More 2 Marketing

more2marketing_sustainability and innovation in product development .mp3
Transcript
More to marketing. Welcome to more to marketing, a podcast on marketing, product and everything business. I’m your host, Susan, and today, what are you going to? Dive into our topic that I love. And that’s we’re going to explore the intersection of sustainability and innovation in product development. So for me, exploring this intersection is really important. Knowing that we need to have a lot of innovation out there to keep the excitement, to keep people wanting to use your product, your service, what is the next big thing out there? And I I just have a passion when it comes to this topic, so. Indulge me. For for this here we really want to talk about a bit about Eco practises and the products and how to maintain profitability and also consumer appeal. So when it comes to sustainability and product innovation, we need to really talk through what this sample materials look like for a business. Manufacturing processes, design principles and how to create that environmentally friendly product. It’s also key to to really look out there and see what are the trends. So what are consumers trending towards and sustainability things are changing all the time. Like look at the evolution of EV vehicles over the last two years. It’s just one example. Recycling what’s happening in the supermarket is about plastics, so you need to have a good understanding of consumer preferences towards eco conscious products and how a business can respond to these demands. What products are out there, what’s flyable, what’s feasible? What can we do with the budget that we have? Marketing strategies when we’re looking at things for sustainable products. It’s an interesting one because most of the time it’s going to be about education, so educating consumers of the benefits of wherever it could be, like a lot of the chocolate bars now that are coming out, no longer have plastic wrapping and they’ve got paper substrate. So educating the consumer that it’s still going to be just as fresh. So now I’ve got to look into what my warranty claim is for. Freshness for my product. So making sure that all those marketing strategies are covered when you’re looking at any changes you may be doing, all new products you’re bringing out. Reputation is a big one for a lot of businesses as well. So have a look into. Like businesses, other industries. What’s happened when it comes to brand new rotation and consumer trust and look for success stories and failures because you do learn a lot out of the failed businesses out there that go through this. Now technologies and practises to enable sustainability to happen, you need to make sure. That there are goals in mind. That you wanting to achieve. And also maintaining that product quality and competitiveness. Now there’s lots of challenges that come with this and you need to be able to address those as you go. But as the globe drives towards environmental consciousness intensifies, a lot of organisations across the industry are recognising the pivot pivotal role of sustainability and shaping their product innovation. Rd maps. No longer an afterthought, the integration of sustainable practises has become imperative for businesses seeking to maintain competitiveness. Meet evolving consumer expectations. And also contributing to that greener future. Now. We need to ensure that by embracing sustainability as a core, businesses can unlock new avenues of growth. It’s not about like a work type movement, it’s about really having true growth, fostering customer ability and drive positive change within that respective industry. Now, there are many motivations driving sustainability in product innovation. Now incorporating sustainability and product innovation stems from a multitude of factors. And they can include things like waves of change. This is Inflexion points and business models often serve as a catalyst for rethinking conventional approaches. So if you think about these waves that come through, there’s lots of things that can push you aside or push you forward or move you around. And they irritate from many different things. So the three main ones are going to be your consumer demand. So as we talked earlier, there’s the environmental issues that they’re conscious of. They actually are demanding a change. Plastic is a great example. Another wave is going to be your government regulations, so there’s there is changes happening for environmental laws and regulations across the world and that is also prompting many businesses to change because we need to comply. And then the the third one is talent acquisition. So a lot of companies are prioritising sustainability, a better app positioned to attract and retain top talent. Particularly among those individuals who are environmentally conscious and want to work for a company like that. So there is a cause driven approach and now some organisations have woven sustainable practises into the DNA and this can be from the outset, and coexisting harmonisation with the environment and pioneering alternative energy sources. And innovative ways of working. Now, according to McKinsey report, over half of the respondents of one of their recent surveys, who company really do have values in sustainable indicated that their CEO prioritised the sustainability