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Socially Responsible Regions: a Localism Business Model to enhance eco-innovation

Conference Paper

Socially Responsible Regions: a Localism Business Model to enhance eco-innovation

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Sustainable Business Models and eco-innovation processes point toward a balance between a value chain that answers the customer needs and the ecological and social needs. Several authors propose local or regional oriented recommendations, in order to meet this balance and correct the environmental and social negative impact of the globalization. In this paper, we revisit four dimensions of the Business Model from a localism point of view. Value proposition, downstream, upstream and financial dimensions are reassessed in the frame of the Localism Business Model in order to facilitate the conceptualisation of the local or regional vision. To finish, a case study will be introduced to illustrate how the Localism Business Model would enhanced eco-innovation.
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This paper was presented at The XXV ISPIM Conference – Innovation for Sustainable Economy &
Society, Dublin, Ireland on 8-11 June 2014. The publication is available to ISPIM members at
www.ispim.org.
1
Socially Responsible Regions: a Localism Business
Model to enhance eco-innovation
Iban Lizarralde*
ESTIA Institute of Technology
E-mail: i.lizarralde@estia.fr
Benjamin Tyl
APESA, Innovation department
E-mail: benjamin.tyl@apesa.fr
Jérémy Bonvoisin
Technische Universität Berlin
E-mail: bonvoisin@mf.tu-berlin.de
* Corresponding author
Abstract: Sustainable Business Models and eco-innovation processes point
toward a balance between a value chain that answers the customer needs and
the ecological and social needs. Several authors propose local or regional
oriented recommendations, in order to meet this balance and correct the
environmental and social negative impact of the globalization.
In this paper, we revisit four dimensions of the Business Model from a localism
point of view. Value proposition, downstream, upstream and financial
dimensions are reassessed in the frame of the Localism Business Model in
order to facilitate the conceptualisation of the local or regional vision.
To finish, a case study will be introduced to illustrate how the Localism
Business Model would enhanced eco-innovation.
Keywords: Sustainability; eco-innovation; business model; local; regional.
1 Introduction
Within the framework of the RESOT project, co-funded by the "Fondo Europeo de
Desarrollo Regional" (FEDER) in the frame of the Interreg IV A program, Programa
Operativo de Cooperación Territorial España-Francia-Andorra 2007-2013 (POCTEFA);
Academics and policy leaders of two regions in Spain and France have focused the
This paper was presented at The XXV ISPIM Conference – Innovation for Sustainable Economy &
Society, Dublin, Ireland on 8-11 June 2014. The publication is available to ISPIM members at
www.ispim.org.
2
"Socially Responsible Regions" concept. Enhancing the eco-innovation processes in the
companies has been identified as a key issue to build a Socially Responsible Region.
Eco-innovations are defined as radical innovations dealing with social aspects and
focusing ecological impact, using multi-criteria principle in order to take into account the
complexity of the environment through different ecological impacts among the entire
life-cycle. (Carrillo-Hermosilla et al. 2010) lists many definitions of the term “eco-
innovation” mainly linked to ecological impact but also from a social point of view. In
order to understand how these eco-innovations are marketed and to identify the
stakeholder system that participate in this process, classical Business Models have been
revisited in order to include sustainability criteria.
2 Sustainable Business Models
(Osterwalder 2004) claims the relation between Business Models and innovation
processes aiming to generate new options and to create value for users. He argues that a
“Business Model describes the rational of how an organisation creates, delivers and
captures value”. Hence, from a company point of view, the Business Model is often
simplified by a revenue generation point of view in order to maintain itself. It can also be
seen as a network of stakeholders that deliver value to a customer. Osterwalder has
defined a nine building block framework to model BM. These blocks can be summarised
into four key dimensions of a Business Model:
1. The value proposition: the part of the value chain within the scope of a
company.
2. The upstream stakeholders: usually related to supplier and partners within
the supply chain.
3. The downstream stakeholders: the elements that allow the customers
purchase the product or service, the customer support system and the supply
chain part that deliver the product to the customer.
