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A short presentation explaining my Thesis
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Jen
te M
inn
e - C
hris B
aelu
s - Diva
d P
eck
- Arte
sis ho
gesch
oo
l
Sustainable design for the emerging markets
Introduction
Research Plan
Cases
Conclusions
Intro
du
ctio
n
Stuck with infrastructure
Polluting
Not sustainable
Efficient ?
Social consequences
Path of the “emerged” markets
Xingu river @ Belo monte
Power plant SA
Intro
du
ctio
n
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
85
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
du
ctio
n
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
Re
se
arc
h P
lan
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.
Re
se
arc
h P
lan
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
Re
se
arc
h P
lan
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 ?
Re
se
arc
h P
lan
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
Re
se
arc
h P
lan
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
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)
Re
se
arc
h P
lan
Business plan solutions (BPSEM)
LiDS (sub-)strategies
Cases
Development issues (UNDP)
Environmental issues
Innovation principles (BoP)
LiDS - Wheelstrategies
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
Designing for the emerging markets Designing for the environment
Methodology Example: Negative correlation
Re
se
arc
h P
lan
Business plan solutions (BPSEM)
LiDS (sub-)strategies
Cases
Development issues (UNDP)
Environmental issues
Innovation principles (BoP)
LiDS - Wheelstrategies
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
Designing for the emerging markets Designing for the environment
Methodology Example: Negative correlation
Re
se
arc
h P
lan
Business plan solutions (BPSEM)
LiDS (sub-)strategies
Cases
Development issues (UNDP)
Environmental issues
Innovation principles (BoP)
LiDS - Wheelstrategies
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
Designing for the emerging markets Designing for the environment
Methodology Example: Negative correlation
Re
se
arc
h P
lan
Business plan solutions (BPSEM)
LiDS (sub-)strategies
Cases
Development issues (UNDP)
Environmental issues
Innovation principles (BoP)
LiDS - Wheelstrategies
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
Designing for the emerging markets Designing for the environment
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 - + +
Re
se
arc
h P
lan
Counts for each
UNDP issues
Counts for each
innovation principle
Matrix + 53 BPSEMs
Verification
Business plan solutions
LiDS (sub-)strategies
Cases
Development issues (UNDP) Environmental issues
Innovation principles (BoP)
LiDS - Wheelstrategies
Output Methodology
Concrete
Abstract
Designing for the emerging markets Designing for the environment
Re
se
arc
h P
lan
Counts for each
UNDP issues
Counts for each
innovation principle
Matrix + 53 BPSEMs
Verification
Business plan solutions
LiDS (sub-)strategies
Cases
Development issues (UNDP) Environmental issues
Innovation principles (BoP)
LiDS - Wheelstrategies
Output Methodology
Concrete
Abstract
Designing for the emerging markets Designing for the environment
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 (infrastructural issues)Use of local materials + + +
Use local labor + + +
NGO -->procurement +
Investment infrastructure - + +
Re
se
arc
h P
lan
Counts for each
UNDP issues
Counts for each
innovation principle
Matrix + 53 BPSEMs
Verification
Business plan solutions
LiDS (sub-)strategies
Cases
Development issues (UNDP) Environmental issues
Innovation principles (BoP)
LiDS - Wheelstrategies
Output Methodology
Concrete
Abstract
Designing for the emerging markets Designing for the environment
Re
se
arc
h P
lan
Counts for each
UNDP issues
Counts for each
innovation principle
Matrix + 53 BPSEMs
Verification
LiDS (sub-)strategies
Cases
Development issues (UNDP) Environmental issues
Innovation principles (BoP)
LiDS - Wheelstrategies
Output Methodology
Concrete
Abstract
Designing for the emerging markets Designing for the environment
Business plan solutions
Cases
Case
s
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
s
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
--> 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
Business plan solution
Case
Influence on LiDS strategies
Case
s
Robust Product
-> Lifetime > 5 years
--> LiDS 6: Optimize initial lifetimeMatrix
Business plan solution Influence on LiDS strategies
Case
s
1
0
2
3
4
5
6
7
Influence of local research
Influence of Robust products
Robust Product --> LiDS 6: Optimize initial lifetime
--> LiDS 1: Low impact materialsCase
Business plan solution Influence on LiDS strategies
Case
s
Case 2:
The 100 dollar laptop
-> Dream: every child a laptop
-> Usability research
-> Fit infrastructure
-> Price performance
-> Obtaining monopoly position
Case
s
Greenfield innovation
-> Manually rechargeable
-> More Efficient
-->LiDS 1: Low impact materials
-->LiDS 5: Optimize impact during useMatrix
Business plan solution Influence on LiDS strategies
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
Business plan solution Influence on LiDS strategies
Case
s
Scale of operation
- Scaling to lower the price
--> 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
Influence of “Greenfield innovation”
Influence of “Scale of operations”
Scale of operation --> 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
Case
Business plan solution Influence on LiDS strategies
Conclusions
Co
nclu
sio
ns
Conclusions:
• Opportunities and threats
• Radical ecological innovation
• Relation BoP terms
• Cases -> few contradictions
• Few negative correlations
• Scope LiDS strategies
Co
nclu
sio
ns
Conclusions:
• Opportunities and threats
• Radical ecological innovation
-> Ecological
-> Economical
-> Easier adaptation
• Relation BoP terms
• Cases -> few contradictions
• Few negative correlations
• Scope LiDS strategies
Co
nclu
sio
ns
Conclusions:
• Opportunities and threats
• Radical ecological innovation is necessary
• Relation BoP terms
--> BoP principles <-> the emerging markets
--> Relation different sources
• Cases -> few contradictions
• Few negative correlations
• Scope LiDS strategies
Bottom of the pyramid Emerging markets
Co
nclu
sio
ns
Conclusions:
• Opportunities and threats
• Radical ecological innovation is necessary
• Relation BoP terms
• Cases -> few contradictions
--> No hard contradiction
--> Potential threats/opportunities
--> Unforeseen influences
• Few negative correlations
• Scope LiDS strategies
100 dollar laptop
Co
nclu
sio
ns
Conclusions:
• Opportunities and threats
• Radical ecological innovation
• Relation BoP terms
• Cases -> few contradictions
• Few negative correlations
--> Design principles
--> Threat -> opportunity
--> Radical innovation
• Scope LiDS strategies
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 (infrastructural issues)Use of local materials + + +
Use local labor + + +
NGO -->procurement +
Investment infrastructure - + +
LiDS -BPSEM matrix
Co
nclu
sio
ns
Conclusions:
• Opportunities and threats
• Radical ecological innovation
• Relation BoP terms
• Cases -> few contradictions
• Few negative correlations
• Scope LiDS strategies
--> Consumers’ awareness ?
--> Marketing ?
Influence on LiDS strategies
Re
co
mm
en
datio
ns
Further research:
• More detailed
• Quantification correlation
• Region/cases based research
• Testing BPSEMs
Re
co
mm
en
datio
ns
Further research:
• More detailed
• Quantification correlation
• Region/cases based research
• Testing BPSEMs
Re
co
mm
en
datio
ns
Further research:
• More detailed
• Quantification correlation
• Region/cases based research
• Testing BPSEMs
Re
co
mm
en
datio
ns
Further research:
• More detailed
• Quantification correlation
• Region/cases based research
• Testing BPSEMs