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“Upgradable PSS”: Clarifying a new concept of sustainable consumption/production based on upgradablility
Abstract
Confronted with the accelerated product obsolescence and the resulting waste of materials, the concept of “optimised/increased/hybridised upgradability” is considered. In the literature, upgradability is used to respond to local technical problems (updating norms, update because of a broken component etc.) or as an end-of-life option. In our view however, it constitutes the heart of a new and promising paradigm of production/consumption. This paper proposes to consider hybrid systems that are called “Upgradable Product Service System (Up-PSS)” combining upgradability with optimised maintenance, with valorisation of end-of-life parts and with the servicisation of the offer. The promises of increasing attractiveness for clients, new businesses for manufacturers and a host of environmental benefits make this new concept highly pertinent compared to known models of production/consumption such as remanufacturable products, easily recyclable products, PSS, optimal maintenance products or basic upgrade products. Moreover, Up-PSS is a new opportunity to switch to offers without ownership transfer that facilitates the implementation of circular economy. In order to shed light on the field of Up-PSS and investigate the boundaries of this new paradigm, three actions are carried out: (1) focus groups with consumers and workshops with two manufacturers (2) on the upgradability of real products and (3) on the changes in business models. Our action research approach resulted in clarifying this new concept of the product by defining key ideas based on three keystones: (i) upgrades should be scheduled according to regular cycles of successive lines of functional improvements to satisfy the following themes of value creation: utilitarian, emotional, ethical, and service-oriented. There should also be specific upgrades chosen from a catalogue; (ii) the effects are strong environmental gains from multiple principles of rationalisation materials use but also by encouraging users to eco-friendly usage of their products; this is formalised by an eco-score to which both users and producers are committed. (iii) The above are accompanied by continuous interaction between clients and manufacturers through a web platform, offers of upgradable systems that would integrate bundles of services resulting in the system's growing attractiveness in the eyes of clients. This in turn would set in motion new modes of contracts, offering manufacturers new and more frequent ways of earning revenue; this would be conditional on setting up an upgradability support service that would be attractive to clients as well as reorganising the value chain with the participation of new partners. This transformation of the value network over time implies developing new development paths for business models to facilitate the transition from current economic models centred on material goods to models that are more service oriented.
... In Cluster 12, the discard of household appliances is described to happen mainly due to an accumulation of dissatisfaction over time, rather than obsolescence [67,68]. Most of these points could be tackled through an upgrade program of product modules [68,69], considering function and environmental impact [68,70]. ...
... In Cluster 12, the discard of household appliances is described to happen mainly due to an accumulation of dissatisfaction over time, rather than obsolescence [67,68]. Most of these points could be tackled through an upgrade program of product modules [68,69], considering function and environmental impact [68,70]. ...
... In Cluster 12, the discard of household appliances is described to happen mainly due to an accumulation of dissatisfaction over time, rather than obsolescence [67,68]. Most of these points could be tackled through an upgrade program of product modules [68,69], considering function and environmental impact [68,70]. ...
Upgradable Products are emerging as promising solutions for advancing sustainability in new product design. Recent literature highlights that upgradability offers the potential to curtail consumption by enabling updates or upgrades to existing products, rather than necessitating the purchase of entirely new ones. A bibliometric analysis was conducted to explore existing research streams concerning circularity and upgradability. Preliminary findings underscore a strong interconnection between modular architecture, upgradability, Product-Service Systems, and Circular Economy. The multitude of authors engaging with these topics emphasizes their intrinsic interconnection. However, further research is necessary to define the casualties of such interconnections between the concepts.
... At the same time, circularity and sustainability are promoted as the return of the storage system is made easier [96]. The addition of digital technologies enables "smart" [97] (p. 2) or "upgradable" [98] (p. 540) PSS, e.g., by offering predictive maintenance. ...
... The differentiation from a first-life storage system can be realized by offering specific functionality, such as peak shaving. Furthermore, the customer should not realize whether it is a first-life or a second-life battery in terms of performance and reliability so that the supposed inferiority of a used battery is overcome [98] ("Our batteries should be positioned as if they were first-life batteries"). Finally, the sustainability of B2U storage systems, which is increasingly demanded by society [100], must be emphasized in marketing. ...
... With the help of a digital twin, permanent status monitoring is possible and the high security requirements are guaranteed [114]. Regular updates can not only ensure iterative product improvement, but also safety optimization [98]. Predictive data analysis can forecast future events and thus enable smart, upgradable PSS [115]. ...
The battery electric drive is an important component of sustainable mobility. However, this is associated with energy-intensive battery production and high demand for raw materials. The circular economy can be used to overcome these barriers. In particular, the secondary use of batteries in stationary energy storage systems (B2U storage systems) has been proposed for the circularity of electromobility. To implement such systems, a circular business model and a cross-industry ecosystem are required. However, the meaning, scope, and structure of these concepts have received little research to date. To close this gap, a theoretical construct for a circular business model based on the theory of business model, sustainability, circular economy, and ecosystem must be developed. On this basis, 16 expert interviews were conducted and analyzed using qualitative content analysis. Numerous challenges resulted from the analysis. The willingness to pay for B2U storage systems is limited, the availability of second-life batteries is restricted, and dismantling as well as testing the batteries is time-consuming. Product-service systems help to increase the willingness to pay and expand the value proposition and value capture, digital technologies realize cost-efficient value creation, and an effective ecosystem enables the expansion of battery procurement.
... Another way to address resource management is by strategies that slow (lengthen or extend the use phase and product value), close and narrow (using less material input) resource loops, which are viewed as new CE business models (Bocken et al., 2016). The CE also promotes servitization (Lieder et al., 2020) and the increasing role of services (Johannsdottir, 2014;Pialot et al., 2017), which affects responsibility and ownership structures (Hankammer et al., 2019). Thus, ownership is substituted by access (de Jesus et al., 2019) and performance, with ownership staying with the provider (Bauwens et al., 2020) and the producer turning into a (service) provider (Frishammar and Parida, 2019). ...
... A. Toth-Peter et al. and closing (i.e., disassembly) resource loops (Franco, 2019;Pialot et al., 2017). Nonetheless, incorporating new strategies at the design stage is challenging (Bakker et al., 2021) as it requires thinking and planning ahead (Acerbi and Taisch, 2020), and raises technological limitations, high investments and the need to account for different requirements, capabilities and customer preferences (Pinheiro et al., 2022;Rajput and Singh, 2019). ...
... Similarly, Pinheiro et al. (2022) tested the role of I4.0 technologies and also found AI and big data to be the most relevant design enablers. Design can also be supported by PSSs, and Khan et al. (2018) and Pialot et al. (2017) conceptualized an upgradable PSS model, as a new mode of design (Pialot et al., 2017) and a new mode of consumption (Khan et al., 2018). They underlined the role of data-driven intelligence in use-and result-oriented models and its contribution to a functionality economy. ...
... The performance of the equipment can be purposefully managed by the PSS operator to maintain high overall equipment effectiveness and fulfill its purpose and role as part of the manufacturing system (e.g., Basak et al., 2022). The upgradable consumer PSS is not an operational concept, but a value proposal to consumers; its feasibility and potential impact have been evaluated in consumer and manufacture representative focus groups (Pialot et al., 2017). Their proposed PSS replaces repair when needed (broken), with upgrades for the user to purchase to prevent technological and functional obsolescence (cf. ...
... Their proposed PSS replaces repair when needed (broken), with upgrades for the user to purchase to prevent technological and functional obsolescence (cf. Mellal, 2020) and retain value by maintaining performance and improving functionality (Pialot et al., 2017). ...