4. The financial model: in the canvas of Osterwalder two blocks are related to
the financial model. On one hand the revenue stream and on the other hand
the cost structure. We include a third element related to the shareholders’
funds as this capital can be related to stakeholders that are outside the value
chain.
Figure 1 Four key dimensions of a Business Model:
Several authors that have dealt with the so called Sustainable Business Model (SBM)
(Bocken et al. 2014) (Talonen & Hakkarainen 2014) (Ulman et al. 2013) (Chun & Lee
2013) (Rohrbeck et al. 2013). The goal is to find a balance between the value chain to
answer the customer needs and the ecological and social needs. This balance is not
limited to company’s value proposition scope but it focuses also on the upstream and
downstream stakeholders in order to avoid the socio-ecological impact transfer to the
suppliers or customers.
Aiming a general conceptual definition of SBM, (Boons & Lu¨deke-Freund 2013)
propose boundary conditions for each BM key elements in order to support eco-
innovations: From a value proposition point of view he proposes to “identify trade-offs
between optimal product and service performance and improved social and
environmental effects”. From the upstream point of view he argues that the “barriers to
enhanced offerings are often found in supply chain dependencies and locked-in
infrastructures”. Moreover “customer interface can be addressed […] in processes of
value co-creation or consumer co-production which intensify the producer-consumer
relationship. Finally the “financial models must shift from price-per-unit to pricing the
job-to-be-done, i.e., focus on the fulfilment of needs instead of selling amounts of
products.
(Upward 2013) goes further and defines what is a “Strongly Sustainable Business
Model”, meaning “long term individual human, societal and ecological flourishing”.
Based on Osterwalder’s BM ontology, he has developed the Strongly Sustainable
Business Model Ontology(SSBMO) and to help evaluate the later, he proposes to
practitioners a Strongly Sustainable Business Model canvas. In his work Upward points
some gaps between Osterwalders BM ontology and the SSBMO: “Osterwalder conceive
of the primary purpose of the firm to be monetary profitability and hence the purpose of
the business model is to describe the money earning logic of a firm”. Moreover it “does
not conceive of a boundary to a firm nor a firm's ultimate social and biophysical context”.
Most of the SBM are centred on the value chain that is supposed to answer the
customer’s needs. Ecological and social aspects are annexed to this vision and often seen
This paper was presented at The XXV ISPIM Conference – Innovation for Sustainable Economy &
Society, Dublin, Ireland on 8-11 June 2014. The publication is available to ISPIM members at
www.ispim.org.
4
as constraints included in the existing model. It is therefore necessary to deal with the
“ecological value chain” and the “social value chain” at the same level that we deal with
the customer needs oriented value chain. These value chains can include other
stakeholders. The result can be seen as a system of stakeholders participating in different
value chains. This holistic vision not only defines a system of which the company is a
part, but also considers social and ecological at the same level of the monetary criteria.
Indeed, three types of chains can be measured by monetary variable, but also from
material flow calculation or exergy point of view. Furthermore, the systemic vision
allows considering the chains beyond the customer's product acquisition.
Figure 2 A system of stakeholders participating in different value chains.
3 A systemic vision of the value chains
Globalisation
Globalisation of the markets has caused significant impact on environmental and social
facets. The escalation of transportation is one of the main sources of pollution and energy
use. Moreover, goods production has been massively transferred to low working
regulations and low environmental standards countries. The expansion of the supply
chain make difficult to identify all the stakeholders involved in the supply chain and it
reduces the responsibility of the companies. Indeed, recent agro-industrial illegal
practices have revealed the weak traceability of the products that can be applied to
different sectors. Finally, the concentration of production activities in fewer regions has
caused a loss of local employment and industrial diversity. As a consequence, know-how
is misplaced and regions’ resilience is decreased. Facing these problems, the more and
more customers are going “local” and companies get into regional innovation systems.
The local and regional option
A regional innovation system encourages the diffusion of technological innovations,
knowledge and good practice by public or private stakeholders committed to a region.
The more and more, this commitment is linked to the sustainability principles. We have
analysed the words “regional” and “local” in several documents, toolkits and methods
that are used by policy makers (Agenda21), designers (Wimmer & Züst 2003) (Tyl et al.
