Bakgrund: Funktionsförsäljning är en affärsmodell som vuxit sig stark på senare år som följd av ett ökat intresse kring cirkulär ekonomi. Trots detta finns det ingen kalkyl utformad för att spegla den nya verklighet som funktionsförsäljning medför. Många företag förstår sig inte på de förändrade processer och kostnader som en övergång från en linjär affärsmodell till funktions-försäljning innebär. Då en kalkyl ligger till grund för beslutsfattande som avser att bidra till lönsamhet, är det ett problem att det inte finns en kalkyl som avspeglar den nya verkligheten vid funktionsförsäljning på ett rättvist sätt.  Syfte: Syftet med denna studie är att undersöka hur och varför kostnader förändras i olika processer i tillverkande företag som övergår från en linjär affärsmodell till funktionsförsäljning. Vidare syftar denna studie till att undersöka hur dessa kostnadsförändringar påverkar vad som bör beaktas vid utformandet av en kalkyl. Metod: Denna studie har genomförts med pragmatismen som vetenskaplig utgångspunkt. Ett iterativt angreppssätt har använts för studien. Vidare har en kvalitativ forskningsdesign använts, där två enkla fallstudier genomförts. Fallföretagen valdes ut genom målstyrt urval samt bekvämlighetsurval. För datainsamling har semistrukturerade intervjuer genomförts. Respondenterna valdes ut genom ett snöbollsurval. Den valda analysmetoden är en cross-caseanalys i kombination med en tematisk analys.  Slutsats: Resultatet av denna studie visar att funktionsförsäljning, trots dess stora initiala investeringar, har potential att leda till kostnadsbesparingar på lång sikt. I syfte att rättvist återspegla det förlänga ansvar som funktionsförsäljning medför, bör tidsperspektivet för kalkylen förlängas. Resultatet visar att flertalet processer påverkas vid en övergång till funktionsförsäljning. Det har framkommit att betydelsen av design har utvidgats i kontexten av funktionsförsäljning, då denna process har stor inverkan på efterföljande processer. Vidare har det framkommit att ett övervakande system innehar en central roll vid funktionsförsäljning då det innebär en större kontroll av kostnaderna, däribland reparation och underhåll samt kostnader för omvänd logistik. Slutligen har det konstaterats att processerna försäljning och relationer blir viktigare. Dessa kostnadsförändringar bör således återspeglas i kalkylen. / Background: Functional sales is a business model that has grown strongly in recent years as a result of increased interest in the circular economy. However, there is no costing model designed to reflect the new reality that functional sales bring. Many companies do not understand how a transition from a linear business model to functional sales affect processes and costs. Since a costing model is the basis for decision-making that aims to contribute to profitability, it is a problem that a costing model which reflects the new reality in functional sales in a fair way does not exist.  Purpose: The purpose of this study is to investigate how and why costs change in different processes in manufacturing companies that transition from a linear business model to functional sales. Furthermore, this study aims to investigate how these cost changes affect what should be taken into consideration when designing a costing model.  Method: This study has been conducted with pragmatism as a scientific starting point. An iterative approach has been used for the study. A qualitative research design has been used, where two simple case studies have been carried out. The case companies were selected through a targeted selection and convenience sampling. For data collection, semi-structured interviews have been conducted. The respondents were selected through a snowball sampling. The selected method of analysis is a cross-case analysis in combination with a thematic analysis. Results: The results of this study show that functional sales, despite their large initial investments, have the potential to lead to cost savings in the long term. In order to fairly reflect the extended responsibilities that function sales entail, the time perspective for the costing model should be extended. The study has shown that several processes are affected by a transition from a linear business model to functional sales. It has emerged that the importance of design has expanded in the context of functional sales, as this process has a major impact on subsequent processes. Furthermore, it has emerged that a monitoring system has a central role in functional sales as it involves greater control of costs, including repair and maintenance and reverse logistics costs. Lastly, it has been found that the processes of sales and relationships become more important. These changes in costs should thereof be reflected in the costing model. / Mistra REES

