Implementing sustainability in product portfolio development through digitalization and a game-based approach

The aim of this research is to explore if and how digitalization and a game-based approach can improve the usability and implementation of sustainable design methods and tools in a product development process. Based on semi-systematic literature review, advantages and limitations of digitalization and game-based approaches in this context were identified. A previously developed method that guides the implementation of a strategic sustainability perspective in product portfolio development, was then selected and elements of digitalization and game-based approaches were incorporated in its four building blocks: double-flow scenario modeling, sustainability assessment, market success assessment, and portfolio development. The resulting prototype of this method was further adapted after feedback gathered through expert interviews and then tested in workshops with industry and academia. It was found that digitalization was especially useful for the scenario simulation, data management, and automatic visualization of results, while the benefits of the game-based approach were enhanced motivation, collaboration, and co-design of results and solutions. At the same time, drawbacks were discovered, for example related to decreased transparency of how results are calculated, overuse of visualization and extrinsic rewards, leading to lack of clarity and trust in the results. In conclusion, there are synergies between digitalization and game-based approaches that can improve the usability of sustainable design methods and tools, but extensive testing is recommended to avoid pitfalls that can lead to opposite effects. Moreover, recommendations were identified for how to include digitalization and a game-based approach, for example, to enable integration with other tools, maintenance and constant update, to explore the benefits of team-based assessments and collaboration, to add diversity and customization, and to link the game to the user\u27s context, application, expectations and requirements

IMPLICATIONS OF EU INSTRUMENTS ON COMPANY CAPABILITIES TO DESIGN MORE SUSTAINABLE SOLUTIONS-PRODUCT ENVIRONMENTAL FOOTPRINT AND DIGITAL PRODUCT PASSPORT

In the EU, initiatives with concrete instruments for measuring and storing sustainability-related product data are now introduced in legislation. Based on literature review and semi-structured interviews, this study investigates two EU instruments, the Product Environmental Footprint method and Digital Product Passports, and their potential implications for company capabilities to design and select more sustainable solutions in a strategic way. The results show that these instruments can lead to increased transparency and traceability in the design and comparison of solutions, allowing for more effective collaboration across the value chain. By applying a strategic sustainability perspective, it was found that these EU instruments have major limitations as they lack a systems perspective, do not include a full socio-ecological sustainability perspective, and do not support strategic decision-making. This results in risks for suboptimization and the design of solutions that turn out to be costly dead-ends on the way towards a sustainable society. Research is therefore recommended to investigate how these instruments can facilitate a strategic development of sustainable solutions

Sustainability Risk Management in Product Development Companies - Motivating Change

Both the ecological and social system are systematically degrading, resulting in decreasing capacities to support human civilization. Product development and manufacturing companies play a key role in driving society’s transition towards a sustainable path. Besides moral arguments, the motivation for companies can be expressed as a matter of smart risk management, i.e. avoiding threats and exploiting opportunities. Such sustainability risks can be related to, for example, brand and reputation, legislative change, or attracting top-talented employees. But, more importantly, it is about understanding changes that are inevitable on markets to come. Based on Maxwell’s interactive qualitative research approach and following the structure of the Design Research Methodology, this thesis aims to contribute (i) to knowledge by increasing the conceptual understanding of what sustainability risks are; and (ii) to practice by researching decision-support for how sustainability risks can be managed in a product development company context. The first study reviewed existing literature and identified characteristics of sustainability risks, which make them particularly difficult to manage. A following exploratory and descriptive study investigated companies’ current risk management practices and preconditions for sustainability integration. It showed that the effects of uncertainty from the sustainability transition need to be identified, assessed, and managed in relation to how they can affect objectives anchored in both internal and external stakeholder value creation. In parallel, the Framework for Strategic Sustainable Development was applied as a lens to understand the implications of the sustainability transition for company risk management. This resulted in a new definition, stating that sustainability risks are threats and opportunities that are due to an organization’s contribution or counteraction to society’s transition towards strategic sustainable development. A questionnaire study then investigated some case companies’ challenges and preconditions to build sustainability capabilities. Finally, a workshop method is proposed that aims to support design teams in early sustainable product development. Future research will leverage on the findings to develop and test decision support for how product development companies can manage sustainability risks on different organizational levels in practice to increase competitiveness, while taking leadership in the transition towards a sustainable society

Electric Road Systems: Strategic Stepping Stone on the Way towards Sustainable Freight Transport?