on their strategic agenda as well. So they do live and breathe it internally, and that’s how it’s becoming more and more. Successful when the CEO backs it so from the top. All the way down. You’ve also got the process of optimization. So many companies are increasing measures, increasingly measuring the environmental impact of their products and services. They’re actively seeking ways to improve processes and exploring alternative even materials. Or source materials from sustainable sources. This proactive approach not only mitigates negative impacts, but also opens up opportunities for innovation and competitive advantage. A lot of the tea industry coffee industry, even chocolate industry. They’re making sure that they’re going for sustainable resource resources. So plantations that are being replanted over and over and over again to ensure that they’re not destroying and not growing back, they’re actually. Flying to repair. Don’t know how well that’s going, but it’s there’s they’re at least not leaving it alone. They’re trying. That’s more than a lot of other industries are doing. Now with business model transformation, well, all these other perspectives are valid. The most profound shift occurs when sustainability becomes ingrained in the very fabric of an organisation business model. This holistic approach represents a fundamental shift where sustainability permeates every aspect of the operations of the business, from product development to supply chain management and marketing, you name it, everything. So integrating sustainability into the product innovation life cycle to be truly embrace sustainability, organisations must weave it into the fabric of their product innovation lifecycle too. Ensure that the environmentally friendly considerations are present from the earliest stages of ideation, all the way through to the actual project retirement at the very end of its life cycle. Innovation planning itself. Begin by conducting a holistic analysis of your organisation, approach to innovation. Identify strategic areas where sustainable practises can be implemented across all departments. Team leaders should scrutinise activities that may have previously been overlooked as well, such as reducing printed materials or investing in more, say, energy efficient production equipment. No one can beat ideation. Get together, start talking, start building together. So during the ideation phase, consider sustainability factors when developing new product opportunities and concepts. Explore ways to minimise the carbon offset and your carbon footprint. Incorporate features that enable customers to adopt more sustainable practises. Or address environmental challenges through innovative solutions. Now after this you’ve got the concept development. As ideas evolve in the tangible concepts identify areas where material selection. Production processes, usage scenarios and disposal. See what you can do for sustainability there, make necessary adjustments where you can. If it aligns with the concept of your organisations environmental goal and then during the product development which is your final stage. Examine resources utilised material sources, production processes and the life scenarios. Aim to minimise waste, optimise energy efficiency and facilitate product recyclability and usability. Now that’s all well and great, but you need to be able to track and measure sustainable. Product development process. Because if you’re doing all this, you’re actually measuring and seeing your impact, how you’re going to know if you’ve improved your sustainability. For all your products, when you’re doing all this work, so it’s crucial to measure and monitor progress to ensure the continuous improvement and ultimately accountability. Now there’s a whole pile of questions you can put together for this to evaluate the effectiveness of your sustainable product development initiatives, but a handful of the main ones would be to what extent has waste or energy usage being reduced or by how much materials being recycled or sourced from sustainable or even natural raw materials. Is the company ahead of legislation or lagging behind its competitors in terms of sustainability? Can the environmental impact be minimised or the lifespan of existing products extended? Our new products with sustainable features effectively solving a problem for a customer. Can the probe be easily disassembled? Or recycled at the end of its life. These are just some questions you have more depending on your industry, but they give you a starting point. By regularly assessing these factors, organisations can identify areas of success and opportunities for improvement, enabling them to refine their strategies and stay aligned with their sustainability goals. Now, integrating sustainability considerations in the portfolio review is essential for ensuring that environmental objectives remain at the forefront of decision making processes. These reviews of your product portfolio shouldn’t compress various aspects, and that includes the impact of sustainable efforts on the revenue, customer satisfaction and stakeholder perceptions. Overall operational efficiency and regulator compliance. Progress towards achieving specific sustainable targets and the alignment of pipeline with environmental goals. While initially challenging, incorporating