When increasing the amount of recycled material in production the input materials are rarely homogenous which results in unavoidable waste streams. Utilizing this waste is of high importance when moving towards a Circular Economy and for firms to keep their circular identity. However, to achieve this, collaborations between firms are crucial. The purpose of this single case study is to develop a road map for how firms can create collaboration to strategically valorize waste streams from circular processes. Through a qualitative study based on 23 semi structured interviews the subject was investigated. The interviews were held in three phases with respondents from four different groups: the case company, potential collaborators, other firms with waste streams as well as subject experts. The interviews were transcribed and analyzed through a thematic analysis resulting in five themes. Moreover, this study resulted in a road map with three gears and multiple steps that companies should follow to create collaboration for valorizing waste streams. The three gears are: Gear 1: Internal preparation, Gear 2: Finding the right partner and Gear 3: Forming the collaboration. The study fills the gap in existing literature regarding the lack of a firm perspective of a concrete road map by which companies can go from producing a waste stream to creating a collaboration to valorize it. Both the managers of a company as well as an assigned person responsible for waste streams can benefit from the road map. Although the road map contains three consecutive gears, the containing steps can be considered individually or partly depending on the company’s circumstances. In addition, companies without circular processes can be inspired from the road map in their work of becoming more sustainable. / När mängden återvunnet material ökar i produktioner är ingångsmaterialen sällan homogena vilket resulterar i oönskade restströmmar. För att röra sig mot en cirkulär ekonomi och för att företag ska behålla sin cirkulära identitet är det av stor vikt att ta tillvara på avfallet. För att uppnå detta är samarbeten mellan företag mycket viktiga. Syftet med denna enfallsstudie är att utveckla en roadmap över hur företag kan skapa samarbeten för att strategiskt valorisera restströmmar från cirkulära processer. Genom en kvalitativ studie baserad på 23 semistrukturerade intervjuer undersöktes området. Intervjuerna genomfördes i tre faser med respondenter från fyra olika grupper: fallstudieföretaget, potentiell samarbetspartner, andra företag med restströmmar samt ämnesexperter. Intervjuerna transkriberades och analyserades genom en tematisk analys som resulterade i fem teman. Studien resulterade därmed i en roadmap bestående av tre växlar och flera steg vilka företag kan följa för att skapa samarbeten för att valorisera sina restströmmar. De tre växlarna är: Växel 1: Interna förberedelser, Växel 2: Hitta den rätta samarbetspartnern och Växel 3: Utforma samarbetet. Studien fyller gapet i den existerande litteraturen då företagsperspektivet i en konkret roadmap som beskriver hur företag kan gå från att producera en restström till att skapa samarbeten för att valorisera den saknas. Ledarna i ett företag samt en designerad person ansvarig för restströmmarna kan få nytta av av roadmapen. Trots att roadmapen består av tre påföljande varandra växlar kan de olika växlarna i roadmapen nyttjas individuellt eller delvis beroende på företagets omständigheter. Därtill kan även företag utan cirkulära processer inspireras av roadmapen i deras arbete att bli mer hållbara.

