1. EXPERTISE IN TECHNOLOGY AND ECONOMICS www.lut.fi Integrated Development - Concepts and Some Empirical Evidence from European SMEs Lassi Linnanen, Irini Voudouris, Ninetta Chaniotou Greening of Industry Network Conference Cardiff, July 2-5, 2006

2. The Concept of DQE Design Quality Environment FunctionalityDifferentiation Human Capital Excellence Eco- Efficiency Responsible Consumption

3. 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

4. Functionality 1What are the potential user groups? 2How does the product or service help the user to achieve her objective? 3What can the user do more easily, comfortably or efficiently than before? 4How does the product or service offer the user diverse experiences? 5How does the product or service increase the user ’ s level of physical or mental agility? 6What is the social significance of the product or service to the user?

5. Differentiation 7What is the image of the product or service for the users? 8Is the product or service of high aesthetic quality? 9How are the users ’ future needs taken into account? 10What are the main features of the corporate image and reputation? 11How are specific cultural features taken into account?

6. Human Capital 12 What is the role of formal and tacit knowledge in the company ’ s future success? 13How is staff training organised? 14How does the company promote life-long learning? 15What are the values of the company? 16In what ways are motivation and commitment promoted?

7. Excellence 17How does market intelligence drive the company ’ s development? 18How does the top management participate in the quality management process? 19How is the improvement of quality linked to the company ’ s strategy? 20How does the company promote partnerships and the operation of networks? 21How are the company ’ s core and support processes defined? 22How does the company innovate? 23How is risk management organised? 24How does the company develop its cost-efficiency? 25How are productivity and results measured? 26How are the best practices known and exploited?

8. Eco-Efficiency 27How can the use of hazardous materials be reduced? 28How can recycling of products and materials be increased? 29How can the products ’ life cycle be extended? 30How can the use of materials and energy be made more effective? 31How are environmental issues integrated in the company ’ s decision-making?

9. Responsible Consumption 32How can products with a lower impact on the environment be marketed? 33How can the company promote environmental knowledge for its staff and customers? 34How can the company reduce the environmental burden in its logistics chain or in its personnel ’ s travelling? 35How does the company demonstrate its social responsibility?

10. 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 Sectors Tourism5 Crafts2 Food and beverages5 Software1 Instrumentation2 Furniture1 Employment 1-108 10-192 20-304 31-903

11. Variable Averages Design – definition of objectives3.82 Design – definition of product eff.3.82 Design – definition of user groups3.76 Quality – role of knowledge3.76 Quality – strategy3.59 Design – aesthetic qualities3.53 Quality – market intelligence3.53 Quality – innovation3.47 Design – clear product image3.47 Quality – use of best practice3.47 Design – corporate image3.41 Quality – core processes defined3.41 Design – future user needs3.35 Environment – recycling3.26 Quality – promotion of motivation3.24 Quality – staff training3.18 Environment – environmental issues3.13 Quality – cost efficiency3.12 Quality – partnerships3.06 Environment – environmental impact2.93 Environment – use of materials2.89 Quality – productivity measures2.71

12. Cumulative results

13. Contribution to Integrated Development