Electrification of the transport sector has been pointed out as a key factor for tackling some of today’s main challenges, such as global warming, air pollution, and eco-system degradation. While numerous studies have investigated the potential of electrifying passenger transport, less focus has been on how road freight transport could be powered in a sustainable future. This study looks at Electric Road Systems (ERS) in comparison to the current diesel system. The Framework for Strategic Sustainable Development was used to assess whether ERS could be a stepping stone on the way towards sustainability. Strategic life-cycle assessment was applied, scanning each life-cycle phase for violations against basic sustainability principles. Resulting sustainability “hot spots” were quantified with traditional life-cycle assessment. The results show that, if powered by renewable energy, ERS have a potential to decrease the environmental impact of freight transport considerably. Environmental payback times of less than five years are achievable if freight traffic volumes are sufficiently high. However, some severe violations against sustainability principles were identified. Still, ERS could prove to be a valuable part of the solution, as they drastically decrease the need for large batteries with high cost and sustainability impact, thereby catalyzing electrification and the transition towards sustainable freight transport

Strategic Sustainability Risk Management in Product Development Companies

Society’s transition towards a sustainable state entails rapid and disruptive change in all sectors. This change is the source of profound uncertainty. From a company perspective, it can either pose existential threats if current practices or products enforce unsustainable development, or it can present opportunities if the company can provide solutions to the sustainability challenges humanity is facing. Such sustainability-related threats and opportunities, i.e., risks, can be related to, for example, reputation, legislative change, litigation, the ability to attract and retain talented employees, or the ability to meet customer needs on increasingly sustainability-driven markets. While more and more companies recognize the importance of building capabilities for sustainable product development to remain competitive, the relation between social and environmental aspects and economic performance is still oftentimes viewed as a trade-off where some profit must be sacrificed to be sustainable.Based on an interactive qualitative research approach, this thesis shows how a risk management lens can be used to support decision-makers at product development companies in understanding the dynamic interplay between socio-ecological sustainability aspects and business implications. The conceptual understanding of sustainability risks was advanced by identifying their characteristics and by proposing a new definition, utilizing literature review and the Framework for Strategic Sustainable Development. In the next step of the research, today’s situation and preconditions at some product development companies in Sweden were studied. Using multiple data collection methods, current risk management practices were investigated and hypotheses for sustainability integration were derived. Based on interviews with industrial and academic experts, the hypotheses were further developed into key aspects for sustainability risk management that can be used as recommendations for practitioners. Utilizing the newly developed definition and key aspects, a conceptual approach for strategic risk management within the sustainability transition was conceived. This approach was then adapted and operationalized as a workshop method for multifunctional teams in the context of product portfolio planning. Finally, the Sustainability Impact and Effects Analysis was developed and tested through an action research approach to provide decision-makers in early phases of the product innovation process with practical support for identifying, assessing, and managing sustainability risks. Uncertainty is neither good nor bad – it is just an inherent part of reality. This thesis showed how a risk management approach can be used to guide decision-making in uncertainty within the sustainability transition in a product development company context. Thereby, companies can take the strategic leadership that is required to benefit from the opportunities that can be found in this time of deep uncertainty

