The 7 th CIRP IPSS Conference 21-22 May 2015 Saint-Etienne, France by O. PIALOT, D. MILLET, E. COR and J. BISIAUX Presenting Author: O. PIALOT LISMMA,

The 7th CIRP IPSS Conference 21-22 May 2015

Saint-Etienne, France

by

O. PIALOT , D. MILLET , E. COR and J. BISIAUX

Presenting Author: O. PIALOT LISMMA, Supmeca Toulon

Toulon, [email protected]

A method helping to define eco-innovative systems based on upgradability

2

Conventional Product

12 kg

12 kg

12 kg

6 years 6 years 6 years

UpgradableSystem

12 kg

2 years

2 years

2 years

2 years

2 years

2 years

2 years

2 years

2 years

Alert "Full tank & clogged Filter"

Less pressure loss Filter

Council of power adjustment

Easy Wheels

Calories meter

Dirty indicator

Smartphone connector

APP

coach v1

APP

purchase

APP

Eco-score

APP

coach v2 APP

coach v3

APP

coach v4

Ergonomic handle

3

Plan1. The fruitful concept of

Upgradability

2. How to do it? Methodological Elements

4

« disposable»Innovation

Sust. Dev.

ENVIRONMENT

ECONOMICSOCIAL

Change of consumption mode

Time

t=0 t=0+2years t=0+4years

Product functionalities evolution over time

Modular system

. Physical LifeTime (PLT) [lifetime related to the reliability/wear]

. Value LifeTime (VLT) [lifetime related to the obsolescence phenomenon][Umeda et al.] [Kondoh et al.]

UPGRADES = funtional enrichment, integrated to the product per sequence

SUSTAINABLE Innovationwith multiple Upgrade Cycles

Lifetime depends on:

5

> Material Consumption reduction until - 70 % ?

Conventional Product 12 kg 12 kg12 kg


UpgradableSystem 12 kg 1kg 1 kg 1 kg 1 kg 1 kg 1 kg

2 years

2 years

2 years

2 years

2 years

2 years

14 kg 17 kg 20 kg

1 kg2 ye

ars

1 kg2 ye

ars

2 years

24 kg 36 kg

in 6 yearsMaterial Gain + 17 %

in 12 yearsMaterial Gain - 29 %

in 18 yearsMaterial Gain - 45 %

Material Consumption reduction until - 45 %

12 kg

Service bundles with module Upgrades

Energy consumption

reduction Earth

6




2 years

2 years

2 years

2 years

2 years

2 years

1 kg2 ye

ars

1 kg2 ye

ars

2 years

UPGRADABILITY SUPPORT SERVICE

1 2 3

9Opportunities to make benefitsCompan

y


x2

7




2 years

2 years

2 years

2 years

2 years

2 years

1 kg2 ye

ars

1 kg2 ye

ars

2 years

Added Value for customerCustome

r

Increasing attractiveness


8

Customer

Company Earth

Upgrading Triple win !

Business Environment

Customer

[BEC diagram]


Range of new Services

associated to the product

Trojan horse to migrate to service offerings !!!!

9

Plan1. The fruitful concept of

Upgradability

2. How to do it? Methodological Elements

10

New Questions related to Upgradbility

How to sell upgradability?

How to supply upgradability service?

How to share the value?

Business model

Upgrade scenario

State of the art, Analysis, Quantitative study, Focus group, Workshops Upgradability … until the definition of a design method for upgradecycling & Tools associated

Design for UpgradecyclingANR Ecotech

Research Program 2012 2015

How much cycles? How long? What type of upgrade?

11

Upgrade line Set of upgrades performed over several cycles

Design

. Each customer has purchase priorities

. Manufacturer focusses on certain performance criteria over time according to the requirements of the market, the company identity and strategy. It’s interesting to be leader/proactive on specific performance and to repeat this added value over time

Upgrade scenario

Time

t=0 t=0+2years t=0+4years

Performance

Sensory

Green

Service

AcousticEnergy efficiency

…

Motor powerBattery Perf. xPerf. y

Upgrade line 1

Upgrade line 2Upgrade line 3

…

90 W 120 W 140 W

12 V 18 V 24 V

Themes of value

creation

. Ensure triple win “attractiveness for customer, environmental gains and benefits”

