Circular Innovation Framework: Verifying Conceptual to Practical Decisions in Sustainability-Oriented Product-Service System Cases
Abstract
:1. Introduction
- Which are the known strategies that enable circularity?
- Which of these strategies are applied in PSS solutions? Does their application differ among PSS types?
- What are the practices that enable operationalizing such strategies in PSS solutions?
2. Research Methodology
2.1. Systematic Literature Review for Cases Identification and Selection
2.2. Content Analysis of Identified Cases
3. Circular Innovation Framework: Bridging Concept to Practice
4. Practices for the Operationalization of Circular Strategies
4.1. Practices for Operationalization of Circular Strategies in the Inner Circle
4.2. Practices for the Operationalization of Circular Strategies for Circling Longer
4.3. Practices for the Operationalization of Circular Strategies through Cascade Use
4.4. Practices for Operationalisation of Circular Strategies through Pure Inputs
5. Circular Strategy Occurrence and Co-Occurrence in Sustainability-Oriented PSS Cases
6. Conclusions and Research Limitations
Author Contributions
Funding
Acknowledgments
Conflicts of Interest
References
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Industry Sector | ||||
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Relat. | PSS Type | Article—Case # (If Two or More Cases) | Case Description—Name or Provider (If Available) | Country/Region |
Agriculture | ||||
B2B | UO | ([26]—Case 1) | Farming machinery cooperative | Spain |
B2B | UO | ([26]—Case 2) | Heifer breeding cooperative | Spain |
B2B | UO | ([26]—Case 3) | Fodder provision cooperative | Spain |
Built environment | ||||
B2B | PO | [27] | Elevator provision | China |
B2B | PO | ([28]—Case 2) | Crane-related services | China |
B2B | UO | ([29]—Case 3) | Soil compactor provision—Swepac | Sweden |
B2B | UO | [30] | Monitoring solution for urban services—Azimut Monitoring | France |
B2B | RO | ([29]—Case 2) | Building exteriors cleaning—Qlean Scandinavia | Sweden |
B2C | UO | [31] | Hybrid energy heating system provision | Australia |
B2C | UO | [32] | Hot water provision | Italy |
Clothing | ||||
B2C | PO | ([33]—Case 3) | ‘Trash design’ ECO WISE—Heidenspass | Austria |
B2C | PO | ([34]—Case 1) | Clothes lifecycle care—H&M | Sweden |
B2C | PO | ([34]—Case 2) | Clothes lifecycle care—KappAhl | Sweden |
B2C | PO | ([34]—Case 3) | Clothes lifecycle care—Lindex | Sweden |
B2C | PO | ([34]—Case 4) | Clothes lifecycle care—Gina Tricot | Sweden |
B2C | PO | ([34]—Case 5) | Clothes lifecycle care—Indiska | Sweden |
B2C | PO | ([34]—Case 6) | Clothes lifecycle care—Boomerang | Sweden |
B2C | PO | ([34]—Case 7) | Clothes lifecycle care—Nudie Jeans | Sweden |
B2C | UO | ([34]—Case 8) | Clothes rental—Filippa K | Sweden |
B2C | UO | ([34]—Case 9) | Clothes rental—UFTD | Sweden |
Consumer goods | ||||
B2B2C | UO | [35] | Small household equipment renting | France |
B2B2C | RO | [36] | Community drinking water system | Brazil |
B2C | PO | ([33]—Case 1) | Re-use network ECO WISE—ReVital | Austria |
B2C | PO | ([33]—Case 2) | Re-use enterprise ECO WISE—BAN | Austria |
B2C | PO | [37] | Keyboard-related services | Iran |
B2C | UO | [38] | Water purifier rental | South Korea |
B2C/B2B | UO | [39] | Provision of water purifier | Brazil |
Industrial machinery | ||||
B2B | PO | [40] | Remote maintenance system for machine tools | Greece * |
B2B | RO | ([29]—Case 1) | Paper mill plugs provision—Polyplank | Sweden |
Maritime industry | ||||
B2B | RO | ([41]—Case 1) | Hull cleaning contract | Denmark * |
B2B | RO | ([41]—Case 2) | Steam system audit | Denmark * |
Medical devices | ||||
B2G | UO | [42] | Provision of haemodialysis equipment | Italy * |
Mobility | ||||
B2C | UO | [43] | Family boats rent for water tourism | Netherlands |
B2C | UO | ([28]—Case 1) | Car rental | China |
B2C | UO | [44,45] | Car sharing—car2go | Germany |
B2C | UO | [46] | Car sharing—Zipcar | North America and Europe |
B2C | UO | [47] | Bike sharing—Velo’v | France |
B2G | UO | [48] | Bike sharing—Seoul municipality | South Korea |
Oil, gas, and mining | ||||
B2B | UO | ([49]—Case 1) | Air separation equipment provision—Hangyang Co. | China |
B2B | UO | [50] | Truck tires as a service | Chile |
B2B | RO | ([49]—Case 2) | Oxygen provision—Hangyang Co. | China |
