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Deliverable 6B.1

The D4R LAPTOP, INDUSTRIAL NETWORK, MARKET BARRIERS TO

COMMERCIALISATION

Grant Agreement number: 226752

Project acronym: ZEROWIN

Project title: Towards Zero Waste in Industrial Networks

FUNDING Scheme: Collaborative project

Delivery date: 30.04.12

Deliverable number: D6B.1

Work package number: WP6B.1

Lead participants: MicroPro and GAIA with input from AUO

Nature:

Dissemination level: Private

Author(s): Maher, P, Galligan, A, Ospina, J. (MicroPro)

Garatea, J, Benito, B, Vidorreta, I (GAIA)

Yang, M (AUO)

Project co-ordinator: Dr. Bernd Kopacek,

Austrian Society for Systems Engineering and

Automation

Tel: +43-1-298 20 20

Fax: +43-1-876 06 619

E-mail: bernd.kopacek@sat-research.at

Project website: www.zeroWIN.eu

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Contents

1. SUMMARY 3

2. Eco-Design Strategies 4

3. Prototype Presentation 7

4. Parts and components 9

5. Remanufactured panel 12

6. Industrial Network 13

7. ZeroWIN targets 17

8. Marketing Mix 19

8.1 Price 19

8.2 Distribution 21

8.3 Promotion 22

8.5 Target audience 24

9. External Analysis 25

9.1 Legislative factors 25

9.2 Main EU Directives: 27

9.3 Other policies 30

9.4 Legal barriers: 31

9.5. Economic factors 32

9.6 Social factors 33

9.7 Competitiveness analysis 39

9.8 Market analysis 42

10. SWOT analysis 45

11. Conclusions 47

12. List of Tables and Figures 50

13. Glossary of technical terms 51

14. References 54

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1. SUMMARY

The Description of Work (DoW) of D6B.1stated in the ZeroWIN Project explains that Deliverables should address:

• development of prototypes and testing their market applicability/barriers

• development of industrial networks to demonstrate benefits and optimisation potential which can be achieved through focused cooperation

Also that Case Studies aim to implement design recommendations in high-tech products. Task 6B.1 for the D4R laptop, led by MicroPro, is supported by partners GAIA and AUO, and includes:

• development of a D4R prototype

• Identification of market barriers for a D4R laptop “The prototype development actually is intended to provide evidence, that the stakeholder consensus achieved in WP 3 can be implemented in a physical product. The development of a prototype is a complex task involving cooperation of the whole supply chain, forming an IT industrial network. Those companies form a team which has already cooperated on the development of an iameco PC. AUO will provide the LCD panels for the prototype”.i Task 6B.1 began in Month 12 and is to end on Month 48 of the Project. D6B.1 is the main deliverable, due in April 2012 (Moth 36). D6B.1 comprises the following:

• presentation of the rationale for design and manufacture and a description of an ecological laptop (D4R) developed within the framework of the ZeroWIN Vision and to meet the environmental objectives of the ZeroWIN project, written by MicroPro (chapters 2-7) and

• scoping study to establish the barriers to the marketing and dissemination of the D4R both as a product and a service, written by GAIA (chapters 8-10).

• conclusion from the case Study (chapter 11)

The first part of this Rreport describes the product (D4R), and put forward a Model for the industrial network, that will act as supply chain for materials and parts and components, and also for the manufacture, servicing upgrading and take-back of the D4R. This industrial network is made up of several SMEs and one major component manufacturer (AUO), and will act both as supply chain, service infrastructure, and marketing network for the D4R. The Model aims to deliver a robust system for production, marketing, servicing and take-back, provding a sustainable income stream for network members in several countries.

The second part provides a trawl of the principal factors affecting marketing of the D4R, including price, distribution, promotion, competitors, and target audiece. It includes an analysis of legislative factors that could affec the marketing, and analysies the staturs of the D4R in relation to the key European Directives, and other EU polcies. It considers what legal barriers might exist at a EU level, as well as economic and social factyors that might afect sales. It looks at competition to the

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D4R, and analyses the Euripean marketb for laptops. It finishes with a SWOT analysis that looks objectuvely at the current posotion of the D4R and the network .

A final chapter gives overall conclusions from the description and market analysis of the D4R, and sugegsts that it will become a benchmark for companies that wish to move towards designing, producing and selling sustainable products, based on a comprehensive reuse strategy.

2. Eco-Design Strategies

The D4R development is based principally on achieving the environmental targets

set by the ZeroWIN Project:

• Reduction of GHG emissions (by 30%)

• Increased recyclability and reusability (by 70%), and

• Reduction of water utilization (by75%),

These improvements are measured in reference to an agreed baselineii. It is also

D4R’s objective that these improvements be made as a result of the presence of a

generic industrial network, a cluster of industrial enterprises, where the “by-products”

of manufacturing functions of one or more network partners are used by other

partners as the “raw” materials for a new manufacturing (or re-manufacturing)

processes, thereby creating a closed-loop system of production.

MicroPro has learnt from previous R&D that the most significant environmental gains are made through the application of an integrated “reuse” strategy, aimed at extending the life of the computers through upgrading and reuse of materials, parts and components. Following this model, materials for the D4R “shell” are reused or recycled, and selected with a view to both performance and durability. Parts and components are mostly used, recovered from other computers and tested for fitness. However, to achieve the full benefits of the reuse approach, partners have set up a supply, marketing and service network that will allow the full implementation of the reuse strategy.

MicroPro has developed the Xerox Company’s concept of a “reuse as a manufacturing strategy” as being reflected in MicroPro’s approach. In the early 90’s, Xerox made this approach central not only to the design and marketing of their office equipment, but also to their entire business strategy. This is documented in Adam Werbach’s book, Strategy for Sustainability: A Business Manifestoiii, which recounts how the company from 1993 onwards, transformed itself from a loss making concern into a thriving success story on the basis of comprehensive integration of this strategy.

Xerox is perhaps the only mainstream electronics company to adopt such a life-cycle based reuse strategy. They considered it a “North Star” goal, and developed it with three principal aims:

• Reducing costs in the long term

• Eliminating waste and costs of negative environmental impact, and

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• Developing an ethical image for the company

A description of the key points of the strategy is stated by Werbach:

• Focus on essentials

• Focus on R&D

• Move from products to services

• Work backwards to products design

• Signature analysis (quantifying the useful life of different parts and components)

• Aim at 90% reusability

• “Keep it simple”

• Design for commonality

• Total life costing

• Design for durability

• Energy reduction

• Use materials from sustainable sources

• Quantify life cycle costs savings

Apart from the environmental gains the reuse strategy aimed at long-term cost-effectiveness. Werbach believes that through this strategy Xerox saved hundreds of millions of dollars. ivThey converted waste in to raw materials that were already processed.

Xerox also advocated a transition from a traditional selling model to a Product and Service Strategy (PPS) to the design, manufacture, servicing, take-back and re-manufacture of the iameco v3. This principle of course was also applied by Xerox, whose model included the leasing of photocopiers, rather then their sale, and the remanufacture of used parts from those copiers in new products.

Xerox also introduced, for the first time, a benchmark for Reuse in the writing and accreditation of ISO/EC 24700, “Quality and performance of office equipment that contains reused components” v , in this way establishing a basis for consumer confidence in the use of reused products.

MicroPro in 2003, as part of the LIFE-Environment Project HEATSUNvi, and with the support of the Irish EPA’s Cleaner Greener Production Programmevii began the development Eco-PC (the iameco) that after several design modifications was awarded 1st European Eco-Label for integrated desktop computersviii The project included the carrying out of a Simplified Life Cycle Assessment for the PC, which showed that it achieved 50% reduction in energy use and GHG emissions. R&D also include a Design for Disassembly evaluation carried out by Tricom in Berlin, which looked at

• Selection and use of materials

• Design of components and the project architecture

• Selection of joints, connectors and fasteners

The paper “Practical Eco-Design Approaches to Personal Computers – A case Study of the iameco 2”ix, compiled by the University of Limerick after the end of the project, explains how MicroPro had sufficient control over production to implement design

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which can ensure remanufacture and refurbishment, ensuring an environmental and commercial advantage. This was done through application of key design principles:

• Design for disassembly

• Design for lifetime extension

Aiming at achieving the following:

• Replace- and extension-ability

• Demount-ability, and

• Impression of stability and value

As it is not possible for an SME to influence to any great extent the design of all parts and components. MicroPro decided to prioritise those areas where it could have most impact. The areas are:

• Design and manufacture of the casing

• Design and commissioning of a “universal mother board”

Further detailed guidance on design was provided by ZeroWIN D3.3 “Guidance Document on D4R for PV Systems and Flat Panel Products”x that made detailed recommendation on all the above areas that were incorporated into the D4R design. This study added several additional considerations:

• Design for minimised production waste

• Design for production waste recycling/down cycling

• Design for reuse

• Design for repair

• Design for depollution

• Design for material recycling/high recovery ratio

• Design in low impact materials

• Design out materials and components

• Design for collection

Other detailed recommendation were also made in relation to motherboard designxi

Taking on board these recommendations, in designing the D4R MicroPro prioritised the design and development of a “universal” motherboard, a generic component that permits the integration of various used components into manufacture and re-manufacture, and a laptop shell that can be populated with a variety of components of various sizes and specifications, and of the selection of the materials that this casing is made form.

These improvements maximised the reuse potential of the laptop, its materials, parts and components. To implement this approach partners structured of an industrial network, with a triple role:

• Sourcing, testing and supplying parts,

• Repairing, upgrading and re-manufacturing

• Marketing, leasing and take-back

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3. Prototype Presentation

MicroPro has designed and commissioned a universal motherboard with a 6 cell

lithium battery encapsulated in a universal shell made of wood and recycled metal.

This universal shell is capable of accepting new primary system components and

also has the ability to integrate diverse parts and components of different

specifications. The universal motherboard uses Sandy Bridge 1155 sockets and is

capable of accepting a chipset that will facilitate Intel dual core i3, i5, and i7

processors. Intel is updating this chipset in April 2012 with the new Ivy Bridge chipset

which can further reduce power consumption.

The laptop has a 15.6 inch thin film transistor liquid crystal display (TFT-LCD)

screen, which is a remanufactured screen, provided by network partner AUO.

However, it is also able to integrate a smaller screen size depending on the

availability of parts. It incorporates any size hard drive, DDR3 xiimemory, DVD±RW,

HD Graphicsxiii, Wi-Fi, B/G/N, Web Camera, and HDMI and can use any operating

system. It also has the ability to integrate various diverse parts and has one USB3

port and three USB2 ports. The by-product components and parts to populate the

D4R shell can be sourced from the industrial network.

Plywood has been used to manufacture the laptop housing. By-product plywood

from discarded pallets from both the automobile and furniture industries has been

sourced for this purpose. By-product plywood can also potentially be sourced from

demolition/construction activities. Metal is not required for manufacture of the laptop

housing therefore this aspect of the industrial network has been eliminated.

Figure 1 – D4R – external view closed (photo)

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Figure 2- D4R external view open (photo)

Figure 3 – D4R cut-away port side (sketch)

.