. Visibility about futures features of the system

. Technological cycles are regular

Planning of upgrades

with regular cycles

12

Up X

Easy Wheel

Cycle 1 Cycle 2 Cycle 3 Cycle 42017 2019 2021

Ergonomic Handle Delta head

New filter New Accessory

Look 1 Look 2 Look 3

Handling

Suction

Design

Eco-usage

Game Service

Health Service

Opti Service

Power Mgt Clogged filter

New cyclone

Calorie counterAerobic exercices Analyse of dust

Up Sa2 Up Sa3 Up Sa4

Pacman Ghost Hunter

Offe

r St

ruct

urati

on

Up Ac

Malaise alert

Up G

Up H

Up Op Accessories for car

StickersUp D4

Product/ Service

Upgrade Lines

Choice

On Catalog

Upgrade scenario for vacuum cleaner Rowenta

Task report

UpgradableSystem 2015

13

New Questions

How to sell upgradability?

How to supply upgradability service?

How to share the value?Business model

Material good centred business model

??? Business Model Servicial Business Model

Short term Middle term Long term

How to distribute these upgradable systems?

Upgrade scenario

14

Business model Service bundles with module Upgrades


ContractingNetwork

Offer

15

Short term Middle term Long termThe size of the circles represents the relative importance of the turnover of the business model involved

Material good centred Business

Model

Hybrid Business Model



Business Model consistent with

sustainable innovation (uses

centred)Uses

centred BM

Uses centred

BM

material good centred Business

Model

material good

centred BM

Upgrades Upgrades

Business model A trajectory to reach sustainable business

models

16

Founding principles:1. A workable guide helping the designers2. In the early design phases, before the product

specification phase3. The necessity of a multidisciplinary team4. A multicriteria assessment of an upgradable system

(economic, environmental and attractiveness)5. A design method without a priori knowledge in 2

Rounds

goal of method: define an upgradable system and its Business model.

Design for Upgradecycling method

17

Analyse from a multidisciplinary point of view the current system

(market, customer segments,

stakeholders, development

process, LCA …)

Knowledges related to the

current product, Business model, supply chain …

Explore potential Value Network Structures (VaNS)

and their transitions

Explore potential Product Modules Lines (PMoL) for upgradable

system

Explore potential Service Modules Lines (SMoL) for

upgradable system, including eco-learning

service

Analysis Results Define

Acceptablity domains of

upgradability

List of current modules

Product Value creation Themes

Service Value creation Themes

2 possibilities (Number of cycles; Duration of cycle)

Acceptability domains of upgradability/consumer

Transitional Modules

List 1 of Product Modules Lines +

unit upgrades

List 2 of Product Modules Lines +

unit upgrades

List of Eco-learning Modules

Lines

List of Services Modules

Lines

Definition of Eco-learning Service

Definition of other added Service

Current distribution

Network

Targeted Customer segments

List of retained VaNS (type of offer, contract,

partners, network)

Service Team (Service engineering, customer service, environment expert, Marketing, Innovation …)

Product Team (R&D, design, Eco design,

Marketing, Innovation, purchasing department,

manufacturing …)

Business & Product

strategies

Team “Supply Chain” & “Reverse supply chain”+ Team “Sales, Marketing, Legal department”

Business model Team (product chief, Innovation,

Finance, Marketing, Diversification, Logistics)

For each VaNS retained,

build Upgrades Modules Scenario –

UpMoS (including

transitional modules, PMoL,

SMoL & unit upgrades)

& select the most promising UpMoS

Specify Value Network for each promising UpMoS

Consolidate Eco-use Service & others added

Services

Promising UpMoS

Detailed Value Network for

each promising

UpMoS

Retained customer segments

Trajectories from current value network towards Value Network for Upgradable system

Definition of consolidated

added Services

Definition of consolidated Eco-learning

service

Assess Upgradable System concepts –

UpSys (detailed Value

Network + UpMoS + Added Services +

Eco-learning service):

. Environmental. Economic.

