Prodma Module 10

GROUP 2
Sustainability
in Innovation
MODULE 10
TRIPLE BOTTOM
LINE
Harvard Business Review
 Referred to sustainability as an emerging megatrend and the mother lode of organizational and
technological innovation.
Finite Resources
 Planet Earth hold finite supplies of natural resources.
Stakeholder Pressure and Growing Transparency
 Companies face increasing pressure from key stakeholders.
The Business Case for Sustainability
 Relationship between corporate economic success and sustainability is not always straightforward and
there is no best strategy or approach that companies can adopt.
Costs Reduction
 Sustainability offers an opportunity to reduce costs by focusing on using fewer resources, including
raw materials, toxic substance, and/or water.
Complying with Regulation
 Key motivation for companies to develop greener products is to comply with new environmental
regulations.
Reputation and Brand Value
 Another reason for businesses to engage in sustainability is to increase its brand value.
Differentiation
 Sustainability as a differentiation strategy can help to increase customer loyalty, allowing businesses to
charge premium prices.
Attract and Retain Employees
 Companies employees are also a key source of competitive advantage.
Attract Capital Investment
 According to the Harvest Business Review, venture investing in clean tech reached a nearly $9billion
annual run rate in 2008 and shows signs of growing again after a slowdown in 2009.
Strategies for Sustainable Product Design
1st Principle: Reducing Use of Finite Materials
 The first principle focuses on reducing the use of finite resources, such as fossil fuels or heavy metal
energy and water that is used.
2ND Principle: Eliminate use of Toxic Material
 Systematic increase of manmade substances is poisoning the natural system.
3rd Principle: Minimize Physical Destruction
 Third principle refer to systematic physical destruction of the ecosystem.
4th Principle: Look to Solve Social Problems
 Recognize that humans when struggling to meet their basic needs , will understandably ignore the
need of nature rather than see their families suffer or perish.
• Reduce the use of non renewable materials
• Eliminate the use of toxic materials
• Minimize the degradation of biodiversity and ecosystems.
• Seek solutions to solve social issues, such as poverty, pollution and other social and environmental issues.
Four Paradigms for Sustainable New Product Development
 Designing product for eco-efficiency increases the longevity of product, utilizes recycle and
nontoxic materials, or reduces the amount of pollutant and waste emitted during production.
Product Improvement and Redesign
 Product at the low end of the factor scale, less than 4 factors , are considered to be product of low
eco-efficiency.
• Product improvement
• Product Redesign
Functional and System Innovation
• Function innovation
 Change is no longer confined to the existing product concept.
• System Innovation
 The entire sociotechnical system is replaced by a new system.
System innovation and the role of services
 Incorporating system innovation and particularly, service innovation into the NPD therefore, calls
for a different approach.
Product-Oriented Services
 Product are increasingly converging with services as part of a total system that includes how the
product-service is specified, delivered, explained and installed and recycled.
User-Oriented Services
 Sometimes consumer have no desire to own a product.
Results-Focused Services
 Product is owned and operated by the service provider.
Eco Labels
 Abundance of labels that a firm can put on its products to indicate its eco- friendliness
5 types of “Green” Consumer segments
1. LOHAS
2. NATURALITIES
3. DRIFTERS
4. CONVENTIONALS
5. UNCONCERNED
GREEN MARKETING ACTIVITIES

• Targeting • Green logistics
• Green design • Marketing waste
• Green positioning • Green promotion
• Green pricing • Green alliance
SEVEN SINS OF GREENWASHING
• Sin of the Hidden trade-off
• Sin of No Proof
• Sin of Vagueness
• Sin of Worshipping false Labels
• Sin of Irrelevance
• Sin of Lesser of Two Evils
• Sin of Fibbing

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GROUP 2

GREEN MARKETING ACTIVITIES

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