Abstract
This study addresses how to effectively integrate circular and smart design aspects into a systematic product innovation process using an axiomatic design (AD) approach. In the context of growing consumer demand for sustainable and technologically advanced products, the research explores how these design principles can enhance environmental impact, functionality, and user convenience. The research plays a pivotal role in bridging the gap between environmental sustainability and smart technology integration by proposing a structured methodology. It begins with a literature review to identify key circular (e.g., resource efficiency, recyclability) and smart (e.g., adaptability, connectivity) design aspects. Customer preferences for existing products are mapped to these aspects, translated into functional requirements, and used to develop design alternatives. The methodology is discussed through a step-by-step process, culminating in a case study of a water dispenser designed using AD principles. Data from the case study reveal that the proposed water dispenser outperforms existing market models in sustainability, functionality, and user convenience, despite higher initial costs. The article details the AD process, including customer preference analysis, functional requirement definition, and design matrix development, ensuring robust design solutions. The main finding is that the AD-based innovation process successfully integrates circular and smart design, offering a practical framework for creating superior, sustainable, and intelligent products that enhance customer satisfaction and market competitiveness.