Waste management | ||||
B2G | PO | ([51]—Case 1) | Waste-to-energy systems—Usitall AB | Sweden |
B2G | PO | ([51]—Case 3) | Waste-to-energy and recycling systems—VafabMiljo | Sweden |
B2G/B2B | PO | ([51]—Case 2) | Biogas production—Swedish Biogas International | Sweden |
B2G/B2B | RO | ([51]—Case 4) | Biogas-related solutions—Svensk Biogas | Sweden |
Providers Domain | Product Domain | Customers Domain | ||
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Key Partners With whom and how to cooperate in providing a solution that enhances resource-effectiveness? | Key Activities What do we need to do to produce, market, and distribute a solution that enhances resource-effectiveness? | Product Features What do we need to change in the physical product to enable a solution that enhances resource-effectiveness? | Customer Relationships How should we communicate and connect to our market to enable a solution that enhances resource-effectiveness? | Channels How should we reach and deliver our solution to our market to enhance resource-effectiveness? |
Key Resources What are the main assets we need to have to produce, market, and distribute a solution that enhances resource-effectiveness? |
CBM Classification | Resource Effectiveness | |||
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Enhance the Level of Use and Consumption of Products | Enhance the Lifetime of Products, Parts, and Components | Recover Discarded Materials and Energy | Enhance the Application of Materials and Energy | |
Sources of value creation [57] |
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BMs for circular growth [58] |
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BMI in a CE [56] |
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Circular BM strategies [4] |
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Circular BM Types [54] |
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Circular BM archetypes [55] |
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Providers Domain | Product Domain | Customers Domain | ||
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Key Partners With whom and how to cooperate in providing a solution that enhances the level of use and consumption of products? P1 (a1)—Partner with governments or NGOs to raise awareness of customers about wasteful practices of consumption P4 (a2)—Set up intermediate distribution partners to facilitate access to shared products P5 (a2)—Facilitate collective ownership of infrastructure for mutual and local use P10 (a3)—Facilitate risk and responsibility sharing among manufacturer and service providers P14 (a4)—Facilitate risk and responsibility sharing among manufacturer and service providers | Key Activities What do we need to do to produce, market, and distribute a solution that enhances the level of use and consumption of products? P7 (a2)—Consistently track and relocate shareable products among stations to facilitate shared distribution P19 (a5)—Identify and facilitate clients’ process optimisation through consulting, auditing, or training P20 (a5)—Provide installation service to ensure performance | Product Features What do we need to change in the physical product to enable a solution that enhances the level of use and consumption of products? P2 (a1)—Apply design for attachment so that customers desire products less often, e.g., classic style clothes P7 (a2)—[see Key Activities] P8 (a2)—Use IoT solutions to enable sharing without the need for physical stations P11 (a3)—Enable remote monitoring of product functionality or performance to guarantee service provision | Customer Relationships How should we communicate and connect to our market to enable a solution that enhances the level of use and consumption of products? P1 (a1)—[see Key Partners] P3 (a1)—Provide incentives for clients to use or acquire more sustainable options P12 (a3)—Elaborate clear rules and contracts to clarify expected function or performance P13 (a3)—Elaborate rules for service provision that minimise the use of resources while maintaining customers’ satisfaction P15 (a4)—Elaborate service fees and conditions considering length or cycles of product use that are competitive with ownership-based offers P16 (a4)—Offer different service levels for customers to choose from P17 (a4)—Create incentives (e.g., decreased fees) for clients that enable longer lifetimes of products P21 (a5)—Provide knowledge to consumers for improved experience and energy-saving behaviour | Channels How should we reach and deliver our solution to our market to enhance the level of use and consumption of products? P9 (a2)—Develop online platform to facilitate selecting, locating, collecting, and retrieving shareable products P18 (a4)—Develop an online platform to enable service provision from the use of products P22 (a5)—Develop a web-based platform to facilitate access to instructions |
