to innovate based on a very different set of values(2). Value Creation by Design For decades design has been a value-added process of product creation in the manufacturing industry, whether for electronics, electrical appliances, household products, eyewear, jewellery, timepieces, or toys. Yet whether adding value by devising more product features, or lowering prices by modifying existing production systems, both diminish financial gain. For a highly competitive business environment, creating value (3) for customers is effective in opening new markets and hence generating revenue (Heskett 2003). In light of the two transitions, the concept of value and the framework of value

creation are shifting (Fig. 1). The desire for well-being, togetherness, dematerialization, and sustainable living is

Fig. 1 The shifting of conception of values and framework of value creation steadily taking hold and altering our perceptions of value (Ray & Anderson 2001). Quantitative values will soon be replaced by qualitative values, and the emphasis of value creation will be supplemented with what we deeply want, but are seldom offered by mass production. The change in the perception of value should provide manufacturers with a new vision with which to formulate an alternative design strategy. I call this sustainable design strategy. Sustainable Design as Alternative Value-Creation Strategy The notion of sustainable design emerged in the late 1980s and early 1990s as the global environmental situation deteriorated at an alarming rate. Known widely as sustainable product design (Charter and Tischner 2001), it has often been misinterpreted by manufacturers as a product development practice similar to that of eco-design(4), wherein extra expenditure is required for the management of cleaner production and products. This limits innovation and hinders business growth, but sustainable product design has a much wider scope (Fig. 2) and balances the environmental, economic, and social aspects of the creation of products and services, increase the quality of life, and achieves major reductions in resource and energy consumption (Charter 1998). As environmental friendliness is not the only concern of sustainable product design, it offers various windows for the creation of qualitative product and service innovations.

(Fig.1) The relationship of product design, eco-design and sustainable product design (source: Tischner 2000) Three product and service innovation approaches can be derived from the concept of sustainable design: the environmentally driven approach, the economically driven approach, and the socially driven approach (Leong 2003b). The environmentally driven approach emphasises the development of eco-friendly products or services (e.g. Body Shop), and the economically driven approach devises innovative products or services for the economic (time and cost) gain of end-users (e.g. Dell Computers). The socially driven approach emphasises the facilitation of new social experiences with the combination of products and services (e.g. Starbucks). At a glance, the adoption of sustainable design as value-creating strategy for product or service innovation seems out of reach for the local manufacturing industry. Yet, various examples of innovative local products can be cited. For instance, the Forever Flashlight by Daka Trading Ltd. is an environmentally driven sustainable product innovation that promotes the use of renewable energy (Fig. 3).

(Fig. 3) Forever Flashlight by Daka Trading Ltd.

The ‘Power Bank’ rapid charger from Gold Peak Industries (Holdings) Ltd. is a typical economically driven sustainable product creation, which saves time and offers operational convenience (Fig. 4). The credit card size ‘DS 6618’ compact digital camera from Oregon Scientific is a socially driven sustainable product solution (Fig. 5) because it discourages the physical output of photographs and enables photograph sharing through the Internet while enhancing the cyber-social experience of end-users.

(Fig. 4) Power Bank rapid charger, Gold Peak Industries (Holdings) Ltd.

(Fig.5) DS 6618 credit card size compact digital camera from Oregon Scientific Co-creation: a new perspective The socially driven product innovation approach could be further developed into a new sustainable product strategy, co-creation. According to recent surveys, consumers have shown an increased desire to participate in the production of products for personal consumption (Ray & Anderson 2001, Florida 2002). The simple pleasure that people gained from making things has been steadily usurped by the increasing volume of consumptive behaviour. A transference of consumptive behaviour has shifted from a consumptive mindset of pure shopping, buying, owning, and using, to a new creative mindset of doing, adapting, making, and creating (Sanders 2003). Examples of this are the personalised product services offered by Nokia and Nike. Although most of these personalised product services are still restricted to insubstantial variations in colours or patterns, it is predictable that a new economy and consumptive behaviour patterns that signify co-creative relationships between users and manufacturers will soon become the norm.