Product-service systems (PSS) typically assume that users determine the value of the service and take responsibility for deciding when to start and discontinue use. However, without visibility to organizational value such as fleet-level operational gains, PSS users are ill-equipped to make such decisions. In this study, we examine a PSS for dispensing prescription medication to memory-impaired homecare clients of a municipal healthcare organization. Robot dispensers provided by a PSS operator automate medication adherence duties, streamlining workflows and reducing nursing staff needed during morning peaks. However, neither the memory-impaired client nor the homecare provider have visibility to the service's value. Collaborating with the operator and the healthcare organization, we discovered that the main problem was the value that was lost when the dispenser was deployed and redeployed too late. As a solution design, we propose detection of lost value opportunity and dynamic capture of the available value using smart and connected product technology for the robotic dispenser and its simpler precursor alternative. With these changes, the PSS operator can continuously re-servitize, i.e. use the PSS to actively guide the deployment and redeploy the robotic dispensers for improved value impact. Our contribution to the innovation management is highlighting the role of re-servitization in unlocking the potential operational value of a PSS in dynamic environments, such as healthcare.
... On the consumption side, the wide application of digital technology helps to cultivate new business forms, thus stimulating consumption growth (Curtis et al. 2015). For example, Zhang et al. (2023) argued that DIGI has spawned many new businesses represented by e-commerce platforms, generated many new business models and increased people's consumption levels (Pialot et al. 2017). From the energy consumption perspective, some scholars have found that DIGI has increased residents' electricity consumption (Salahuddin and Alam 2016;Zhang et al. 2017;Lin and Huang 2023). ...
... Two main approaches have been developed for measuring CU: one is to divide consumption into subsistence consumption and developmental hedonic consumption and use the ratio of them as a proxy variable for CU (Dong et al. 2022). The other is to use only the share of developmental hedonic consumption expenditure in total consumption expenditure (Pialot et al. 2017;Zhang et al. 2023). However, CU includes not only changes in consumption scale but also qualitative improvements (structural changes). ...
The digital economy (DIGI) as a new technology is crucial for promoting consumption upgrading (CU) and unleashing the potential of domestic demand. This study aims to reveal how DIGI affects CU. Based on the data from 30 provinces (cities) in China from 2011 to 2021, we adopt the fixed effect model, threshold effect model and spatial effect model to investigate the impact of DIGI on CU from the perspectives of consumption scale (CQ) and consumption structure (CS). The results show that: DIGI has a positive impact on CQ and CS in China. Regarding sample heterogeneity, there are consumption type and consumer group differences in the impact of DIGI on CU. Additionally, industrial structure and market integration pass the mechanism test for structural effects rather than scale effects. The result of DIGI on CS shows a nonlinear relationship due to market integration. There is also a positive spatial spillover effect of DIGI. The government should promote the development of DIGI, while accelerating industrial restructuring and advancing market integration, thus facilitating CU.
... encouraging consumers to participate in the product development process. This way, digital platforms also act as tools for improving operations along the value chain and as a hub for a collaborative exchange, co-creating and innovative ideas fostering social, economic and ecologic value-creation for all stakeholders [13,17]. ...
... Thus, the platform can be seen as a product and the possibility of CE, e.g. renting furniture, as a service [17]. ...
... Extending the product use phase aims at a longer life and includes product longevity (B4) (Bridgens et al. 2019), which is an issue for smart PSS in terms of technological obsolescence (Kjaer et al. 2019). As upgradeability, updateability, and modularity (B5) is frequently discussed (Pialot et al. 2017), we represent it as a sub-mechanism of product longevity. ...
... Within the economic dimension, we distinguish positive effects on costs (Haftor and Climent 2021), risk and uncertainty (e.g., through enhanced information availability) (A1-A3) (Pialot et al. 2017), profit (potentials) (Alcayaga et al. 2019), quality, such as fewer errors and interventions through process optimization (A4) (Basirati et al. 2019), customer relationship (Alcayaga et al. 2019), such as better responsiveness to customer needs (A5) (Fargnoli et al. 2019), interactive co-creation (C2) (Li et al. 2021a, b), and standards and cooperation (Alcayaga et al. 2019). The last criterion addresses the need for sustainable smart PSS to adopt a value network perspective that builds partnerships (Haftor and Climent 2021). ...
Digital technologies can elevate product-service systems (PSS) to smart PSS, which focus on performance rather than ownership and are considered a means for dematerialization. However, transitioning to smart PSS does not guarantee sustainability. To understand the impact of smart PSS holistically, we take a two-pronged approach. First, we use the theory of change to conceptualize the causal link between sustainable smart PSS and their ultimate impact. We develop a three-step causal logic framework consisting of design, causation, and impact. Within this framework, we identify the business model properties of sustainable smart PSS as design characteristics and categorize the eventual impacts based on the triple bottom line. We introduce the term multi-causal pathway to describe the causation processes underlining the possibility of non-linearity and multi-causality. Second, we conduct a systematic literature review to investigate the mechanisms linking design and impact. Based on an analysis of 63 publications, we identify 17 specific mechanisms and group them into four types: information, resource, empowerment, and adverse mechanisms. Visualizing our results, we develop a morphological box as a toolkit for managers to develop their own impact-oriented logic model by identifying and activating the multi-causal pathway that fosters the desired sustainability effects. Moreover, discussing our framework, we develop research propositions and managerial questions for impact design. By linking the theory of change with the business model impact, we contribute toward a conceptual synthesis for understanding the impact of (sustainable) smart PSS.
... The operation, functional status and availability of smart products may be tracked in actual time after incorporating I4.0 technologies into traditional systems (Pagoropoulos et al., 2017). Knowledge of intelligent devices may assist organisations in upgrading device firmware, decreasing expiration issues, increasing item longevity and supporting CE (Pialot et al., 2017). Radio Frequency Identification (RFID) and IoT have been found to perform a vital function in item and repair parts traceability (Franco, 2017), helping to achieve CE goals (Nobre and Tavares, 2017). ...
... H3; this indicates that I4.0 has a positive influence on CE practices. The acceptance of H3 is supported by the studies ofPialot et al. (2017),Lopes de Sousa Jabbour et al. (2018) andKamble and Gunasekaran (2021).The fourth hypothesis (H4), proposing a relationship between TPM and SP, was accepted with the standard coefficient value of β 5 0.225 and p < 0.000. Past scholars have ignored the impact of TPM on the overall SP of manufacturing firms. ...
Purpose: The purpose of this research is to establish a conceptual model to understand the impact of Total Productive Maintenance (TPM) and Industry 4.0 (I4.0) on the transition of a Circular Economy (CE). Also, the paper explores the combined impact of TPM, I4.0, and CE on the sustainability performance (SP) of manufacturing firms.
Methodology: The conceptual model is proposed using the dynamic capability view (DCV) and empirically validated by partial least squares-structural equation modelling (PLS-SEM) using 304 responses from Indian manufacturing firms.
Findings: The results suggest that I4.0 positively impacts TPM, CE, and SP, also showing TPM's positive impact on CE and SP. In addition, CE has a positive influence on the SP of manufacturing firms. Furthermore, CE partially mediates the relationship between I4.0 and SP with TPM and SP. The study also identifies TPM, I4.0, and CE as a new bundle of dynamic capabilities to deliver SP in manufacturing firms.
Originality: The present research adds to the knowledge and literature on DCV by identifying the importance of CE in the settings of I4.0 and TPM, especially in the context of sustainability. Also, the current study offers a new set of dynamic capabilities and provides some significant future recommendations for researchers and practitioners.
