How Sustainable Product Innovation Is Changing the Game in Product Development
Understand the importance of sustainability in today's global marketplace and how sustainability and how it has now become a top priority for businesses across all industries. The shift in mindset has been been driven by the risks of climate change and environmental degradation. Discover the demand for taking a more conscious approach to creating products and implementing business processes with a minimal impact on the planet. Preuzmite dokumentSAP Thought Leadership Paper | PUBLIC
Sustainable Design
How Sustainable Product Innovation is
Changing the Game in Product DevelopmentSAP Digital Supply Chain
SAP Digital Supply Chain
1 / 12
Sustainable Design
How Sustainable Product Innovation is
Changing the Game in Product DevelopmentSAP Digital Supply Chain
SAP Digital Supply Chain
1 / 12
2 / 12
Table of Contents
3 Executive Overview
4 Solving Sustainability Challenges with Sustainable Product Innovation
5 Discovering the Power of Sustainable Product Innovation
6 How Can SAP Enable Your Sustainable Product Innovation Strategy?
8 Unlocking Sustainable Product Innovation
9 Embedding Circularity Across the Supply Chain
11 Adopting a Sustainability Mindset
12 Taking Action on Sustainable Product Innovation
Table of Contents
3 Executive Overview
4 Solving Sustainability Challenges with Sustainable Product Innovation
5 Discovering the Power of Sustainable Product Innovation
6 How Can SAP Enable Your Sustainable Product Innovation Strategy?
8 Unlocking Sustainable Product Innovation
9 Embedding Circularity Across the Supply Chain
11 Adopting a Sustainability Mindset
12 Taking Action on Sustainable Product Innovation
How Sustainable Product Innovation is Changing the Game in Product Development3 / 12
In today’s global marketplace, sustainability has
become a top priority for businesses across all
industries. This shift in mindset has been driven
by the risks of climate change and environmental
degradation, which demand taking a more con-
scious approach to creating products and imple-
menting business processes with a minimal im-
pact on the planet.
Many organizations are now recognizing the im-
portance of integrating sustainability into their
product development processes. Approximately
80% of a product’s environmental impact is influ-
enced by decisions made during the design
phase.1 This staggering statistic highlights the
immense power that design choices hold in shap-
ing the sustainability of a product throughout its
lifecycle.
By embracing sustainable practices and princi-
ples during the design stage, companies can pro-
actively identify and address environmental con-
cerns, leading to more effective solutions and
reduced negative impacts on the environment.
Integrating sustainability into the product devel-
opment process can empower your organization
to make conscious choices and prioritize social,
economic, and environmental sustainability. By
doing so, you can create products that not only
meet the needs of your consumers but also align
with their values: fostering brand loyalty and en-
hancing your reputation as a responsible and en-
vironmentally-conscious entity.
Sustainable product innovation goes beyond just
reducing environmental impact. It also presents
opportunities for cost savings, increased efficien-
cy, and improved competitiveness. By consider-
ing sustainability from the early stages of product
development, companies can identify innovative
materials, manufacturing processes, and supply
chain strategies that not only enhance environ-
mental performance but also drive business
growth.
Executive Overview
1. “An introduction to circular design”, Ellen MacArthur Foundation, June 2022.
In today’s global marketplace, sustainability has
become a top priority for businesses across all
industries. This shift in mindset has been driven
by the risks of climate change and environmental
degradation, which demand taking a more con-
scious approach to creating products and imple-
menting business processes with a minimal im-
pact on the planet.
Many organizations are now recognizing the im-
portance of integrating sustainability into their
product development processes. Approximately
80% of a product’s environmental impact is influ-
enced by decisions made during the design
phase.1 This staggering statistic highlights the
immense power that design choices hold in shap-
ing the sustainability of a product throughout its
lifecycle.
By embracing sustainable practices and princi-
ples during the design stage, companies can pro-
actively identify and address environmental con-
cerns, leading to more effective solutions and
reduced negative impacts on the environment.
Integrating sustainability into the product devel-
opment process can empower your organization
to make conscious choices and prioritize social,
economic, and environmental sustainability. By
doing so, you can create products that not only
meet the needs of your consumers but also align
with their values: fostering brand loyalty and en-
hancing your reputation as a responsible and en-
vironmentally-conscious entity.
