Functional Economy: A New Way for a
« Sustainable Degrowth ? »

               Jacques Lauriol.
       Professor Rouen Bus...
Sustainable Development



• How to deal with strong critics?
(environmental damage, social and economic inequalities,…)

...
Functional Economy

                                     Manufacturing

      Res urces
        o             Base       ...
An example : The Michelin Case
                  A new offer: « Tyre solutions » for kms coverage


                      ...
A New Economic Model
         (How to Create Value and Revenue)

                                    Resources / Skills

 ...
New Challenges

•   Strategic Level (Business Model)

       Which offer? Solution

       How to organize the productio...
New Challenges



•   Marketing level : A new transaction (relational)

         - Service : co-conception? Co-production
...
•   The main question : Organisation

    Functional Economy:
   Cooperative strategies to develop and produce a proposal...
Clients /
                                    Users
                    Regulatory                  Competitors /
        ...
A Service Ecosystem
„A system that contains a large number of loosely coupled (interconnected)
actors who depend on each o...
Towards New Institutional Challenges
               (Degrowth Field )

Functional economy: A « New » Economy?
        - Do...
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L’Economie de la Fonctionnalité; une voie nouvelle pour une décroissance soutenable

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L’Economie de la Fonctionnalité; une voie nouvelle pour une décroissance soutenable

  1. 1. Functional Economy: A New Way for a « Sustainable Degrowth ? » Jacques Lauriol. Professor Rouen Business School. 2nd Conference on Economic Degrowth. Barcelona: 26th-29th March 2010.
  2. 2. Sustainable Development • How to deal with strong critics? (environmental damage, social and economic inequalities,…) • New directions for a development that « takes care » // creating value? Functional economy : An Economic Model  New strategies and Challenges
  3. 3. Functional Economy Manufacturing Res urces o  Base   Utilization Waste Materials Repair Re -use  Recycling : Functional Economy: a “Double loop” operation (Stahel. 2003)  Optimize the use of assets and services  Create a usage value  Minimize ressources and energy required
  4. 4. An example : The Michelin Case A new offer: « Tyre solutions » for kms coverage Michelin Fleet Solution Preventive management: First « loop »: Second « loop » • Reduce tyre wear • Re-treating Recycling « ALIAPUR » • Fuel saving by technical • Remoulding • A worldwide Company with Innovation (« Energy ») competitors • Increased life (X‟one) (Collect wastes and valorisation) • Wear Management (Safety) - Fuel Saving : 12% - Increase life (2-5) 24 tyres // 64 - Safety
  5. 5. A New Economic Model (How to Create Value and Revenue) Resources / Skills Supply of products Organisation of and services Value Chain and network Revenues Charges Margin Service Economy // Industrial (intangibility, inseparability, « perishable », co-production and the question of property rights)  New challenges
  6. 6. New Challenges • Strategic Level (Business Model)  Which offer? Solution  How to organize the production (Value Chain and Value Network)  Management of Change = How to develop an organization « services oriented »
  7. 7. New Challenges • Marketing level : A new transaction (relational) - Service : co-conception? Co-production - A social link (?) vs Commercial transaction - Towards New Communities?? - How to Educate the Client (Sustainable use // cession)?
  8. 8. • The main question : Organisation Functional Economy:  Cooperative strategies to develop and produce a proposal  Heightened localisation or multi-localisation = proximities with client (geographic, relational) And a network or a Service Ecosystem To design the offer, to sell it Through the coordination of partners (suppliers, complementers) to produce and to distribute
  9. 9. Clients / Users Regulatory Competitors / authorities Partners Reference Complementers Prescribers offer (Provider) Stakeholders Infrastructure Suppliers • A provider « Keystone » (Michelin) • Partners to mobilize skills and resources • Competitors (Aliapur) and stakeholders
  10. 10. A Service Ecosystem „A system that contains a large number of loosely coupled (interconnected) actors who depend on each other to ensure the overall effectiveness of the system‟ (Iansiti and al. 2003) Collective strategies (coopetition) A „keystone‟ Interdependent elements „loosely coupled‟ (Orton-Weick 1990)  Geographic and organizational proximities  Interdependencies contents (identity, learnings,…)  A coordination device
  11. 11. Towards New Institutional Challenges (Degrowth Field ) Functional economy: A « New » Economy? - Double loop. A Relational Offer - Economic Model and « New » Forms of Organization and the question: How to Educate the client?  A New Institutional Space?(Degrowth Practices ??) - „Consumption conventions ‟ (property // use and care) - Strategy and Sustainable Development - New regulations (Public Policies? New Incentives?...) A Great Potential for Innovations for a “Sustainable Degrowth”

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