... Subguidelines P4.1 and P4.2 emphasize the importance of business proposals to aim for longevity and adapt the production process based on sustainable development principles by adopting a closed production and consumption cycle (Alamerew & Brissaud, 2019;Bradley et al., 2018;Frishammar & Parida, 2019). Thus, efficient use of resources should be promoted Yang et al., 2018) and designed with an eye toward ease of disassembly of components (Pialot, Millet & Bisiaux, 2017;Vanegas et al., 2018;Vogtlander et al., 2017 (Alamerew & Brissaud, 2019), repair (Bressanelli et al., 2018), refurbishment (Bag, Gupta & Foropon, 2019), among others. ...
... Thus, it is essential to develop a holistic understanding of the context to be worked (guideline P2), mapping the needs of customers and stakeholders (facilitator FP67), since it is essential to promote customer engagement with the business proposal (Pialot, Millet & Bisiaux, 2017). In this context, it is necessary to manage the stages of the life cycle with eco-efficiency (guideline P3), from the initial phases until the implementation of EoL strategies, mitigating the impacts in the environmental, social and economic spheres (Alamerew & Brissaud, 2019). ...
The transition to a circular economy is gaining notoriety as society demands alternative forms of production and consumption. In this context, Product-Service Systems have the potential to reconcile economic and socio-environmental development. However, the implementation of Product-Service Systems has limitations, such as poor understanding of the system, difficulties in monitoring and establishing relationships with stakeholders. In order to guarantee guarantee a successful implementation of Product-Service Systems, there is a need to understand these organizational challenges and to present opportunities to mitigate these barriers. The goal of this paper is to identify facilitators and construct guidelines, capable of minimizing barriers in the implementation of a Product-Service System. To achieve this goal, a systematic literature review was conducted, contemplating bibliometric and content analysis (57 papers were read in full). The results of the bibliometric analysis point to the need to expand business proposals to different economic and cultural contexts, since they are mainly concentrated in developed countries. The content analysis presented a framework with guidelines, subguidelines, and facilitators, classified according to the PSS dimensions: provider, offer, and consumer. Thus, 111 facilitators were identified, and 26 subguidelines and 11 guidelines were built, demonstrating the contribution of the Circular Economy for the minimization of barriers in the implementation of the Product-Service System. The research highlights that approximately 73% of the facilitators correspond to the provider dimension, emphasizing the need to promote organizational changes and to adapt business proposals, adding value to the solution or to the results. However, the research highlights the need for the involvement of all stakeholders, where the customer must also promote changes in habits and an awareness of sustainable development. Finally, it is emphasized that this research provides a theoretical basis for the development of empirical studies, applying and expanding the knowledge of the interrelationship between Circular Economy and Product-Service Systems.
... At present, the concept of sustainable development is of great importance in the development of world civilizations. This development seeks to ensure sustainable improvement in the quality of life of generations through the formation and realization of appropriate proportions of economic, human, and natural capital [64][65][66]. The internal balance of the systems, namely environment, economy, and society, within the framework of sustainable development is determined by the formation of appropriate orders: the ecological order is shaped in the environment by human interaction with natural environmental processes, the economic order is shaped in the specific territory of the state, while the social order is understood as the organization of social life. ...
The development and implementation of appropriate measurement tools is a prerequisite for the effective introduction of the concept of a circular economy at every level of management. Fundamental to this system is the establishment and adoption of indicators, which are a monitoring tool to diagnose, model, and forecast the circular economy. The full identification of indicators and the degree of their implementation provide the necessary knowledge for a comprehensive assessment of the state of change and the prospects for closed-loop circuits in EU countries. The main objective of the research conducted was an attempt to assess the implementation of the circular economy in the EU-27 countries. The research used indicators of the circular economy, analyzed the relative taxonomic measure of development, and established a ranking of EU countries. In this research, three questions formulated were as follows: do average circular economy indicators in EU countries show an increasing trend over the last decade? Is the circular economy development gap decreasing in EU countries? In which countries are the biggest barriers to circular economy implementation? Based on the research questions posed in this way, two hypotheses were adopted: in the last decade, there has been a slow transition from a linear to a circular economy in EU countries; there is a wide variation in circular economy indicators among EU countries. Achieving the main objective required recognizing the issue of natural resource management, characterizing the changes in individual conditions affecting the possibility of realizing the assumptions of the closed-loop economy, and assessing changes in the possibility of implementing the circular economy in individual EU countries over a period of 10 years. The analysis of the dynamics of change over the past 10 years in the 27 EU countries indicates a slow process of transition from a linear to a circular economy. The study shows that only 8 EU countries have seen an increase in the development measure.
... Product-as-service/Product-Service Systems are B2C CEBMs, in which the customer becomes a user, refraining from any ownership. A prominent example is the 'library of things' that allow customers to utilize but not purchase the produce and only use it as a service with potentially positive implications for the business, its customers and the environment (Pialot et al., 2017). Product life extension CEBMs adopt strategies through remanufacturing, maintenance, upgrading, and reuse (Accenture, 2014). ...
This research investigates how circular business managers develop, innovate, and implement circular economy business models (CEBMs). We apply the COM-B model as an analytical lens to identify key factors that drive CEBM development, innovation and implementation in an attempt to offer context-forging opportunities to facilitate more sustainable consumption behaviours. Based on semi-structured interviews with circular business managers in Brazil as emerging economy context, nonparticipant observations, and documentary analysis of secondary data, we explore CE managers' motivation, capabilities and the opportunities presented to them, and how these drive CE ambitions. Findings underscore the both crucial and emerging role of circular managers and their influence on CEBMs as context-forging opportunities that can operate as pivotal agents in both enabling and encouraging consumers to enact sustainable behaviours. We conclude that CEBMs are essential for advancing cleaner production and consumption, as they introduce new approaches to doing business, producing, and consuming.
... For example, they encourage consumers to participate in the product development process. In this way, digital platforms also serve as tools for replicating processes along the value chain and as hubs for collaborative exchange, co-development, and innovative ideas that promote social, economic, and environmental value creation for all stakeholders (Rosa et al. 2020;Pialot et al. 2017). At the same time, they enable access to a broad network of users and providers. ...
This paper investigates the development of an open innovation platform in the furniture and furnishing industry, emphasizing the significance of digital sovereignty in digital platform design. The study involved various aspects, starting with the identification of stakeholders and their influences on the digital platform. Understanding the roles and interests of different stakeholders is crucial for designing effective governance mechanisms and ensuring inclusivity. Furthermore, an analysis of necessary extensions to existing business models was conducted. An input and output flow analysis elucidates knowledge generation and utilization. Clear requirements, including digital sovereignty, ensure data protection and privacy. The findings revealed that an Open Innovation platform can be conceptualized as a product-service system, combining the functionalities of a product with the administration and moderation services. This perspective facilitated a comprehensive understanding of the platform's interactions with stakeholders and allowed for the integration of digital sovereignty measures from the outset. The approach fosters stakeholder understanding and early integration of digital sovereignty measures and offers insights into designing digital platforms with digital sovereignty in focus. It emphasizes the need for early consideration and the link between research and commercial utilization.
... Therefore, several authors evidence that the internet is a valuable tool for connecting product lifecycle management (PLM) with digital manufacturing, as it provides insights into potential product design flaws, thus enabling improvements in maintenance and extending product life expectancy (Holligan et al. 2017;Pagoropoulos et al. 2017). Indeed, the internet can make products more upgradeable by allowing businesses to track their usage and status, in contrast to the current unknown obsolescence of many products, which often leads to premature material waste (Pialot et al. 2017). ...
