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The Conscious Need for Innovation and Design.

Stefan Blachfellner

on 16 May 2012

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Transcript of Ethonomics

Ethonomics Organization Society People Customer Choice Limits of Growth Innovation Need New Green Deal Sustainability Business Model Design Social Business Beyond GDP Get the Mojo back in business Stewardship Less bad is not good Process optimization and resource reduction is not radical innovation and design The Conscious Need for Innovation and Design Ethonomics is a hybrid of technology, design, and social responsibility, and at Fast Company we believe it is the future of business. > Noah Robischon Fri Feb 20, 2009 Convenience / Functionality Price Purpose [Sustainability] goodpurpose™ Study 2010 surveyed 7,000+ consumers across 13 countries, aged 18-64. 86% of global consumers believe that business needs to place at least equal weight on society’s interests as on business’ interests. Consumers in Brazil, China, India and Mexico are more likely to purchase and promote brands that support good causes, outpacing their peers in the West. “I would switch brands if a different brand of similar quality supported a good cause.” India 78% | Global 62% “I am more likely to recommend a brand that supports a good cause than one that doesn’t.” China 77% | Global 62% “I would help a brand to promote their products or services if there is a good cause behind them.” Brazil 80% | Global 61% Purpose is now the fifth “P” of marketing. It is a vital addition to the age-old marketing mix of Product, Price, Placement and Promotion. When choosing between two brands of equal quality and price … Social purpose [Global 42%, in Germany 45%] continues to rank as the number one deciding factor for global consumers above design, innovation [31%] and brand loyalty [27%] Consumers want to work alongside brands and corporations to develop the best ideas for solving the world’s problems, then tackle them head on. Consumers want to partner with brands: 71% believe brands and consumers could do more to support good causes by working together, 63% want brands to make it easier for them to make a positive difference. 64% believe it is no longer enough for corporations to give money; they must integrate good causes into their everyday business. Survival Success Transformation Meaning Unrecognized Needs Recognition Desires Money Expectations Chip Conley, 2007, Peak Empathy Map (Gray,Brown & Macanufo, 2010, Gamestorming) The Business Model Canvas (Osterwalder & Pigneur, 2010, Business Model Generation) 2011 Gibbs & Soell Sense & Sustainability® Study interviewed a nationally representative sample of 2,031 U.S. adults ages 18+ and 302 Fortune 1000 executives in the US. The majority (88%) of business leaders report their company is “going green.” However, only 29% of executives and 17% of consumers believe that a majority of businesses are committed to sustainability. Most executives report the needs to meet customer demand (42%), help reduce or reverse global climate change (34%) and meet executive leadership/shareholder demands (31%) as the chief reasons their organization is “going green.” Only about 1 in 10 (11%) executives note their company’s motivation is to respond to pressure from non-government organizations (NGOs) and special interest groups. A New Era of Sustainability – UN Global Compact-Accenture CEO Study 2010 93% of CEOs believe that sustainability issues will be critical to the future success of their business.
72% of CEOs cite “brand, trust and reputation” as one of the top three factors driving them to take action on sustainability issues. Revenue growth and cost reduction is second with 44%.
96% of CEOs believe that sustainability issues should be fully integrated into the strategy and operations of a company. CEOs are more committed than ever to creating a sustainable business. Yet the motivator is no longer just social responsibility; it’s now equally about achieving high performance measured in lower costs, stronger customer relationships and increased revenues. CEOs identify the consumer as the most important stakeholder in influencing the way in which they will manage societal expectations over the next five years: 58 percent of survey respondents CEOs are aware of the critical role that innovative, leading-edge technologies are playing in advancing the sustainability agenda In the 2010 Sins of Greenwashing study, TerraChoice surveyed 5,296 products in Canada and the U.S. that make an environmental claim. In the 24 stores TerraChoice visited in both 2009 and 2010 (same brand, same location, same size), the number of “greener” products (products claiming to be green) increased by 73 per cent. The proportion of sin-free products appears to have doubled in each of the last two studies, from less than 1 per cent in 2007 to less than 2 per cent in 2009, and to almost 4.5 per cent in 2010. TerraChoice found that over 95 per cent of “greener” products commit one or more of the seven “Sins of Greenwashing”. It’s not about marketing its about connecting and socializing with the consumers. (Deloitte, 2011, Consumer 2020. Reading the Signs.) According to the World Economic Forum and Deloitte (2009) by 2030 almost 2 billion new consumers will have joined the global middle class. Greater consumption leads to greater strain on resources. If everyone were to adopt the historic consumption of an average UK citizen, three planet earths would be required, five planets if the new consumers adopt the lifestyle of North Americans. Without sustainable consumption it will become increasingly difficult to meet the collective expectations and aspirations of the world new consumers. Market solutions?
Consumers of 2020 will shape their buying decisions and consumption based on values and beliefs founded at a time when the world realized there were limits. Limits to how much debt one can have, how much water they can use, how much energy and food can be produced. Deloitte (2011) Business Solutions?
CEOs see that a new era of sustainability will entail a number of business imperatives and change the face of competition. For example, companies will need to develop a broader sense of what value creation means to society as a whole. (Accenture 2010) Governmental solutions?
Basic assumption behind the Green New Deal (Keynesianism): Business innovation (creative destruction) and consumer demand (novelty seeking) will drive consumption forwards again. (Jackson, 2009, Prosperity without Growth) still the No.1 reason to choose followed by the No.2 reason but there is a new player in town some study results an emerging lifestyle accompanied by new print and online media titles gets mainstream but while everybody wants to grab a chunk of the growing market we face new decision problems information is crucial information at the point of sale with "Transparency-Engines for Sustainability" search engines are just the beginning browser add-ons signal the sustainability footprint while we visit e-commerce websites mobile apps like barcoo.com, a strategic partner of wegreen, enables consumers to scan the sustainability footprint of consumer goods while the decide at the shelf as consumers already connect with brands executives still need to learn some more results from the goodpurpose™ Study 2010 some evidence? and again we witness the emergence of new print and online media titles adressing the innovation communication special interest but let´s face it: we need to innovate our business models develop a deep understanding of our customers adressing what we, people really need & benefit from open innovation so, are you ready? because other people are! "You can be the change you want to see in the world" Sources and further readings:

Accenture (2010). A New Era of Sustainability. UN Global Compact-Accenture CEO Study 2010. Retrieved April 19, 2011, from http://www.unglobalcompact.org/docs/news_events/8.1/UNGC_Accenture_CEO_Study_2010.pdf

Conley, C. (2007). Peak. How Great Companies Get Their Mojo from Maslow. Jossey-Bass, San Francisco.

Deloitte (2011). Consumer 2020. Reading the Signs. Retrieved April 19, 2011, from http://www.deloitte.com/assets/Dcom-Germany/Local%20Assets/Documents/06_CBuTransportation/2010/de_CBT_Consumer2020_27012011.pdf

Edelman (2010). goodpurpose®Study 2010. 4th Annual Global Consumer Survey. Retrieved April 19, 2011, from http://www.lohas.de/index.php?option=com_content&task=view&id=1325&Itemid=172

Fastcompany (2009). What is Ethonomics. Retrieved April 19, 2011, from http://www.fastcompany.com/blog/noah-robischon/editors-desk/what-ethonomics.

Gibbs & Soell (2011). Sense & Sustainability® Study. Perspectives on Corporate Sustainability Among Consumers and Fortune 1000 Executives. Retrieved April 19, 2011, from http://www.gibbs-soell.com/home/pulse-check/2011-gibbs-soell-sense-sustainability-study/

Gray, J.; Brown, S.; Macanufo, J. (2010). Gamestorming. A Playbook for Innovators, Rulebreakers, and Changemakers. O´Reilly, Bejing, Cambridge, Farnham, Köln, Sebastobol, Tokyo.

Jackson, T. (2009). Prosperity without Growth. Economics for a Finite Planet. Earthscan, London, Sterling, VA.

Osterwalder, A., Pigneur, Y. (2010). Business Model Generation. A Handbook for Visionaries, Game Changers, and Challengers. John Wiley & Sons, Hoboken, New Jersey.

Steffen, A. (Ed.) (2008 & 2011). Worldchanging: a user´s guide for the 21st century. Abrams Books, New York.

TerraChoice (2010). Sins of Greenwashing: Home and Family Edition. Retrieved April 19, 2011, from http://sinsofgreenwashing.org/findings/greenwashing-report-2010/

WeGreen (2011). Apps. WeGreen Firefox Add-on - Grün Surfen! Barcoo - Scan Dich glücklich! Retrieved April 19, 2011, from http://wegreen.de/de/apps

Wikipedia (2011). Ethonomics. Retrieved April 19, 2011, from http://en.wikipedia.org/wiki/Ethonomics
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