Convivial System for Co-creativity To enable this revolution of co-creation, the integration of a convivial system(5) is necessary. This system should embrace four key aspects. 1) Co-creation spaces – or places where designers (product-service providers) and everyday people (end-users) work collaboratively throughout the design development process to co-create desirable products or services (Sander 2003). 2) Interactive service system – a system that enhances the creativity of end-users and enables interaction between the product-service provider and end-users. 3) Responsive manufacturing system (6) – a system that provides the responsive, highly customised (or personalised), flexible, integrated manufacture and support of products to end-users within a local supply chain. 4) Core knowledge – ‘expertise’ such as technologies, techniques, interactive technology, process tools, etc., within a business domain where the product-service provider needs to take control when offering products or services through co-creation spaces. To verify the potential of this co-creation strategy is to identify the extent to which endusers should take charge of the design process of a product through the co-creation space. The USO Experiment In early 2003, an experimental research project named USO (Unidentified Sound Objects) was initiated. The project is supported by the Strategic Design Laboratories of the School of Design and DesigNext International Ltd. It aims to investigate how design can help to create value for simple, low-tech audio electronic products for the local ODM industry. A sideline of this research is to test the concept of design for co-creation. Two design concepts were selected to carry out for such investigation. 1) Gather, a responsive music player that plays music in reaction to ambient light and temperature. 2) Sound Ornament, an audio device that generates sounds as a medium for bodily ‘decoration’ (Fig. 6).

(Fig.6) Gather (left) and Sound Ornament (right)

Criteria for the design of these products were. i) Standardized core electronic hardware ii) Minimized moulding investment iii) Batch production iv) Product form (casing), color, and graphics could be highly personalised In line with these criteria, an initial idea emerged – a conceptual design with a casing constructed mainly from sheet material (Fig. 7) and covered by elastic fabric (Fig. 8), or film inside the casing in the case of the Sound Ornament. The use of sheet materials minimized the investment in cavity moulds and reduced the storage space and transportation load.

(Fig .7) Components and casing of Gather are constructed from sheet plastic

(Fig. 8) Elastic fabric is used as skin with choice of colours and patterns Co-creation becomes possible because simple software can be used by end-users in the generation of each design, made possible by inexpensive rapid prototyping. Co-creating Space for Social Interactive Experience The USO project is an inaugural experiment. A considerable portion of the co-creative experience depends on a well-designed interactive service system, through which endusers take part in the creation process of their ‘own’ product in the co-creation space of the Internet. Hence, it is important to investigate how enjoyable interactive experiences can be devised. Although not designed for interactive co-creation, a Hong Kong based manufacturer, Monoone, has exploited cyberspace interaction. Instead of being a space of information,

Monoone’s cybershop has various floors on which customers can stroll freely for shopping or participating in the exhibition of new designs (Fig. 9). Monoone pioneers the integration of quality design, premium prices (the well-received ‘magic-wand’ multitask remote control from Monoone – Fig. 10), niche market tactics, batch production, and virtual shopping.

(Fig.9) The Monoone virtual gallery

(Fig. 10) ‘magic wand’, premium priced design Alternative Products Innovation Strategy of the Future Combine the cyber experience of Monoone’s shop with the USO project, then expand it: a sustainable strategy of co-creation in product and service innovation emerges. 1) Environmentally friendly – the supply and demand of products and services will match perfectly and interact tightly as a cycle via a well-designed ‘convivial system’, with no surplus of production or consumption. Co-created products and services will be better appreciated by end-users, and the life span of the creations will be extended. 2) Socially Attractive – a community could be created in which co-created (personalised) products are auctioned or exhibited in the cyber market. Discussion, such as the sharing of views about design, could also occur in the co-creation space. 3) Economically viable – localised responsive manufacturing will minimise the distance of material flows, time, and cost. Qualitative time with designs that users really want, and an enjoyable co-creative experience, contribute high holistic economic value. With appropriate adjustment, co-creation could be a feasible strategy for product innovation for both transnational companies and local SMEs.