Digital technologies (DTs) and circular economy ( CE ) are currently two topics that are expected to contribute significantly to sustainable development, and digitization is generally considered a key enabler of CE . However, most studies only cover the most known Industry 4.0 technologies, and very limited research detailing how DTs can support the implementation of CE is available. The first objective of this paper is to fill these gaps by offering an overview of 24 key DTs enablers to CE , thanks to a systematic literature discussion and the development of the DATE (Digital Architecture Type) classification. The second goal is to analyze how these DTs can specifically contribute to the CE strategies of narrowing, slowing, closing, and regenerating. The results demonstrate that DTs can provide a wealth of information regarding production and consumption chains, from micro to global levels. Real‐time diagnostics and forecasting can be obtained for efficient service provision, component lifespan extension and better design practices, besides improved remanufacturing, recycling, and refurbishment approaches. To inform future research, significant gaps in the literature and new research initiatives are addressed.
... After all, in operating lease arrangements (Fishbein, et al., 2000), the product ownership is retained by the lessor (producer) during and after the lease term, thus allowing him/her to control the product during operation. Pialot et al. (2017) proposed the Upgradable Product-Service System paradigm i.e., "Up-PSS", combining product upgradability with optimised maintenance. Up-PSS is conceived as a transforming value network over time, satisfying manufacturers (increasing revenues), customers (increasing service) and environment (reducing impact). ...
EPR policies have the potential to be valuable and sustainable business opportunities. Operational leasing is an effective EPR implementation strategy, where the lessor maintains the product ownership, therefore controlling every phase of product life cycle. Hence the interest of protecting product's value across multiple use-cycles. In the case of items subject to wear and tear, such as mechanical components, the maintenance strategy is central to maintaining product's global value, protecting it from losses due to obsolescence and degradation. The recent systemability approach gave the opportunity to refine maintenance policies taking into account the operating environmental effects. However, degradation prediction models often take into account the manufacturer/lessor perspective, in a cost-effective approach, neglecting the service level requested by the user and the intrinsic characteristics of the leased product. Among these, the item's memory of the failure state is relevant. In this work, the authors propose to integrate, into the systemability paradigm, the user acceptance threshold and the memory effect of the fault state. Computational results demonstrate that the proposed approach may significantly vary the maintenance frequency and the product's use-cycle duration, towards protection of service value for the user and functional value for the manufacturer.
... There are two primary approaches to measure the upgrading of consumption structure: the first involves segmenting consumption into subsistence and developmental hedonic consumption and employing their ratio as a proxy for consumption upgrading [36]; the second approach focuses on the proportion of developmental hedonic consumption expenditure within total consumption expenditure [37,38]. Following Shi (2019) [34], we measure consumption structure upgrading as the second approach, to test the effect of digital financial inclusion on the upgrading of consumption structure. ...
This study empirically tests the role of population structure in the process of digital financial inclusion empowering the upgrading of consumption structure by taking 248 prefecture-level cities between 2013 and 2019 as the research objects. The results of this study are as follows. First, digital financial inclusion will expand the scale of consumption. Second, digital financial inclusion can promote the upgrading of consumption structure. Third, population structure will regulate the promotional effect of digital financial inclusion on the upgrading of consumption structure. Specifically, child dependency ratio has a positive moderating effect on digital financial inclusion-driven the upgrading of consumption structure. Moreover, sex ratio has a positive moderating effect on digital financial inclusion-driven the upgrading of consumption structure. Therefore, it is suggested that vigorously promote and develop digital financial inclusion, implement and improve the three-child policy, and expand the elderly consumer industry to better promote consumption upgrading.
... Selected evaluation elements include the presence and diffusion of product-service systems solutions such as product leasing, renting and pay-per-use, or the possibility to share the product among multiple users (Cayzer et al., 2017;Ellen MacArthur Foundation, 2020;Evans & Bocken, 2014;Garza-Reyes, Salomé Valls, et al., 2019;Pigosso & McAloone, 2021;Sacco et al., 2021;Urain et al., 2022). Companies investing in new business models such as leasing and sharing promote resource efficiency during the use of their products, since products are frequently maintained and upgraded for optimal energy efficiency (Pialot et al., 2017). These circular business models thus contribute in lowering carbon emissions at the usage stage . ...
Climate change is pushing manufacturing companies to adopt sustainable solutions for reducing their carbon emissions. Circular Economy emerged as a suitable strategy for the decarbonization of industrial organizations, offering the potential to decouple economic growth from natural resource extraction and waste generation. However, achieving circularity requires significant transformation in several areas, and some Circular Economy actions may be more effective than others in reducing carbon emissions, depending on the product and company carbon footprint structure. Facing low awareness and limited resources, manufacturing companies frequently fail in understanding where to start in approaching such a systemic transition. Despite these challenges, the literature overlooks the linkages between Circular Economy initiatives and their potential for reducing carbon emissions, and in particular how Circular Economy actions can be prioritized for decarbonization purposes. To fill these gaps, this paper develops an original and systemic tool (C-Readiness) for assessing the readiness of manufacturing companies for the Circular Economy, and for prioritizing Circular Economy actions for decarbonization. The tool is developed based on a literature review and critical comparison of existing tools for assessing circularity readiness at the micro level. The tool has been applied to four manufacturing companies, to showcase its potential in designing Circular Economy-based decarbonization paths. This paper contributes to the literature on strategic Circular Economy implementation in manufacturing companies by integrating circularity readiness evaluations with quantitative carbon footprint assessments. It provides a structured approach and a simple yet effective tool to help industrial organizations reduce their environmental impact through Circular Economy practices.
... With regard to the internal use of platforms, they primarily serve as a corporate infrastructure to strengthen one's own efficiency both internally and externally along the value chain, e.g., through the systematic reuse of design rules (Baldwin and Clark, 2000). In comparison, external platforms are characterized by a minimum level of openness that allows a larger network of actors to drive complementary innovations such as the coupling of products and services (Gawer and Cusumano, 2014;Evans et al., 2007;Manzini and Vezzoli, 2003;Pialot et al., 2017). In this environment, platforms are therefore used for collaborative sharing of data and information to promote sustainable PSS (Balder et al., 2023), such as for reuse and maintenance. ...
Fashionable, cheap furniture of questionable quality is often used for short-term economic gain. If the furniture is not liked, it is quickly discarded. The need to reduce CO2 emissions, dwindling resources and social and political demands contradict this practice and require the implementation of closed-loops material cycles and the introduction of circular business models. A systematic literature review and a case study were conducted to provide a comprehensive overview of current circular economy strategies (e.g. reuse, refurbishment and recycling) implemented in the furniture industry in relation to various key activities of platform companies. As part of the case study, interviews were conducted with stakeholders and experts from the furniture and interior design industry. The European Circular Economy Stakeholder Platform was also consulted. The literature review and the case study show that the furniture industry is in a state of transition. By incorporating designs that allow for improved remanufacturing, refurbishment and reuse, companies in the industry are increasingly starting to consider circular economy patterns. Increasing digitization and servitization are driving new circular business models. Another key finding is that digital platforms are suitable for connecting stakeholders such as manufacturers, service providers and consumers, taking into account the relevant business models. The study also identified motivations, barriers and requirements for the implementation of circular and digital business models in the furniture and interior design industry. There is still a large gap between what can be achieved with a circular economy and its actual implementation.
