6/2017 Creating value for consumers in CE - Tools as a service
The circular economy (CE) focuses on keeping materials in use for as long as possible and also to preserve, or even upgrade, their value by creating added value through services and smart solutions. To succeed in this, instead of selling products, companies should move to retain ownership and sell their solutions as a service. Yet, mainstream consumers are still used to owning many products, such as tools, clothes, furniture, and domestic appliances. To attract consumers to choose a service instead of product ownership, the service offering needs to provide superior value. We explored the customer value journey regarding a tool rental service called Liiteri. On the journey the benefits were related to, for example, better quality and no need for storage and maintenance. On the other hand, the sacrifices were realised in the pick-up and return steps, which were regarded as more laborious if the tool was rented.
Antikainen, M., Lammi, M., and Paloheimo, H. 2017. The XXVIII ISPIM Innovation Conference – Composing the Innovation Symphony, Austria, Vienna on 18-21 June 2017, www.ispim.org.
The paper is available here.
The presentation slides.
4/2017 Circular Economy business model innovation process – case study
The concept of the Circular Economy has recently caught the attention of academia as well and businesses and decision makers offering an attractive solution for an environmentally sustainable economic growth. Companies need to consider how to close material loops, reduce the resources needed and
think more about how materials and products are kept in the loop as long as possible. In order to do that, companies need to find new collaboration partners and reconsider the value offered for stakeholders. To solve that, we need new or modified innovation tools and processes to guide businesses in their innovation
journey resulting in novel business models in a circular economy. Thus, the aim of this study is to increase our understanding of the circular business model innovation process. Our main focus is to explore what kind of mixed methods create value in circular business model innovation and what kind of challenges
there are related to each method and how is it possible to overcome those challenges. The paper highlights the importance of involving different perspectives, stakeholders and using mixed methods during the innovation process.
Antikainen Maria, Aminoff Anna, Kettunen Outi, Sundqvist-Andberg Henna, Paloheimo Harri. Proceedings of the 4th International Conference on Sustainable Design and Manufacturing KES-SDM, April 26th - 28th 2017, Bologna, Italy. Springer series Smart Innovation, Systems and Technologies, Vol. 68 ISSN 2190-3018.Presentation slides
4/2017 Exploring disruptive business model innovation for the Circular Economy
Recently the concept of the Circular Economy (CE) has attracted growing interest as a novel economic model aiming to foster sustainable economic growth, boost global competitiveness, and generate new jobs. A systemwide disruptive innovation shaping new ecosystems and changing the whole process of value creation is needed to tackle the current challenges and transformation to the CE. This paper asks how disruptive business model innovations work as a change mechanism for the CE. The paper develops a conceptual framework for shaping the industrial systems towards CE ecosystems and proposes how value circles and co-creation of value with a variety of partners are crucial aspects in enabling CE. The paper highlights that the concept of value circles would be beneficial in clarifying the difference to linear value chain models and the co-existence of several overlapping value circles.
Aminoff Anna, Valkokari Katri and Antikainen Maria. Proceedings of the 4th International Conference on Sustainable Design and Manufacturing KES-SDM, April 26th - 28th 2017, Bologna, Italy. Springer series Smart Innovation, Systems and Technologies, Vol. 68 ISSN 2190-3018.
3/2017 Designing circular business model
experimentation - Case study
In order to move towards sustainability and a circular economy, there is need for systemic innovation in all aspects of society, including our values and consuming practices, and technological and business innovations to all society structures (Wells 2016, Ellen MacArthur Foundation 2013). Companies need to
consider how to close the material loops, reduce the resources needed and consider how materials and products are kept in the loop, as long as possible. With business model experimentations, companies can demonstrate a model’s feasibility, consumer acceptance and the environmental impacts in a costefficient
way (Thomke 2003). Academic research related to designing business model experimentation is lacking. The aim of this study is to improve our understanding of how to design circular business model experimentation that takes into consideration both the companies’ and the research organizations’
needs. In this paper, we describe a pilot of a five-stage process model for rapid experimentation that takes into account both the entrepreneur’s and the research organisation’s needs and objectives.
Antikainen Maria, Aminoff Anna, Paloheimo Harri, Kettunen Outi. Proceedings of the 2017 ISPIM Innovation Forum, March 19th - 22nd 2017, Toronto, Canada.
02/2017 Supply chain implications and challenges for new business models within the Circular Economy
The Circular Economy concept drives innovative practices and business models targeting sustainable economic growth while increasing resource efficiency. In supply chain management literature, sustainability has been framed frequently with economic performance as main goal rather than sustainability. Our research aims at bringing together supply chain research and industrial cases inspired on circular economy.Our selected industrial cases are companies performing new ways of creating value from previously wasted materials. Our results indicate that there are significant challenges in the structure and processes of today’s supply chains. Yet, there are ways to overcome these, including close collaboration within the supply chain.