Strategic Sustainability Risk Management in Product Development Companies

Society’s transition towards a sustainable state entails rapid and disruptive change in all sectors. This change is the source of profound uncertainty. From a company perspective, it can either pose existential threats if current practices or products enforce unsustainable development, or it can present opportunities if the company can provide solutions to the sustainability challenges humanity is facing. Such sustainability-related threats and opportunities, i.e., risks, can be related to, for example, reputation, legislative change, litigation, the ability to attract and retain talented employees, or the ability to meet customer needs on increasingly sustainability-driven markets. While more and more companies recognize the importance of building capabilities for sustainable product development to remain competitive, the relation between social and environmental aspects and economic performance is still oftentimes viewed as a trade-off where some profit must be sacrificed to be sustainable.Based on an interactive qualitative research approach, this thesis shows how a risk management lens can be used to support decision-makers at product development companies in understanding the dynamic interplay between socio-ecological sustainability aspects and business implications. The conceptual understanding of sustainability risks was advanced by identifying their characteristics and by proposing a new definition, utilizing literature review and the Framework for Strategic Sustainable Development. In the next step of the research, today’s situation and preconditions at some product development companies in Sweden were studied. Using multiple data collection methods, current risk management practices were investigated and hypotheses for sustainability integration were derived. Based on interviews with industrial and academic experts, the hypotheses were further developed into key aspects for sustainability risk management that can be used as recommendations for practitioners. Utilizing the newly developed definition and key aspects, a conceptual approach for strategic risk management within the sustainability transition was conceived. This approach was then adapted and operationalized as a workshop method for multifunctional teams in the context of product portfolio planning. Finally, the Sustainability Impact and Effects Analysis was developed and tested through an action research approach to provide decision-makers in early phases of the product innovation process with practical support for identifying, assessing, and managing sustainability risks. Uncertainty is neither good nor bad – it is just an inherent part of reality. This thesis showed how a risk management approach can be used to guide decision-making in uncertainty within the sustainability transition in a product development company context. Thereby, companies can take the strategic leadership that is required to benefit from the opportunities that can be found in this time of deep uncertainty

Sustainability Risk Management in Product Development Companies - Motivating Change

Both the ecological and social system are systematically degrading, resulting in decreasing capacities to support human civilization. Product development and manufacturing companies play a key role in driving society’s transition towards a sustainable path. Besides moral arguments, the motivation for companies can be expressed as a matter of smart risk management, i.e. avoiding threats and exploiting opportunities. Such sustainability risks can be related to, for example, brand and reputation, legislative change, or attracting top-talented employees. But, more importantly, it is about understanding changes that are inevitable on markets to come. Based on Maxwell’s interactive qualitative research approach and following the structure of the Design Research Methodology, this thesis aims to contribute (i) to knowledge by increasing the conceptual understanding of what sustainability risks are; and (ii) to practice by researching decision-support for how sustainability risks can be managed in a product development company context. The first study reviewed existing literature and identified characteristics of sustainability risks, which make them particularly difficult to manage. A following exploratory and descriptive study investigated companies’ current risk management practices and preconditions for sustainability integration. It showed that the effects of uncertainty from the sustainability transition need to be identified, assessed, and managed in relation to how they can affect objectives anchored in both internal and external stakeholder value creation. In parallel, the Framework for Strategic Sustainable Development was applied as a lens to understand the implications of the sustainability transition for company risk management. This resulted in a new definition, stating that sustainability risks are threats and opportunities that are due to an organization’s contribution or counteraction to society’s transition towards strategic sustainable development. A questionnaire study then investigated some case companies’ challenges and preconditions to build sustainability capabilities. Finally, a workshop method is proposed that aims to support design teams in early sustainable product development. Future research will leverage on the findings to develop and test decision support for how product development companies can manage sustainability risks on different organizational levels in practice to increase competitiveness, while taking leadership in the transition towards a sustainable society

