Design Thinking And The Circular Economy

by Ayko Neil Kehl for the course ‘Academic Writing by Reinhard Kunz

The Linear World & The Circular World

For many years, our economy has functioned according to a linear principle. Based on the take-make-use-waste approach, this system is depleting the natural resources of our planet. (Stiftung Entrepreneurship, 2019) 

The only problem here is that sooner or later you end up with a pile of worthless something. Today we know that this can not continue. (Ellen MacArthur Foundation & IDEO, n.d.)

For this reason, more and more companies and countries are switching to a circular economy. The most important point here is the reuse of used products or materials. A new component is added to the linear economic approach by recycling a product at the end of its life cycle. (Stiftung Entrepreneurship, 2019) 

In the linear economy, design happens at the beginning of the process. Something is designed, completed and finally brought to market. In the circular economy, design is a never-ending process. After the life cycle, a new spectrum of possibilities opens up. How can the product still be used? How can we easily separate and recycle the materials? It is the same with an intangible service. The world is changing as fast as ever and so are customer demands and circumstances, which leads to a constantly evolving service that needs to be redesigned again and again. CEO of IDEO, Tim Brown describes it himself as: „Design is never done.“ (Ellen MacArthur Foundation & IDEO, n.d.-a)

So you can see that this is not just about modern product design in the traditional sense. The changes in our world need a mental shift in the minds of companies, countries and humanity in general. Designers are ultimately the creators of the things we use every day. You could almost say that designers are also to blame for many problems, as they are at the origin of all things and strongly influence development. This is where design thinking comes into play. 

Design Thinking

Design Thinking is a philosophy and a set of tools to help you solve problems creatively. It’s about emphasizing and figuring out who you’re designing for and what their needs are.

There are many processes to solve problems. But the special thing about Design Thinking is the human-centric approach. Design Thinking looks at all problem solving through the lens of human-centered design. What is important here, however, is that it is not necessarily about what people want, but what is best for the user. (Harvard Business Review, 2019)

Ideas are considered from three perspectives:

  • Desirability: What is the customer’s wish/need?
  • Feasibility: What is technically feasible?
  • Viability: What is a marketable and sustainable business model?

This method ensures that you create something that improves people’s lives, but is also feasible to produce and makes economic sense. So it opens up the ability to design products that are good for humanity, good for the planet and good for business. (IDEO U, n.d.)

How Can Design Help?

However, where exactly can design help now? To understand this, a broader understanding of design is required. We are not only talking about design as a form-giving component but also about design as a process and design as a strategy. Design is therefore not a result, but an approach that is integrated early in the development process. (The Design Ladder: Four Steps of Design Use, n.d.)

There are already some frameworks that help designers to keep the circular economy in focus in their projects. A better-known principle is „the 3 R’s“ – Reduce, Reuse, Recycle. The order is very important. Although the awareness of recycling is steadily increasing and is generally very well received by the population in Switzerland, recycling is not the highest of all things. It would be even better if we could reuse things. However, this is not always in the power of the consumer but often also in the power of the developers of these products. Once we are there, the first step would be to reduce consumption. This does not only mean the end consumers but also the producers, industries, countries and organizations. The power to change lies in the design of systems. (Our Guiding Principle – The 3 R’s (Reduce, Reuse, Recycle), 2019)

In order to achieve innovation in the circular economy, the design agency IDEO, together with the Ellen MacArthur Foundation, has created the „Circular Design Guide“. In this guide, methods are presented that support designers in bringing a new mentality towards the circular economy into their projects. 

Service Flip

With the tools of Design Thinking comes the power of understanding the underlying needs of users.

Do you really need a car or do you just need a flexible way to commute? Do you really need a DVD player or just an entertaining evening of television? With the real need in mind you can start thinking about how you could change your product to a service. Switching to a service has many advantages. In addition to increasing customer loyalty, it also allows companies to become more circular. (Ellen MacArthur Foundation & IDEO, n.d.-b) 

The example of the jeans brand „MUD Jeans“ shows what a service flip can achieve. With a recycling rate of less than 1% and the ongoing ‚fast fashion‘ trend, an urgent rethink is needed in the clothing industry. The classic way here is usually to sell a product. But CEO Bert van Son realised that there would be a way to get the materials for his product back and still better satisfy the needs of his customers. Because the basic need is not to buy or own a pair of trousers, but a changing wardrobe. Henceforth, MUD Jeans sells its jeans in the a subscription model. You have the option to lease a pair of jeans for €7.50 per month. After one year, the customer has the choice to exchange the jeans for another pair (and continue leasing), to simply keep the used jeans or to end the subscription and return the jeans. In addition, the customer is offered free repairs. So the customer wins by having more flexibility and an optionally ever-changing wardrobe. With the new model, MUD Jeans has a more predictable material supply chain, a lower environmental impact and increased customer loyalty. (The Ellen MacArthur Foundation, n.d.)