Figure 4- D4R casing reuse at EOL

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MicroPro has been able to source by-product recycled cardboard and paper from

local industries, SuperValu Supermarkets and Smurfit Kappa Group, which will be

used as D4R laptop packaging.

4. Parts and components

A full inventory of the parts and components of the D4R and their weight are as

follows:

Table 1: Parts and components.

Part or component Weight

Hard Disk 106g

Base back cover 296g

RFID sensor 3g

Battery 315g

DVD 2 layer 162g

LED 15.6” AUO 430g

Sound + USB interface 10g

SATA interface 6g

CPU heatsink fan 52g

RAM DDR3 8g

Motherboard with CPU processor 167g

Motherboard without CPU 156g

CPU 6g

CPU fan 33g

Speakers 8g

Chassis upper with glass + keyboard 1485g

WiFi card 3g

Card reader 16g

Miscellaneous cables 6g

PSU (external) 246g

Camera 1.3M pixels 0.75g

Touchpad 6g

Mains cable 83g

DVD blank disk with drivers 18g

Assortment of screws 3g (See chapter 14 for glossary of technical terms for definitions) Source: Maher, P, MicroPro

The life expectancy of the different parts and components is critical to the

implementation of this reuse strategy. The D4R laptop is expected to have a life-

span of 10 years (2.5 times the life of the baseline laptop). This is the expected

maximum life of the screen and the universal motherboard. After this point it might

not be practical to continue using these parts for remanufacture. It is possible the

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LED screen could be put to other uses (such as commercial signage) and that the

casing shell could also be used (see Figure 4 above) It is therefore assumed that the

D4R will have 3 x 4 years (12 years) maximum life from the time of manufacture.

Figure 5 – Internal view D4R base .

Figure 6- D4R internal assembly (photo)

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Component life is variable, so it is likely that different components will have to be

replaced or upgrade at different times in order to achieve the full life of the product.

The estimated usable lives of the different key parts and components are estimated

as follows:

Table 2 – Life expectancy of parts and components.

Part Baseline D4R

LCD Panel 4 years 10.3 yearsxiv

Motherboard 4 years 8 years,

Processor 4 years 9 years

Hard Drive 4 years 4 years

Memory 4 years 5 years

Power Supply 4 years 8 years

Dual Layer DVD 4 years 8 years

Casing 4 years 12 years

Source: Maher, P (MicroPro), Yang, M (AUO)

Components will have to be replaced as early as the first (end of 4 years) but others are likely to last longer. MicroPro suggests that all components be tested periodically by industrial network partners to acertain condition, and if necessary be replaced. Ths coudl take the form of a notional cost „check up“ at the end of 4 years, or when a component fails. These cost would ahve to be brone by the cutomer, unless included in a leasing agreement. The universal motherboard and the universal casing are designed to be reused 3 times or more. Given the potential barrier that lack of confidence in the quality of used parts and components would be, it is recommended that parts and components used be tested to demonstrate that they conform to a high standard, with explicit recommended minimum technical threshold.

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Table 3. – Testing for parts and components: .

Part or

component

Test required

Memory Stress test, Burn in test, Address test, Math test

Hard Drive Surface test, smart test, Random seek test, Firmware update

Processor Stress test, Temperature test, Address test

DVD Drive DVD & CD testing, Firmware update

Source; Maher, P MicroPro

5. Remanufactured panel

For the initial D4R prototype, a LED panel remanufactured by AUO in Taiwan has been used. This is unique in that an EMO is participating a reuse process. However, there are particular difficulties in the collaboration, and barriers in relation to the continued availability of remanufactured panel have been identified: a) The current supply chain and take back loop does not encourage reserve logistics Panels are B2B products in the laptop supply chain. Panels could be reworked in two situations:

• Defective panels are discovered on sites and still re-workable;

• Defective panels are returned to the panel manufacturers from the brands company customers.

Panel manufacturers sell panel modules to brand companies, and provide after-sale service if defect occurs. Defected panels would be repaired/remanufactured and send back to the brand companies. However, after laptops are sold to the market, panels seldom return to the panel manufacturers due to the complexity of the supply chain, and the requirement from the brand companies. Since some laptop brand companies require panel manufacturers to remove their logo from the panel, customers can only recognize the brand of the laptop, but unable to discover the source of panel, let alone seeking the original panel manufacturer for help. Therefore, it is very rare that final customers will be able to return defected panel back to panel manufacturers to repair or to remanufacture. b) There are technical barriers to remanufacture panels Panels are assemblages of parts including bazel, backlight, array, cell, and colour filters, etc. After the parts are sealed, panels become strong and inseparable to ensure the product quality; only the bazel part is easier to be removed. Therefore, panels can only be remanufactured if defect occurs on the exterior part of panels,

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such as glass, or if the defect part is discovered before the sealing process. As a result. c) Quality and integrity of the panel. The quality of products is the most important issue for manufacturers. Manufacturers, especially from large corporations, would not risk their companies face by adopting a new business model. Unless the technology to reuse parts is matured enough, or customers are mostly willing to accept products with reused parts, to move from the baseline model to the reuse business model remains difficult.xv

6. Industrial Network

A detailed proposal of the industrial network for the D4R was made in ZeroWIN

Deliverable 6A.1xvi. This paper emphasised the importance of the industrial network

in achieving the ZeroWIN objectives, as well as describing the required design

innovations (explained previously). It four principal conclusions were:

• Importance of industrial networks in supporting reuse as a strategy for

elimination of waste and achieving environmental targets

• Importance of eco-design as the basis for waste elimination in industrial

networks

• The need fro development of a product/service strategy and infrastructure to

make the industrial network possible

• The need for R&D on parts, components, materials and services that can

make the D4R concept possible:

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Figure 7. D4R Industrial Network in practisexvii.

The network, in practise, has been structured as follows:

Table 4. Industrial Network

No

.

Participant name short

name

Region Main Role in Industrial

Network

1 Multimedia Computer

Systems

MicroPro IE CS1 Co-ordination, product

research and development,

development of reuse

technologies.

2 Association of

Electronic and

Information

Technology

Industries of the

Basque Country

GAIA ES/FR R&D market barriers, recovery

of used parts and components

(supply chain), upgrading, and

repair and remanufacture

(product/service chain).

4 AUO AUO TW R&D and manufacturer of

LCD panel, provide

remanufacture service in

special cases (supply chain).

5 ReUse Computer Reuse DE/AU R&D of Reuse. Recovery of

used parts and components

(supply chain), upgrading,

repair and remanufacture

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(product/service chain).

6. Secure IT Secure IT UK Recovery of used parts and

components (supply chain),

upgrading, repair and

remanufacture

(product/service chain).

7. REHAB Recycling REHAB

Recycling

IE Recovery of used parts and

components (supply chain),

upgrading, repair and

remanufacture

(product/service chain).

8 Gerharty Furniture Gerharty IE Recovery of waste pallets

from automobile industry and

recycled metal from

(automobile) manufacture and

tooling for manufacture of

housing (supply chain).

Source: MicroPro

The role of industrial network partners is primarily to source used or recycled

materials for the shell, and parts and components that may populate the D4R.

Sourcing and quality control of materials used in the casing will be carried out by

partners Gerharty Furniture in Galway, Ireland, a manufacturer of quality wooden

furniture, who will also prepare and tool these materials, and assemble to provide the

completed universal casing. In the 1st year of production, Gerharty and MicroPro will

be the central manufacturing and distribution points for fully assembled D4R’s.

Functions will include:

• The manufacture of the universal casing

• The assembly of the universal motherboard manufactured by a specialist

companyxviii

• The integration of the manufactured LED panel provided by AUO

• The integration of selected electronic components sourced in the first instance

from industrial network partners in Ireland, (REHAB Recycling)

• The integration of a power supply, cabling , and battery

The electrical components that will populate this shell will be sourced from network

partners (probably in Dublin) that dismantle PCs. In order to ensure fitness of

products, a high standard of testing will be required (see Table 3).

Participating network partners will be asked to confirm that the parts and

components used in the D4R have been tested successfully to the agreed standard.

In later years, MicroPro will outsource internal assembly to regional network

partners. “barebones” systems (i.e. the computer systems void of hard disks and

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RAM modules) will be manufactured in Ireland and shipped to industrial network

partners in other countries that have entered into franchise arrangements with

MicroPro fro assembly. These partners will populate the shells with locally available

selected primary system components, but ensuring that the testing protocols (above)

are adhered to and depending on stock (inventory) of returned quality used parts. In

future MicroPro could franchise industrial network partners to actually manufacture

D4R casings in each region, for sale in their catchment areas.

The new model requires a change from a traditional retail “direct selling” model to a

lease-based business model, or a deposit based model (below), both of which will

guarantee return of the equipment to MicroPro at the end-of-life.

This recovery mechanism could also take the form of a return deposit based

agreement between MicroPro/distributors and the consumer. The consumer could

receive various scales of return deposit, calculated on the residual value of working

parts and components, on return of the system to MicroPro for upgrade or

refurbishment.

The D4R represents for MicroPro a news approach to eco-design, in relation to the

design its previous green computer, the iameco v3xix . The former emphasised

improved eco-design, discerning selection of components and applications of

accepted environmental benchmarks, such as Energy Star 5, the European Eco-

label, the EuP Directive, etc.

The D4R approach, on the other hand, emphasises reuse of materials, parts and

components, upgrading, take-back and remanufacture. It is a further development of

the life-cycle approach, and an innovative design and manufacture philosophy,

corresponding to ZeroWIN objectives.

Industrial network partners in the selected regions are technically qualified and have

the administrative and technical infrastructure to provide after-sales support, repairs

and upgrading to clients in the selected region, and to provide this service in the four

initial large catchment areas in Europe. A franchise or similar arrangement will be put

in place and an IPR agreement will be signed with partners, to protect MicroPro’s

investment.

It will be desirable (but not mandatory) for industrial network partners to be certified

to the following standards:

• ISO14001(Environmental)

• ISO 9001(Quality)

• PAS 141:2010 (Specification for the processing for reuse of waste and used electrical and electronic equipment (UEEE)

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7. ZeroWIN targets

The manner in which the D4R prototype achieves the three ZeroWIN targets is

explained in D6A.2xx . In relation to reduction of Greenhouse Gas Emissions:

Table 5 – impact GHG emissionsxxi

Strategy Potential

Impact1

Use of by-product LCD panels from industrial network 20%2

Sourcing wood for chassis from construction/demolition

industrial network

10%3 /

0.5%2

Use of by-product RAM modules from industrial network 3%2

Use of by-product cables/power supply from industrial network 3%2

Sourcing packaging from industrial network 0.5%2

Use of by-product processor from industrial network 0.5%2

Use of by-product keyboard modules from industrial network 0.2%2

Use of by-product mainboard from industrial network 25%2

1 Potential impact as percentage of the greenhouse warming potential of the

baseline 2 Assumption of substitution of a product with virgin materials; the

environmental burden of the by-product is allocated on the basis of a market

value of 20% versus the virgin product 3 Effect of substitution of magnesium and aluminium (baseline laptop) through

wooden parts taken into account (Eco-design plus substitution effect)

Table 6 – Impact on recycling and reusexxii

Strategy Potential

reuse /

recycling

rate1

Relevance as

percentage of

the product

weight

Sourcing wood for chassis from

construction/demolition industrial

network

80%1/100% 35%

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Strategy Potential

reuse /

recycling

rate1

Relevance as

percentage of

the product

weight

Use of by-product LCD panels from

industrial network

80%1/100% 20%

Sourcing packaging from industrial

network

0%/100% 15%

Use of by-product cables/power supply

from industrial network

80%1/100% 5%

Use of by-product keyboard modules

from industrial network

80%1/100% 3%

Use of by-product RAM modules from

industrial network

80%1/100% 1%

Use of by-product processor from

industrial network

80%1/100% <0.1%

1 Related to the potential amount of waste in the baseline scenario; upstream

waste generation outside the industrial network is not taken into account 2 Optimistic assumption that 80% of the incoming by-products meet the

material requirements agreed on in the industrial network. Remaining 20% of

the inputs have to be recycled.

