5 Tips for Success in the Research and Development of a New Product

Many functions do not understand how various aspects of sustainability affect what they do; as a result, companies miss out on benefits – or commit costly mistakes.   This is 1 in a series of how sustainability affects different functions, with 5 tips for success in the research and development of a new product.

1.  The materials in the product matter.  

Products may include materials that are restricted or banned in some locations.  The Dodd-Frank Conflict Minerals law is a current example of regulatory restrictions of materials in products.  If a product contains tin, tantalum, tungsten, or gold, then the [publicly-traded] manufacturer must investigate where it comes from, and make certain disclosures in SEC filings.

The European Union (EU) is considering similar restrictions.  The EU has restrictions on hazardous substances.  Electronics – which are embedded into many new products – are especially affected, but in is in dyes that find their way into apparel.  Bisphenol A (BPA), used in polycarbonate plastics in many applications, is a concern, and has been banned in many states.

Take care in the design of new products to avoid materials that will restrict or eliminate the ability to sell them.

2.  Minimize the extent and impact of packaging.   

Packaging is an essential component of the customer’s first impression, and can make or break sales.  Packaging is also designed to reduce theft at the point of sale.  Packaging can also include excessive amounts of materials, or types of materials that are not readily recyclable.

Excessive packaging can reduce the number of products that can be shipped per unit volume, increasing distribution costs (and the greenhouse gas (GHG) emissions that go with it).  There are restrictions imposed by laws on packaging.  They may also be imposed by customers.  Walmart has pledged to create zero waste; this includes elements of packaging.

3.  Align with Sustainability priorities of the distribution chain.   

Walmart is probably the most significant “regulator” for sustainability in North America.  In addition to packaging, they have goals on GHG emissions, energy savings, and fertilizer optimization for foods.  What’s more, the targets continue to evolve, with a new Sustainability Index due in 4Q2013.

Virtually every company has embarked on some type of sustainability program.  Companies have different priorities on environmental, energy, social, or economic improvements.  What they all have in common is that they all look to the supply chain to help them make their improvements.  The Federal Government also has sustainability goals, embodied in Executive Order 13514 of October 5, 2009.  Goals on energy efficiency will inevitably work their way into the supply chain.

4.  Design products that provide benefits during their use.  

Sustainability-conscious customers will get more pleasure out of using products if they provide benefits during their use.  Many food retailers have installed energy-efficient freezers.  One retailer described how pleased they were with reduction in electricity costs.

The new freezers included motion-sensor lighting, which had a small effect on utility bills, but made customers feel much better about the retailer’s commitment to the environment.   There are literally hundreds of labeling schemes that convey some type of sustainability benefit.

The author cautions that these labeling schemes have varying degrees of rigor, market acceptance, and costs.  They may provide varying degrees of benefit to your company and should be considered as any other business investment.

5.  It’s still your product after the customer is finished with it.   

When the customer is finished with your product, it (and/or the packaging) goes somewhere. The mantra of “reduce, reuse, recycle” is a good guide to prioritize efforts for end-of-life fate of your products.   Less impactful products are the best approach.  Reuse or repurposing of products is the next best.  Be creative in how products can be repurposed, and find ways to convey this to the customers.

Our household recently purchased new curtains, which came in heavy-duty plastic packaging with zipper and hook for display.  The bags are ideal for travel –toiletries, or for wet clothes in a suitcase – or for storing clothes off-season.  If the producer highlighted this, perhaps they could gain a competitive advantage.

Regulations require product take-back or recycling for some products (paint, batteries, and tires).  Even when not required by regulation, take-back is good practice (plastic bags, beverage containers). Consider availability and ease of recycling for products and packaging.

Consider these sustainability factors in your product R&D to produce better products, and attract sustainability-minded customers.  You’ll make products with less impact on the environment, and provide social benefit.  This will also help you gain competitive advantage, and bring success to your company.

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