sustainability into portfolio reviews can become more seamless over time. One quote that I love from Doctor Sebastian Ruth from in. Invicta. Evening. Sorry. Once you’ve placed a stable at the core of your strategy change within your organisation, culture can rapidly Dr your innovation and product development towards these goals? Now you should put time into establish a sustainable innovation governance framework. Sustainable innovation processes necessitate a robust governance structure supported by innovative management system. This system should clearly define decision making, roles, responsibilities and processes, providing situational flexibility to adapt to evolving sustainability demands and external challenges. A well designed governance framework should include rules to manage unexpected situations within the innovation process. Ensuring that sustainability considerations are consistently factored into decision making. By establishing clear guidelines and reducing confusion, employees can focus their efforts on driving sustainable innovations rather than seeking constant approval from supervisors and wasting time. More comprehensive innovation management system embeds governance principles, creating a record of the sustainable, focused decisions made throughout the product design and introduction basis. These documents can serve as evidence of the organisation commitment to that environmental stewardship, fostering the transparency and accountability they need. Fostering a culture of sustainability is crucial for success and fostering a culture that embraces and champions these efforts is equally important. Organisations try to strive to cultivate an environment where sustainability is not merely a box to be ticked, but a genuine engrade value that permeates every aspect of the business. Effective communication and employment employee engagement are key to achieving this cultural shift. Regular training sessions, awareness campaigns, open dialogues can help employees understand the significance of sustainability and their role to contribute to the organisations environmental goals. Additionally, incentivizing and recognising sustainable practises can further reinforce this culture. Initiatives such as employment recognition programmes, sustainable focus, innovation challenges or performance based rewards can motivate individuals to seek out and implement sustainable solutions. Achieving sustainable product innovation often requires collaboration and knowledge sharing amongst various stakeholders. This can include even suppliers, partners and industry peers. By fostering collaborative ecosystems, organisations can leverage collective expertise, share best practises and Dr Innovation at a larger scale. Engaging with suppliers and partners to reduce carbon emissions throughout the supply chain is a critical step towards achieving sustainability goals. Collaboration efforts can lead to the development of more sustainable materials, optimised logistics processes and implementation of more of a circular economy principle. Participating in industry forums, consortiums, research initiatives, focus on sustainability innovations can also provide valuable insights, facilitate knowledge transfer, and foster cross club cross pollination of ideas. These collaborative efforts not only accelerate progress. But also contribute. To the collective advancement of sustainable practises within the broader industry. Now the rapid evolution of technology presents numerous opportunities to enhance sustainable product innovation efforts. From advancing materials and manufacturing processes to data driven decisions and digital product lifecycle management. Organisations can leverage a wide array of technology solutions to help Dr sustainability. Now some of the big ones are. Sustainable material and manufacturing. So we’ve got many advancements such as biomasses materials, addictive additive manufacturing and closed loop recycling systems. Now they are significantly reducing waste and energy consumption and the environmental impact. Another technology solution is digital product design and simulation. So virtual prototyping using computers and computer aided design like CAD and simulating tools enables organisations to optimise product designs for sustainability before actually building the physical prototype. Which means you’re gonna be reducing waste and hopefully accelerating your time to market. One that is on everyone’s lips at the moment. AI artificial intelligence and coupled with that data analytics. By harnessing the power of data analytics and AI, organisations can gain insights into resource utilisation. Identify inefficiencies and make informed decisions to enhance sustainability throughout. The product life cycle. Now the Internet of all things and smart products have also helped with technology. When it comes to sustainability, connecting products and Internet of all Things technologies enables real time monitoring of pro performance, usage patterns and environmental impact, facilitating for proactive maintenance. Optimising resource allocation and also improving end of life management. Now, by enhancing these technology enhancements, not only supports sustainable product innovation, but also positions organisations at the forefront of industry transformations, fostering long term competitiveness