Sustainable production and consuption Sustainable production and consumption involves business, government, communities and households contributing to environmental quality through the efficient production and use of natural resources, the minimization of wastes, and the optimization of products and services." Edwin G. Falkman, Waste Management International. Sustainable Production and Consumption: A Business Perspective. WBCSD, n.d.

Sustainable production and consumption is… The use of goods and services that respond to basic needs and bring a better qualify of life, while minimizing the use of natural resources, toxic materials and emissions of waste and pollutants over the life cycle, so as not to jeopardize the needs of future generations."

Eco-efficiency is the most efficient use of materials and energy in order to reduce economic costs and environmental impacts. This is widely considered a pragmatic approach, particularly among business, but it has been noted that improved unit efficiency does not necessarily lead to lower consumption levels. Economic output may rise with constant or reduced resource inputs.

De-materialization Development and dissemination of products and services increasingly immaterial, which are characterized by less use of resources and producing less waste. An increasing share of the value of production consists of intangible factors.

Trans -materialization Process by which hazardous materials or poor (or non- renewable) are replaced with other renewable or less impact.

Conditions for a sustainable economy Technological progress: The output per unit of pollutant (or exploited resource) to grow continuously and consistently. Need to drive and change the structure of investment towards technologies (so-called green technology) that reduce the intensity of use of natural capital and increase efficiency. Reinvestment of ecological efficiency of the increase of income obtained.

SBD: sustainable business development STRATEGIC FRAMEWORK FOR INTEGRATING BUSINESS ENTERPRISES, CREATING INNOVATIVE SOLUTIONS SBD Take a comprehensive perspective of the corporation and its business environment that includes direct relationship with suppliers, distributors, customers partners, employees and shareholders and indirect linkages with stakeholder, competitors relates industries and natural environment (eco-system)

Management system

Enterprise manager model Holistic management construct Understanding needs, expectations Define business environmental Relationships between enterprises

Value system plus

External structure

Chapter 7 of SBD Chapter 1 of MTI

Overview

Technology Is a complex term that includes art, science, engineering, devices, methods, and know-how thet are applies in a beneficial manner. It usually take the form of product and processes that can be used to create solutions. In particulary it is true for hardware and software applications.

Technology and innovation Is a subset of strategic technology management and the systematic creation of new-to-the-world technologies that are superior to their predecessors and the improvements of exisisting technology platforms and portfolios.

Strategic Technology Management Technological innovation is an important strategic issue today. Recently, extensive analyses of automotive suppliers and industrial manufacturers. The findings suggest there are considerable strategic risks associated with the management of new technologies. Patented technologies and the ability to create value-added features using those technologies are valuable differentiators which contribute to high profit margins. However, technology that remains static can not maintain a premium position in the marketplace. example: As seen with anti-lock brake systems and airbags, even the most advanced technologies will eventually become commodity items.

The market entry phase New-technology suppliers should reinvest profits from the current technology into the next- generation technologies. In the innovation phase, suppliers should strategically reposition the current technology to focus on the emerging low-cost commodity phase. Those who fail to recognize the different phases and adjust their management approach over time will suffer the consequences.

The window of opportunity for a new technology is considered to be about 10 years, depending on the technology. Within this ten year window, there are three product phases, namely: Phase 1 - Market Entry phase - rapid market penetration to gain economies of scale Phase 2 - Innovation phase - technological change to drive down cost while adding features Phase 3 - Commodity phase - process driven phase where manufacturing cost control is essential for survival Opportunity’s window

Over the last five years, some well-known suppliers sold or spin-off their automotive business units in the face of general under-performance, compared to non- automotive operations. Among them are A. O. Smith, Rockwell, Allied-Signal, ITT, United Technologies and Cooper Industries.

Conglomerate vs suppliers For conglomerates, divestiture of an unprofitable business is a luxury that other suppliers do not have. These suppliers have no alternative: to improve or to die. These suppliers have no alternative: to improve or to die. If the 1990s was the decade of turmoil in the automotive industry, the first decade of the twenty-first century will be one of survival. Darwinian theory This is not a doomsday prophecy but simply a stricter application of the Darwinian theory. As the competition extends and intensifies globally, automotive suppliers should be more aware of the changes in the environment in which they operate; accurately assess the implications of those changes; and position themselves accordingly.

Strategic technology management Managing technological change Technological forecasting and assessment Strategy for innovation Technological innovation Technology: cause or solution? Stability or change? Technology life cycle: It is a time based theory of technological change that use the S curve to depict the development and growt of a technology

Shits S-Curve in Business– Sustained Growth Reinvent Your Business by Paul Nunes and Tim Breen

In practice…

Hype Cycle for Emerging Technologies, 2013 Source: Gartner August 2013

Hierarchy of innovation and integration

Convergence of balanced technological and product attributes Value Quality Low costs Performance Durability Reliability Comfort Aesthetics Esteem Market attributes Innovation attributes Market Social Technological Economic Environmental Stakeholder attributes Ultra Clean No Waste Redploy High Efficiency Love Noise Conservation Recyclable Lean

What is management of technological innovation and why is it important? MTI

R&D EFFICIENCYEFFECTIVENESS OPERATIONS AND PROCESS TECHNICAL INVESTIMENT BUSINESS UNCERTAINTY NEW PRODUCT DEVELOPMENT COMMERCIALIZATION PROCESS COLLABORATION …

…see you next lesson!