Chalmers Conferences, LCM 2013

THE BUSINESS MODEL, THE SILENT RULER OF DESIGN LOGIC
Thomas Nyström, Mats Williander

Last modified: 2014-09-11

Abstract


In a traditional linear business model (LBM), focus is on maximization of a
product’s value at point of sale (POS) and devaluation to obsolescence,
creating a path dependency towards faster replacement cycles to retain sales
volumes. Resulting in increasing volumes of waste and pollution from
products being disposed of, with low incentives or possibilities for recovery
by e.g. reuse and remanufacturing. Based on a case study of a bicycle
manufacturing SME, using an interventionist research setting, we have
found that a business model change affects the existing design logic quite
effectively. It seems that the business model is conditioning the decision
logic of senior management and has to be addressed first in firms that want
to make significant eco-sustainability improvements.

Keywords


Circular business models; Planned obsolescence; Product recovery; Product Service Systems; Remanufacturing

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