And finally, on reduction of fresh water use:

Table 7: Impact on fresh water use.xxiii

Strategy Potential

Impact1

Use of by-product LCD panels from industrial network 30%2

Sourcing wood for chassis from construction/demolition

industrial network

8%3/0.3%2

Use of by-product cables/power supply from industrial

network

3%2

Use of by-product RAM modules from industrial network 2%2

Use of by-product keyboard modules from industrial

network

0.4%2

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Strategy Potential

Impact1

Use of by-product processor from industrial network 0.2%2

Sourcing packaging from industrial network 0.1%2

1 Potential impact as percentage of the fresh water use of the baseline 2 Assumption of substitution of a product with virgin materials; the

environmental burden of the by-product is allocated on the basis of a market

value of 20% versus the virgin product 3 Effect of substitution of magnesium and aluminium (baseline laptop) through

wooden parts taken into account (Eco-design plus substitution effect)

8. Marketing Mix

8.1 Price

ZeroWIN D7.2xxiv sets out the results of the life cycle costs assessment of the D4R.

It is shows that the total costs of an iameco D4R laptop are estimated to approx. 600

Euro, which is 43% of a new laptop with comparable configuration. Based on the

adapted reuse scenario, approximately 12% spare parts can be expected with total

extra costs of approx. 10 to 15% (€60-90) during four years use.

Given that the testing procedures are tight enough in order to reach a comparable

standard such as new products, the advantages are very clear. The question, if or

how far the quality standard can be reached, can be only answered at the final

assessment, when real data about the testing and quality tests are available. At this

point, the comparison is fictitious and speculative.

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Table 8. Results of cost comparison (average values of market price ranges) as provided by MicroPro (2011) and MicroPro (2012)

Component Baseline Pilot

LCD panel 36 24

Motherboard 500 490

CPU 200 30

Hard disk drive 82 16

RAM modules 65 17

Power supply 40 4

Cabling 20 0.4

DVD drive 49 18

Chassis 420 0.5

Screws, minor parts 4.75 0

Sum 1416.75 599.9

Source: xxv

The definitive retail price of the D4R has not been established. Given the low

numbers to be produced in the first instance, it is possible that the sales price will

initially be higher than that of conventional laptops on the market (e.g. Lenovo, Dell).

It is important to establish that the price of the product will generate a different level

of demand and will therefore have a different impact on the marketing objectives of

the company.

Normally, demand and price have an inverse relationship: the higher the price, the

lower the demand; however, some consumers see higher prices as a sign of a better

product, despite this, if charged a price too high, the level of demand could fall. The

demand curve shows the probable purchase amount of the market at different

prices, taking into account the reactions of many individuals who have sensitivity to

prices. It is also important to be aware that products labeled as "green" have

boomed in recent years, due to growing concern about climate change as a result of

global warming, and has led to consumers to be increasingly aware of environmental

issues in relation to both companies and their products. xxvi

So-called "green products" tend to be priced higher than conventional ones, but it

has been found that this is not an impediment to their marketing, as consumers are

willing to spend more money on them. This trend is stronger among consumers of

so-called "emerging countries" who are more likely to buy products and services with

a responsible approach to the care of the planet.

The importance of environmental criteria for companies when choosing IT vendors

and products is in most of the cases relatively important. xxvii It is really important for

a company in which products are prized higher to demonstrate as a key of their

business their ICT usage sustainable strategy and the comprehensive corporate

social responsibility (CSR) strategy that they have adopted. As a result, Green ICT

strategy can positively influence both, prize and company value. xxviii

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All products entering the market take some time to be accepted by society, yet, for

the reasons mentioned above, and thanks to the social consciousness that exists

today, it is likely that demand for a product that can demonstrate its unique

environmental credentials will increase significantly in time, gaining a considerable

market, possibly within the first year of inception, and over time become accepted

and therefore established in the market.xxix

8.2 Distribution

The distribution of the D4R will be the responsibility of the industrial network

described previously, so initial distribution will be carried out in Ireland, UK,

Germany, Austria, Spain and France.

This structure will be a network of enterprises that will be franchise holders for the

maintenance, repair, take-back, re-manufacturing, and re-marketing of the D4R.

MicroPro proposes to start out with 3 such network partners, and increase the

number of partners and the regions covered gradually. These agents will also have a

key role in local dissemination and marketing of the D4R and possibly other iameco

products. The selection of agents will aim at maximizing EU and later world

coverage. The network will be expanded beyond the initial regions after the 3rd year

of operation.

The work done by the network will include a D4R lease and service package, and

the network will also develop an internet-based lifecycle information system for

inventory management. It is important that the consumer is fully aware of the

technical support options available after sales or during the lease period. Support

options include repair and replacement of parts, upgrading and take-back, remote

support for hardware/software issue resolution and other operations. These details

will be provided with the information pack provided with the equipment and on-line,

as well as instructions on the computers proper environmental use

The development of a lifecycle information system for inventory management will be

crucial. A key difficulty in ensuring the economic feasibility of remanufacturing is

associated with reverse logistics. Supply uncertainties in terms of quality, timing, and

quantity of returned products are the main issues. Timing and quantity of returned

systems are direct barriers for strategic and operational planning but will be

addressed by the leasing model. To address the quality issue, before the lease

period starts all primary system components will be individually tagged and assigned

with a unique serial number. Static information associated with each serial number

(E.g. bill of materials, component specifications, configuration options and operation

instructions etc.) will be input to the database. This information will be added to the

dynamic EOL data base information, based on market data, and will allow to chose

the appropriate disposition option. This system will allow the swapping in the repair

process allowing reliability and accuracy which will improve the information about the

22

turn around times and a clear understanding of what parts need to be supplied and

to what parts which improves the value of the information about the market return.

This will become more important as distribution networks scale up. Item level

identification using barcodes or other means is one option. Radio frequency

identification is another promising technology that could potentially provide an

increased level of automation to this process.

8.3 Promotion

The main element for the promotion of the D4R will be to carry out good

dissemination activities planning. The development of a comprehensive

dissemination programme is essential to identify key stakeholders and the public

with the aim of both, achieving targeted and general public.

This includes product related specific dissemination activities mainly in terms of

communicating

• Rationale of the reuse strategy and

• Importance of elimination of electronic waste

• Combating the prejudices surrounding remanufacture,

• Importance of renewable and long-life materials and components xxx

This will be partly aimed at national and European authorities, aiming to promote a

more comprehensive approach to eco-design and electronic sustainability. This

means to inform EACI (European Agency for Competitiveness and Innovation) with

product information sheets for online information system and additional information

material (like videos, images, news flash, etc.).

The main dissemination activities that must be undertaken to effectively promote the

product are the following:

• Dissemination strategy which focuses on a three-way communication

between project stakeholder, policy makers and end users. This will be an

integral part of all activities from first contact through to ongoing customer

satisfaction feedback.

• A website dedicated to promoting and disseminating the D4R

• Electronic newsletters edited and send out by MicroPro.

• Press releases. All partners will take an active role in discussing and deciding

the content of the material to be published to ensure that no confidential

material is disclosed. Articles will be elaborated and published and other

associations and Universities will be also contacted for dissemination. Gaia as

23

an Industrial Association will be able to disseminate the actions carried out by

GAIA Sarean, the official newsletter of Gaia which is monthly published to

more than 2000 stakeholders.

• Publications in specialised journals and announcements will be made during

European conferences, in order to communicate to the target audience, the

results of this project and provide information on the availability of the

developed material. As an example of this action, GAIA will disseminate the

D4R description to its Software Committee and Business Committee,

attended by associated companies, which are hold every 2 month.

• Presentation at conferences such as Electronics Goes Green 2012 in Berlin or the General Assembly of Gaia and IHOBE International Eco design Congress.

• User’s manuals. Publication of a User Manual explaining use and benefits of

the D4R. Such a guidebook will help in making more target groups aware of

the advantages of the D4R.

Selected promotion and dissemination will be secured through the promotion of the

Case Study by the ZeroWIN Project (e.g. via WP9). This will include:

• Dissemination on the ZeroWIN project web site

• Other European projects that Partners in ZeroWIN and CS1 might choose to

develop.

MicroPro and several ZeroWIN partners are currently developing a further proposal

to the CIP Innovation programmexxxi, which aims to develop the commercialisation of

iameco products developed to date (including the D4R).

8.4 Competitors

The D4R’s principal competitors in European markets are the large brand name

companies: Dell, HP, Fujitsu, Lenovo/IBM/ Medion, Acer, Asus, Toshiba, and Apple,

who source their components almost without exception outside Europe. Only Fujitsu

Technology Solutions produces in Augsburg / Germany and some Intel and AMD

processors are produced in Europe. Although most of the large players take

environmental aspects into account, they are very hesitant to promote any computer

specifically as an eco-product. This is evidenced by the fact that none, apart from

Asus, has gone as far as to secure the European Eco-Label fro any of its products.

MicroPro will open a virtually virgin (Blue Ocean) market for actively promoting eco-

computers, which is currently non-existent. In this market segment MicroPro will be

without real competitors, similar to Apple who (repeatedly) developed a completely

new market with their fashionable product strategy. Besides these large players

there are numerous assembly shops selling computers under their own brand, but

24

basically using standard components, and none of these companies put significant

efforts in designing a particular “green” PC.

8.5 Target audience

The lessons learnt from the application of the D4R product/service model will be very

important for other computer and electronics manufacturers who want to incorporate

eco-design principles in their products. It must be acknowledged that small computer

manufacturers are partly at a disadvantage as they have much less influence over

their component suppliers when compared to their OEM counterparts.

The partners will, as part of the Project’s dissemination strategy, promote a

product/service model, which includes eco-design, a life-cycle approach, and a reuse

strategy (based on design for disassembly, take-back, upgrading and

remanufacture), to other SME’s and stakeholders in the consumer electronics sector

that might benefit from replicating this sustainable product service model.

Key target groups for the project are:

• Private consumers: particularly those segments identified in the above

surveys

• Private companies: particularly large corporates, banks and the hospitality

sectors

• Local Authorities and Public bodies: purchasing on Green Procurement

principles

• IT service companies: that can replicate the eco-design, LCA and reuse

strategies

• SMEs in the electrical and electronics sector; that can apply the model to

other sectors

• Policy makers: that can see the D4R as a practical example of sustainable

consumption.