As the two transitions intensify, manufacturing practice will have to be founded on welldevised strategy that recognises the importance of co-creation by means of integrated products and services which create sustainable value.

Notes 1. Design as strategic tool, or strategic design, involves the design and innovation of an integrated system of products, services, and communication through which a company’s unique profile is identified and presented (Manzini 2001). 2. Values can be defined as quantitative, emphasising physiological and psychological needs (e.g. proper nourishment, safety, and affluence) and qualitative, emphasising spiritual needs and socio-psychological desires (e.g. intellectual cultivation, self-esteem, love, and solidarity). 3. According to John Heskett, value creation is the “opening [of] new markets by giving people what they never knew they wanted”. Public presentation, “How Design Can Transform Business”, Hong Kong Convention Centre, Hong Kong, 2003. 4. Ecodesign is the design of environmentally friendly production and product systems. It began with cleaning up manufacturing processes (Alting, 1993) and has moved toward redesigning products (Dewberry & Goggin, 1994; Luttropp & Zust, 1998; Dewhurst, 1996). 5. According to Ivan Illich, a convivial system allows users to make sense of their environment and enrich their life with creation that fulfills their visions (Illich, 1999). 6. For the basic idea of responsive manufacturing, see http://www.ead.fea.usp.br/publique/Eventos/CE318htm. References 1) Leong, B.D. (2003a) Vision from Within: from the Micro Self to the Macro Whole, International Conference, “Visions of Possible Worlds: Scenarios and Proposals for Sustainability, A new Social Role of Designers and Design Schools”, Milan, November, 2003 2) Leong, B.D. (2003b) Hong Kong as A Test Bed of Sustainable PSS for China, Part I, booklet, “Designing Sustainable Product-Service Systems for All ” by Vezzoli, C., UNEP publication, 2003.

3) Leong, B.D. (2002a) How will the Concept of ‘Design for Sustainability’ Revive Industrial Design Practice in China and the Rest of the World? The 1st China-USA Joint International Conference on Design Education, Beijing, 2002. 4) Manzini, E., Leong, B. D. (2001), Strategic Design and design for Sustainability. A general overview and some consideration in the Chinese context, paper presented to the Tsinghua 2001 China International design Forum, Beijing, June 2001. 5) Manzini, E., (2001), Introduction to the strategic design approach. The Italian experience and beyond, (public presentation note), School of Design, H.K. PolyU, HKPC, Hong Kong, 2001. 6) Vision and Roadmaps for Sustainable Development in a Networked Knowledge Society, Workshop report Booklet, Club of Rome & Factor 10 Institute, European Commission publication, Feb. 2002 7) Charter, M. and Tischner, U. (2001), Sustainable Solutions: Developing Products and Services for the Future, Greenleaf Publishing Ltd., UK. 8) Charter, M (1998) Design for Environmental Sustainability, Foresight, National Resources and Environment Panel: Cleaner Technologies and Processes (London: Office of Science and Technology, Department of Trade and Industry). 9) Heskett, J. (2003a) Shaping the Future: Design for Hong Kong – A Strategic Review of Design Education and Practice (Report of the Design Task Force), The Hong Kong Polytechnic University, Hong Kong. 10) Heskett, J. (2003b) How Design Can Transform Business (public presentation note), H.K. Conventional Centre, Hong Kong, 2003. 11) Sanders, Elizabeth B. N.(2003), Scaffolds in Communicational Spaces for Building Everyday Creativity. conference proceedings. 12) Florida, Richard (2002), The Rise of the Creative Class and How it’s Transforming Work, Leisure, Community and Everyday Life. New York: Basic Books. 13) Ray, Paul H. and Anderson, S. Ruth (2001), The Cultural Creatives: How 50 Million People are Chinaging the World. Three Rivers Press. 14) Illich, Ivan (1999), The Right of Useful Unemployment and its Professional Enemies. USA. Marion Boyars publishers Ltd. 15) http://www.monoone.com Keywords: Design strategy, sustainable product design, co-creation.