2013) or logistics managers (Crul & Diehl 2005). There are several recommendations
and criteria dealing with these expressions: ”promote the use of local products”,
“realizing regional value added”, “generate local added value” or “participate in local
dynamism”. Nevertheless these terms need to be conceptualised.
Region, territory and local aspects are used in very different context and defined
following different criteria:
From an administrative point of view, the regions answer to a political division of the
territory (the French state for example is divided into 27 administrative regions).
The establishment of regions can follow an inhabitant number criterion as the
Nomenclature of Territorial Units for Statistics which is used by the EU.
From a logistics point of view, a region could be delimitated within a boundary build
from a radius and a central point (the company’s main facility for example).
From a physical geography point of view a region will be defined by a physical
characteristic that distinguishes to neighbour regions (Pyrenean region for example)
which are very often related to cultural aspects.
From a cultural point of view a region will be defined by a human characteristic that
distinguishes to neighbour regions. Language is often the main criteria in order to define
the scope of the cultural region. Sometimes a region could also be associated to a
religion.
In the same way, the “local” adjective is also used in different context and related to
different scopes. The relativism of the “local” term is usually related to the product or
service that is associated to this adjective. For example, if we are dealing with the organic
farming goods, the “local” ones will be those coming from the surroundings of a city.
When analysing a service for people care, a “local” service could be associated
administrative or a “languagecriteria. Or when dealing with a manufactured good, the
“local” adjective can be used in a larger scope (European level for example).
Local approach and eco-innovation
A local approach offers the possibility for companies to develop more eco-innovative
product and services, distributing value among the different stakeholders within the value
chain and promoting a socially responsible region.
This paper was presented at The XXV ISPIM Conference – Innovation for Sustainable Economy &
Society, Dublin, Ireland on 8-11 June 2014. The publication is available to ISPIM members at
www.ispim.org.
6
As a result, definition of localism shall include both the territorial and life-cycle
perspectives. Designing a local product therefore consists in setting constraints for
geographic area all along the life-cycle, from raw material extraction to end of life.
Localism invites us to reconsider the territorial and local dimension of the products. The
integration of local issues can offers great potential to eco-innovate. As an example,
applying local sourcing and production paradigms, SMEs may radically remodel their
supply chain. Moreover, the use of regional resources may improve the global
performance of both a company and its territory.
4 Localism Business Model (LBM)
Self-organised regions
The localism aims to increase the complexity based on self-organised regions. This
method gives the possibility to a territory to fulfil its own need, to create sustainable
added value for local actors, and to increase the links between the different actors of the
value chain, beginning by the consumer. Indeed, the customer’s needs oriented value
chains as well as the ecological value chain and the social value chain are principally
located within the region and the interactions between these chains are maximized.
Moreover, different regions interact between them minimizing material and energy flows
and maximising information flow. In economic term self-organised region’s
microeconomics give rise to macroeconomics.
Figure 3 Customer’s needs oriented value chains, ecological value chain and the social
value chain located within the region
This vision offers great potential to revisit and enrich the eco-innovation process as well
as different famous concepts, such as functional economy, industrial ecology and Product
Service System (PSS).
In the words of (Manzini 2006):
“the multi-local society, where, contrary to dominant trends, the “global”
appears as a network of “local systems”, which is as the same time both local
and cosmopolitan, based as it would be on communities and places that are
strong in their own identity, embedded in a physical place, but open to (i.e.
connected with) other places/communities. A society that rediscovers its
capacity for local adaptation, using to best advantage whatever is locally
available and exchanging within the network whatever cannot be locally
produced”.
(Johansson et al. 2005) proposes the “distributed economies” concept:
“the concept calls for a transformation in the industrial system towards
distributed economies departing from the socio-economically and
environmentally unsustainable dynamics associated with large-scale,
centralised production units that are favoured by neoclassical economic drivers.
With distributed economies, a selective share of production is distributed to
regions where a diverse range of activities are organised in the form of small-
scale, flexible units that are synergistically connected with each other and
priories quality in their production”.