Kettunen, Outi, Maria Holgado, Aminoff, Anna. Proceedings of the 4th International EurOMA Sustainable Operations and Supply Chains Forum (SOSCF), Feb 27th - 28th 2017, Milan, Italy.
10/2016 Mapping Multidimensional Value(s) for Co-Creation Networks in a Circular Economy
The transition towards a circular economy cannot be achieved if individual organizations advance their own interests independently. Companies need to build new collaborative networks for value co-creation. Therefore, identification of what kind of value will be created or destroyed for different partners in the networks is critical. In this paper, we propose a framework for mapping multidimensional value in co-creation networks by combining streams of literature on three topics: (1) Circular Economy, (2) Co-Creation and Collaborative networks, (3) Sustainable value creation. The specific contribution of the framework is that it recognizes that the value created in different parts of networks is linked, and the change of value in one link influences others. Moreover, the approach of the paper adds the dimension of circularity into analyses of value creation.
Aminoff, Anna, Valkokari Katri, Kettunen, Outi. Proceedings of the 17th IFIP Working Conference on Virtual Enterprises, Porto, October 3-6th 2016. IFIP AICT 480, Collaboration in a Hyperconnected World, Afsarmanesh, H., Camarinha-Matos, L.M., Soares, A.L (Eds), pp. 629-638, DOI 10.1007/978-3-319-45390-3 © Springer International Publishing Switzerland 2016.
09/2016 Consumer service innovation in a circular economy – the customer value perspective
We are currently exceeding the environmental capacity of our planet, and our consumption is constantly growing. There are also many factors accelerating our transformation towards a sustainable and preserving circular economy (CE), such as urbanisation, unemployment, environmental consciousness, tightening legislation and technological leaps. The transition towards a CE requires a fundamental redesign of business models and our end-to-end value chains. Instead of selling products, companies should move to retain ownership and sell their use as a service, allowing them to optimize the use of resources. Thus, buying a service creates value differently for consumers than buying a product. Therefore, we need to understand how CE-based services create value for consumers. Our data are derived from a consumer workshop that took place in February 2016. We found practical, economic and personal benefits could be gained from three potential CE rental services: a sofa, a washing machine and clothing.
Antikainen Maria, Lammi Minna, Hakanen Taru. Proceedings of the 4th International Conference on Serviceology, ICServ2016, Tokyo, Sept 6-8th 2016.
09/2016 The supply chain viewpoint to circular business models
Recently, the circular economy (CE) has attracted increasing attention as a way to reduce global sustainability pressures and to enable sustainable growth. A CE is an industrial system aiming to slow, close or narrow the cycles of the global economy. The lock-in to the linear supply chains of today is one of the major barriers in transition towards a CE, but academic literature is in its infancy. This paper develops a framework that helps to structure the vast concept of SCM in a CE and to classify the core SCM issues according to specific business models. The framework is applied in two cases.
Aminoff, Anna, Kettunen, Outi. Proceedings of the 5th World Conference on P&OM, Havana, Sept 6-10th 2016.
09/2016 Do business models capture the circular economy value propositions?
The Circular economy (CE) can provide many opportunities to minimise resource use and environmental impacts while creating new employment and business growth (SUN et al. 2015, Ghisellini et al. 2016). The CE promotes the adoption of closing-the-loop of production service patterns within an economic system. The aim of the CE is to increase the efficiency of resource use to achieve a better balance and harmony between the economy, the environment and society. (Ghisellini et al. 2016) In practice, the CE can be promoted and supported by the creation of new innovative business models which embed CE principles into their value propositions throughout the value cycles. However, assessing the realisation of the value propositions of new business models is not straightforward and requires comprehensive reasoning.
The aim of this study is to outline a framework for evaluating the environmental value propositions of CE business models. The core of the framework is a table of the potential environmental value propositions of different types of CE business models categories, which were initially compiled based on literature. Secondly, a step-by step approach for the implementation of the evaluation process was constructed. In addition the framework was tested on a real CE business case.
Kaisa Manninen, Sirkka Koskela, Riina Antikainen, Helena Dahlbo. Finnish Environment Institute. Proceedengs of Sustainable Innovation 2016, 21st International Conference 7th-8th November 2016.
7/2016 A Framework for Sustainable Circular Business Model Innovation
The circular economy concept is a novel economic model aiming to foster sustainable economic growth, boost global competitiveness, and generate new jobs. In order to make the circular economy mainstream, radical and systemic innovation is needed. Currently, a majority of the business modelling tools and methods lack at least some of the identified and needed elements for innovating business models in a circular economy. In this article, we build a framework for sustainable circular business model innovation by adding important perspectives: recognizing trends and drivers at the ecosystem level; understanding value to partners and stakeholders within a business; and evaluating the impact of sustainability and circularity. We present the results of a case study with a startup company, which was designed to test the framework and provide a concrete example of its usage and future development.
