You probably recall the general scramble to get GDPR compliant a few years ago and think it was a big deal. But in all honesty, who did it involve really? Sales & marketing folks, the legal department, maybe some IT. Plus hoards of advisors and consultants. GDPR is about regulating marketing and the use of personal information...only.
DPP: just around the corner
The European Union is about to require products sold in the EU to be accompanied by digital product passports (DPP). In just a few years.
DPP is not about sales and marketing only, as GDPR. DPP is about still being able to sell your products in the European Union. At all. If you cannot reliably, easily, and continuously provide digital product passport data together with your product, you won't be able to sell it. At all.
DPP – about environment, circularity, and responsible design, production, and consumption
What data? you may ask.
Detailed data on the environmental impact of your product – throughout the entire life cycle. From source materials, via manufacturing, transports, use all the way to disposal. Reparability, responsibility in manufacturing and sourcing (certificates of compliance with regulations on deforestation, child labour, forced labour, responsible agriculture, social responsibility......)
Detailed data that many probably have no idea of currently.
DPP isn't about sales and marketing. It's existential.
Let's have a look at which functions in your company may be affected (at least):
🔵 Production/Maintenance – Calculating and measuring details of environmental impact through your own production operations (probably modifying production methods to reduce it)
🔵 Sourcing/Purchasing – Finding out, verifying and ensuring a continuous flow of the same kind of data from your sub-suppliers of inputs and logistical services (perhaps getting some of them to make changes or for you to change suppliers to improve results)
🔵 Design/ Construction – Don't be surprised if you will need to redesign products to reduce environmental footprint or to eliminate dependence on non-compliant/uncooperative sub suppliers.
🔵 IT – Once you've unearthed the information, you need to make it possible to distribute it safely, continuously, and easily, to maintain it with minimal effort (including the data from sub-suppliers) to keep it verified continuously - all in formats and systems that comply with standards. Be prepared to reinforce your IT staff with wizards on handling data in novel ways.
🔵 Legal – Of course, all of this will involve the legal department.
🔵 Communications – Such a major makeover will require extensive and carefully designed internal communications to build understanding and engagement among employees
🔵 Marketing/Sales – Not as key as in GDPR, but customers and the market will be interested in your progress to compliance.
🔵 Top management – Obviously, such a comprehensive transformation of operations will require top management to be heavily involved
🔵 Business Development – Once you have the platform in place to provide DPP data, your business development folks will hopefully realise that it also can be used to add value to your product through adding other types of digital content that customers are prepared to pay for or, at least, boost customer loyalty.
🔵 Depending on your industry and set-up, it's likely that also other functions will be impacted.
The whole shebang, in other words
Looking at the list above, it looks to us that we might as well say that DPP will touch your entire operations. All functions. All employees. All management.
Nothing you do in an afternoon, that is.
When will you get started?
Do you know how?
Get in touch to get started.
Image by simonkr on iStock
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