To conclude, self-organised regions increase the complexity of the system, creating
continually changing interactions between stakeholders in the same region. Therefore, not
only it fulfils the regional needs but it also allows more flexible and resilient regions.
Moreover, economic, social and ecological aspects are optimized in a multi-criteria mode
by increasing the traceability of the value chains and defining clear responsibilities
between known stakeholders.
Towards a Localism Business Model
In this chapter we propose to revisit the four key elements of a Localism Business Model.
The goal is to define a set of criteria in order to be used in an eco-innovation process
focusing on the localism.
Value proposition
The customization of the products is the first criteria that should be taken into account
related to the value proposition. Is the company focusing mass production, proposing
standard product and aiming economies of scale? Or it takes into account local needs and
characteristics in order to propose adapted products and services.
In the value proposition we include also closed loop criteria that are strongly linked to the
upstream organization. Indeed, even if the functionality of the end-user is not modified,
closed loop criteria increase the value of the product. This includes the modularity of the
product (giving the possibility of re-manufacturing) and easily reparable criteria.
Product Service Systems are closely related to localism, as local characteristics are taken
into account when shifting from a product based value proposition to a service based one.
Furthermore, the later increases the use of high quality local workforce.
This paper was presented at The XXV ISPIM Conference – Innovation for Sustainable Economy &
Society, Dublin, Ireland on 8-11 June 2014. The publication is available to ISPIM members at
www.ispim.org.
8
Upstream
Localism favours local suppliers and local raw materials. Creating value in this sense
means creating value with short loops of materials. Therefore localism supports local
employment and local dynamism.
We notice that we are not dealing only within the region where the company is located.
Other regions can get in the value chain if the global material and energy flow is
improved. This is usually the case when raw material concentration and therefore lower
energy use for extraction compensates the transport impact. The supplier choice can
therefore be done taking into account the geographic location and the local project that is
supporting the supplier. These projects shall include value chains from a social and
ecological point of view.
A key issue when dealing with the supply chain is the traceability. Does the company
know the suppliers of the suppliers? And can it measure the ecological and social impact
of the different steps of the chain? We realize that a not clear traceability allows a
dilution of ecological and social responsibility.
Furthermore, customer’s requirements can be satisfied by products that demand a very
different supply chains. On one hand, there are products that expand the supply chain
activating stakeholders from several sectors; on the other hand, the same requirements are
satisfied with a reduced supply chain.
We include in this chapter the renewable energy use ratio of the company as renewable
energy is often decentralized and takes into account the characteristics of the region.
Finally, we include a criterion based on the participation of local universities and research
centres in relation to the company’s innovation projects.
Downstream
In the value proposition chapter, customization, modularity and reparability criteria has
been proposed as inner characteristic of the product. Nevertheless the company can also
participate in the facilities that will make possible the customization, re-manufacturing or
reparation of the product.
The company can also be involved into actions that seek the behavioural change of the
customer. This includes the energy efficient use of the product or the customer
implication on social and environment projects.
Empowerment of local actors, that would become the designers of their own solution is a
localism criterion linked to the downstream dimension. This principle can be supported
by the emerging concept of Open Design (Howard et al. 2012).
The decentralization of little production units offers high local value manufacturing
within an efficient supply chain (less steps, less warehousing, less transportation,
packaging).
Here again, we are not only dealing with the region where the company is located. Other
regions might have been identified as part of the company’s market. These criteria can
overbalance the transport impact caused by the multiregional value chain.
Financial model
Functional economy is directly related to the revenue model. Indeed a Product Service
Systems modifies the price per product logic onto a direct fulfilment of customer
requirements. The cost structure is likewise modified as the later involves more skilled
employees.
Companies can also be involved into local projects; these projects can be social or
environmental project directly funded by the company or facilitated by it.
Financial models are closely linked to the wealth sharing among the stakeholders of the
value chain and the employees of the company.
Lastly, and directly related to the former criteria, the funding capital of the company shall
be taken into account when dealing with the localism. Is the company owned by the
employees, or based on local venture capital? Or on the contrary it is funded by
shareholders that are not concerned by that local development of the region.