For an optimal outreach to the target groups, the involvement of some key actors is

essential:

• Industrial clusters that integrate several SMEs from the electrical and

electronics sector.

• National, Regional and Local administration: with specific programs to SMEs.

Many of these have already been contacted and their support secured by partners

who have an existing working relation with them.

25

The following table summarizes the customer split that the MicroPro’s previous eco-

computers:

Table 9. Client profile in current sales

Sector MicroPro XPC Iameco v1 Iameco v2

Education 24% - 56%

Business 60% - 13%

Home users 16% 100% -

Government - - 31%

Source: Galligan, A, MicroPro.

9. External Analysis

9.1 Legislative factors

The world is moving towards green computing or green IT, and the European Union

is getting onboard by onboard by promoting better environmental conditions through

different programs and enactment of laws to achieve the established objectives in

this field. This concept refers to the study and practice of designing, manufacturing,

using, and disposing of computers, servers, and associated subsystems –such as

monitors, printers, storage devices, and networking and communications systems,

efficiently and effectively with minimal or no impact on the environment.

It is clear that governments have a need to regulate and promote initiatives in favor

of green production, moving towards greater care of the environment and society in

general. Since the Lisbon Treaty entered into force in 2009, the European Union,

as a legal entity, has shared responsibility with all the Member States, by legislating

in areas such as the internal market; social policy; economic, social and territorial

cohesion; agriculture and fisheries, the conservation of marine biological resources;

environment; consumer protection; transport; trans-European networks; energy; area

of freedom, security and justice; common safety concerns in public health

matters.xxxii

As the European Union and Member States share responsibilities in the mentioned

areas, laws from each Member State are obliged to be in accordance with law

established by the EU. Considering the functioning of the EU legal system and for

the purpose of the present study, we do not consider it necessary to analyze

legislation in every country involved, but the legislation that prevails for the entire

European Union

The ZeroWin Project has carefully analyzed the European policies and relevant

initiatives that are legally binding and non-binding at EU level that are related, in this

26

case, to the production of the Laptop D4R. The group also analyzed policies that

sometimes include voluntary and non-voluntary aspects.

In April 2010, the ZeroWIN consortium presented the Deliverable 8.1, Policy

Synthesis Report, which presents a deep analysis of the impact of twenty-five

European and international policies on supply chain management, industrial

symbiosis, product stewardship and Eco design; The following table presents the

most relevant legislation that has a direct or indirect impact in the developing of the

project, as well as the foreseen results.

Table 10: Policies relevant to ZeroWIN sectors and strategies

Non-voluntary Voluntary

Raw material acquisition

Thematic Strategy on the

sustainable use natural resources

Manufacturing

Eco design Directive

RoHS

ETAP

IPPC

Marrakech Process

European Union Emissions

Trading System

European EIA Directive

REACH

Distribution

No relevant policies identified

Product purchase and use

European Eco label

GPP

Energy labeling

End of life

27

Waste Framework Directive

WEEE Directive

ELV Directive

Packaging and Packaging Waste

Directive

Batteries and Accumulators

Directive

Waste Oil Directive

Hazardous Waste Directive

PCB/PCT Directive

Incineration and Landfill

Directives

PoP Directive

Shipment of Waste Regulation

Thematic Strategy on the

prevention and recycling of

waste

Source: ZeroWIN Project. Deliverable 8.1 Policy Synthesis Report. p. 5

As the present report has as main focus the analysis of legislation that is closely

involved to the production of the D4R, thus, it is necessary to define and analyse the

laws mentioned in the “manufacturing” section of the previous table: Eco design

Directive, RoHS, ETAP, IPPC, Marrakech Process, European Union Emissions

Trading System, European EIA Directive, and REACH, in order to have a clear

understanding of how this legislation affects the envisaged product.

9.2 Main EU Directives:

The specific polices that the researchers recommended as relevant to the D4R

laptop are the Eco design, RoHS, and WEEE directives.

a) DIRECTIVE 2009/125/EC OF THE EUROPEAN PARLIAMENT AND OF THE

COUNCIL of 21 October 2009 establishing a framework for the setting of Eco

design requirements for energy-related productsxxxiii

The Eco-Design Directive was adopted in 2005 and extended in 2009 to include

Energy related Products (ErP). It defines the principles, conditions and criteria for

28

setting environmental requirements for energy-using and energy-related

appliances. The Directive is an integral part of EU policy for sustainable

development and builds upon the Integrated Product Policy in adopting a lifecycle

approach to the reduction of the environmental impacts of products. Given that

over 80% of product-related environmental impacts are determined at the design

phase of the product, the Directive promotes a preventative approach through

Eco-design.xxxiv

The Directive covers a very wide range of products that use energy during their

use phase and has provisions to include products used for the generation,

transfer and measurement of energy. The Directive does not discriminate

between energy sources: electricity, solid, liquid and gaseous fuels and

renewable energy are included. It also covers parts for products which are put on

the market for sale to end users, where their environmental performance can be

evaluated separately. Examples of energy using products include boilers, water

heaters, televisions, computers, industrial fans and furnaces. Examples of energy

related products, which impact energy use if not directly using it, include loft

insulation material, windows, and bathroom devices, such as taps and shower

heads. Means of transportation are excluded.

This is the directive with the highest impact on the design and production of the

D4R, because it defines the action plan from the EU regarding environmental

technologies. It has a comprehensive approach through the removal of barriers

to commercializing eco-design technologies, as well as the promotion and

implementation of environmental technologies.

The Eco-design Directive on Energy-using Products, aiming to design out the

environmental impacts of products across the lifecycle, is evidently a pivotal

European policy for this ZeroWIN strategy, especially for the case of the D4R.

b) DIRECTIVE 2002/95/EC OF THE EUROPEAN PARLIAMENT AND OF THE

COUNCIL of 27 January 2003 on the restriction of the use of certain

hazardous substances in electrical and electronic equipment. -RoHS.xxxv

The purpose of this Directive is to implement within the laws of the Member

States restrictions in the use of hazardous substances in electrical and electronic

equipment and to contribute to the protection of human health and the

environmentally sound recovery and disposal of waste electrical and electronic

equipment.xxxvi The RoHS or lead-free directive which took effect on 1st of July

2006, which basically restricts the following materials: lead (Pb); mercury (Hg);

cadmium (Cd), hexavalent chromium (cr6+), polybrominated biphenyls (PBB),

polybrominated diphenyl ether (PBDE). This kind of measure is of vital

importance to promote among industry the production of devices friendly to the

environment.

29

The RoHS directive is a key element of the European Union´s environmental

policy on waste. It addresses notably the reduction of e-waste management

problems linked to heavy metals and flame retardants.

Overall the RoHS Directive has a positive environmental impact due to its

limitation of toxic and hazardous materials in EEE. This is especially relevant for

the inappropriate recycling procedures currently in place in many developing

countries and economies in transition, where toxic and hazardous material usage

results in elevated uncontrolled emissions.

Taking into account technical and economic feasibility, the most effective way of

ensuring the significant reduction of risks to health and the environment related to

these substances, is the substitution of these substances in EEE by safe or safer

materials. Restricting the use of these hazardous substances is likely to enhance

the economic profitability and possibility for recycling of e-waste and to decrease

the negative health impact on workers in recycling plants. Therefore, the RoHS

Directive prescribes maximum concentration values up to which the presence of

the substances referred to above shall be tolerated. Substitution of the hazardous

substances in electrical and electronic equipment must also be carried out in a

way that is compatible with the health and safety of users of EEE.

c) DIRECTIVE 2002/96/EC OF THE EUROPEAN PARLIAMENT AND OF THE

COUNCIL of 27 January 2003 on waste electrical and electronic equipment

(WEEE)xxxvii

The purpose of this Directive is, as a first priority, the prevention of waste

electrical and electronic equipment (WEEE), and in addition, the reuse, recycling

and other forms of recovery of such wastes so as to reduce the disposal of

waste. It also seeks to improve the environmental performance of all operators

involved in the life cycle of electrical and electronic equipment, e.g. producers,

distributors and consumers and in particular those operators directly involved in

the treatment of waste electrical and electronic equipment.

The WEEE Directive constitutes the European legal framework regarding

collection, recycling and recovery obligations for electrical goods. It is key

element of the European Union’s (EU) environmental policy on waste. It

addresses a particularly complex waste flow in terms of:

• The variety of products,

• The association of different materials and components,

• The hazardous substance content, and

• The growth patterns of this waste stream which can be influenced

not only by need but also by changes in technology, design and

marketing.

The WEEE Directive seeks to induce design modifications that make WEEE

easier to dismantle, recycle and recover. It plays an important role in reducing the

30

dispersion of hazardous substances into the environment by seeking not only to

regulate the use of hazardous substances in equipment but also controlling the

way that older equipment is disposed of at the end of its life. This stance reduces

the contamination of shredder residue and eases recycling and disposal of these

residues.

It was determined by partnership after the analysis of WEEE Directive, it

introduces lifecycle thinking into e-waste policy, noting that the environment

impact of WEEE is linked to its design, and this should be considered along with

material extraction, processing and waste management.

9.3 Other policies

a) Environmental Technologies Action Plan:

The Commission Communication ‘Stimulating Technologies for Sustainable

Development: An Environmental Technologies Action Plan for the European

Union’ was adopted in January 2004 to promote “eco-innovation for jobs, growth

and the environment”. The Action Plan’s aims to:

• Remove obstacles to eco-innovation, to maximize its potential

environmental benefits, while contributing to EU competitiveness and

economic growth

• Position the EU at the forefront of environmental technology development

and application

• Mobilize stakeholders to promote these objectives

ETAP is enabled by important research investment, and follows the Lisbon

Strategy target of research spending near 3% of GDP by 2010. It indeed

concretely supports the Lisbon Strategy’s aim to “make Europe, by 2010, the

most competitive and the most dynamic knowledge based economy in the world”.

Through the promotion of energy efficiency, renewable energy and low carbon

energies, environmental technologies promoted by ETAP directly support

reductions in greenhouse gas emissions.

b) Marrakech Process

The Marrakech Process is a global multi-stakeholder process to support the

implementation of sustainable consumption and production and to develop a

global framework for action on sustainable consumption and production, the so-

called 10-Year Framework of Programmes on Sustainable Consumption and

Production (10YFP on SCP).

The Process responds to the call of the Johannesburg Plan of Implementation

(as of the World Summit on Sustainable Development in 2002) to support

31

regional and national initiatives to accelerate the shift towards SCP patterns, and

de-link economic growth from environmental degradation.

Thus, the Marrakech Process was launched in 2003 with the United Nations

Environment Programme (UNEP) and the United Nations Department of

Economic and Social Affairs (UN DESA) as leading agencies.

The Marrakech Process consists of regular international expert meetings,

regional consultations, national roundtables and other activities to promote

progress on the 10YFP on SCP. It includes the following mechanisms and

stakeholders: a Cooperation Dialogue with development agencies, an NGO and a

Business Forum, an UN Inter-Agency Network, Regional Consultations and SCP

Programmes organised by governments as well as seven voluntary Task Forces.

