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Circular Business Model Innovation ISPIM Boston 2016 - Antikainen & Valkokari


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We present a Framework for Sustainable Circular Business Model Innovation adding important perspectives: recognizing trends and drivers at the ecosystem level, understanding value to partners and stakeholders within a business and evaluating the impact of sustainability and circularity. In order to test the framework and to provide a concrete example of its usage and future development needs, we conducted a case study with one start-up company.

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Circular Business Model Innovation ISPIM Boston 2016 - Antikainen & Valkokari

  1. 1. Framework for sustainable circular business model innovation Maria Antikainen and Katri Valkokari ISPIM Innovation Forum, Boston, on 13-16 March 2016
  2. 2. 21.6.2017 Maria Antikainen Circular economy transforms business Systemic innovation • Towards value circle • New actors, new roles • Radical innovations, new disruptive business models IoT as an an enabler & accelerator
  3. 3. 31.6.2017 Maria Antikainen RQs & method § The main objective of the study is to provide a framework for circular business model innovation. Thus, the following question is posed: What are the key elements of sustainable circular business model innovation? 1. Define and describe what a sustainable circular business model (SCBM) is and what are the literature streams related. 2. Existing business modelling tools in general, in particular those related to sustainability and a CE. 3. Our framework for CE business model innovation that is tested with one Finnish start-up to evaluate their CE business model
  4. 4. 41.6.2017 Maria Antikainen Sustainable business model innovation § Sustainable business model innovation (SBMI) = sustainable business + business model innovation § SBMI concentrates on 1. creating value for a broader range of stakeholders and 2. takes into consideration the benefits from societal and environmental perspectives (Boons and Lüdeke-Freund, 2013).
  5. 5. 51.6.2017 Maria Antikainen Circular business model § Sustainable business model (SBM) + circular business model (CBM) literature streams closely related § A circular business model can be defined as the rationale of how an organisation creates, delivers and captures value with and within closed material loops (Mentink 2014) § a CBM does not need to close material loops by itself, can also be part of a system of BMs which together close a material loop in order to be regarded as ‘circular’ (Mentink 2014). § CBM innovations require collaboration, communication and coordination within complex networks of interdependent but independent actors/stakeholders. § No business is 100% circular or 100% linear
  6. 6. 61.6.2017 Maria Antikainen Current tools for BMI in CE § Business Model Canvas (BMC) - a generic and easy-to-use tool which has been applied in different industries (Osterwalder & Pigneur, 2010). § A sustainable business canvas extends the original canvas by proposing 10 elements (Sempels 2014) § The Business Cycle Canvas (BCC) emphasises the ideas related to the importance of understanding the circularity of the loop. (Mentink 2014) § Value Mapping Tool, introduces three forms of value (value captured, destroyed. and missed) and value opportunities for four major stakeholder groups (environment, society, customer, and network actors) (Bocken et al. 2015) § Play it Forward tool derived from the BMC, adding the building blocks for a Triple Bottom Line (TBL), taking into account the perspectives of sustainability, i.e. integrating environment, business and society views (Dewulf, 2010).
  7. 7. 71.6.2017 Maria Antikainen
  8. 8. 81.6.2017 Maria Antikainen Case: A concept and process for digitalized recycling centre § A start-up providing a digitalized concept for recycling centres / second hand sellers § Boosting the efficiency of selling process from start to end § Evaluation of the tool § Discussion took 2.5 hours, substantially more time could have spent § No time for sustainability and circularity evaluation, also information lacking (product-life-cycle analysis) § Tools was regarded easy to use § Most value was created in the value proposition part
  9. 9. 91.6.2017 Maria Antikainen Conclusions § The framework complements current business model tools by adding the business ecosystem level, analysis of sustainability costs and benefits as well as iterative cycles of sustainability and circularity evaluation § In order to innovate in a CE, taking a multidisciplinary perspective plays a central role, thus the framework presented combines views from foresight, business, consumers and sustainability. § Next steps: § The framework should be tested in several other cases with different companies and industries. § Longitudinal studies could straighten out the key stages of business model innovation processes by design or re-configuration. § Especially for the sustainability and circularity evaluation parts/tasks in the framework, novel methods need to be developed in order to facilitate continuous iteration.
  10. 10. 101.6.2017 Maria Antikainen Thank you!