Key Resources What are the main assets we need to have to produce, market, and distribute a solution that enhances the level of use and consumption of products? P6 (a2)—Set up physical stations to facilitate access to shared products |
Providers Domain | Product Domain | Customers Domain | ||
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Key Partners With whom and how to cooperate in providing a solution that enhances the lifetime of product, parts, and components? P23 (b1)—Provide instruction and training for providers’ workforce for services that enhance product lifetime P31 (b3)—Define maintenance system structure—centralized, decentralised, or distributed P32 (b3)—Identify and develop partners for maintenance provision P33 (b3)—Establish a close relationship between the service provider and manufacturer to facilitate obtaining knowledge for maintenance P40 (b5)—Identify and develop partners for product collection P41 (b5)—Identify and develop partners for the second life of products—e.g., repair shop, second-hand store, charity P47 (b6)—Establish a close relationship between the service provider and manufacturer to facilitate obtaining knowledge for reprocessing | Key Activities What do we need to do to produce, market, and distribute a solution that enhances the lifetime of product, parts, and components? P29 (b2)—Identify and adjust spare parts replacement to part and product lifecycles separately P42 (b5)—Elaborate reverse-logistic schemes building upon forward-logistics capabilities | Product Features What do we need to change in the physical product to enable a solution that enhances the lifetime of product, parts, and components? P34 (b3)—Enable remote monitoring of product condition to predict failure P35 (b3)—Enable remote maintenance of products through virtual reality P36 (b3)—Provide repair kits for consumers P38 (b4)—Enable upgrading by designing easy-to-upgrade products P43 (b5)—Redesign packaging to facilitate product retrieval P48 (b6)—Enable remanufacturing by designing easy-to-remanufacture products P50 (b7)—Use extended-lifetime materials that require less maintenance than their counterparts P51 (b7)—Design robust products for longer lifetimes P52 (b7)—Redesign packaging for optimal lifespan considering multiple uses of transported products | Customer Relationships How should we communicate and connect to our market to enable a solution that enhances the lifetime of product, parts, and components? P24 (b1)—Provide knowledge to consumers to keep products in good condition P25 (b1)—Raise awareness of consumers for behaviours that enhance product lifetime P26 (b1)—Share maintenance guidelines and reliable service providers with clients P27 (b1)—Elaborate and disseminate instructions to prevent improper use of products by clients P36 (b3)—[see Product Features] P37 (b3)—Elaborate clear rules and contracts for maintenance—e.g., define product and part conditions, frequencies, and responsibilities P39 (b4)- Elaborate clear rules and contracts for product upgrading—e.g., define product and part conditions, frequencies, and responsibilities P44 (b5)—Accept products of different manufacturers—e.g., multiple brands P45 (b5)—Encourage consumers to bring their own packaging/container for consumable products P49 (b6)—Elaborate clear rules for reconditioning, refurbishing, or remanufacturing—e.g., define product and part conditions and responsibilities | Channels How should we reach and deliver our solution to our market to enhance the lifetime of product, parts, and components? P28 (b1)—Develop a web-based platform to facilitate access to instructions P30 (b2)—Facilitate selection and acquisition of spare parts P46 (b5)—Enable retrieving products after customer–provider contract is over for new customer use |
