Sustainable service business models

Intro

• Module introduction
• Energy and life cycle

Learning outcomes

• circular economy
• understand sustainable vale and the service business model and their transformation
  • library support
  • emma etteri

Key Question to ponder

• how could sustainability innovate existing business models?
  • keeping resilience in the business

Agenda

• Circular econumy
  • key principles and benefits

Circular economy (CE)

• INDUSTRIAL ECONOMY THAT IS
• RESTORATIVE OR REGENERATIVE BY INTENTION AND DESIGN
• circular economy
  • from linear economy
    • dominated by the sales of products
    • rewards are based on resource consumption
  • to a resources conservation and restoration

Circular economy’s aim

• regenerative system
  • resource input and waste
  • input and waste
  • emission energy leakage
  • minimised by slowing
  • closing and narrowing materials
• Achieved
  • long lasting design
  • maintainance
  • repair
  • reuse
  • remanufacturing
  • refurbishing and recycling

Key principles of circular economy

• eliminate watse and pollution
  • need to consider waste and pollution as design flaws
  • rather than
  • inevitable by-products of the things we make
  • by changing our mindset and harnessing new materials and technology
  • we ensure they are not created in the first place
• circulate products and materials
• regenerate nature
• Logistics of the world

circulate products and materials

• design products to be reused
• reparied and remanufactured
• keep them in circulation
  • do not end up in landfill straight away
• Replenish, repurposing, products and materials, the design for serviceability to extend the life
• Operate with the user oriented services that maximise the use of products such as leasing, pooling, and optimization of transport and logistics

regenerate nature

• everything is food for something else
• by returning neturients to the soil and other systems

Benefits

• operational as well as strategic
• opportunties for value creation within the economical, business, environmental and society spheres
  • Fewer greenhouse emissions
  • increase potential for economic growth
  • employment growth
  • volatility reduction and safeguarded supplies
  • new profit opportunties
  • Demand for new services
  • getting to know clients better
  • internal change management
    • customer / consumer / user’s readaptation
    • supply contracts’ change
    • new training needs, process reengineering

Barriers

• social and environmental
• prices of raw materials
• circular economy business models are harder to develop
• the demand for circular products and alternatives is still small
• insufficient technical knowledge to support the growth of the CE

Service business models

Value and wasted (spared) value

RR Total Care

Phillips

Totalcares

• value proposition
• business model
  • rr tailored for individual operators,
  • offer a range of services extending to aspects of support such as latest predictive maintenance
  • Assets and logistics mgmt
  • As well as repair and overhaul
• partnering
  • multiple partners worldwide are interconnected to share maintenance workload and risk
• digital technology to
  • profile per asset per customer
  • customer metrics
  • prognostics
  • traceability
  • mobing to Digital twins and blockchains

BAE SYSTEM

• value proposition
  • ship avaiability
  • accompanied by SQEP
    • Suitably
    • qualified
    • and
    • experienced personnel
• business model
  • BAE Systems innovates its business model to offer fleet management solutions
  • look after the entire Navel Base not just the equippment
• contract
  • around hundred of millions to manage the Naval Base for five years
• partnering
  • multiple partners involved to share workload and risk
• digital technology
  • tracking performance,
  • customization per Unit Type and it crew
  • Adapt to demands

Service business models

• renting
• sharing
• leasing

Benefits of serivice business models in the CE

• Sustainability
  • extend the lifecycle of physical assets
  • sustainable and responsible recycling
  • remotes re-use
• business
  • longevity of revenues from parts
  • strong customer relationship
    • locking in
    • locking out?
  • increased productivity

Conclusion

• circular economy model
• application of circular economy principles on Service business models and their transformation