... Shorter loops refer to refusing, reducing, reselling or reusing and repairing; medium long loops include refurbishing, remanufacturing and repurposing; long loops entail recycling materials, recovering energy and re-mining (Reike et al., 2018). A potential eleventh loop could be "re-servitization", i.e., reconfiguring services in product service systems, yet this is thought to be embedded in the other loops (Reike et al., 2018), and therefore is not a category per se (see also Pialot et al., 2017). Shorter loops are considered more suitable for maximizing value retention potential of resources (Reike et al., 2018). ...
To maximize circularity, remaining value in electric vehicle (EV) batteries can be retained through deploying different strategies such as reusing and repurposing to enable second life applications before they are recycled. Since EV battery ecosystems for the so-called battery second life are at early, emergence stages, they are characterized by uncertainties and high complexity. Despite previous analyses on the topic, collaboration in terms of roles, hierarchies, as well as the circular ecosystem dynamics remain unclear. We thus conduct a systematic literature review, applying a complex adaptive systems lens to map the literature concerning the three core dimensions of ecosystems: conceptual, structural, and temporal. Results point to the need to collaborate to enable circular ecosystems for EV battery second life, but also hint to high diversity of actors-over 40 types of actors potentially relevant for EV battery second life ecosystems-and various challenges for collaboration in such ecosystems.
... The PSSs category of service-oriented use contemplates the possibility of acquiring a product in the form of a loan (leasing) and shared products [46]. PSSs are related to one of the main strategies used to promote the reduction of environmental impacts on natural resources, namely extending the product's useful life and its components [47,[48][49]45]. Making it possible to increase the durability of a product and facilitate the replacement of damaged components are actions that can reduce the demand for natural resources [38]. ...
... Moreover, the multi-actor notion aligns with sustainability goals by promoting socially responsive solutions. Collaborative efforts can address waste reduction, end-of-life management, recycling, and carbon footprint minimization across the value chain [10][11][12][13]. In this way, a multi-stakeholder PSS value creation network enables stakeholders to collectively address environmental challenges and reinforce contributions through the implementation of circular economy and life-cycle thinking principles, as proposed by [14][15][16]. ...
... Firms can leverage data from their partners to expand their service portfolio (Dalenogare et al., 2022;Kolagar et al., 2022;Marcon et al., 2022). They can offer condition monitoring (Alcayaga et al., 2019;Ingemarsdotter et al., 2020), add retrofit services (Schymanietz et al., 2022), or create platforms for collaboration in the value cycle (Pialot et al., 2017;Rajala et al., 2018). To benefit from these service opportunities linked to smart products, firms need to advance their business models toward PSS (Mont, 2002;Hansen et al., 2009;Tukker, 2015;Blomsma et al., 2019). ...
The circular economy is a new sustainability paradigm and a major driver of innovation in industrial firms. Digital servitization, enabled through smart products and their embeddedness in Internet of Things networks, represents a significant lever to generate product life cycle information and achieve collaboration between actors in the value cycle. Empirical studies on how product‐service system business models enable smart circularity are bourgeoning, but a gap exists regarding their microfoundations. Against this background, we adopt an activity system perspective to explore boundary‐spanning and interdependent business model activities. We conducted a qualitative interview study in business‐to‐business industries, from which we derived a funnel framework of smart circular systems (SCS) that spans three layers of the activity system. This contributes to theory in three ways: First, we identify 20 distinct microlevel activities. Second, we explain their interdependencies by classifying them based on the product life cycle into smart use, smart circular, and cross‐strategy activity sets. We also order these activity sets by their data transaction frequency, environmental and economic value, and a firm's typical learning pathway, as well as link them back into circular product design. Third, we highlight increasing servitization to develop the activity system across multiple circular activity sets. Managers can use the funnel as a template to drive circular business models on multiple levels, from adopting individual activities to redesigning the entire activity system.
... Furthermore, Basile et al. (2021), focused on offshore platform decommissioning and sustainable business models and extended the implications to business model innovation in firms, suggesting the need for value co-creation for all stakeholders balancing self-interest and sustainability issues and (re)designing (circular) ecosystems and (circular) value chains. Pialot et al. (2017) suggested a new paradigm of production and consumption based on upgradability, meaning that such systems require transforming the value network towards a service-oriented approach. In a related line of research, Kreye and van Donk's study (2021) on business-to-consumer servitisation extends the implications regarding CE like considering the mechanisms of internal collaborations required and service offerings provided. ...
A circular economy (CE) addresses the shift in economic systems from an unsustainable linear approach to a sustainable circular approach through start-ups and entrepreneurial ecosystems (EE). A single level of focus on CE research limits an understanding of the mechanisms fostering a transition towards CE. We conduct a systematic review of the macro-meso-micro interconnections between start-ups and EE in CE using bibliometric and content analyses to scope the literature without time boundaries. This exercise led to 90 articles from the Web of Science and Scopus databases. We contribute to literature on entrepreneurship and CE by building an integrative multi-level framework linked to the just and safe planetary boundaries by bridging macro-level explanations (public policies, regulations and infrastructure) and the meso-level (circular supply chains and circular ecosystems) and micro-level (circular start-ups and circular business models). The framework highlights social and environmental sustainability challenges, and just and safe close-loop production patterns.
... Recently, Smart PSS has emerged, integrating intelligent systems to provide new functionalities (Kuhlenköttera et al. 2017;Pirola et al. 2020;Boucher et al. 2022). Additionally, upgradable PSS (UP PSS) is gaining prominence due to environmental concerns, encouraging innovative, eco-friendly solutions by combining upgradability with optimized maintenance, the valorization of end-of-life parts, and the servitization of the offer (Pialot et al. 2017). PSS and their "upgradable" or "smart" variants therefore carry the promise of a response adapted to users' needs, while limiting resource consumption, through the design of a robust, adaptable, and sustainable product. ...
This article presents a method for evaluating the environmental benefits of implementing Product-Service Systems (PSSs) and Smart PSS with application to the heating systems field. The proposed PSS-oriented life cycle assessment method aims at addressing the specificities of PSS and Smart PSS, representing PSS variety and dealing with uncertainty sources resulting from the PSS context. Besides environmental analysis, the method supports decision-making by comparing different PSS scenarios. This study focuses on the challenges of a generic configuration of the life cycle assessment method and the rigorous handling of uncertainty sources, while an industrial case study reports a real case of PSS design decision-making.
... The underlying logic of PSS revolves around rethinking how needs are met, aiming for improved goods and services in tandem with enhanced material and energy efficiency (Hobson et al., 2018;Tukker, 2015). For instance, Pialot, Millet, and Bisiaux (2017) suggest that sustainability in PSS can be achieved through dynamic, continuous service upgrades and modular product design that enables repair instead of replacement. Similarly, Wang et al. (2020) highlight the potential of PSS for equipment manufacturers to provide high-value-added services. ...
The circular economy (CE) narrative promotes closed-loop systems to decouple economic activity from resource depletion. However, despite increasing scholarly interest, CE remains theoretically under-explored, often guided by practical issues and theories-in-use, that are implicitly embedded in the industrial paradigm of linear value chain thinking. There is a growing number of CE scholars calling for a ‘Great Reset’ of traditional economic frameworks, suggesting a departure from capitalism. Instead of a reset, this paper proposes a recalibration of assumptions foundational to traditional economic thought and suggests an alternative economic exchange model for CE—a service-dominant (S-D) logic. S-D logic offers a holistic framework of value cocreation and provides guidance to navigate change in complex service ecosystems. The paper demonstrates that S-D logic is not only compatible with the CE narrative but also reconciles the divergent strands of CE research. It concludes by offering strategic considerations to aid firms and entrepreneurs in navigating CE transitions.