and also resilience. No. Sensibility is a fantastic thing for businesses to do. It’s equally important that there is a balance made between looking after the environment and business profitability, because the space businesses are in it to make money. They’re not in it to be completely noble. So sustainable product innovation should be approached as a strategic opportunity rather than a cost centre. I’m going to repeat that again, sustainability product innovation should be approached as a strategic opportunity rather than a cost centre. And this is enabling organisations to unlock new revenue streams, enhance operational efficiency and strengthen their brand reputation. One effective approach is to identify and capitalise on foreign consumer demand for sustainable products. By developing innovative solutions that address environmental concerns while meeting customer needs, organisations can differentiate themselves in the marketplace and capture a larger share of the sustainability conscious consumer base. Additionally, sustainable practises can lead to long term cost savings through improve resource efficiency, reduced waste and streamline operations. By implementing circular economy principles and optimising material usage, organisations can minimise their environmental footprint or simultaneously reducing operational costs. Practise sustainability efforts can mitigate potential risks associated with non compliance, such as fines. Legal liabilities and reputation damage by staying ahead of the envelope, evolving regulations and industry standards. Organisations can maintain their competitive edge and avoid costly setbacks. Now there are pros and cons for sustainability and product innovation. So let’s have a look at some of the cons pros actually look at pros. First, the pros. So when you’re considering sustainability and innovation that you’ve got competitive advantage, of course, sustain sustainable products can differentiate a brand in the market. Appealing to environmentally conscious consumers and fostering customer loyalty, there you’ve also got cost savings, so efficient resource utilisation, waste reduction and optimised processes can lead to significant cost savings over time. If you’re regulatory compliance, you’ll be able to avoid fines. You’ll also get some goodwill from your consumers as well. Another Pro is your talent acquisition and retention. So a lot of the time is you keep top talent who are environmentally conscious. And also very highly. Regarded right now amongst younger generations. It’s. Another Pro is brand reputation commitment to the environment. And the company’s reputation will strengthen. And then you’ve also got your corporate social responsibility efforts there too. Innovation opportunities. So addressing sustainable challenges can drive innovation and lead to the development of new products, services and business models. Now there are some cons. So the cons are sometimes the initial investment. Sometimes when you are implementing sustainable practises, it may require a significant upfront cost for infrastructure technology or the process of change. It can be complex. Sometimes the product development can be really complex to an existing process and require some very specialised expertise. Another is supply change. Supply chain challenges. Sourcing sustainable materials or components may be difficult. And bring in new suppliers can also just drop established supply chains. Consumer perception. Some consumers may be safe, sustainable products as more expensive or low performing, creating some potential barriers to adoption. Regulatory uncertainty. So in some areas it does take a long time for those changes to happen and they are long term planning needed. And then the green washing risk. This is when you’re going down that work Rd, where you’re being inauthentic, misleading. You you’re not being true to your brand and you might even be doing some misleading sustainability claims that can damage your reputation and root trust. So by carefully weighing in the pros and cons, organisations can develop comprehensive strategies that maximise the benefits of sustainable product innovations while proactively addressing potential challenges and mitigating the. Risks. Now. In an era where environmentally consciousness is rapidly becoming a global imperative. Integrating sustainability and product innovation strategies is no longer an option, but a necessity. By embracing sustainable practises throughout the Pro life cycle, organisations can unlock new avenues for growth, foster customer loyalty and contribute to a greener future. While the journey towards sustainable products, product innovation may present challenges, the rewards are multifaceted. From cost savings, operational efficiencies to brand rotation, the ability to. Attract top talent. These are all fantastic pros. By fostering a culture of sustainability, leveraging technology and collaborating with industry partners. Organisations can drive meaningful change and position themselves as lead up in their respective industries. Sustainability and innovation can go hand in hand. I can’t wait to see the next evolution of changes that are going to be happening very, very soon. Thank you for listening to this podcast from more 2 Marketing. Don’t forget to follow to hear more podcasts. More to marketing.