Key Resources What are the main assets we need to have to produce, market, and distribute a solution that enhances the lifetime of product, parts, and components? P31 (b3)—[see Key Partners] |
Providers Domain | Product Domain | Customers Domain | ||
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Key Partners With whom and how to cooperate in providing a solution that recovers discarded materials and energy? P53 (c2)—Identify and develop partners for material collection P58 (c3)—Identify and understand local legal framework, incentives, and waste streams to set up recycling operations P59 (c3)—Identify and develop partners for material recycling, e.g., waste managers or organisations that use specific collected streams as input P61 (c4)—Identify and understand local legal framework, incentives, partners and waste streams to set up energy from waste operations | Key Activities What do we need to do to produce, market, and distribute a solution that recovers discarded materials and energy? P54 (c2)—Enable retrieving products after customer–provider contract is over for recycling P55 (c2)—Develop processes to enable sorting specific material from the collected stream P58 (c3)—[see Key Partners] P60 (c3)—Develop chemical and biological recycling processes and structure P61 (c4)—[see Key Partners] | Product Features What do we need to change in the physical product to enable a solution that recovers discarded materials and energy? --- | Customer Relationships How should we communicate and connect to our market to enable a solution that recovers discarded materials and energy? P54 (c2)—[see Key Activities] P56 (c2)—Accept products of different manufacturers—e.g., multiple brands P57 (c2)—Create incentives for clients or customers to obtain specific material | Channels How should we reach and deliver our solution to our market to recover discarded materials and energy? --- |
Key Resources What are the main assets we need to have to produce, market, and distribute a solution that recovers discarded materials and energy? P60 (c3)—[see Key Activities] P62 (c4)—Develop chemical and biological technology to transform discarded material into heat, energy, or fuel source P63 (c4)—Set up waste to energy infrastructure |
Providers Domain | Product Domain | Customers Domain | ||
---|---|---|---|---|
Key Partners With whom and how to cooperate in providing a solution that enhances the application of materials and energy? P68 (d3)—Develop and implement material and product certification systems (with or without an external partner) P71 (d4)—Develop and implement material and product certification systems (with or without an external partner) | Key Activities What do we need to do to produce, market, and distribute a solution that enhances the application of materials and energy? P66 (d2)—Develop low-impact manufacturing processes that use less water, energy, or toxic material P68 (d3)—[see Key Partners] P71 (d4)—[see Key Partners] | Product Features What do we need to change in the physical product to enable a solution that enhances the application of materials and energy? P65 (d1)—Design/utilise products and components that capture, generate, and function on renewable energy P67 (d2)—Design lighter, smaller, and less powerful products P69 (d3)—Provide bio-based consumables to maintain other products’ lifetimes P70 (d3)—Design products, components, or consumables applying bio-based material only—organic or biodegradable inputs P72 (d4)—Design products, components or consumables applying recycled materials P73 (d4)—Design products for material recovery P74 (d4)—Design for upcycling, e.g., the ‘trash design’ approach for high-end products P75 (d5)—Substitute or eliminate the need for products or functions P76 (d5)—Design for non-optimal product functionality but for system functionality | Customer Relationships How should we communicate and connect to our market to enable a solution that enhances the application of materials and energy? P69 (d3)—[see Product Features] | Channels How should we reach and deliver our solution to our market to enhance the application of materials and energy? P77 (d5)—Favour the use of online platforms and virtual reality to enable access to services and interaction among clients |