... Some of the main questions that arise relate to how luggage can be utilised more intensively and efficiently, for longer periods, and how they can become more sustainable in the future. As a product, luggage is designed to offer a service, lending itself to the development of a new business model that could create value for consumers and businesses alike through its reuse [11][12][13], a practice that is increasingly gaining traction. ...
The travel-goods industry is an essential part of the larger travel and tourism sector, but it allegedly creates significant environmental impacts due to resource and energy consumption. This study investigates the potential of the product-service system (PSS) models to promote the transition to a sustainable travel industry in the future. It explores the drivers and barriers to PSS adoption within the luggage industry from a theoretical perspective and identifies opportunities for value creation using both consumer and luggage industry viewpoints. Four hypothetical PSS models are developed to highlight different pathways to PSS adoption, underpinned with empirical data collected via a consumer survey and semi-structured interviews with industry experts. Even though the analysis revealed shifting consumer attitudes towards servitisation concepts within the travel-goods market, at present, the widespread adoption of PSS is hindered by the fragmented nature of global supply chains and entrenched ownership values. Addressing supply chain issues in a way that empowers end-of-life systems to sustainably manage products beyond their functional obsolescence is critical. In parallel, product-oriented PSS models are more likely to increase, driven by a burgeoning resale market and supported by digital technologies, which in turn can lead to greater prospects for use-oriented PSS adoption in the long-term that would eventually promote sustainability.
... For sustainable integration of hardware upgrades, the organization is encouraged to establish a longterm upgrade plan and communicate it accordingly with customers (Pialot et al., 2017). Forecasts of future technology trends and customer requirements, as well as the time and financial framework for future product upgrades, should be established as part of the development phase (Umeda et al., 2005). ...
In today's VUCA-World it is necessary to consider future requirements to develop change- and future-robust future products, especially regarding the increasing demand for sustainable solutions. In order to address this situation, upgradeability of modular products can be a solution. Considering that elements of modular products are used in several different products and over a long period of time, there is a need to act on this challenge. To uncover areas with a need for action, a systematic literature review on upgradeable and modular products was conducted. After resolving four fields of action and under consideration of the need for sustainable products, another systematic literature review examined the solution space of upgradable modular product architecture. In conclusion, several influencing factors on the upgradeable design of modular products could be identified, which are presented in this work.
... In the context of CE, consumer behavior implicitly encompasses aspects of SC [50], and consumer intervention can be reflected in the basic concept of the 3Rs [6] and its variants [50]. In other words, the consumer has a sustainable behavior when repairing, extending the shelf life of the product even considering the implicit design limitations [70], how difficult it is to allocate time to repair, and how easy it is to purchase a new product online [71]; recycling, sending products to a treatment process so that their materials serve as raw material for new materials or products, contemplating the differences in product categories and the type of recycling of these [72]; rethinking/reusing, considering the financial and social benefits of renting or buying second-hand products [45,73,74]; refurbishing a product, understood as improving the functional performance of an item (e.g., laptop), to keep it updated [75]; or remanufacturing, which involves the producer restores the product preserving its original function and added value [76]. Ref. [50] expands on this by expressing how the 9Rs framework interacts with CE (Table 8). ...
Sustainable consumption is a key concept in society and the environment due to its direct relationship with sustainable development; its importance lies in the decoupling of consumption and economic growth with environmental damage and its involvement with various behavioral disciplines and ecological concepts. Therefore, this research aims to analyze scientific articles linked to key perspectives of the concept under discussion. Due to the scope of the objective of systematizing the existing scientific literature on sustainable consumption in Scopus and Web of Science, a systematic review was carried out, including 104 scientific articles considering criteria that respond to the questions posed. It is concluded that sustainable consumption is a complex and nebulous concept whose theoretical fragmentation gives it breadth but generates overlapping concepts. Likewise, the link between the consumer and the circular economy and the difficulties behind such interaction was denoted. The complexity of being a green consumer in current times and the aspects that comprise it were also covered, and the importance, role, and tools of the government in sustainable consumption. Thus, it is expected to generate a consistent theoretical framework facilitating the creation of new applied research, considering the perspectives highlighted through this analysis.
... Firms can continuously enhance the design of their products by gathering data from the use phase (Bressanelli et al. 2018). Bressanelli et al. (2018) and Pialot, Millet, and Bisiaux (2017) both point out that items with digital elements can be upgraded more simply with new features. ...
Companies are looking for opportunities from digital technologies focused on transforming their operations and customer value proposition. IoT solution is a way to develop new services and business models (BM). Literature highlights that research is necessary to discover empirical patterns and tools for understanding and managing digital Innovation adopted by companies. Thus, this study aims to explore how organisations move into an Internet of things (IoT) environment by structuring new business models and offering innovative and sustainable services identifying mechanisms for deploying IoT BM. This research uses a multiple case study approach with three manufacturing organisations. The contribution of this study is the identification of mechanisms applied for developing an IoT business model. Companies altering model operations and reshaping customer value propositions for building new business models are facilitated by digital transformation. The findings provide mechanisms identified across cases: collaboration via strategic partnerships, incubator companies, acquisition of the startup, exchange knowledge/employee training, Co-innovation: interactions between actors to develop platforms and partnership with Technology Parks.
... Stal and Jansson [63] Consolidated the mode of consumption and production based on the upgrade capacity of product-service systems (upgradable product-service systems). Pialot et al. [64] Showed consumers' acceptance of product-service systems. ...
Sustainable consumption requires that people, companies, and nations promote correct use of their resources in the interest of environmental protection and ecosystem integrity. Given the relevance of this subject, the main objective of the present study was to provide an overview of the literature on sustainable consumption, going beyond knowledge related to consumer behavior, and addressing questions connected with the role of companies and public policies in the promotion of sustainable consumption. To achieve that, a systematic literature review was carried out by selecting 114 articles published over the past ten years, from Web of Science categories with an environmental focus. The study allowed for showing the state of the art of the subject, as well as suggestions for future studies based on gaps in the literature. It was found that there is a concentration of studies oriented toward surveying and understanding consumer behavior at the expense of those focused on examining companies and their relationship with sustainability and consumption.
... Resources are acquired, processed using energy and labor, and sold as goods with the expectation that customers will discard these goods and buy more aligned to the product obsolescence plan [1]. Organizations need to discuss alternatives to minimize the negative impacts on environmental and social aspects [2][3][4][5][6]. It is necessary to modify the traditional system of linear production and create new circular models. ...
Today, for most applications in industry, the overall goal of manufacturers and users is to completely rethink and improve reliability and sustainability. In relation to the performance of rotating equipment, examples of ongoing trends and related activities driven by major machine manufacturers include, among other things, saving resources by extending the service life and intervals of individual components on machines, increasing use of the minimum amount of lubrication and the growing focus on reusing, retrofitting and upgrading equipment. The purpose of this work is to evaluate the Circular Economy model of a bearing manufacturing company (Product as a Service: SKF Rotation for Life) using the ReSOLVE framework and five sustainability factors for PSS (Product-Service System) business models. Through the data obtained in the case study, it is possible to observe the link that exists between the models of the Circular Economy and PSS and how, through the reconditioning of bearings as one of the key strategies to achieve a Circular Economy, to reduce, reuse and recycle material, the company can provide services rather than products, focusing on optimizing asset performance and helping to improve the sustainable performance of industrial equipment.