5 Case study: EVOLO
EVOLO is a company that works on urban mobility, especially on urban freight mobility.
The company has developed an electric assisted trike able to get in the city centres
avoiding physical and legal constraints (city centres forbidden for motorised vehicles or
some streets with time window constraints for logistics activities). The company designs,
manufactures and commercializes this product in Europe. In 2013, the co-founders give
the possibility to workers to become shareholders of a new company, named EVOLO
Scoop, resulting of the creation of an industrial cooperative owned by workers.
Current situation
The vehicle is composed of 4 main subsystems: (1) the chassis, (2) the electric
subsystem, (3) the frontal fairing and (4) the different modules integrated in the rear part
(goods and people transportation, waste collection, etc.).
The table 1 proposes some information about the current product: the origin of the
suppliers (“regional”, i.e. suppliers within a radius of 150Km; “European”, or “Asian”),
and some comment about the closed loop perspective of the product (from “++” for high
perspective to “- -“ for bad perspective).
This paper was presented at The XXV ISPIM Conference – Innovation for Sustainable Economy &
Society, Dublin, Ireland on 8-11 June 2014. The publication is available to ISPIM members at
www.ispim.org.
10
Table 1 Current situation of EVOLO’s product
Subsystem Part Origin Comments about closed loop perspective
Chassis
Frame
Regional
(since
2009)
++
Built in steel with an estimated lifetime of 20
year (and a 5 year guarantee).
Possible remanufacturing
Recyclability (100%)
Brakes,
wheels and
transmission
Asian
(since
2009)
++
Acquisition OTS (Off The Shelf).
High quality bike parts.
Possible remanufacturing for EVOLO's vehicle
and for most of the standard bikes.
Electric
subsystem
Motor
European
(since
2013)
-
Fully integrated system (aluminium cockle,
electronic parts, cupper and magnets).
Hard disassembly
Battery
Asian
(since
2009)
-
Lithium battery with an estimated lifetime of 600
cycles Needs to be changed every two years.
(more or less)
Existing recycling process
Electronic
parts
European
(2013)
-
Possible recycling but no remanufacturing
Frontal
fairing
Composite
parts
Regional
(2009)
--
No reusing nor recyclability
LED lights Asian
(2009)
+
Emerging recycling systems for LED
technology.
Rear
modules
/
Regional
(2009)
/
Each module is manufactured using different
materials, basically steel and composite parts
EVOLO’s development for new markets: a Localism Business Model assessment
Due to the demands from the South America's market, the board of EVOLO is planning
to commercialize the vehicle in these countries.
Within the context of the development of new markets in these territories, the supply
chain strategy of the following two modules has been analysed: the rear part modules and
the chassis.
Rear Modules: The strategy of the company is to manufacture these modules
without modifying the other subsystems of the vehicle in order to answer to the
different functions of the trike (goods transportation, people transportation,
waste collect, advertising, food or beverage sales, etc.).
Chassis: The strategy is currently based on scale logic. Independently of the
usage, all the chassis are equal and only the colour can be customized.
This new market implies to reconsider EVOLO’s product and associated Business Model
and has been considered by the authors as a good case study to explore the four
dimensions the Localism Business Model.
From a value proposition point of view, the design of the chassis should be easy to repair
and to modify by the owner itself or with the help of a local craftsmen and industries. For
example, the usage of steel for the chassis makes easy to bent or drill the structure in
order to repair or add any part, besides the chassis can be easily welt with basic welding
meanings.
The upstream dimension points out the fact that the company has changed in 2013 the
supplier of 2 parts (motor and electronic parts, see table) working now with suppliers that
are closer to the final assembly line. These changes have not been motivated by
environmental aspects but it shows the interest of choosing local supplier. As an example,
concerning the electronic parts, the company selected local supplier to gain reactivity and
shorten delivery times, so that the development of new functionalities become easier.
Concerning the motor, local suppliers proposed a more reliable product, and it was
judged that it was more expensive to buy Asian product rather that a European motor.