Thinking In Systems

Traditional design approaches focus on the needs of the end consumer. To meet the demands of the circular economy we need to approach it from a different angle. Not only the user must be considered here but also the system in which the design is located.

A cup can seem like a very simple thing at the moment of drinking, but the designer behind it has to look not only at the shape of the cup but at the system around it. How is the cup made? Where and to whom is it sold? How long is the life span of the product? And how is it finally disposed of or, even better, recycled and reused? (Ellen MacArthur Foundation, 2016)

What is important in the aspect of the circular economy is that designers take a step back and look at the big picture (system) in which the objects will later be part of. That is why the design process in a circular economy does not end abruptly but leads back to the beginning with feedback loops. (Ellen MacArthur Foundation & IDEO, n.d.-a)

The Role Of A Design Manager?

I hope that by this point it has become clearer to most readers why design is such a powerful tool for creating a more sustainable world. Most companies now realize that they need to use design to compete in the marketplace. The same is true for innovation towards a circular economy. After all, ecological and economic success often run in parallel with some delay. For this reason, it is essential today not to leave the design to chance. Only in this way can companies be sure that they are doing the right thing and doing it right. Design is no longer just the visual polish of a product but also the strategy and process in a cycle of actions. Managing this construct is one of the tasks of a design manager. (Baars, 2020)

But a design manager must also practice with new perspectives that the circular economy demands. User-centred is no longer just laced to the needs of the customer, but to the whole system in which the customer and the design are situated. A design manager must take a step and look at the big picture to develop a solution that is best for the user and the world. What is feasible and what is not, no longer depends only on the obstacles in the initial production. A product in the circular world is made of reusable materials and holds its value far beyond its own life cycle. A product is no longer finished once it is brought to market. Products will be designed more and more like a service. This creates feedback loops that can be used to continuously improve a product. Probably the most important task for the design manager, however, is to change the way people think. Only if we rethink together, companies, organisations and consumers, will we be able to turn the design of the economy upside down and thus work towards a circular world. (Ellen MacArthur Foundation & IDEO, n.d.-a)

During my research, I came across many sources that deal with the topic of design and the circular economy. However, many of them are already several years old, which makes me wonder why there is not more of an open discussion about this crucial subject. It seems to me that the topic is more important and urgent than ever before and yet it is still not a generally known concern. Once you start looking at the circular economy, it opens up a whole new way of thinking. So why are we still talking mainly about recycling instead of reusing or reducing? Why are products still being redesigned without a circular world in mind? I’m sure there has been progress, but I don’t get the feeling that there is a global shift in mindset yet. Normally I would be of the opinion ‚The devil take the hindmost‘. In other terms, those who rethink today are the winners of tomorrow. Those who stand still will fall behind. But when it comes to climate and sustainability, the case is somewhat different. It is essential that we all rethink, not just a few innovative ones. If this does not happen, the question remains how much time we have left to do so.

Source

The Difference Between Linear & Circular Economy. (2019, August 16). Entrepreneurship Campus. https://www.entrepreneurship-campus.org/the-difference-between-linear-circular-economy/ 

Ellen MacArthur Foundation & IDEO. (n.d.). The Circular Design Guide. The Circular Design Guide. Retrieved April 9, 2021, from https://www.circulardesignguide.com/ 

Ellen MacArthur Foundation & IDEO. (n.d.-a). Mindsets. The Circular Design Guide. Retrieved April 9, 2021, from https://www.circulardesignguide.com/mindset 

Harvard Business Review. (2019, July 23). The Explainer: What Is Design Thinking? [Video]. YouTube. https://www.youtube.com/watch?v=_WI3B54m6SU&feature=youtu.be 

IDEO U. (n.d.). Design Thinking. Retrieved April 9, 2021, from https://www.ideou.com/pages/design-thinking 

The Design Ladder: Four steps of design use. (n.d.). Issuu. Retrieved April 9, 2021, from https://issuu.com/dansk_design_center/docs/design-ladder_en 

Our Guiding Principle – The 3 R’s (Reduce, Reuse, Recycle). (2019, August 22). Live Green. https://livegreen.ch/en/guideline/ 

Ellen MacArthur Foundation & IDEO. (n.d.-b). Service Flip. The Circular Design Guide. Retrieved April 9, 2021, from https://www.circulardesignguide.com/post/service-flip 