9.4 Legal barriers:

The D4R, instead of facing legal barriers for its production and commercialization, it

has an open path to enter in the European market.

The Thematic Strategy on Natural Resources, calling for “more value” from

resources as well as less environmental impact per unit of resource use, is itself an

important driver of innovation and resource efficiency, and thus also of European

competitiveness. The Thematic Strategy on the Prevention and Recycling of Waste

supports these principles in a more general way, introducing lifecycle thinking into

waste policy and linking this to product design.

Green Public Procurement has been identified as a major vehicle for the promotion

of Eco-design, offering opportunities to shape production and consumption trends as

well as boosting European competitiveness.

Finally certain policies uphold Eco-design in specific sectors. The Packaging Waste

Directive for example includes targets for packaging recycling that have been seen

to trigger several successful innovations in packaging design, resulting in packaging

optimisation in terms of lighter weight, increased use of recycled materials and more

concentrated product formats. The End-of-Life Vehicles Directive and the Batteries

and Accumulators Directive include further design-phase product specific recycling

and recovery requirements.

Overall, Eco-design has been best addressed by EU policy in terms of the ZeroWIN

strategies studied, and has been approached from a number of angles, both in terms

of technical development and market development

32

9.5 Economic factors

According to the report “A new Growth Path for Europe, Generating Prosperity

and Jobs in the Low-Carbon Economy”xxxviii commissioned by the German

Environment Ministry, states Europe can revitalize its economy by a massive burst of

investment in green technologies which aims at reducing emissions by 30% by 2020

on 1990 levels. The report also states that by increasing investment from 18% to

22% of GDP, a major retrofit of European building stock and reorientation of the

energy grid towards renewables can spur a construction boom that will increase

economic growth rates by up to 0.6% a year. In the process, a mutual reinforcing

process would take place with up to six million additional jobs being created. This

would be helped by the utilisation of hi-tech industries.

The report gives a macro-level overview of the expected future for green industries

and green products. Parallel, the EU policy makers are targeting to achieve this goal

through different initiatives such as the ones described in the legal section of this

report.

The EU is committed to growing the economy while protecting the earth and its

resources. To make this happen, plenty of effort is being put in to boosting the green

economy. In 2009, the Commission announced that it would provide €105 billion

through its cohesion funds to invest in green technologies and eco-innovation.

In addition, priorities laid down in Europe 2020, the EU’s new economic strategy,

stress the need for smart, sustainable and inclusive growth. That means building a

competitive, low-carbon, resource-efficient economy – one of the Europe 2020’s

flagship initiatives - and safeguarding the environment by preventing degradation,

biodiversity loss and the unsustainable use of resources.

A key goal under Europe 2020 will be to support businesses so that they can

compete globally while being able to make the shift to a greener economy. If this is

going to happen, people will have to acquire the skills and training needed to work in

the green economy.xxxix

MicroPro has previously been a partner and beneficiary of a previous EU initiative to

promote environmental action, the LIFE-Environment Programme (Project

HEATSUN, LIFE00/ENV/IRL/00764), where the first prototype of the ecological

computers were developed. The iameco v3 is now in production and available to the

market. It is also a partner in another FP7 Environment Project LCA to Goxl

It is clear that at the moment the green economy is still in development, but efforts

from European SMEs, which represent 98% of all Industry in Europe, supported by

EU policies is moving towards a greener environment, greener economies and a

greener future.

33

MicroPro is in the right track and at the right moment to promote the development

and production of the D4R Laptop because it is the moment when more efforts are

being done to achieve the objectives of the Europe 2020 Initiatives.

This appears to be the right moment to develop green products, but at the same time

it is important to bear in mind economic factors, such as the high labor cost in

Europe compared with costs of developing countries. To decrease the labor cost in

Europe in order to be competitive with the one in developing countries like China,

incentive programs would have to be developed in EU to allow unemployed people

to find employment in social works like environmental technologies. For example in

China the labor cost is subsidized through housing or free education for the children.

9.6 Social factors

The first step that MicroPro has to take when considering the design of green

products, such as the D4R is to establish the level of customer concern regarding

environmental issues, and how potential customers will receive environmentally

friendly products and services. These will become our “green consumer” target.

The Scottish firm Smartmeters, which embraces the idea of what smart metering

technology can do to reduce energy consumption has highlighted several issues

regarding the behavior of European consumer regarding green products. The study

called “Green Consumers in Europe”, had within its scope, the examination of how

environmentally conscious European consumers are, which factors affect a

consumer´s choice to undertake green behaviors, among others, the referred study

is available on the Smartmeters website.

According to the results of the referred study, the firm has highlighted that xliEuropean consumers are highly aware of environmental problems and how their

everyday activities are contributing to them, with a high proportion already taking

action to improve the sustainability of their lifestyles.xlii

Smartmeters also states, based on their own research, which the vast majority of

European consumers that pursue green behaviour are doing so primarily in order to

benefit the environment, as opposed to receiving the monetary savings often

associated with such behavioural change.xliii

Females and older consumers display higher levels of sustainable behavior than

other groups, and are therefore likely to be more receptive to green marketing

campaigns.

For this people, among the most important reasons to purchase green products is

because they understand the factors that are driving the growth of green

consumerism in Europe. xliv

34

The IT sector has an important opportunity to provide green products and services,

and to develop strategies based on those demographic groups that are more

receptive to environmental concerns.

a) Culture - major determinant of European consumer behavior

MicroPro is mainly targeting customers from Europe, taking advantage of the

European Single Market. It is therefore important to understand consumer behavior,

particularly of people within the EU, in order to develop adequate marketing

strategies for the D4R. There are several factors that should be analyzed for this

purpose:

• Consumption of goods / services: For many Europeans the acquisition of

certain products have become the means of expression of social

differentiation, they can also be considered signals, which allow them to

express their social position.

• Membership. Ostentatious consumption is typical of certain social categories,

aimed at demonstrating wealth / status of the individual in society (e.g.

Mercedes car brand in France is the symbol of success and upward social

mobility).

• Reference groups also influence consumer behavior. This influence is very

strong for products that express the social status of the client - such as cars

and clothing. Sometimes the reference group may be transformed into one of

belonging; the individual is included in the group, which radically changed his

consumer behavior and buying purchasing. For example, public support for

the ecological products can be obtained not only when such products are

offered and made, but if customers have an ecological behavior in the group

which includes "green consumers". Green consumer is people who actively

seek out products with a relatively low impact on the environment and with

favourable effects on life quality. Mostly they are educated and well informed.

Surveys show that more women attach greater importance to the acquisition

criteria related to ecological optics, making them feel more threatened by lack

of attention paid to environmental imperatives and to become more inclined to

accept environmental solutions related reasons the quality of their most

important customers and the ability / power to influence their purchasing

decisions of the whole society and future generations.

b) Green customer trendsxlv

Euro monitor Internationalxlvi is the world leader in strategy research for consumer

markets, established in 1972. In March 12th, 2012, it made public the results of its

latest study carried out worldwide regarding “green” consumer trends “Green

Buying – An Exploration of "Green" Consumer Trends”.xlvii The research was

35

carried out in different countries from all continents, by in-house researches and

counted also with opinions from experts and analysts from different countries.

The research shows that concepts such as “green”, “organic”, “locally sourced,” and

“fair trade” has begun to populate more and more labels and ingredients lists within

the last decade. As climate change, health awareness, and environmental issues

gain ground, consumers are beginning to reconsider the most important factors

guiding their purchasing decisions. While green factors do influence many

respondents' purchase decisions, they trail price and quality by a significant margin.

Green products with the natural” label hold the most appeal. At present, concerns

about legitimacy in developed markets and lack of availability in developing markets

negatively affect interest in green products. In addition, products with green features

tend to have relatively higher prices than their non-green counterparts, and that extra

cost is difficult to pay out of recession-hit household budgets. Still, analysts feel that

awareness of green products has been growing and will continue to grow in all

regions, though many note that awareness does not necessarily translate to interest,

especially if prices remain high.

According to Euro monitor’s report, respondents worldwide agree that quality and

price are the most essential factors when buying a product; 97% think that the quality

of a product is a key feature, and 85% feel just as strongly about price. While the

term “natural” is an essential factor to nearly 50% of analysts, making it ostensibly as

important as a strong brand presence, the survey shows that some other “green”

phrases (organic, locally-sourced, fair-trade) only affect about one-third of

respondents' purchasing decisions.

Through write-in responses to Euromonitor´s survey, it was clear that many

respondents, mostly in North America, Latin America, and the EU, are concerned

with the legitimacy of green products. As one analyst from North America said, “I

have a hard time buying into the sustainability of most 'green' or organic business

processes. It seems to me to be largely misappropriated and used out of context to

tap into a new marketing fad among consumers.” Taking into consideration

comments like this, MicroPro has to make emphasis not only in the benefits and

advantages of the product, but also in clearly demonstrate the legitimacy of the

“green” features that make the D4R particular and friendly for the environment.

The following figure shows the % of who believe the listed factors are "somewhat

important” or “very important” in their purchasing

36

Source: xlviii

Nearly 70% of respondents across the globe said they were somewhat to very willing

to spend more on a green product, compared to the same product without green

features. Only 11% of respondents were not willing at all to spend more money for

green features.

Source: xlix

Euromonitor research shows while the image and penetration of green products

varies by region, analysts generally believe that green products are mostly

purchased by consumers who can afford them. When asked about the general

attitudes regarding green products in their countries, respondents from the US,

Canada, Europe, and Africa, among others, pointed out that only wealthy people

purchase green products; those with less money will most likely buy cheaper and

more readily available products.

Figure 8. Important factors in purchasing decisions 2011

Figure 9. Willingness to pay for green features 2011

37

Respondents from Russia and non-EU countries stressed the lack of available green

products in their region and said that the percentage of those who do seek out green

products is quite limited. In open-ended responses, analysts in China recognized the

organic trend, but feel it is very much still developing.

The expert firm has also described in its report how the consumers´ attitudes have

shifted towards green products, to this respect, Euromonitor affirms that consumers´

attitudes for green products have either stayed neutral or slightly grown even the

economic situation.

As one respondent from the EU said, “There is a small but growing segment that

finds [green products] extremely important and tries to eat as much as possible only

organic. However the majority is still sceptical toward organic products and finds

them too expensive. But the awareness is growing rapidly.” Respondents from Latin

America, however, were adamant in stating that green products affect a very small

segment of people and they did not think this attitude has changed since 2009.

Source:l

While some respondents are sceptical of green product claims, very few are

completely opposed to the idea of such products. Given the choice between a green

product and a non-green product offered at the same price, the vast majority of

respondents write that they would opt to go green. Results of the Euromonitor

Survey –Quick Pulse- from December 2011show that there is a loyal, if minority,

following of people who opt for green products and those consumers will continue to

do so in the future. However, if green products continue to cost more than non-green

products, then analysts expect most buyers of green products to be those who have

extra income in this struggling economic environment.