. Attractiveness

& Choose the most relevant

Assessed & prioritised

UpSys Concepts

Retained customer segments

Trajectories of value network associated to

Upgradable system

UpELS explorer Tool (Upgradability

Eco-learning Strategy Explorer)

UpVaN explorer Tool (Upgradability

Value Network Explorer)

LCA Tool LCC Tool

WTP Tool (Willingness

to pay)

UpMoL explorer Tool (Upgradability

Modules Lines Explorer)

27 generic structures of Value

Network

UpPA Pre selector Tool (Upgradability

Parameters Pre selector)

A1

A2

A3

A4

A5

A6

A8

A9

A7Exploration

Phase

Explore Product Modules lines

Explore Service Modules lines

Explore potential business models for

upgradability & their transitions

Combination & Refinement Phase

ROUND 1

Build Upgrades modules Scenario

& select the most

promising

Specify the business

model associated

Design for Upgradecycling method

Analysis Phase

Demonstrator development & Assessment

Phase

ROUND 2

18

Contracting

Network

Upgrade offer

. One fixed upgrade line

. Choice of one or several upgrade lines. Use of upgradable system

. product and upgrades purchased. product purchased, upgrades under contract. product and upgrades under contract

. Partitionned (producer / distributor). integrated (one major actor). Networked (plurality of actors)

Intermediate representation to explore the business models for Upgradability

3 dimensions to build business models and form

trajectories 27 combinations

19

Intermediate representation to explore Product upgrade lines

N:1

N:2

N:3

P1 or P2 S G

P1-P2 or P1-S or P2-S or S-G or P1-G or P2-G

P1-P2-S or P1-P2-G or P1-S-G or P2-S-G

P1-P2-S-G

NC=4/DC=2

Number of Upgrade lines integrated

Structure of Upgrade Cycle(Number of Cycle-NC- Duration of cycle-DC) NC’/DC’

P1Handling

P2Suction

SDesign

GEfficiency & Eco-usage

N:4

Total = 4

Total = 6

Total = 4

Total = 1

Perf Senso Green

Value Creation Themes (VaCT)

30

combinations

20

Intermediate representation to explore Service upgrade lines

N:1

N:2

N:3

S1 or S2 or S3

S1-S2 or S1-S3 or S2-S3

S1-S2-S3

NC=4/DC=2

Value Creation Themes (VaCT)

Number of Upgrade lines integrated

Structure of Upgrade Cycle(Number of Cycle-NC- Duration of cycle-DC) NC’/DC’

S1Game

S2Health

Total = 3

Total = 3

Total = 1

S3Optimisat

ion

Service

14

combinations

21

UpMoS Explorer

Imagine new Modules related to

Value creation Themes (VaCT). Performance

. Sensorial. green

Generate technological evolutions of

current modules

Characterize upgrades listing:. Integration date

. Feasibility. Cost

Quantify the contribution of

upgrades to value creation themes

22

UpMoS Explorer

Generate Upgrades lines

for each VaCT or combination of

Vact

For each upgrade cycle format

(NCi;DCi)

23

Guaranteed environnemental gain

Dematerialisation through services

Help towards eco-usage

Extension of lifetime

2

Optimised EOL (no waste)

Green passport

An improved offer based on a dynamic of upgrades

and services

Upgrade scenario with Upgrade lines

Catalogue of upgrades

Themes of value creation

/Performance / Sensory /

Green / Services

Bundle of associated

services

Increasing Attractiveness

1

Dynamic of upgradability based on client-producer interaction and business model development paths

UpWebPlatform Flexible contracting

Business Models

Trajectories

Logistic support for integrating upgrades

3

Transitional Upgrades

Up-PSSUpgradable-PSS

• A new concept of Production / Consumption

Mode

• A new design method for upgradecycling

• New design tools to support design team

24

25

Conventional Product

Upgradable System 2 years 2 years

12 kg

Learning Program

of eco-usage

1kg 1 kg2 years

1 kg

6 years

Energy Consumption / per use (average)

Time

30W.h28W.h

26W.h 25W.h

Service of Eco-usage-feedback

Power management

Power & time report

Energy consumption

reduction

by Eco-usage

Clogged filter

APP

Eco-learning

26

Still dirty !

Already clean !

Alert "Full tank & clogged Filter"

1

2

3

Sensorautomatic adjustment of power

27

UpgradableSystem

12 kg

2 years

2 years

2 years

2 years

2 years

2 years

2 years

2 years

2 years

Less pressure loss Filter

Council of power adjustment

Easy Wheels

Smartphone connector

APP

coach v1

APP

purchase

APP

Eco-score

APP

coach v2

APP

coach v3

APP

coach v4

Ergonomic handle

28


2 years

2 years

2 years

2 years

2 years

2 years

1 kg2 ye

ars

1 kg2 ye

ars

2 years


Documents

The 7 th CIRP IPSS Conference 21-22 May 2015 Saint-Etienne, France by O. PIALOT, D. MILLET, E. COR and J. BISIAUX Presenting Author: O. PIALOT LISMMA,