EXPERTISE IN TECHNOLOGY AND ECONOMICS

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Integrated Development - Concepts and Some Empirical Integrated Development - Concepts and Some Empirical Evidence from European SMEsEvidence from European SMEs

Lassi Linnanen, Irini Voudouris, Ninetta ChaniotouLassi Linnanen, Irini Voudouris, Ninetta Chaniotou

Greening of Industry Network ConferenceGreening of Industry Network ConferenceCardiff, July 2-5, 2006Cardiff, July 2-5, 2006

The Concept of DQE

Design Quality Environment

Functionality Differentiation

HumanCapital

Excellence

Eco-Efficiency

ResponsibleConsumption

Some DQE Principles

For the common good– Open ”source code”– Co-evolutionary approach

Systemic view– Design: product –> system– Quality: product –> excellence– Environment: production –> life cycle

Wide scope of applications– New product development– Product improvement– Operational excellence– Project evaluation

Functionality

1 What are the potential user groups?2 How does the product or service help the user to achieve her objective?3 What can the user do more easily, comfortably or efficiently than

before?4 How does the product or service offer the user diverse experiences?5 How does the product or service increase the user’s level of physical or

mental agility?

6 What is the social significance of the product or service to the user?

Differentiation

7 What is the image of the product or service for the users?

8 Is the product or service of high aesthetic quality?

9 How are the users’ future needs taken into account?

10 What are the main features of the corporate image and reputation?

11 How are specific cultural features taken into account?

Human Capital

12 What is the role of formal and tacit knowledge in the company’s future success?

13 How is staff training organised?

14 How does the company promote life-long learning?

15 What are the values of the company?

16 In what ways are motivation and commitment promoted?

Excellence

17 How does market intelligence drive the company’s development?18 How does the top management participate in the quality management

process?19 How is the improvement of quality linked to the company’s strategy?20 How does the company promote partnerships and the operation of

networks?21 How are the company’s core and support processes defined?22 How does the company innovate?23 How is risk management organised?24 How does the company develop its cost-efficiency?25 How are productivity and results measured?26 How are the best practices known and exploited?

Eco-Efficiency

27 How can the use of hazardous materials be reduced?28 How can recycling of products and materials be

increased?29 How can the products’ life cycle be extended?30 How can the use of materials and energy be made more

effective?31 How are environmental issues integrated in the

company’s decision-making?

Responsible Consumption

32 How can products with a lower impact on the environment be marketed?

33 How can the company promote environmental knowledge for its staff and customers?

34 How can the company reduce the environmental burden in its logistics chain or in its personnel’s travelling?

35 How does the company demonstrate its social responsibility?

Testing of DQE Approach in European SMEs

Survey in 17 SMEs in four European regions

– Achaia / Greece– Anhalt / Germany– Shannon / Ireland– Kainuu / Finland

Included 23 of 35 areas of DQE questionnaire

SectorsTourism 5Crafts 2Food and beverages 5Software 1Instrumentation 2Furniture 1

Employment1-10

810-19 220-30 431-90 3

Variable Averages

Design – definition of objectives 3.82Design – definition of product eff. 3.82Design – definition of user groups 3.76Quality – role of knowledge 3.76Quality – strategy 3.59Design – aesthetic qualities 3.53Quality – market intelligence 3.53Quality – innovation 3.47Design – clear product image 3.47Quality – use of best practice 3.47Design – corporate image 3.41Quality – core processes defined 3.41

Design – future user needs 3.35Environment – recycling 3.26Quality – promotion of motivation 3.24Quality – staff training 3.18Environment – environmental issues 3.13Quality – cost efficiency 3.12Quality – partnerships 3.06Environment – environmental impact 2.93Environment – use of materials 2.89Quality – productivity measures 2.71

Cumulative results

Contribution to Integrated Development

Economic Social Environmental Importance Average

score Importance Average

score Importance Average

score Functionality + *** ++ *** 0 *** Differentiation ++ ** + ** + ** Human resources

++ * ++ * 0 *

Excellence ++ ** 0 ** 0 ** Eco-efficiency + * 0 * ++ * Responsible consumption

0 * + * ++ *

*** high, ** medium, *low

DESIGN

QUALITY

ENVIRONMENT

DIFFERENTIATION:

How can we design

products with longer life cycle?

The integrative element: DESIGN – Differentiation

The integrated approach as we identified it through the project