... Furthermore, the ReCiPe and CML methods were the most widely used throughout studies that investigated several impact categories. Another significant feature of Smart PSS is upgradability (functional improvements brought to a system over time) considered as the foundation of a new paradigm of consumption/production in order to satisfy at the same time the environmental sustainability notably due to the rationalization of materials use over time and the benefit of such systems for both clients and producers [17]. Khan et al., [18] defined upgradability as the potential aspect that might contribute to a product lifetime extension strategy, with an emphasis on PSS. ...
At the heart of industry 4.0, industrials are developing integrated offers of “Smart Product-Service Systems”. Many industrial firms are moving toward product-service systems (PSS) due to their capacity to involve value systems, business models, boundary spanning, dynamic capabilities, and other factors leading to reduced environmental impacts. In this paper, we introduce an easy-to-implement method to evaluate Smart PSSs applied to residential heating systems. Our approach is based on existing environmental assessment methods (focus on Life Cycle Assessment) and accounts for resource consumption, toxic and greenhouse gas emissions as well as waste generation. On the other hand, it also considers different features of the circular economy including the upgradability of Smart PSS offerings and end-of-life heating systems.
... Examples are reconfigurability and upgradeability, e.g. [20,74,152]. Others such as [5,26,66] take a more user-centric approach to focus and prioritize SPSS design efforts. ...
Industrial Product-Service Systems (IPS²) have been increasingly researched and practiced in a variety of fields and sectors. Nevertheless, such solutions are not as significantly implemented as expected by the CIRP keynote in 2010: it is not a dominant business of manufacturing companies today despite their economic and environmental advantages. One reason for this delay is assumed to be that the initial efforts were mainly on business and service when design was an afterthought. The promising digital technologies that have become easily implementable in practice will in the next years facilitate design and implementation of IPS² smartly to satisfy users and contribute to sustainability. This keynote analyses literature and practice in the last decade, aiming to propose the main characteristics of IPS² of the future and design processes adequate for IPS². The design process of both production systems for sustainability and high-value systems for sustainable development goals may need to be supported differently than today. The list of recommendations for future research on IPS² design is provided at the end of the paper.
Sustainable consumption and production have been identified as critical prerequisites for sustainable development. Because of differences in economic situations and sociocultural aspects, sustainable consumption and production necessitate a multifaceted approach in emerging and developed countries. To date, few attempts have been made to comprehensively assess sustainable consumption and production and its direction in emerging and established countries. This report will review the sustainable consumption and production literature published in international scientific journals between 1998 and 2023. This article will examine sustainable consumption and production patterns in developed and developing economies by addressing three carefully selected questions. This discovery and others are discussed and explored in more detail in this work, identifying gaps and potential areas for future research in the existing material.
The circular economy generate an extreme transformation of the current linear model (extract-produce-consume-throw). As a result, we reduce the extraction of natural resources and the amount of trash in nature, in the meanwhile we improve the living life of our citizens. All of this lead to the creation of an environmental, economic prosperity, social equity and the achievement of the objective of sustainable development. In this context, digital technologies from the Industry 4.0 concept from the manufacturing industry are increasingly required for the realization of the circular economy by helping close the loop, slow down the material consumption and reduce the rubbish throw thanks to better resource efficiency. In these conditions, digital technologies are considered as solutions for the accomplishment of the circular economy The study concludes. Digitization can push the transformation to a more sustainable circular economy if the digital technologies from the Industry 4.0 concept are well applied.
The future benefits of a stroller which transforms into a double one are not considered when selling and promoting products. The lack of incentives for companies, the interests these practices generate, and the need to create a culture of more responsible use of objects, contribute to the scant interest in designing products which minimize the “use and discard” behavior. However, it would be interesting to determine the extent of awareness of a more rational use of objects and how it can be increased. To this end, a joint study with the company BabyEssentials was conducted to assess whether the positive perception of a promotional video - showcasing a product with longer lifespan due to its ability to adapt to future user needs compared to a commercial one - is perceived by users with and without prior experience of the product.Keywordsperceptionuseful life extensionuser changing needsadaptable productcircular economy
The water industry is facing significant challenges due to the effects of climate change and energy crises. To address these issues, the water sector is undergoing a digital transformation, leveraging digital technologies and methods, such as artificial intelligence and smart sensors, to improve sustainable supply, distribution, and treatment of water resources. Water supply systems are a crucial piece of the water industry which has the demanding task of collecting water, transporting it and distributing it to various users. An example of how digitalisation supports the suitable use of water is hereafter proposed through a real case study. Exploiting the digital information with a proper hydraulic model and an innovative control algorithm allows for enhancing the hydraulic and energy performance of the water supply systems analysed. In fact, accurate management of the pressure in the mountain distribution network leads to a significant decrease in water losses and also to reduced energy consumption.KeywordsWater Supply SystemsDigitisationHydraulic ModellingOptimal Pressure ControlSustainabilityWater Smart Systems
The feature of the circular economy is the restorative and closed nature of the production cycle with the “green” nature-like technologies application which reduce greenhouse gas emissions, slow down the temperature rise on the planet and preserve the environment. The circular economy approaches correspond to the concept of goal-setting of the United Nations Organization in the mainstream of sustainable socio-economic development and are widely used in the countries of the European Union. As a part of their research, scientists have defined a circular economy as the economy which involves the total multiple processing of the resources applied and provides energy savings. In this regard, the circular economy is called “green”, i.e. preserving the natural resources of the planet and the environment on the basis of information technology. Currently, there is enough evidence that circularity has begun to permeate linear economics and that innovative products and contracts are already available in various forms.
This two-volume set, IFIP AICT 663 and 664, constitutes the thoroughly refereed proceedings of the International IFIP WG 5.7 Conference on Advances in Production Management Systems, APMS 2022, held in Gyeongju, South Korea in September 2022.
The 139 full papers presented in these volumes were carefully reviewed and selected from a total of 153 submissions. The papers of APMS 2022 are organized into two parts. The topics of special interest in the first part included: AI & Data-driven Production Management; Smart Manufacturing & Industry 4.0; Simulation & Model-driven Production Management; Service Systems Design, Engineering & Management; Industrial Digital Transformation; Sustainable Production Management; and Digital Supply Networks. The second part included the following subjects: Development of Circular Business Solutions and Product-Service Systems through Digital Twins; “Farm-to-Fork” Production Management in Food Supply Chains; Urban Mobility and City Logistics; Digital Transformation Approaches in Production Management; Smart Supply Chain and Production in Society 5.0 Era; Service and Operations Management in the Context of Digitally-enabled Product-Service Systems; Sustainable and Digital Servitization; Manufacturing Models and Practices for Eco-Efficient, Circular and Regenerative Industrial Systems; Cognitive and Autonomous AI in Manufacturing and Supply Chains; Operators 4.0 and Human-Technology Integration in Smart Manufacturing and Logistics Environments; Cyber-Physical Systems for Smart Assembly and Logistics in Automotive Industry; and Trends, Challenges and Applications of Digital Lean Paradigm.
In order to make our production and consumption systems more sustainable, there is a need to further explore and support novel business models with higher sustainability potential. Use-oriented product-service systems (u-PSS) are considered a promising alternative to traditional ownership-based business models, as they may result in lower environmental impacts. The presence of u-PSS in consumer goods markets, however, is still small. This is due in part to the nature of the products and lack of consumer acceptance of u-PSS. Lately, however, companies in Sweden have begun offering u-PSS for consumer goods, thereby challenging earlier findings. Understanding about how companies encourage consumers to select u-PSS over ownership-based options is still lacking. We investigate this question by conducting interviews with and analysing websites and publicly available company reports of seven Swedish companies from three consumer goods sectors: clothing, eyewear and furniture. We found that, while consumer barriers to u-PSS found in previous studies—uncertainty and trust, economics and costs and desire to own—persist, tailoring elements of u-PSS business models to different markets, sectors and consumer segments can help address these barriers and ensure u-PSS resonate with consumers. The study also applies the concept of consumer perceived value to show how emphasising different dimensions of value—financial, functional, emotional and social—provided by u-PSS may help increase their acceptance and adoption.
