Supporting SMEs in designing sustainable business models for energy access for the BoP The Design Framework and Cards Photo: R. S. Escudero CIWEM Silvia Emili College of Engineering, Dr Fabrizio Ceschin Design and Physical Sciences Dr David Harrison Department of Design
Overview • Energy access and sustainable development • Distributed Renewable Energy (DRE) • Product Service Systems (PSS) • The PSS+DRE Design Framework and Cards • Development and evaluation of the tool • Further research activities Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 2 Brunel University London BoP: the Design Framework and Cards
1.4 lacking modern energy access billion people 82% of total primary energy supply comes from fossil fuels Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 3 Source: NASA Brunel University London BoP: a strategic design tool Photo: NASA
Ensuring universal Energy Access Doubling the share of Renewable Energy Doubling Energy Efficiency Sustainable development goal ENSURE ACCESS TO AFFORDABLE, RELIABLE, SUSTAINABLE AND MODERN ENERGY FOR ALL Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 4 Brunel University London BoP: a strategic design tool
Distributed Renewable Energy Centralised Decentralised Distributed if fed by renewable energy sources Distributed Renewable Energy (DRE) systems Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 5 Brunel University London BoP: the Design Framework and Cards
Product-Service Systems Traditional business model: Product-Service System: selling a product selling the use of a product, a result or performance ownership ownership PRODUCT PERFORMANCE PRODUCT SERVICES payment CUSTOMER payment CUSTOMER MANUFACTURER MANUFACTURER selling a lighting product Pay-per-lux PHILIPS Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 6 Brunel University London BoP: the Design Framework and Cards
Research topic PSS applied to DRE Distributed Product-Service Renewable Energy Systems (PSS) (DRE) Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 7 Brunel University London BoP: the Design Framework and Cards
PSS applied to DRE Complex solutions that require a new design approach Energy-using Customers products Network of providers Services Renewable energy sources Energy Payments systems Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 8 Brunel University London BoP: the Design Framework and Cards
PSS applied to DRE: first research outcomes Innovation Map A classification system of PSS and DRE models and a strategic design tool • To map existing offers and competitors in the market • To explore opportunities for innovation • To generate new business ideas Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 9 Brunel University London BoP: the Design Framework and Cards
PSS applied to DRE The Design Framework and Cards A tool to support the design of new sustainable Product-Service Systems applied to Distributed Renewable Energy Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 10 Brunel University London BoP: the Design Framework and Cards
Design Framework and Cards AIMS • To visualise all the design elements that need to be considered • To generate new ideas • To support the refinement of concept ideas by browsing the guidelines and case studies Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 11 Brunel University London BoP: the Design Framework and Cards
Development of the Design Framework Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 12 Brunel University London BoP: the Design Framework and Cards
Design Framework Design elements e.g.: network of providers Design questions e.g.: who are the actors involved in the provision of the PSS solution? System elements e.g.: community Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 13 Brunel University London BoP: the Design Framework and Cards
Cards Cards are grouped according to system elements (customer, provider etc.) Cards collect design guidelines, case studies, critical factors for each design element Design questions: use the cards to answer to the design questions Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 14 Brunel University London BoP: the Design Framework and Cards
Guidelines development Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 15 Brunel University London BoP: the Design Framework and Cards
Cards Card example: services Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 16 Brunel University London BoP: the Design Framework and Cards
Cards back Card example: services Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 17 Brunel University London BoP: the Design Framework and Cards
Cards Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 18 Brunel University London BoP: the Design Framework and Cards
Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 19 Brunel University London BoP: the Design Framework and Cards
Design process 1. Starting point Detailing of customer, energy needs, ability to pay etc. 2. Products …then detail of the energy system, energy- using products Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 20 Brunel University London BoP: the Design Framework and Cards
Idea generation The Design Canvas is filled with details about the energy solution IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA IDEA Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 21 Brunel University London BoP: the Design Framework and Cards
Testing activities Workshops + questionnaires 8 companies 10 consultants & energy experts Kenya South Africa Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 22 Brunel University London BoP: the Design Framework and Cards
Clearness and usability Design Framework and Cards: their content is clear, the tool is easy to be understood and used Applications 1. Visualise all elements of PSS applied to DRE 2. Support the generation of ideas
Results from testing activities Rating 1 to 5, Design Framework 1=very poor, 5=very good Ease of use Average rating 1. Clearness: the elements are clear and their 4.3 relation easy to understand 2. The design questions are clear 4.4 Cards Ease of use 3. Clearness: the content of the cards is easy 4.5 to understand 4.5 4. Easy to be used 4.6 5. Appropriate layout Usefulness 6. The guidelines support the generation of ideas 4.5 7. Case studies inspire the generation of ideas 4.5 Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 25 Brunel University London BoP: the Design Framework and Cards
Next steps • The Design Framework and Cards will be applied in further testing activities in Nairobi and Gaborone. • Local SMES, NGOs,and experts from business, policy, design and technologies are involved in the evaluation process • A refined version will be digitally available Emili, Ceschin, Harrison Supporting SMEs in designing sustainable business models for energy access for the 26 Brunel University London BoP: the Design Framework and Cards
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