Antikainen, Maria; Valkokari, Katri. Technology Innovation Management Review . Carleton University. Vol. 6 ( 2016) No: 7, 5-12. http://timreview.ca/article/1000
6/2016 Consumer acceptance of novel sustainable circular services
We know that we have to move towards a circular economy (CE) in order to tackle the challenges derived from diminishing non-renewable resources, global warming, growing consumption, unemployment and urbanisation. The change towards CE needs to be systemic level, affecting consumers, companies, universities and legislators. Active consumers are in the center of the closed loop in CE. In order to make consumers change their practises and support CE business models in their choices, these models need to be attractive. In this paper we concentrate on consumers exploring what are the factors influencing on consumer acceptance of novel sustainable circular services. The data was collected in a group interview session of 42 consumers held in February, 2016. As a result we found several factors that accelerate or inhibit consumer acceptance towards CE services.
Antikainen, Maria J., Lammi, Minna. The XXVII ISPIM Innovation Conference – Blending Tomorrow’s Innovation Vintage, Porto, Portugal on 19-22 June 2016.
The paper is available here.
4/2016 Sustainable supply chain management in a circular economy – towards supply circles
In the last few years, the circular economy has attracted increasing attention as a way to overcome the problems of the current production and consumption model based on continuous growth and increasing resource throughput. A circular economy is an industrial system that is restorative or regenerative by intention and design. Although supply chains are the key unit of action in the change towards a circular economy, the academic literature on supply chain management approaches in a circular economy is very much in its infancy. However, two distinct literature streams, namely sustainable supply chain management and product service systems, seem to offer valuable insights into the investigation of supply chain management in a circular economy. The aim of this paper is to analyse the main characteristics and challenges of supply chain management in a circular economy and identify how these two literature streams can contribute to researching it.
Aminoff, Anna, Kettunen, Outi. Proceedings of the KES-SDM 2016, Sustainable Design and Manufacturing, Smart Innovation, Systems and Technologies 52, Setchi, R., Howlett, R.J., Liu, Y., Theobald, P. (Eds), pp. 61-72, DOI 10.1007/978-3-319-32098-4_6 © Springer International Publishing Switzerland 2016.
3/2016 Framework for sustainable circular business model innovation
The circular economy (CE) concept represents a superior alternative to traditional linear economy models. In order to make the CE mainstream, radical and systemic innovation is needed. Currently, a majority of the business modelling tools and methods lack at least some of the identified and needed elements for innovating business models in a CE. In this paper we build a Framework for Sustainable Circular Business Model Innovation adding important perspectives: recognising trends and drivers at the ecosystem level, understanding value to partners and stakeholders within a business and evaluating the impact of sus-tainability and circularity. In order to test the framework and to provide a concrete example of its usage and future development needs, we conducted a case study with one start-up company.
Antikainen, Maria; Valkokari, Katri. ISPIM Innovation Forum, Charting The Future Of Innovation Management, 13 - 16 March 2016, Boston, MA, USA. Proceedings. ISPIM, International Society for Professional Innovation Management (2016), 12 p.
12/2015 Approaches to Gaming the Future: Planning a Foresight Game on Circular Economy
Foresight is used to anticipate future developments and trigger responses to them. Serious games can enhance foresight by creating engaging experiences and increasing interaction between participants. In this paper we study how serious games can be used to generate new insights about alternative futures. We structure existing approaches based on their type and purpose and describe a case study of developing a web-based foresight game on circular economy. Based on the review and case study we suggest that foresight games that are balanced between the dimensions of idea generation, informing and experience are well suited to provide insights into the practices and strategy of the players' organisation.
Dufva, Mikko; Kettunen, Outi; Aminoff, Anna; Antikainen, Maria; Sundqvist-Andberg, Henna; Tuomisto, Timo
4th International Conference, GALA 2015, 9 - 11 December 2015, Rome, Italy. In: Games and Learning Alliance, Lecture Notes in Computer Science : 9599. Springer International Publishing, 2016, 560-571.
12/2015 Towards Circular Economy Business Models: Consumer Acceptance of Novel Services
There is a need to accelerate the change from the current linear economy towards a circular economy (CE), which is regenerative by intention and design. The transformation towards CE entails radical changes in the business environment. Thus, in CE-based business model (BM) innovation, we need to understand consumer preferences, their everyday life, and the role of material objects. We here build a preliminary framework based on consumer practices and the product–service system (PSS) literature. We also present the results of a small survey investigating consumers’ opinions about BMs based on services, which was carried out (n=239) at the Housing Fair in Finland in 2015. The findings indicated consumers’ past experiences were most strongly related to conventional service use, such as a car utilisation, though consumers also indicated interest in trying other CE-based services. Consumers seem to more easily adopt a BM that does not require dramatic changes in their practices.
Antikainen, Maria J., Lammi, Minna, Paloheimo, Harri, Valkokari, Katri. The ISPIM Innovation Summit, Brisbane, Australia on 6-9 December 2015.
The paper is available here.