Key Resources What are the main assets we need to have to produce, market, and distribute a solution that enhances the application of materials and energy? P64 (d1)—Develop infrastructure to charge fleet using renewable energy |
Circular Strategies (Strategic and Conceptual Levels) | Occurrence in Considered PSS Cases | |||
---|---|---|---|---|
PO PSS 17 Cases | UO PSS 21 Cases | RO PSS 7 Cases | All PSS 45 Cases | |
a1—Reduced consumption | 0% | 14% | 0% | 7% |
a2—Sharing products | 0% | 38% | 14% | 20% |
a3—Result provision | 6% | 5% | 86% | 18% |
a4—Access provision | 0% | 81% | 14% | 40% |
a5—Effective use instruction | 41% | 38% | 43% | 40% |
A—Inner Circles | 41% | 100% | 100% | 78% |
b1—Extended use instruction | 18% | 24% | 14% | 20% |
b2—Spare parts | 6% | 14% | 14% | 11% |
b3—Maintenance | 41% | 62% | 57% | 53% |
b4—Upgrading | 6% | 5% | 14% | 14% |
b5—Take-back | 41% | 29% | 29% | 33% |
b6—Reprocessing | 18% | 19% | 14% | 18% |
b7—Optimal lifespan | 0% | 14% | 29% | 11% |
B—Circling Longer | 65% | 76% | 57% | 69% |
c1—Industrial Symbiosis | 0% | 0% | 0% | 0% |
c2—Facilitate disposal | 59% | 10% | 43% | 33% |
c3—Recycling | 41% | 19% | 43% | 33% |
c4—Energy from waste | 12% | 0% | 14% | 7% |
C—Cascade Use | 59% | 19% | 57% | 40% |
d1—Renewable sources | 0% | 19% | 0% | 9% |
d2—Fewer resources | 6% | 14% | 0% | 9% |
d3—Bio-based resources | 35% | 5% | 29% | 20% |
d4—Recyclable resources | 18% | 10% | 14% | 22% |
d5—Dematerialisation | 6% | 38% | 14% | 22% |
D – Pure Inputs | 47% | 52% | 57% | 51% |
St./St. | a1 | a2 | a3 | a4 | a5 | b1 | b2 | b3 | b4 | b5 | b6 | b7 | c1 | c2 | c3 | c4 | d1 | d2 | d3 | d4 | d5 |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
a1 | 1.00 | 0.09 | 0.17 | 0.05 | 0.14 | 0.04 | 0.06 | 0.10 | 0.06 | 0.06 | 0.17 | 0.09 | 0.13 | 0.08 | |||||||
a2 | 1.00 | 0.06 | 0.23 | 0.17 | 0.13 | 0.18 | 0.09 | 0.14 | 0.13 | 0.27 | 0.10 | 0.08 | 0.18 | 0.58 | |||||||
a3 | 1.00 | 0.18 | 0.13 | 0.08 | 0.19 | 0.10 | 0.05 | 0.07 | 0.08 | 0.10 | 0.16 | 0.10 | 0.13 | 0.06 | |||||||
a4 | 1.00 | 0.16 | 0.13 | 0.21 | 0.40 | 0.05 | 0.27 | 0.18 | 0.21 | 0.10 | 0.14 | 0.22 | 0.10 | 0.04 | 0.14 | 0.27 | |||||
a5 | 1.00 | 0.29 | 0.15 | 0.24 | 0.10 | 0.08 | 0.05 | 0.27 | 0.23 | 0.11 | 0.10 | 0.16 | 0.23 | 0.04 | 0.22 | ||||||
b1 | 1.00 | 0.27 | 0.32 | 0.09 | 0.21 | 0.08 | 0.04 | 0.08 | 0.06 | ||||||||||||
b2 | 1.00 | 0.21 | 0.11 | 0.18 | 0.11 | 0.11 | 0.12 | 0.10 | |||||||||||||
b3 | 1.00 | 0.13 | 0.30 | 0.33 | 0.21 | 0.18 | 0.27 | 0.04 | 0.04 | 0.03 | 0.03 | 0.17 | |||||||||
b4 | 1.00 | 0.13 | 0.22 | 0.14 | 0.06 | 0.17 | 0.08 | ||||||||||||||
b5 | 1.00 | 0.28 | 0.25 | 0.20 | 0.26 | 0.06 | 0.20 | 0.24 | 0.14 | ||||||||||||
b6 | 1.00 | 0.30 | 0.10 | 0.16 | 0.13 | ||||||||||||||||
b7 | 1.00 | 0.05 | 0.19 | 0.10 | 0.25 | ||||||||||||||||
c1 | 0.00 | ||||||||||||||||||||
c2 | 1.00 | 0.61 | 0.20 | 0.06 | 0.26 | 0.17 | |||||||||||||||
c3 | 1.00 | 0.06 | 0.15 | 0.18 | 0.09 | ||||||||||||||||
c4 | 1.00 | 0.20 | |||||||||||||||||||
d1 | 1.00 | 0.14 | 0.27 | ||||||||||||||||||
d2 | 1.00 | 0.08 | 0.11 | 0.27 | |||||||||||||||||
d3 | 1.00 | 0.25 | |||||||||||||||||||
d4 | 1.00 | ||||||||||||||||||||
d5 | 1.00 |
Type/Type | A | B | C | D |
---|---|---|---|---|
A—Inner Circles | 1.00 | 0.57 | 0.33 | 0.49 |
B—Circling Longer | 1.00 | 0.29 | 0.32 | |
C—Cascade Use | 1.00 | 0.28 | ||
D—Pure Inputs | 1.00 |
© 2019 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).
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Guzzo, D.; Trevisan, A.H.; Echeveste, M.; Costa, J.M.H. Circular Innovation Framework: Verifying Conceptual to Practical Decisions in Sustainability-Oriented Product-Service System Cases. Sustainability 2019, 11, 3248. https://doi.org/10.3390/su11123248
Guzzo D, Trevisan AH, Echeveste M, Costa JMH. Circular Innovation Framework: Verifying Conceptual to Practical Decisions in Sustainability-Oriented Product-Service System Cases. Sustainability. 2019; 11(12):3248. https://doi.org/10.3390/su11123248
Chicago/Turabian StyleGuzzo, Daniel, Adriana Hofmann Trevisan, Marcia Echeveste, and Janaina Mascarenhas Hornos Costa. 2019. "Circular Innovation Framework: Verifying Conceptual to Practical Decisions in Sustainability-Oriented Product-Service System Cases" Sustainability 11, no. 12: 3248. https://doi.org/10.3390/su11123248