The Ellen MacArthur Foundation. (n.d.). Pioneering a lease model for organic cotton jeans. Ellen MacArthur Foundation. Retrieved April 9, 2021, from https://www.ellenmacarthurfoundation.org/case-studies/pioneering-a-lease-model-for-organic-cotton-jeans 

Ellen MacArthur Foundation. (2016, November 29). Adopting a systems mindset – Circular Design Guide [Video]. YouTube. https://www.youtube.com/watch?v=ylujl-ZKdq8 

Baars, J. (2020, December 7). Was ist eigentlich Designmanagement? PAGE online. https://page-online.de/branche-karriere/was-ist-eigentlich-designmanagement/ 

Index

Figure 03 – Illustrated by Ayko Kehl, based on

[Innovation]. (n.d.). Https://Www.Ideou.Com/Pages/Design-Thinking. https://www.ideou.com/pages/design-thinking 

Figure 02 – Illustrated by Ayko Kehl, based on

Live Green. (n.d.). [Reduce, Reuse, Recycle]. Livegreen.Ch.
https://livegreen.ch/en/guideline/ 

Figure 03 – Illustrated by Ayko Kehl, based on

The Design Ladder: Four steps of design use. (n.d.-b). [Illustration]. Https://Issuu.Com/Dansk_design_center/Docs/Design-Ladder_en 

Figure 04 – Illustrated by Ayko Kehl, based on

IDEO & The Ellen MacArthur Foundation. (n.d.). Service Flip [Illustration]. https://www.ellenmacarthurfoundation.org/assets/design/Service_Flip_Final.pdf 

Digital Collaboration

From time to time, there are inventions that are so simple, so straightforward and so clear that they become universally recognised and commonplace. One of these things is the whiteboard. Especially in the working world. You can find one in almost every meeting room. Everyone understands the immense benefit that a whiteboard has in collaboration. You could just talk to each other, use a piece of paper, or write the whole thing down. But no, the whiteboard is the perfect solution. It’s big enough to hold marginal notes, photos, postits, drawings. It forgives you every mistake, because everything is gone again with a wipe. It is visible to everyone. It shows connections. It dispenses with linear thinking and leaves room for connections. In our complex world, we need such tools for complex solutions. In 2020, the year of the pandemic, there were plenty of them. Unfortunately, however, it was precisely in this difficult time that we had to do without our whiteboard. Away with the whiteboard and here with MIRO, the digital whiteboard. This is exactly where social design comes in. It is about satisfying human needs. For everyone, the new circumstances were probably a bit of a challenge. And one quickly longed for tools that made the circumstances easier. With MIRO, it was once again possible to brainstorm and plan together on a whiteboard, even through remote work. The tool is so self-explanatory and easy to use that after just a few minutes you don’t have to worry about how to use it and can concentrate on your work. We were able to see for ourselves how good Miro is during our studies. After a teacher suggested the tool for an assignment, everyone had a chance to practice on it. Since then, almost every group works in a Miro board.

by Ayko Kehl

Design as Common Good

Attention all designers! On 25 – 26 March 2021, the online conference „Design as Common Good“ will take place. I don’t know exactly what to expect at this event. Nevertheless, I am excited and full of anticipation to learn something new and to broaden my design horizon. In the following, I will describe why I find the two panels I will be attending particularly interesting.

Panel 1: Social Design in Emerging Economies

In this panel we will talk about social design in emerging economies. I think this topic is incredibly interesting because in times of rapid growth and development, design has the power to create sustainable good structures.

Panel 2: Diverse, Open, Collaborative: Innovative Approaches to Design

Collaboration is and always has been an important part of design. It is only through diversity and openness that the greatest possible potential can be tapped from a collaboration. Not least because of the pandemic, many people have discovered online communication for themselves. What was difficult for many at first has now become completely normal. And yet, without the compulsion of the pandemic, we would probably never have discovered these possibilities for ourselves.

Author: Ayko Kehl

How a Finish Company Solves Social Issues with the Help of Design.

Before we get into the nitty-gritty we have to understand the relationship between social issues and design. In order to do so, we have to get into the topic of social design.

What is social design?

Social design is creating a product that assists, facilitates, and empowers culture. It is also viable, attainable and alluring. Economically and socially viable, environmentally attainable, which sequentially makes it alluring society. All in all, Social Design means designing for society with the help of society.

Why should social design be a north-star for business people?

Social design is looking at ways to affect entire communities or organizations.

We, humans, are very good at solving linear and technical problems, issues that are straightforward and that at most times have a black and white solution. On the other hand, social problem solving is something we are not yet fully proficient at, as it requires many steps of prototyping and adjusting it based on the feedback and reaction from the user. These feedbacks and responses are unique to each culture which makes it impossible to foresee and plan. Only by observing and understanding people can adjustments be made. 

