Innovation

The smart air-cleaning and energy-saving window contains three main functions. Most importantly, it is designed for purifying the air via its ‘three-in-one’system: first strainer, HEPA (high-efficiency particulate air) strainer, and activated carbon strainer. The research and development team also added smart ventilation design in this system. By controlling the window with an application on smart phones, customers can easily adjust and purify the indoor air. In addition, this innovation is made by thermal insulation and sound-proof material, aiming to provide a comfortable living environment for customers. The last main function is regarded as a sustainable system for the product itself. The designer combined solar power and general electricity together for the product’s energy support. Therefore, not only can customers save costs, society could also benefit from energy-saving.

Inspiration

Mrs. Zhang, as one of the directors of the Optical Valley Energy company, said “Personally, I like living in a clean and tidy area, however, as you know, rapid industrial development has damaged air quality, besides, air pollution has become a risk that Chinese society has to face. We are trying to solve this problem, as much as we can do. And it is the main reason why our company concentrates on this product.”

She also shared a story about the inspirational experience. When she first come up with this idea, she and her team was lacking technical support. In a conversation with a friend, she learned that Huazhong University of science and technology is also working on developing the product but lack of financial support. She immediately communicated and negotiated with the university and fortunately they worked together to focus on this innovation.

Overall impact

"‘Overall, the product has both short-term and long-term impacts for its stakeholders,’" she responded, "Optical Valley Energy spent far less on advertising costs than our budgeting. When focusing on short-term impact, it has improved the business a lot, through sales and revenues. People discuss and prefer this innovation, it even helps business to get government financial support because of its eco-friendly function."

"Additionally, the staff is paying more and more attention to the environment." Moreover, she also shared the long-term impact of the innovation. Most importantly, she believes people will no longer need this product in the future because when the environment becomes better, the world will become better, there will be no demand for air cleaning products. All of its stakeholders can realize their responsibility for the environment, sustainable development, even the earth.

Business benefit

“I would say it has brought more than one hundred million Yuan gross profit to our company,” Mrs. Zhang states. It is a measurable benefit and in addition to profit, she summarized the direct or indirect benefits of the three main points to the business. First, employees' salaries have increased substantially, and the company is planning to provide employees with bonuses based on sales.

Moreover, the company has redecorated, updated equipment and improved the quality of the working environment. Secondly, the company used the remaining capital to expand production and enter into more markets, preparing further expansion of the company.

Finally, this innovation has become the main recommended product of their company, by conducting this, the innovation obviously enhanced company’s cultural background, relating to environmental protection and energy conservation. Based on the good feedback from customers, she believes that the company's reputation has also been improved.

Social and environmental benefit

Monash Sustainable Development Institute (2018) stated that the United Nations published 17 Sustainable Development Goals as part of the ‘2030 Agenda for Sustainable Development’. Most of businesses are trying to reach 17 SDGs, because it will not only create value for environment and society, consumers’ support and social appeals will also help to extend the life cycle of the business and provide a clear and sustainable development prospect to business (Porter & Kramer, 2011). Optical Valley Energy company maintained that they have already met three goals of SDGs, they will continually work on reaching more goals in their future plan.

1. Reaching SDGs No. 1: No Poverty

In order to saving costs, the company signed contracts with raw materials markets, opened a factory and purchased equipment, hired local workers, and paid them a higher wage than the local factory (relatively lower than the labor cost of the big city). Entering the customer market near raw materials not only minimizes transportation costs and pollution, but also raises the income level of local communities. In addition, the company provides basic industrial production knowledge training for them free of charge, hoping that they can improve their living standards sustainably.

2. Reaching SDGs No. 8: Decent Work and Economic Growth

After finishing the first financial year of producing the innovation, Optical Valley Energy company started to increase the whole wage level of their employees. Meanwhile, sales bonuses and year-end bonuses have also been greatly increased. Improving the working environment has always been the company's concern and long-term implementation of the project.

3. Reaching SDGs No. 11: Sustainable Cities and Communities

The company is not only committed to the business-to-customer operating model, but also extensively develops business-to-business projects. They have signed contracts with other companies or organizations to produce and install the window. For example, recently Optical Valley Energy provided large volumes of windows to Xinyang Normal University and established a long-term partnership with them. Moreover, Optical Valley Energy has cooperated with some primary and middle schools, as well as some cultural landscapes such as temples with the lowest profit prices and free installations, in order to create value for sustainable cities and communities. In return, they helped to promote this innovation.

Interview

Xiumin Zhang, Director

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