It is clear that consumption habits have changed dramatically compared with the

past decades, and new profiles of customers are emerging and asking for specific

Figure 10. Changes in attitudes toward “green” products 2011

38

products and services that fulfill their needs. To this regard, Euro RSCG Worldwide

carried out The New Consumer study li, and defined the profile of the new

customers, not valid only for Europe, but at international level. The results of this

survey had drawn the following key characteristics and findings:

The New Consumers are smarter, more empowered, and more demanding than

previous generations of shoppers. They make full use of online tools to connect with

others and score the right buys. 69% of global respondents to Euro RSCG’s New

Consumer study say they are smarter shoppers than they were a few years ago.

63% are more demanding shoppers than they used to be. 62% do lots of consumer

researches online—e.g., seeking out product info, reviews and ratings, price

comparisons.

The New Consumers have taken advantage of the downturn to consider moving

down a new path, finding a better way forward in terms of how they consume and

how they live their lives. 56% say the recession has served to remind people of

what’s really important in life—and that’s a good thing. 72% are making an effort to

improve the way they live. 71% are trying to improve who they are as individuals.

50% are actively trying to figure out what makes them happy.

They are eager to reduce their negative impact on the environment and on other

people: 64% say making environmentally friendly choices makes them feel good.

72% feel good about reducing the amount of waste they create. 54% are making an

effort to buy fewer disposable goods. 65% believe they have a responsibility to

censure unethical companies by avoiding their products. 51% avoid shopping at

stores that don’t treat their employees fairly. 57% say it makes them feel good to

support local producers, artisans, and manufacturers, and 45% say it is important to

buy locally produced goods.

Mintel International has also joined the tendency to research about customer

tendencies towards green products, recently, the UK and US offices carried out

surveys in Europe and in the US to understand this new field in these markets.

Mintel´s UK branch found out that sustainability and ethical products are a major

trend in the European market due to their concern about environment, meanwhile

the US office says that customers of that country will buy such type of products when

they tend to be important for health and safety, and they are according to the price.

In the other hand, the IGD firm, expert in food and grocery customer tendencies,

reports that the 49% of 2700 customers from UK, Germany, France and Spain are

willing to buy food and grocery products with ethical credential in the future, before

buying local and Fairtrade products. Continuing in this line, another expert in the

field, Amarjit Sahota said that the organic market is patchy in Europe due to the

varying effects of the economic crisis, but that organic food and drink sales grew by

over 15 per cent in both France and Sweden.

In countries like Denmark, the market share of organic food is 7%, with many organic

products like mild and eggs having over 20% market share. However, the market

39

share for other environmental friendly products remains low because of poor

availability. The report also shows that Danish consumers would like to buy more

organic products, such as hygiene products if they could find them in retails stores.

Currently, there are researches available mostly related to bio or organic products,

which represent an important reference to understand the way of thinking of

potential customers, and analyze tendencies in the field of green products. There is

no information available regarding Green IT products because of the very low or not

availability in the market.

9.7 Competitiveness analysis

There is an increasing trend towards greener computing, with manufacturers and

service providers intent on reducing the impact that computer has on the planet, and

in particular climate change. However, there is more to eco computing than just

getting the latest low energy laptop, any attempt to reduce the environmental impact

of our increasing reliance on computers needs to be multifaceted, and the key to all

of it is the user.

a) Sector analysis

• Threat and rivalry of competitors: we are facing a difficult market and we

compete with cross marks considered in the top ten most valuable brands by

society according to a study conducted by Millward Brown Optimor. However,

using an appropriate strategy we can achieve the business to be preferred by

customers. Therefore, the green component should be a decisive factor in this

strategy, as it is, in our case, a clear differentiation strategy.

• Customers’ negotiation power: most of the customers are keen to pay more

for environmentally friendly products. Despite this, we cannot set a too

expensive price as we must keep in mind that there are already established

brands in the market. Therefore, a high quality must be assured and, in the

other hand, a reasonable prize will assure a market share.

• Threat of substitutes: There are other products which, although not

identical, can be considered competitors and that can make us lose market

share.

b) Market share of PC leading vendors

The market share of leading PC vendors is watched closely, as the personal

computer (PC) is an iconic high tech product. Market discussion of these devices

(typically desktops and laptops) may include netbooks but do not include media

tablets which are dominated by Apple products.

40

From the other side, however, its value is oblique, because in recent times a

personal computer can be assembled even by a home use, and the process of

making a PC is reduced to packing hardware components (which these listed

manufacturers do not produce) inside a casing.

Key developments in recent years have been the battle for the top spot between

Dell and HP, the rise of Acer, and the dwindling of PCs sold by companies

outside the top five.

Table 11. Global PC market

Global PC Market Share by Units, Percent. 2010 - 2011

Rank 2010 2011

1 HP 17,9 HP 17,2

2 Dell 12,9 Lenovo 13,0

3 Acer 12,0 Dell 12,1

4 Lenovo 9,7 Acer 11,2

5 Toshiba 5,4 ASUS 5,9

Others 42,1 40,7

Source: Gartnerlii

c) Companies working on green computers

There are some companies which are already working on green computers:

• Dell Latitude E6400 ATG: This laptop computer got a gold rating form the

Green Electronic Council on their EPEAT list, which is a well known and

respected registry of green friendly electronics. What this means is that this

Dell meets 23% of the required environmental standards for the list and 75%

of the optional standards.

• Lenovo Think Pad L420: made from 30% post-consumer recycled content.

The green-ness also affects the bottom line, as this laptop is supposed to

save 40% on operating costs alone. It has a LED-backlit display and power

manager. It includes energy certifications from ENERGY STAR and attains

the EPEAT Gold Standard. The packaging is recyclable and there’s 20% less

of it to go waste.

• Acer TravelMate TimelineX: it meets EPEAT silver, RoHS, WEEE, and

ENERGY STAR standards to protect the environment.

• Asus Bamboo Series: made out of bamboo, it has a tensile strength that rivals

of steel, and it is perfect substitute for plastic. The packaging is also eco-

41

friendly, so it is 100% natural and recyclable. The laptops use a bamboo

frame and even the trackpad is made out of bamboo.

• MacBook Air: it uses energy-efficient components that require less energy to

operate than other laptops. Since it is mostly made out of aluminum and

glass, it is easy to recycle. The MacBook Air also earns the EPEAT gold

certifications. It is also ENERGY STAR 5.2 compliant. And if you by a new

Mac, Apple helps you recycle the old ones.

• MacBook Pro: The green features of this Apple laptop include the fact that

arsenic is no used in the manufacture of the display glass. The LED backlit

display is mercury free, the circuit board and other components of the

machine are brominated flame retardant and polyvinyl chloride free, and the

battery is manufactured for exceptionally long life, lasting up to five years.

• Toshiba Protégé R700: It has an EPEAT Gold certification. The LED backlit

display uses less energy than others. Coupled with power-saving software, it

allows curtailing energy consumption. Toshiba has also cut down on the use

of harmful chemicals in their PCs over the next several years.

• Sony Vaio W Series: these are some of the most environmentally responsible

laptops currently available. More than 80% of the plastics used in these

computers are recycled. In addition, the LED monitor contains no mercury.

The packaging material in which the machine is shipped is kept to a minimum

as well in an effort to conserve natural resources. And they are made out of

23% recycled CDs and a 7 hour battery life.

• Gateway EC19C-A52C/S: This machine focuses on energy efficiency as a

way of being green. It gets around 6 hours of battery life per charge while also

Though principal competitors in European markets are the large companies named

above, as well as HP and Fujitsu, who source their components almost without

exception outside Europe (only Fujitsu Technology Solutions produces in Augsburg/

Germany and some Intel and AMD processors are produced in Europe). Although

most of the large players consider environmental aspects, they are very hesitant to

promote a computer explicitly as an eco-product, which is demonstrated by the fact,

that none (apart from Asus) has gone as far as to securing the European Eco-Label.

Hence, MicroPro will open a virtually virgin market for actively promoted eco-

computers, which is not existent by now. A computer based on a holistic ecologic

business philosophy is not on the market yet.

In this market segment MicroPro will be without real competitors, similar to Apple

who (repeatedly) developed a completely new market with their fashionable product

strategy. Besides these large players there are numerous assembly shops selling

computers under their own brand, but basically using standard components, and

none of these companies put significant efforts in designing a particular “green” PC.

42

d) Entry Barriers

• Initial investment expenditure

• Competitors already established in the market.

• Possible Dumping: competition establishes a price below cost that the firm

cannot fight against, forcing local producers out of the market and lead to

monopolistic positions.

• Intellectual property: potential entrant requires access to equally efficient

technology in order to freely enter a market. Patents give the legal right to

exploitation of a product and to stop other firms producing a product for a

given period of time, and so restrict entry into a market. Similarly, trademarks

and service marks may represent a kind of entry barrier for a particular

product or service if the market is dominated by one or a few well-known

names.

• Economies of scale: the experienced and large firms can produce at a lower

cost than small and newly firms cannot afford.

• Globalisation: the entry of global competitors in a local market makes it

difficult for local competitors, due to

• Customer loyalty: consumers may be reluctant to change to a new brand or

product.

• Advertising: established firms can wear it difficult for new competitors by

spending extraordinary incoming advertising firms cannot afford.

e) Sector Maturity

The sector is clearly in the growth phase as the electronics industry is constantly

expanding. That's why sales are growing rapidly, the unit cost per customer is

medium and the benefits are increasing. In addition the company is increasingly

consistent with environmental damage and therefore it is increasingly willing to

buy a product that is environmentally sustainable.

The field of organic electronics is a concept increasingly widespread and more

important, so it is important to note in this area that none of the competitors is

among the most sustainable companies according to research conducted

annually by Greenpeace.

9.8 Market analysis

Shoppers are increasingly concerned about the image of what they buy, and they

are getting better at spotting corporate greenwash and spin too. After many of the

world’s leading electronics companies rose to the challenge of phasing out the worst

hazardous substances, we are now challenging them to improve their sourcing of

minerals and better managing energy use throughout their supply chain.

43

Many of the environmental impacts associated with electronics are exacerbated by

the increasingly short product life cycles. Companies continue to launch more

powerful, faster and better gadgets that become must-haves to increasingly younger

customers with more spending power than ever before. The increasingly rapid

process of putting a new product on the market encourages people to replace

electronics faster and faster. This is one of the key drivers of expanding mountains of

e-waste.

Also, greenhouse emissions in the supply chain contribute significantly to consumer

electronics overall energy footprint. Different stages in the supply chain release

different amounts of greenhouse gas emissions.

More consumers expect their consumer electronics (CE) devices to be

environmentally friendly, according to new data released today by the Consumer

Electronics Association (CEA) ®. CEA finds that 89 % of households want their next

television to be more energy efficient, for example. Although awareness of “green”

CE offerings lags behind sectors like household products and automobiles, 33 % of

consumers say they expect to make some type of green CE purchase within the next

two years. liii

“Consumers are now beginning to associate terms like recycling and energy

efficiency with consumer electronics products,” said Tim Herbert, CEA’s senior

director of market research. “As they seek out those attributes in the purchasing

process, there is enormous opportunity for manufacturers and retailers to educate

customers about green products and how purchasing decisions can impact the

environment.”