Data exchange and utilization are considered fundamental for the efficient development of industrial ecosystems. However, there are significant data gaps that currently prevent the implementation of circular economy models in practice. The present work is a first attempt to identify the sources of such barriers, using the battery materials industrial ecosystem in Finland as case study. A visual grounded theory model was created to formally analyze the collected interview answers from representatives of companies along the value chain. In summary, it was found that: i) companies gather information relevant for other stakeholders; ii) there are no incentives to openly share data, which is considered a valuable asset; iii) actors lack clarity on which data is relevant at a system-level; and iv) there is no consensus on which format can data be shared to efficiently promote circular economy strategies. To address the identified barriers, it is hereby proposed for the first time that parametrization is a strategy to promote data exchange between stakeholders. As an illustrative example, statistical entropy is presented as a mean to exchange data of battery material composition. Properly designed parameters could be used to codify relevant data without a negative impact on the confidentiality of companies, while at the same time providing clarity of purpose for the circular economy. Thus, this article introduces a novel perspective for the implementation of bottom-up data exchange practices in industry.
This paper presents a methodically structured design model for achieving a comprehensive improvement of product recyclability.
The framework of this model consists of four design phases, integrating the prediction of product end-of-life strategy, the
formation of modular structure, the selection of materials and fasteners, and the recyclability evaluation of design alternatives.
The four phases are hierarchically organised in the body of the framework for a stepwise implementation, which are corresponding
to the processes of generic engineering design at the stages of planning and task clarification, conceptual design and embodiment
design. Fuzzy sets and graph theory are jointly applied as the basic techniques to formulate the methods for end-of-life strategy
planning and structure modularisation. An air-conditioning system is used as an example to demonstrate the application of
the proposed design model and its effectiveness in improving the recyclability of a product.
Extending product life is one of the hopeful approaches to reduce the environmental issue, which is one of the most critical issues of today. However, many products are thrown away because of obsolescence of functions and their performance. Therefore, we should design products to be functionally upgradable. Moreover, such upgradable prod- ucts may create business chances at later stages of product life cycles. The objective of this research is to propose a design methodology for upgradability. This methodology employs a functional modeling scheme, FBS modeling, because upgrade design is a distinctive application of functional design that aims at maximizing functional flexibility with minimal structural changes after the product is manufactured. Here, the functional flexibility refers to an ability of a product to adapt its functions to changes of user needs. This paper proposes and models design processes and design operations in the upgrade design. Especially, the methodology supports finding out candidates of modifications of the function structure and configuration of a platform, which is common structure of a product among several generations, and upgrade modules. One of its central issues of upgrade design is treatment of future uncertainty. For this purpose, we propose two design strategies: delayed selection of components, and expanding and shrinking platform.Aprototype system and a case study of upgrade design for a vacuum cleaner are also illustrated. The case study indicates that the system succeeded in systematically supporting a designer to execute the design methodology. Regarding the functional design, as an extension of FBS modeling, this paper proposes a method to relate abstract entity concepts in FBS modeling to concrete components through a quantitative behavior model and range calculation, in addition to deploy- ment of FBS modeling for the design methodology.
Environmental issues require a new manufacturing paradigm because the current mass production and mass consumption paradigm inevitably cause them. We have already proposed a new manufacturing paradigm called the that advocates sustainable production by decoupling economic growth from material and energy consumption. To realize PMPP, appropriate planning of a product life cycle (design of life cycle) is indispensable in addition to the traditional environmental conscious design methodologies. For supporting the design of a life cycle, this paper proposes a life-cycle simulation system that consists of a life-cycle simulator, an optimizer, a model editor, and knowledge bases. The simulation system evaluates product life cycles from an integrated view of environmental consciousness and economic profitability and optimizes the life cycles. A case study with the simulation system illustrates that the environmental impacts can be reduced drastically without decreasing corporate profits by appropriately combining maintenance, reuse and recycling, and by taking into consideration that optimized modular structures differ according to life-cycle options.
Understanding the product's ‘end-of-life’ is important to reduce the environmental impact of the products' final disposal. When the initial stages of product development consider end-of-life aspects, which can be established by ecodesign (a proactive approach of environmental management that aims to reduce the total environmental impact of products), it becomes easier to close the loop of materials. The ‘end-of-life’ ecodesign methods generally include more than one ‘end-of-life’ strategy. Since product complexity varies substantially, some components, systems or sub-systems are easier to be recycled, reused or remanufactured than others. Remanufacture is an effective way to maintain products in a closed-loop, reducing both environmental impacts and costs of the manufacturing processes. This paper presents some ecodesign methods focused on the integration of different ‘end-of-life’ strategies, with special attention to remanufacturing, given its increasing importance in the international scenario to reduce the life cycle impacts of products.
The main objective of this research is to develop a structured methodology to formulate end-of-life strategies, while still encouraging creative thinking. Current practices encourage general rules for a wide variety of products. This research identifies key characteristics that influence appropriate end-of-life strategies, in contrast to the "one-size-fits-all" approach. The research results are divided into two core sections. First, the methodology determines what end-of-life strategy is possible according to the products' technical characteristics. Second, the classification of end-of-life strategies is compared with current industry practice, in order to evaluate and validate the method. The software developed, called the End-of-Life Design Advisor (ELDA), guides product developers to specify appropriate end-of-life strategies. The ability to classify end-of-life strategies enables designers to redesign products that move to end-of-life strategies with lower environmental impact. This paper presents recommendations for designers and product managers for specific end-of-life strategies. By understanding better the end-of-life strategy appropriate for the product, the research results can help designers develop appropriate (and profitable) end-of-life strategies for their unique position, systematically. Putting ELDA results into perspective establishes that improvements in end-of-life are either through design innovation or value chain improvement.
A new trend of product–service systems (PSSs) that has the potential to minimise environmental impacts of both production and consumption is emerging. This article attempts to build a theoretical framework for PSS and serves as a background for identifying possible investment needs in studying them. There are three main uncertainties regarding the applicability and feasibility of PSSs: the readiness of companies to adopt them, the readiness of consumers to accept them, and their environmental implications. The main finding is that successful PSSs will require different societal infrastructure, human structures and organisational layouts in order to function in a sustainable manner.
Responding to constantly more demanding European legislation, notably for electrical and electronic equipment, worn-out vehicles or hazardous substances, manufacturers have to develop End of Life (EoL) strategies. The challenge today is to assess which “product EoL process” would be profitable for an enterprise given the business model in place. Most of the Original Equipment Manufacturers recycle or subcontract reverse logistic and EoL treatments. Recycling is currently the most common solution but it is far from meeting the goals of Sustainable Development. We believe that, integrating constraints from EoL strategies into the early phases of design is one important aspect that needs to be improved. We are currently combining this idea with principles from concurrent engineering to develop design aids which permits designers to compare their products to “Remanufacturable Product Profiles”. However, conscious those EoL solutions often involve several strategies; it is now envisaged to develop tools to help designers make optimal decisions while designing a product considering 3R strategies: Reuse, Remanufacture and Recycle. In this paper, our vision of why and how to integrate EoL strategies in the early design phases is presented, and what tools to apply 3R strategies are envisaged, considering the evolving architecture of the product, and the translation of transversal information into design criteria.