Sustainable product innovation goes beyond just
reducing environmental impact. It also presents
opportunities for cost savings, increased efficien-
cy, and improved competitiveness. By consider-
ing sustainability from the early stages of product
development, companies can identify innovative
materials, manufacturing processes, and supply
chain strategies that not only enhance environ-
mental performance but also drive business
growth.
Executive Overview
1. “An introduction to circular design”, Ellen MacArthur Foundation, June 2022.
How Sustainable Product Innovation is Changing the Game in Product Development4 / 12
Solving Sustainability Challenges with Sustainable
Product Innovation
With the environment a pressing concern in to-
day’s industrial landscape, many businesses are
now seeking to integrate sustainability into their
product development processes. Embracing sus-
tainable product innovation provides an opportu-
nity to address a range of sustainability challeng-
es head-on and contribute to a more
environmentally friendly future.
Challenge Description Sustainable Product Innovation
response
Global
Warming
Rising expectations from multiple
stakeholders and organizations to
minimize and mitigate climate
change
Use eco-friendly and recycled materials
and design products for durability, leading
to an overall reduction of your carbon
footprint
Stakeholder
Pressure
Addressing the demands of
stakeholders, customers, investors,
and regulators for the adoption of
sustainable practices while
increasing profits and meeting
customer needs
Create products that are environmentally
friendly, socially responsible, and
economically viable
Social
Sustainability
Increasing pressure for
environmentally friendly and socially
responsible products
Design products with materials that are
ethically sourced and produced, safe to
use and consume, and are produced in
safe working conditions for employees
Institutional
Policy
Sustainability policies and
regulations implemented by
governments and non-governmental
institutions
Incorporate product marketability and
product compliance assessment
processes to comply with increasing
regulations, avoid penalties and benefit
from improved access to global markets
Business
Performance
Investing in and incorporating
sustainable practices while achieving
cost-effective, efficient, and reliable
operations
Design products that can be easily
assembled, disassembled and recycled to
reduce waste disposal costs, material,
resource, and energy consumption
Reputation
and Brand
Image
Prioritizing sustainable practices to
protect and maintain a positive
brand reputation and mitigate
reputational risks
Design products that meet consumer
values, build stronger relationships with
audiences, attract new customers, and
increase brand loyalty
Solving Sustainability Challenges with Sustainable
Product Innovation
With the environment a pressing concern in to-
day’s industrial landscape, many businesses are
now seeking to integrate sustainability into their
product development processes. Embracing sus-
tainable product innovation provides an opportu-
nity to address a range of sustainability challeng-
es head-on and contribute to a more
environmentally friendly future.
Challenge Description Sustainable Product Innovation
response
Global
Warming
Rising expectations from multiple
stakeholders and organizations to
minimize and mitigate climate
change
Use eco-friendly and recycled materials
and design products for durability, leading
to an overall reduction of your carbon
footprint
Stakeholder
Pressure
Addressing the demands of
stakeholders, customers, investors,
and regulators for the adoption of
sustainable practices while
increasing profits and meeting
customer needs
Create products that are environmentally
friendly, socially responsible, and
economically viable
Social
Sustainability
Increasing pressure for
environmentally friendly and socially
responsible products
Design products with materials that are
ethically sourced and produced, safe to
use and consume, and are produced in
safe working conditions for employees
Institutional
Policy
Sustainability policies and
regulations implemented by
governments and non-governmental
institutions
Incorporate product marketability and
product compliance assessment
processes to comply with increasing
regulations, avoid penalties and benefit
from improved access to global markets
Business
Performance
Investing in and incorporating
sustainable practices while achieving
cost-effective, efficient, and reliable
operations
Design products that can be easily
assembled, disassembled and recycled to
reduce waste disposal costs, material,
resource, and energy consumption
Reputation
and Brand
Image
Prioritizing sustainable practices to
protect and maintain a positive
brand reputation and mitigate
reputational risks
Design products that meet consumer
values, build stronger relationships with
audiences, attract new customers, and
increase brand loyalty
How Sustainable Product Innovation is Changing the Game in Product Development5 / 12
Discovering the Power of Sustainable Product
Innovation
Companies are increasingly adopting sustainable
practices and initiatives throughout the entire
product journey. However, the most significant
impact occurs when sustainability is integrated
into the product development process itself. By
doing this, organizations can proactively identify
and evaluate environmental concerns at an early
stage, leading to more effective solutions and
minimizing negative impacts on the environment.