Future actions related to the South American market have reconsidered the
manufacturing strategy of the rear modules. Indeed, manufacturing these modules in
small series in South America offers the possibility to each local industry to use other
materials for the rear modules manufacturing (e.g. local vegetal fibres composite panels).
Moreover, the volume of the rear modules is significant and therefore it is
environmentally relevant to transfer the production unit to South America. Manufacturing
these modules in different regions where the product is commercialised will allow the
company save the transportation fees.
Transferring the manufacturing of the rear part modules from the current region to South
America will modify the downstream strategy of the company. Indeed, local industries
are better placed in order to understand the real needs of the local customers depending
on the usage, the culture, customs, etc. of each region.
Lastly, from a financial model point of view, the organisation model of the company (an
industrial cooperative owned by workers) could be applied also to the local
manufacturing units. Workers that are owner of the company are more sensitive to the
quality aspects and take part more enthusiastically in innovation processes. The economic
outflows of the local manufacturing units will be equally shared and efficiently locally re-
invested.
6 Conclusion
A Localism Business Model is proposed revisiting four dimensions of the Business
Model from a localism point of view. This model invites us to reconsider the territorial
and local dimension of the products increasing the complexity based on self-organised
regions.
Therefore, it gives the possibility to a territory to fulfil its own need, to create sustainable
added value for local actors, and to increase the links between the different actors of the
value chain, beginning by the consumer. Indeed, the customer’s needs oriented value
This paper was presented at The XXV ISPIM Conference – Innovation for Sustainable Economy &
Society, Dublin, Ireland on 8-11 June 2014. The publication is available to ISPIM members at
www.ispim.org.
12
chains as well as the ecological value chain and the social value chain are principally
located within the region and the interactions between these chains are maximized.
Moreover different regions interact between them minimizing material and energy flows
and maximising information flow. In economic term self-organised region’s
microeconomics give rise to macroeconomics.
This paper is the first step of a more global research process. Future work will focus on
practical contribution. Indeed, localism implies the development of a set of indicator to
evaluate the “locality degree” of a product and to identify opportunities of improvement.
7 Acknowledgement
Authors would like to acknowledge the "Fondo Europeo de Desarrollo Regional"
(FEDER) and the Interreg IV A program, Programa Operativo de Cooperación Territorial
España-Francia-Andorra 2007-2013 (POCTEFA) which have co-financed the RESOT
project.
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... Structural and cultural changes are needed to facilitate corporate sustainability and the level of system sustainability [53]. The Sustainable Business Model and the ecoinnovation process lead to a balance between value chains that respond to economy, ecological and social needs [54]. Despite facing some challenges in sustainability in bio-based businesses, such as land use conflicts, important benefits from sustainability, such as energy availability, lower emissions, improving socioeconomic life, and poverty alleviation are important goals in developing countries [55]. ...
... To understand the mechanism of eco-innovation in the green business model, it will be more easily understood by building blocks from the canvas business model of Osterwalder and Pigneur [71], in this way the proposed eco-innovation target can be translated into a block business model. The canvas business model is a business model that consists of 9 blocks of business activity areas, which have the goal of mapping out strategies to build a strong, sustainable and successful business in the long run [54]. ...
Preprint
Background: This study objective to create a business model for the development of renewable energy based on bamboo forest biomass for underdeveloped and remote islands in Indonesia. Electrical energy has a vital and strategic role, to support national development and must be realized reliably, safely, equitably and environmentally friendly. Many problems occur in the management of the national electricity system, including dependence on the supply of fossil-fuel primary energy sources, as well as Indonesia's geographical condition which consists of many islands making it difficult to process the transmission and distribution of electrical energy. Electricity generation from renewable energy sources based on bamboo forest biomass can be a solution to the above problems. The research questions to (1) analyze what factors will influence uncertainty in the development of renewable energy based on bamboo forest biomass; (2) analyze the indicators of the success of the development of renewable energy based on sustainable bamboo forest biomass. (3) designing a business model for the development of renewable energy based on bamboo forest biomass in rural areas that can guarantee sustainable regional growth. Methods: The study uses soft systems methodology techniques in the form of case studies supported by field surveys and literature studies. Qualitative analysis was carried out with a Focus Group Discussion and in-depth interviews with experts aimed at identifying indicators of success in developing sustainable renewable energy. The analysis technique uses two analytical methods, Strategic Assumption Surfacing and Testing (SAST) and Interpretative Structural Modeling (ISM). The location of the study was conducted in three villages in Siberut Island, Mentawai Islands Regency, West Sumatra Conclusions: There were numbers of key elements in designing a business model for the development of renewable energy based on bamboo forest biomass, namely electricity subsidy rates, community forest land status, donor agencies, village community participation, income distribution and cooperative partnership of bamboo farmers. Business model that was designed in this study requires five things, specifically; (1) Clustering, (2) High tariffs, (3) Non-commercial funding, (4) Community Forestry, and (5) Community Empowerment.