A great example of how Social Design was achieved by understanding the community and society is Jeff Brown’s example. He is a grocer that transformed his grocery business by applying social design to the business model. He created social experiments in his grocery stores to try to affect society positively.

With that said, Social Design begins with an ultimate vision, not just with simple goals such as „I want a successful business.“ It needs to start with its primary purpose to make a difference and positively affect society so that people involved feel passionate enough to pivot around what is required to be done to get to where it is necessary.

So, who is THE Finish company: Demos Helsinki?

Demos Helsinki is a global think tank based in Helsinki. A think what? It might sound abstract at first, but a think tank it’s actually a very simple concept – Usually, it’s an institute that conducts research and advocacy on a wide range of issues such as social policy, economics, technology, etc.

Now, there are several such think tanks, but what distinguishes Demos Helsinki from others is the independence of the institution, which is 100% project-funded, without any political affiliation or external core funding. The organization has 50 people from different backgrounds spread over three units: Demos ry is a registered non-profit association, which owns Demos Helsinki oy and Demos Research Institute oy. Demos Helsinki oy specializes in consultancy for clients from the public and private sectors, NGOs and foundations. Demos Research Institute oy specializes in academic research.

What do they actually do?

The services of Demos Helsinki range from conducting research, consultancy services, to reimagining and experimenting with futures for their clients. Sounds like a task, doesn’t it?

Who’s hiring them?

They often work for curious governments, cities, companies, universities and other partners. In their own words, Demos Helsinki works for everyone who shares their mission of building a fair, sustainable and joyful next era.

Why does Demos Helsinki choose to work with social design?

Demos Helsinki believes that the future needs to be created from a multitude of perspectives, which is reflected in our people. Additionally, they are aware of how change can only happen if we all work together. 

This awareness that Demos Helsinki possesses becomes clear as day when you analyze their work and how it influences a broad range/group of society. 

And, when it comes to their work, we can see how Demos Helsinki tackles human issues and social change in projects such as carbon-neutral strategy, public services, Sustainability Goals, etc. An example is their carbon neutrality for businesses, which they intend to help companies in the marriage of their business strategies and climate goals. 

Moreover, they clearly express their positioning and mission by having quotes on social change highlighted throughout their website. Quotes such as: 

„Demos Helsinki has been built on the idea that change can only happen together.“

„Only together can we fight for a fair, sustainable and joyful next era.“

„We work with curious governments, cities, companies, universities, and other partners.”

What is their approach to change the world they wish to see?

When it comes to their approach, how they want to change the world they wish to see with their work. Demos Helsinki focus on the following four steps:

  1. Expanding agency in decarbonization:
    With their work, Demos Helsinki wants to „achieve fast and radical decarbonization“ by different actors such as the states, citizens and corporations.
  2. Transformative governance:
    They believe that citizens do not have enough trust in politics and public governance and want to change that by finding a “new governance mindset.”
  3. Regenerative infrastructure:
    They are also convinced that the current physical and digital infrastructure is not used at their full potential because the users do not have enough influence over those structures.

  4. Emancipatory economy:
    And finally, they are convinced that financial capital should no longer be the main goal in our economy, but we should focus on wellbeing and sustainability.

But let’s get to an actual example…

By utilizing the above-stated approaches Demos Helsinki have successfully worked on projects such as the Kesto project and the carbon neutrality strategies for businesses;

What is the KESTO project about?

The goal of this project is a localization of Sustainable Development Goals(SDGs) in Finnish municipalities. It deals with how to bridge the everyday management work with the SDGs’ global sustainability framework. The result of the project is a replicable three leadership models, and they help strengthen the strategic leadership and cooperation process of municipalities when applied on a local level. The KESTO project suggests the importance of sustainability and the direction to Finnish.

What are the Carbon neutrality strategies for businesses about?

In this project Demos Helsinki created a four-ring model to help companies react to climate challenges and conduct business better. This is an example of their business model, as carbon-neutrality is at the core of all their operations.

  • First ring(core): company’s carbon footprint
  • Second ring: it facilitates the carbon neutrality of customers
  • Third ring: it seeks impacts on the whole industry
  • Fourth ring: idea of a carbon-neutral society

To come back to our first question of how a Finish company solved social issues with the help of design, Demos Helsinki tackles the problems of their clients with the help of research, a human-centred approach that involves a number of perspectives and a focus on sustainability. In their view, change can only happen if we stand together and fight for a fair, sustainable, and joyful future.

The Authors: Jeanne Streit, Marina Praxedes, Yeon Lee, Ayko Neil Kehl