Sustainable product innovation refers to the pro-
cess of developing new products – or improving
existing ones – with a focus on minimizing nega-
tive environmental and social impacts through-
out their entire lifecycle.
It aims to create or enhance products to be more
efficient, durable, environmentally friendly, com-
pliant, safe, economically viable, and socially ben-
eficial while increasing profits and meeting cus-
tomer needs. The result is recyclable, reusable,
repurposable, re-manufacturable, and energy-ef-
ficient products that are configurable and modu-
lar, providing reduced time-to-market and im-
proved quality and performance.
Achieving sustainable product innovation means
making product development choices and deci-
sions with a sustainability mindset during the
product development phase. This may include:
• Materials: Consider using renewable, recycled,
repurposed or biodegradable materials that
have a lower environmental impact
• Vendors and suppliers: Collaborate with busi-
nesses that share your sustainability values and
practices
• Norms and regulations: Ensure that products
are compliant with applicable laws and stan-
dards to avoid potential legal consequences
and improve a product’s reputation
• Production process: Consider a production
process that will minimize resource consump-
tion and waste generation
• Technology: Adopt advanced technology that
can assist in reducing energy consumption and
emissions during production and use
• Packaging: Design eco-friendly packaging that
uses minimum resources and can be reused or
recycled
• End-of-life management: Develop a plan to re-
cycle or dispose of products responsibly at the
end of their life
• Social impact: Ensure that production is ethi-
cal and does not harm workers, consumers, or
local communities
• Environmental impact: Work to reduce the car-
bon footprint, energy, material consumption,
and waste generation of new products
• Consumers and customers: Consider custom-
er sentiment and needs for more environmen-
tally friendly products
Figure 1: Aspects to Consider During
Product Development
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Discovering the Power of Sustainable Product
Innovation
Companies are increasingly adopting sustainable
practices and initiatives throughout the entire
product journey. However, the most significant
impact occurs when sustainability is integrated
into the product development process itself. By
doing this, organizations can proactively identify
and evaluate environmental concerns at an early
stage, leading to more effective solutions and
minimizing negative impacts on the environment.
Sustainable product innovation refers to the pro-
cess of developing new products – or improving
existing ones – with a focus on minimizing nega-
tive environmental and social impacts through-
out their entire lifecycle.
It aims to create or enhance products to be more
efficient, durable, environmentally friendly, com-
pliant, safe, economically viable, and socially ben-
eficial while increasing profits and meeting cus-
tomer needs. The result is recyclable, reusable,
repurposable, re-manufacturable, and energy-ef-
ficient products that are configurable and modu-
lar, providing reduced time-to-market and im-
proved quality and performance.
Achieving sustainable product innovation means
making product development choices and deci-
sions with a sustainability mindset during the
product development phase. This may include:
• Materials: Consider using renewable, recycled,
repurposed or biodegradable materials that
have a lower environmental impact
• Vendors and suppliers: Collaborate with busi-
nesses that share your sustainability values and
practices
• Norms and regulations: Ensure that products
are compliant with applicable laws and stan-
dards to avoid potential legal consequences
and improve a product’s reputation
• Production process: Consider a production
process that will minimize resource consump-
tion and waste generation
• Technology: Adopt advanced technology that
can assist in reducing energy consumption and
emissions during production and use
• Packaging: Design eco-friendly packaging that
uses minimum resources and can be reused or
recycled
• End-of-life management: Develop a plan to re-
cycle or dispose of products responsibly at the
end of their life
• Social impact: Ensure that production is ethi-
cal and does not harm workers, consumers, or
local communities
• Environmental impact: Work to reduce the car-
bon footprint, energy, material consumption,
and waste generation of new products
• Consumers and customers: Consider custom-
er sentiment and needs for more environmen-
tally friendly products
Figure 1: Aspects to Consider During
Product Development
M
a
t
e
r
i
a
l
s
V
e
ndors
N
o
r
m
s
&
R
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