SPIN Benchmarking The product planning phase contains all steps that are necessary to develop a good design brief for further product development in phase 3. Amongst these steps are an internal and external analysis, and the development of a brand promise and market strategy. Depending on the selected SPIN working package, there will be an assessment of the product that is to be improved – either through benchmarking or redesign - or the generation of a first idea for the development of a new product. The result of these activities will be summarized in the design strategy and design brief, which also describes the concrete plans and planning for the following phases.

Content Introduction to D4S Benchmarking. What? Why? How? Different kinds of Benchmarking The 10 Step D4S Benchmarking approach Lessons learnt

Benchmark

D4S benchmarking Benchmarking is the process of improving the performance of an existing product by continuously identifying, understanding, and adapting outstanding practices and processes found both within and outside of the organization.

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Why D4S Benchmarking? Copying or benchmarking is often the most common way of product development in SME (as well as in bigger companies). By looking at and learning from competitors new products for the company itself are developed or improved. Often however the environmental aspect is being ignored. As a result often the ‘copy’ products are even more worse for the environment compared to the original products. D4S Benchmarking supports the company to make its products more competitive, cost efficient as well as cost-effiecient

Why D4S benchmarking of products? Know what you are talking about. Know where you stand with respect to demands for customers, legislation. Find out where you can save money. Know where you stand with respect to competition Be able to set priorities and to integrate environment into product development process.

Characteristics of Benchmarking Comparison with competition; relative not absolute Technical language and tangible units instead of environmental indicators: , kg, %, m, l, … Learning by doing; do it yourself – visible. Easy to integrate into business process; environmental specification of products

Environmental benchmarking Advantages: Improvement potential Learning by doing Time / money Business link Communication Control Feasibility Relative Limitations: Only redesigns Only incremental

Different kinds of Benchmarking

Processes/ Strategies D4S benchmarking Processes/ Strategies Products / Services Internal Against internal targets Against previous models External Traditional benchmarking D4S benchmarking

Comparing against older models

Comparing with competitors or other product lines

Different kinds of D4S Benchmarking The D4S Benchmark can be based upon: Physical products of competitors which can be measured, dismantled and being analysed in detail. Information of products of competitors gathered form the internet, visiting fairs and looking in shops. The first provides more insights but is also more cost and time intensive since the products have to be purchased and analysed in details. The D4S Benchmark can be done in two ways: Light version: An all in one worksheet. This suitable for simple products as well as when the financial and staff resources are limited. Extended version: 10 worksheets

Different kinds of D4S Benchmarking

The 10 Step D4S Benchmark approach

Step 1 – 5 D4S Benchmark

Step 6 – 10 D4S Benchmark

Step 1: What are the objectives of the D4S Benchmark? There are many reasons to initiate a D4S Benchmark. It is essential to discuss the objectives. This will have an impact on the D4S Benchmark design and will assist in identifying the the products to be studied and the parameters used to make comparisons. Possible objectives for a D4S Benchmark could be: To Learn from worldwide competition in order to enter an international market. To know-how the product scores in comparison to local competitors To get inspiration for environmental improvements Etc.

Step 2: How to select products for the D4S Benchmark Based upon the defined objectives in Step 1 the product could be selected by: Identifying the leading products in the sector (local, regional or international) Select products in the same specific market (target group, price/quality etc.) Identify products that illustrate ‘best practice’ or ‘worst practice’

Step 3: What is the functional unit and system boundary of the D4S Benchmark The context in which a product will be used influences the result of a benchmark. To make a clear comparison of products it is essential to describe the function, the context, user scenario and system boundaries. This is usually referred to as ‘functional unit’ and enables a ‘fair’ comparison.

Functional Unit: drinking 1,5 liter bottled water

But how much is used….

Exercise 5 groups Each group 1-2 experts from Seafood or Tea group Choose one of the products to be ‘your’ product Fill in Worksheet 2.6.A, B1 2 3

Step 4: What are the focal areas for the D4S Benchmark? To determine the main product variables to be benchmarked, it is necessary to identify what issues or focal areas are of ‘environmental relevance’. Typical Focal areas for pakaging: Environmental aspects of food and packaging: Materials, amount, layers, reuse, recyclability, …. Protection of the food Distribution Communication Ease of use Perception/value for users

Step 5: How to translate the focal areas into measurable parameters? With the focal areas identified, the next step is to translate them in measurable variables. The challenge is to translate these ‘qualitative’ focal areas into quantifiable variables.

Exercise: Fill in 2-6-B, B5 Define focal areas What topics? Objective to choose the focal area? If possible describe parameters (soemtimes only qualitative description)

Step 6: How to organize a disassembly session In a ‘physical’ D4S benchmark, the next step is to organize a disassembly session. To get the best results it is worthwhile to plan well and structure it methodologically

Disassembly session for food (packaging) Opening the packaging, easy - difficult? Food quality ? Amount of packaging, number of packaging layers, double/triple packaging, printing Packaging materials Protection of the products when open? Storing/closing of packaging Distribution when open? Taste the products , taste, texture … User aspects Perception

Step 7: How to process and compare the outcomes of the D4S Benchmark After the collection of all the relevant information for the D4S Benchmark focal areas, the next step is to process the data. It is advisable to prepare fact sheets for each focal area summarizing the compiled information to make the information more easily interpretable.

Step 8: How to review the results and to generate improvement options During the disassembly session and the other steps of the benchmark “smart solutions” of competitors and “silly solutions” in the company’s own product will be encountered. Use these findings to generate improvements for your product Go through the list of options in the Guide on page 80, sub-strategies for SPIN

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Step 9: How to evaluate and prioritize the improvement options Environmental benefits: an assessment of whether the improvement option reduces environment impacts along the product life cycle. Consumer benefits: an assessment of whether the consumer is likely to accept the option as a benefit. Societal benefits: an assessment of to what extent society will benefit from the proposed improvement. Company feasibility Technical feasibility: an assessment of whether the improvement options are technically feasible (and timely). Financial feasibility: an assessment of the financial viability each of the improvement options.

Evaluating options: Ecodesign Matrix Benefit Feasibility Environment Business Customer Tech Financial #1 #2 #3 #4 #5

Exercise step 1 find improvements form the silly and smart solutions Find other improvement options Make a list of the improvement options (fill worksheet B8)

Exercise step 2 Select the best feasible 5 options , put in worksheet B9 Evaluate the improvement options on the criteria, (--,-,0,+,++) worksheet B9 Environmental benefits Consumer benefits Company benefits Technical benefits Financial benefits Managerial benefits

Step 3: How to implement the improvement options? We move to Phase 3, Product Development (same as redesign steps done yesterday) We will skip the project brief (same as yesterday) Starting from the improvement options: Concept generation (only one concept) Present sketch of your companies improved product

Lessons learned from Benchmarking Awareness I never realized that … my competitor is better in … Big differences for ‘new’ products also for products at end of learning curve Improvement potential no brand scores consistently best All focal areas affected Strong basis for improvement