According to the study, price and features continue to be the primary purchase

drivers for CE products, but green attributes will increasingly be a factor. In fact, 53

% of consumers say they would be willing to pay some type of premium for

televisions with green attributes.

Effectively communicating the green attributes of CE products continues to be an

obstacle for manufacturers in particular. Though the study indicates high consumer

awareness of logos like EPA’s ENERGY STAR®, the absence of a single indicator

for other “green” attributes leads to consumer confusion. The study finds consumers

desire an easy way to determine if a product meets environmental standards, such

as logos and descriptions printed on the product packaging.

“With 74 % of consumers saying that companies should do more to protect the

environment, it’s critical that CE manufacturers and retailers clearly communicate

with customers regarding the environmentally-friendly products and programs

offered by the industry,” notes Parker Brugge, CEA’s vice president of environmental

affairs and industry sustainability.

Main considerations in buying a new PC areliv

44

• Performance/ Function e.g. speed, battery life

• Price

• Brand name

• Environmental aspects (e.g. energy consumption, free of hazardous substances)

• Design

According to a broad 2010 consumer survey in Germany (BMU 2010) for 65% of the

population “energy efficiency” is already a purchase criterion. There is also a certain

willingness to pay more for products, which have a lower impact on climate change,

given this claim is credibly documented: more than 50% of the consumers are willing

to accept a price premium of up to 10% or even more, although more than 20% is

rarely accepted.

In Germany the most relevant consumer groups, which can be extrapolated to the

rest of European countries, following the systematic of milieus introduced by the

SINUS-Institut, for the green computer are the established conservative milieu, the

liberal-intellectual milieu and the socio-ecological milieu, comprising in total 2.7% of

the German population (17, 5 million), as these are the target groups with the highest

willingness to pay for “green”, according to the UBA survey.

It is also of great importance to highlight that, according to the report of the European

Commission regarding green countries, Austria, Denmark, Finland, Germany,

Holland, Sweden and England are on top of excellence in environmentally

sustainable product purchases (e.g. durable, reusable, efficient, resource-

saving throughout their life cycle or recycled)lv.

So, the production of an environmental friendly product will match very well with the

philosophy of a lot of countries of Europe, which are becoming greener and giving

more value to the sustainability.

Figure 11. Market segments willing to pay for environmental excellence

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10 SWOT analysis

Below is a SWOT analysis for the D4R and its service model:

Table12: SWOT of the D4R.

STRENGHTS (and measures to

exploit the full potential of these)

WEAKNESS (and related mitigation

measures)

Product/service related factors

• First computer on the market

based on holistic ecologic

business philosophy

• High quality controls done to all

components

• Inventory management of used

system components

• Extensive range of eco-design

principles implemented at every

stage of the lifecycle

• Identification of 4 appropriate

enterprises who have agreed to

act as service agents

• Future marketing approaches

and product/service design by

the feedback of clients

• Partners acting as

disseminating strategy in their

own countries

• Key target groups identified

• Involvement of industrial cluster

to integrate associate SMEs

Market/competitiveness factors:

• Raising ecological awareness.

a) No similar product on the market.

Product/service related factors:

• Niche product

• Initial investments required

• Customers lack of information

about:

- Technical support

- Service structure

- Environmental benefits of

buying green products

• Lack of tools for returning

system management

• Lack of lifecycle information

system for inventory

management

• Support of public administration

needs for an effective

exploitation strategy

• A major and high profile

awareness and dissemination

campaign needed

• Less market influence of small

computer manufacturers

Market/competitiveness factors:

• Small and local company.

• Limited profitt margins

46

• Few in-house R&D resources

OPPORTUNITIES (and measures to

exploit the full potential of these)

THREATS (and related mitigation

measures)

Product/service related factors:

• Introduction of new technology

in International markets

• Changes in production model

from traditional business to a

lease based alternative

• Compliance European

Directives and regulations:

WEEE, RoHS, EuP

• Large computer companies do

not consider environmental

aspects of the products

• Large variety of dissemination

activities

• Large market opportunities

related to education and

business.

Economic factors:

• Revitalization of European Economy: � Massive investment in green technologies

� Energy grid towards renewables: increase economy growth and jobs

• EU Commitment to growth Economy and protection of earth and resources

• €105 billion from the Commission to invest in green technologies and eco-innovation Continue to lead in IT technology

Social factors:

• “Green”, “organic”, “locally

Product/service related factors:

• Green products priced higher

• Higher price that the existing

market laptops

• Rapid innovative cycles and

obsolescence of the ICT sector

• High environmental, social and

economic impact of the ICT

sector in production and EOL

• Possibilities of irregularities in

the supply.

Economic Factors:

• Weak stage of green economies

• High labor costs in Europe compared with cost of developing countries such as China.

Social factors:

• Quality and price are the most essential factors for buyer.

• Important concern about the “legitimacy” of green products.

• Green products tend to be purchased by wealthy people.

• Higher prices of green products are an important factor for buying decisions.

Market/competitiveness factors:

• Falling behind in technology innovation

• Not being able to reach “take-off” point on viable manufacture

• Insufficient human and financial capacity for continued R&D

• Loss of product/service diversity

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sourced,” and “fair trade” concepts are becoming more popular.

• Climate change, health awareness, and environmental issues gain ground in customers.

• “Natural” and “environmentally friendly” concepts influence in the buying decisions.

• Certain willingness to spend on a green product.

• Slightly but constant grown of green products during 2009 and 2011.

• Rapid increase of awareness of green products.

• Very few people oppose to the idea of green product.

• Vast majority of people would opt to go for green products when an acceptable price.

• New customers are smarter, more empower and more demanding than previous generations, and care about environment.

Market/competitiveness factors:

• Trend-setter: Create an attractive brand image. Continue to lead in IT technology o Intensified cooperation with

suppliers

• Develop national and export markets o Develop robust network

infrastructure

• Manufacture viable and cost-effective

• Loss of customer loyalty

11 Conclusions

The world is moving into a more sustainable production model and customers are

becoming more aware about the environmental component of the products they pay

for. The Laptop D4R is the first computer on the market based on holistic ecologic

business philosophy based on the zero waste approach by which the volume and

toxicity of waste and materials are reduced.

48

It is an innovative product with an innovative production model, and like all the new

products that want to get into the market a feasibility study has to be carried out to

evaluate if it would have market acceptance.

Making a review on the strengths, weakness, opportunities and threats identified, we

can conclude that the following characteristic are essentials for a good market

acceptance of the D4R:

a) Close relationship and service with the customers is of great importance to

make a differentiation on the market. Feedback of the clients must be taken

into account.

b) Make the customers aware of the technical, service and environmental

benefits of buying the product.

c) Effective exploitation strategy is essential for the support of the public

administration which may be essential because public entities are the most

prone and common in buying green products.

d) ICT sector is a really competitive sector which changes a lot in short time

period, constant innovation and R&D investments on the Laptop D4R are

really important.

e) There is less market influence of small computer manufacturers, but with the

industrial network four different European countries will be involved which

results on a big market opportunity.

f) The introduction of new technology and a lease based production model has

to be exploited as an innovative and more modern market view and take

advantage on the little consideration of the big companies on environmental

aspects.

g) The reused and suppliers network has to be constant for not having

irregularities.

h) Take advantage on the massive investment of Europe in green technologies.

i) Very few people oppose to the idea of green product and vast majority of

people would opt to go for green products when an acceptable price

j) An attractive brand image is essential to attract customers’ attention.

More broadly, the CS1 case study and the development of the D4R have shown the

following:

49

a) That SME’s can viably design products that achieve major reduction in GHG

emission and fresh water use, as well as maximising reuse and recycling of

materials and used parts and components

b) That structuring of an appropriate industrial network, where participants are

able to produce making use of the by-products of other participants, has

positive environmental benefits for all concerned

c) That it is possible in this way to form a practically closed-loop production

process, maximising reuse and ensuring a cradle to cradle approach.

d) That for the benefits of this approach to be fully achieved requires that the

product be designed from the start with this strategy in mind.

e) That Eco-design for reuse across a product life-cycle requires a departure

from the design, servicing and marketing principles that are currently

paramount in commercial electronics

f) That an industrial network developed within this framework support this

process not only from a supply chain perspective, but also in the marketing of

the product and in the service functions throughout the life cycle of the

product, including repair, upgrading, take-back and remanufacture.

g) That to reap the full benefit from this production process is likely to require the

development of a leasing or similar take-back arrangement, where there is an

incentive to put the products back into the closed-loop supply chain.

h) That the coverage that this closed loop model can achieve is limited by the

putting in place of an appropriate service network.

The ZeroWIN vision applied by the CS1 in the development of the D4R and the

industrial network, and the conclusions reached, could be replicated by other

manufacturers, certainly of small electronic products, and possibly others wishing to

gain an environmental and market advantage.

However, the benefits of this approach are probably not open to the same extent to

all industry sectors. In the electronics industry, SME’s working at a small scale,

producing relatively small number of models developed, have more control of design

and production processes that most large enterprises, particularly those where viable

production involves a large capital investment. Those industries will find it harder to

change existing practises

The arguments for a “paradigm change” or major evolution in the mainstream

approach to industrial design and production, and the difficulties and/ barriers

involved, has been argued in studies like Cradle to Cradlelvi. We can however safely

50

conclude on the basis of this Case Study that such an approach is viable for SME’s

at least as far as production.

The commercialisation of the D4R and the consumer acceptance of the reuse

approach are still to be tested. The market and financial viability of the D4R has not

been established, and the potential markers and the barriers to commercialisation

are only just being identified in this report. Also the full costs of commercial

production and marketing are not known. Although the Partners assume that the

D4R can be viably produced and marketed, it must be stated that this has not, at this

stage, been established, and will have to depend on the development of subsequent

projects, such as the proposed MicroPro CIP-Innovation Bid, iamecoEurope, to

demonstrate this point.

CS1 is important for the ZeroWIN project in that it demonstrates that the ambitious

targets for environmental improvement set out in its Vision Statement, of significant

savings in GHG emissions and fresh water use, and significant increase in

reusability and recycling are achievable, at least in the electronics sector. As this

Case Study is completing at a half-way point is the ZeroWIN project, we hope that its

experiences and conclusions will act as a beacon to other sectors participating in

ZeroWIN, demonstrating how these targets can be achieved, and how the industrial

network model can be developed.