... The sustainable business model approach is suggested by Lizarralde, Tyl, and Bonvoisin (2014) and Tyl, Lizarralde, and Allais (2015) that encourages designers to revisit the different components of a business model from a localism point of view. They present a business model that takes into account local needs and characteristics in the value proposal, favors local suppliers and local raw materials, prioritize local venture capital and supports local employment and local dynamism (Table 1). ...
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From a cosmopolitan localism perspective, the circular economy could be described as a web of smaller circular economies where the core development is situated in local areas, like cities, or regions, with the active participation of territorial stakeholders. The objective of this research is to explore the development of local business model niches within the scope of circular textiles and fashion, including social enterprises. The research is based on the analysis of a specific territory, the Nouvelle Aquitaine Region in France, where participative observations at different scales (local, regional and interregional) have permitted an in-depth comparison of four local social enterprise business models. The study defends the active role of social entrepreneurs in supporting circular transitions into regions and highlights the strong diversity of challenges they faced during the design of local business models, both at a technological, social and policy level.
... Few tools exist to push to designers to think about localism in the panel of eco-design tools (Tyl et al., 2015a); even if some tools from product-service-systems and business models are starting to provide orientations in that direction (Lizarralde et al., 2014;Melles et al., 2011). A set of systemic design tools was also initiated for the design of flourishing local fashion (Real and Lizarralde, 2017). ...
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Purpose: How can people be involved within their geographic location in the new ideas and activities in emerging the circular fashion industry? This paper is written by a systems designer (author1) who worked alongside two textile design researchers. The systems designer found ways to explore, articulate and visualise the range of possibilities for future stakeholders in circular fashion contexts through a framework of practices, places and projects (PPP). Design and methods: Author1 became immersed in the Circular Design Speeds project via an opportunity to relocate to Centre for Circular Design, University of the Arts London. A systemic design approach based on a cross-observation of various practices, places and projects, and the use of visual artefacts, enabled the creation of a rich picture of the convivial complexity within circular design concepts. Author1 used the PPP framework to adapt tools and propose four strategic approaches to support designers in the creation of new circular fashion narratives, integrating local communities through (Re)-Distributed manufacturing (RDM). Findings: The framework can be used by practitioners when designing places or projects, to raise a more systemic perspective on the local narrative. The resulting visual pictures support designers in understanding WHERE to look for capturing and situating the practice, siting futures practices within local community-based initiatives in new local places; and to systematically assess the trade-offs and tensions behind each concept. For the use of tools, the presence of intermediaries could facilitate the appropriation and the interaction between the project stakeholders. The paper makes a methodological contribution to design for conviviality in the fashion and textile sector. Key words: conviviality, participation, stakeholder mapping, circular fashion, grassroots, business models, redistributed manufacturing, circular speeds, design frameworks, design tools
... This rises some questions from design research perspective:  How to design for local value creation (LVC) (Tyl et al., 2015) in small-scale territories?  What is the role of regions (Lizarralde et al, 2014), intermediary organizations (Howell, 2006) (Agogue, 2012), social entrepreneurs and citizens in the transition toward localism?  What kind of technologies and business models can foster the dynamism of a cosmopolitan localism based on convivial, circular and slow philosophies? ...
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