Risk Management Practices in Product Development Companies

Product development (PD) is inherently linked to taking and managing risks. For risk management (RM) to be truly effective, it cannot be treated in product development in isolation. Instead, a holistic perspective is required that recognizes and leverages the communication and connections between RM sub-disciplines across the organizational hierarchy, including e.g. enterprise-, portfolio-, project-, and product RM. Therefore, the purpose of this study is (i) to investigate current RM practices on the strategic, tactical, and operational levels, and (ii) to increase the understanding of how RM sub-disciplines are connected and interact. To answer these questions, semi-structured interviews were conducted at two large multinational PD and manufacturing companies in Sweden. Also, based on previous research, a novel self-assessment tool was developed and tested to map areas of strength and identify improvement potential. The results show that RM processes are mostly formalized and systematic, but there is variation in the quality of performed RM activities. Qualitative support tools are dominating. The tools themselves are considered to be helpful, however, the challenge is to make people use them in value-adding ways. Other challenges and success factors include competence and awareness, culture, top-down demand for high quality RM activities and deliverables, a dedicated role with clear responsibility, and working early and continuously with RM. The importance of experience is stressed, however, no systematic way to work with lessons learned and knowledge sharing is in place at the companies. Risks are found to be primarily escalated bottom-up. The corresponding top-down flow constitutes of objectives, which ideally are cascaded all the way from company vision and strategy into product requirements. Through these findings, the contribution of this study is (i) providing detailed insight into current RM practices, not limited to the PD function, but considering a broader organizational context; and (ii) clarifying the role of goals and objectives for connecting RM on different levels

Electric road systems : Strategic stepping stone on the way towards sustainable freight transport?

Electrification of the transport sector has been pointed out as a key factor for tackling some of today's main challenges, such as global warming, air pollution, and eco-system degradation. While numerous studies have investigated the potential of electrifying passenger transport, less focus has been on how road freight transport could be powered in a sustainable future. This study looks at Electric Road Systems (ERS) in comparison to the current diesel system. The Framework for Strategic Sustainable Development was used to assess whether ERS could be a stepping stone on the way towards sustainability. Strategic life-cycle assessment was applied, scanning each life-cycle phase for violations against basic sustainability principles. Resulting sustainability "hot spots" were quantified with traditional life-cycle assessment. The results show that, if powered by renewable energy, ERS have a potential to decrease the environmental impact of freight transport considerably. Environmental payback times of less than five years are achievable if freight traffic volumes are sufficiently high. However, some severe violations against sustainability principles were identified. Still, ERS could prove to be a valuable part of the solution, as they drastically decrease the need for large batteries with high cost and sustainability impact, thereby catalyzing electrification and the transition towards sustainable freight transport. © 2018 by the authors.open access</p

Company Risk Management in Light of the Sustainability Transition

Many of the most important business and economic risks are directly linked to environmental and social issues. This includes both threats and opportunities, not only in relation to reputation, which is often mentioned in this context, but, even more importantly, in relation to innovation capability and legislative change on inevitably more and more sustainability-driven markets. It is, however, unclear through which mechanisms such sustainability risks currently affect companies and how they can be systematically identified and managed. Based on the Framework for Strategic Sustainable Development, this study investigates the dynamics and implications of society’s sustainability transition from a company risk management perspective. In addition, exploratory and descriptive studies were conducted at two large product innovation companies to identify current risk management practices and preconditions for sustainability integration. The results reveal that a society moving closer towards a collapse of environmental and social systems leads to increasing sustainability-related threats for unsustainable businesses and increasing opportunities for sustainable businesses. Also, risk management is found to be a promising way for maneuvering in a smart zone between being too passive and being too pro-active in relation to sustainable innovation.The study participants at the case companies were knowledgeable about risk management in general but were largely unfamiliar with risks associated with sustainability and no processes or support tools exist to work systematically with such risks. Key steps to accomplishing an integration of a strategic sustainability perspective into risk management are proposed as: (i) identifying the effects of sustainability issues on internal and external stakeholder value; (ii) actively including sustainability in objective setting and cascading objectives across the levels of the organizational hierarchy; and (iii) developing concrete support for identifying, assessing, and managing economic sustainability risks. Thereby, companies can enhance their competitiveness while providing leadership in the sustainability transition.open accessSustainability Implementation Packag