12 List of Tables and Figures

Table 1 Parts and Components Pg. 9

Table 2 Life expectancy of parts and components Pg. 11

Table 3 Testing for parts and components Pg. 11

Table 4 Industrial Network Pg. 13

Table 5 Impact on GHG emissions Pg. 16

Table 6 Impact on Recycling and Reuse Pg. 17

Table 7 Impact on fresh water usage Pg. 17

Table 8 Results of cost comparison Pg. 19

Table 9 Client profile in current sales (MicroPro) Pg. 24

Table 10 EU policies relevant to ZeroWIN Pg. 25

Table 11 Geographic PC market Pg. 39

Table 12 SWOT analysis of D4R and its network Pg. 44

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Figure 1 D4R Laptop Pg.7

Figure 2 D4R laptop keyboard Pg. 8

Figure 3 D4R cut-away view port side (sketch) Pg. 8

Figure 4 Reuse of D4R casing at EOL Pg. 8

Figure 5 Internal view of D4R (sketch) Pg. 10

Figure 6 D4R internal assembly Pg. 10

Figure 7 D4R industrial network Pg. 13

Figure 8 Important factor in purchasing decisions Pg.35

Figure 9 Willingness of pay for environmental excellence Pg. 35

Figure 10 Changes in attitudes towards green products Pg. 36

Figure 11 Market segment wiling to pay for environmental excellence Pg. 43

13. Glossary of main technical terms

Card Reader A card reader is a data input device that reads data from a card-shaped storage medium modern card readers are electronic devices that use plastic cards imprinted with barcodes magnetic strips computer chips or other storage medium. A memory card reader is a device used for communication with a smart card or a memory card. A magnetic card reader is a device used to read magnetic stripe cards, such as credit cards. A business card reader is a device used to scan and electronically save printed business cards Central processing unit CPU The central processing unit (CPU) is the portion of a computer system that carries out the instructions of a computer program to perform the basic arithmetical, logical, and input/output operations of the system. The CPU plays a role somewhat analogous to the brain in the computer. The term has been in use in the computer industry at least since the early 1960s. The form, design and implementation of CPUs have changed dramatically since the earliest examples, but their fundamental operation remains much the same. CPU Fan Computer cooling is required to remove the waste heat produced by computer components to keep components within permissible operating temperature limits a cpu fan is required

52

DDR3 (DRAM) with a high bandwidth interface. It is one of several variants of DRAM and associated interface techniques DDR3 SDRAM, an abbreviation for double data rate type three synchronous dynamic random access memory , is a modern kind of dynamic random access memory used since the early 1970s. DDR3 SDRAM is neither forward nor backward compatible with any earlier type of random access memory (RAM) due to different signaling voltages, timings, and other factors. Dual-layer DVD recording Dual-layer recording (sometimes also known as double-layer recording) allows DVD-R and DVD+R discs to store significantly more data—up to 8.5 gigabytes per disc, compared with 4.7 gigabytes for single-layer discs. Along with this, DVD-DLs have slower write speeds as compared to ordinary DVDs. When played, a slight transition can sometimes be seen in the playback when the player changes layers. DVD-R DL was developed for the DVD Forum by Pioneer Corporation DVD+R DL was developed for the DVD+RW Alliance by Philips and Mitsubishi Kagaku Media (MKM). A dual-layer disc differs from its usual DVD counterpart by employing a second physical layer within the disc itself. The drive with dual-layer capability accesses the second layer by shining the laser through the first semitransparent layer. In some DVD players, the layer change can exhibit a noticeable pause, up to several seconds. This caused some viewers to worry that their dual-layer discs were damaged or defective, with the end result that studios began listing a standard message explaining the dual-layer pausing effect on all dual-layer disc packaging. DVD recordable discs supporting this technology are backward-compatible with some existing DVD players and DVD-ROM drives. Many current DVD recorders support dual-layer technology, and the price is now comparable to that of single-layer drives, although the blank media remain more expensive. The recording speeds reached by dual Hard disk A hard disk drive (HDD; also hard drive, hard disk, or disk drive is a device for storing and retrieving digital information, primarily computer data. It consists of one or more rigid (hence "hard") rapidly rotating discs (often referred to as platters), coated with magnetic material and with magnetic heads arranged to write data to the surfaces and read it from them. Hard drives are classified as non-volatile random access digital magnetic data storage devices HDMI HDMI (High-Definition Multimedia Interface) is a compact audio/video interface for transferring encrypted uncompressed digital audio/video data from a HDMI-compliant device ("the source" or "input") to a compatible digital audio device, computer monitor video projector and digital television A digital audio/video source for HDMI can include a HDMI-compliant set-top box DVD player, HD DVD player, Blu-ray Disc player, AVCHD camcorder personal computer (PCs), video game console (such as the PlayStation 3 Xbox 360 and the Wii U ) AV receiver tablet computer and mobile phone HDMI is a digital alternative to consumer analog

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standards, such as radio frequency (RF) coaxial cable composite video S-Video SCART component video D-Terminal or VGA (also called D-sub or DE-15F). HD Graphics Before the introduction of Intel HD Graphics, Intel integrated graphics were built into the motherboard's north bridge This included Intel Extreme Graphics and the Intel Graphics Media Accelerator. As part of the Platform Controller Hub (PCH) design, the northbridge was eliminated, and graphics processing was moved to the central processing unit (CPU). In January, 2011, the Sandy Bridge processors were released introducing the "second generation" HD Graphics: Motherboard In Laptops a motherboard is the central printed circuit board (PCB) in many modern computers and holds many of the crucial components of the system, providing connectors for other peripherals. The motherboard is sometimes alternatively known as the mainboard, system board, and planar board or, on Apple computers, the logic board It is also sometimes casually shortened to mobo Keyboard. In computing a keyboard is a typewriter-style keyboard which uses an arrangement of buttons or keys to act as mechanical levers or electronic switches. Following the decline of punch cards and paper tape interaction via teleprinter style keyboards became the main input device for computers. Power supply A power supply is a device that supplies electrical energy to one or more electric loads. The term is most commonly applied to devices that convert one form of electrical energy to another, though it may also refer to devices that convert another form of energy (e.g., mechanical, chemical, solar) to electrical energy. A regulated power supply is one that controls the output voltage or current to a specific value; the controlled value is held nearly constant despite variations in either load current or the voltage supplied by the power supply's energy source. RFID A wireless identification and sensing platform (WISP) is an RFID (radio-frequency identification) device that supports sensing and computing: a microcontroller powered by radio-frequency energy. That is, like a passive RFID tag, WISP is powered and read by a standard off-the-shelf RFID reader, harvesting the power it uses from the reader's emitted radio signals. To an RFID reader, a WISP is just a normal EPC gen1 or gen2 tag; but inside the WISP, the harvested energy is operating a 16-bit general purpose microcontroller. The microcontroller can perform a variety of computing tasks, including sampling sensors, and reporting that sensor data back to the RFID reader. WISPs have been built with light sensors, temperature sensors, and strain gauges. Some contain accelero meters WISPs can write to flash and perform cryptographic computations. The WISP was originally developed by Intel Research Seattle but after their closure development work has continued at the Sensor Systems Laboratory at the University of Washington. Touchpad

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A touchpad (or trackpad) is a pointing device featuring tactile sensors, a specialized surface that can translate the motion and position of a user's fingers to a relative position on screen. Touchpads are a common feature of laptop computers, and are also used as a substitute for a mouse where desk space is scarce. Because they vary in size, they can also be found on personal digital assistants (PDAs) and some portable media players, Wireless touchpads are also available as detached accessories. Webcam. A webcam is a video camera that feeds its images in real time to a computer or computer network, often via USB ethernet or Wi-Fi Wi-Fi Some times spelled Wifi or WiFi, is a popular technology that allows an electronic device to exchange data wirelessly (using radio waves) over a computer network including high-speed Internet connections.

14 References

i Appendix 1 Description of Work, ZeroWIN Project 05.05.11

ii

ii Hickey, S, et all, Deliverable 6A.2 ZeroWIN project (Draft) 23.03.12

iii Werbach. Adam - Strategy for Sustainability A Business Manifesto Harvard University Press 2009

iv idem

v ISO/IEC Quality and Performance of Office equipment that contains reused components ISO/IEC 24700-2005(E)

vihttp://ec.europa.eu/environment/life/project/Projects/index.cfm?fuseaction=search.dspPage&n_proj_id=1889&docType=pdf

vii http://www.cleanerproduction.ie/

viii http://ec.europa.eu/environment/etap/pdfs/july06_iameco.pdf

ix Hickey, S, Fitzpatrick, C, Schischke, K, Schlösser, A, Aguirre, MP, ,Benecke, P, Nittka, T,Wabbel, M,Becker F, Maher, P,

Ospina, J Practical Eco-Design Approaches for Personal Computers – A Case Study of the iameco II 17.01.12 x Middenndorf, A (editor) TUC Berlin, April 2012

xi Schischke, K, Mainboard Design Requirements April 2011

xii DDR3

xiii HD 1025 lines

xiv “If being used 8 hours a day” (AUO)

xv Yang, M, AUO

xvi Hickey, S, Fitzpatrick, C, Beigl, P, Dietrich, J, Ospina, J, Maher, P, Garatea, J, Shischke, K D6A.1 in Concept Papers for All

networks, ZeroWIN April 2011. xvii

idem xviii

Name withheld for commercial reasons. xix

Hickey et all, op cited. xx

Hickey, S, et all, Deliverable 6A.2 ZeroWIN project (Draft) 23.03.12 xxi

idem xxii

idem xxiii

idem xxiv

Obersteiner,G, Beigl,P, Pertl,A, Scherhaufer, S,D7.1 ZeroWIN Project April 2012 xxv

idem xxvi

http://www.netmba.com/econ/micro/demand/curve/ xxvii

Forrester, Green IT Adoption By Geography, 2009. xxviii

http://www.ictliteracy.info/rf.pdf/T-SystemsWhitePaper_Green-ICT.pdf xxix

Mr Vinay L Deshpande. Application for Seeking Financial Assisstance from TDB. Part II_Information about project_Determination of claim. xxx

Eco-Innovation – 1st

Application for Market Replication Project: CIP-EIP Eco-Innovation 2011, No. 304551, iamecoEurope. MicroPro 2011. xxxi

idem xxxii

Treaty on the Functioning of the European Union, Art. 4 xxxiii

: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:285:0010:0035:en:PDF xxxiv

D.8.1. Policy Synthesis Report, ZeroWin Project xxxv

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2003:037:0019:0023:en:PDF xxxvi

idem xxxvii

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2003:037:0024:0038:en:PDF

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xxxviii

http://www.euractiv.com/sites/all/euractiv/files/m30_Synthesis_0.pdf

xxxix http://ec.europa.eu/social/main.jsp?catId=370&langId=en&featuresId=130&furtherFeatures=yes

xl LCA to GO- FP7 Environment 2010

xli

xlii http://www.research-store.com/smartmeters/product/green_consumers_in_europe?productid=BFEN0522

xliii idem

xliv idem

xlv www.euromonitor.com

http://blog.euromonitor.com/2012/03/quick-pulse-green-buying-an-exploration-of-green-consumer-trends.html xlvi

http://www.euromonitor.com/about-us xlvii

http://blog.euromonitor.com/2012/03/quick-pulse-green-buying-an-exploration-of-green-consumer-trends.html xlviii

Euromonitor International Analyst Survey – Quick Pulse; December 2011 Scale from 1 'Not at all important' to 5 'Very important' xlix

Idem l idem li http://www.thenewconsumer.com/study-highlights/ lii http://www.gartner.com/it/page.jsp?id=1893523

liv G CEA. Going Green: An Examination of the Trend and What it Means to Consumers and the CE Industry. April 2008.reenpeace International/ Imposes MORI lv

http://ec.europa.eu/environment/waste/pdf/Final%20Report%20final%2025%20Oct.pdf lvi

McDonough, W, Braungart, M Cradle to Cradle. North Point Press 2002