This study has contributed to the developing concepts of circular economy by assessing circular business models and to test different approaches for circularity in a measurable way. In our current era of time, we stand against environment challenges with a warming planet and resources scarcity. To mitigate the effect of greenhouse gasemissions and to find new more circular solutions to material demand. The developing concept of circular economy is aligned with these goals. In this study the climate impact and profitability of circular business models are investigated using material flow analysis. The result is an assessment of these parameters from a sustainability perspective for product organizations and show that longer lifetime and use period a product has the lower the yearly global warming potential. For profitability the assessment is dependent on more parameters such ascurrent business models, gross margin, raw material, logistics and distribution cost an increased profit is not as strongly connected to lifetime or use. When an increasedcircularity can be accomplished as a complement to current business (withoutsignificant cost increase) there is a possible profit.The study suggests an analysis model for investigate circular strategies in theAssessment model for circular business models. The study contributed to the practical adaptation of circular economy principles providing a suggested analysis framework .By applying circular economy principles and this assessment model it is possible to contribute to a more sustainable future for the system of planet Earth. / <p>2023-06-08</p>

Clothing apparel industry contributes to approximately 10% of the total carbon emissions globally which has raised increasing attention to this industry in order to make it more sustainable. To achieve this transition, the fashion industry needs to change its linear model towards circularity and for that matter, business model innovation is an important tool. Circular business models have emerged covering the different aspects of circularity: reuse, repair, refurbish and recycle and are being currently explored by startups and incumbents. This research’s purpose is to analyze and discuss these emerging circular business models from the perspectives and activities of business model innovation of a startup and an incumbent. To support the analysis, an analytical framework was defined, covering the different aspects of circularity and the business models related to them. Interviews with sustainability experts and Swedish fashion companies were carried on understanding their views regarding sustainability and approach when it comes to innovating their business models and to understand their strengths, disadvantages and challenges that they face in adopting these business models. A qualitative analysis based on the analytical framework and the interviews was done, comparing startups and incumbents with regards to the adoption of these emerging circular business models and the increasing complexity when moving outwards through the circularity loops, concluding that startups have strengths which facilitate the adoption of business models inner loops while incumbents can leverage their optimized supply chains and abundant resources for business models in the outer loops which involve more complex processes, like production and recycling. / Klädindustrin bidrar till cirka 10 % av de totala koldioxidutsläppen globalt, vilket har väckt allt större uppmärksamhet för denna industri för att göra den mer hållbar. För att uppnå denna övergång behöver modeindustrin ändra sin linjära modell mot cirkuläritet och för den delen är affärsmodellinnovation ett viktigt verktyg. Cirkulära affärsmodeller har dykt upp som täcker de olika aspekterna av cirkularitet: återanvändning, reparation, renovering och återvinning och utforskas för närvarande av nystartade företag och etablerade företag. Syftet med denna forskning är att analysera och diskutera dessa framväxande cirkulära affärsmodeller utifrån perspektiven och aktiviteterna för affärsmodellinnovation av en nystartad och en dominerande operatör. För att stödja analysen definierades ett analytiskt ramverk som täcker de olika aspekterna av cirkularitet och de affärsmodeller som är relaterade till dem. Intervjuer med hållbarhetsexperter och svenska modeföretag genomfördes för att förstå deras syn på hållbarhet och deras förhållningssätt när det gäller att förnya sina affärsmodeller och för att förstå deras styrkor, nackdelar och utmaningar som de står inför när de anammar dessa affärsmodeller. En kvalitativ analys baserad på det analytiska ramverket och intervjuerna gjordes, där startups och etablerade företag jämfördes med avseende på antagandet av dessa framväxande cirkulära affärsmodeller och den ökande komplexiteten när man rör sig utåt genom cirkularitetsslingorna, och drog slutsatsen att startups har styrkor som underlättar adoptionen av affärsmodeller inre loopar medan etablerade operatörer kan utnyttja sina optimerade leveranskedjor och rikliga resurser för affärsmodeller i de yttre looparna som involverar mer komplexa processer, som produktion och återvinning.

Remanufacturing plays a crucial role in circular business models as it offers a sustainable approach to restoring products while reducing energy and resource consumption. In the automotive industry, remanufactured parts are widely used for spare parts, although their usage is still limited compared to newly produced parts. While remanufacturing is considered environmentally beneficial, it is essential to take into account the impact of reverse logistics practices when assessing the environmental and economic effects of remanufactured parts. This research aims to develop a simulation-based decision support tool for assessing Scania’s aftermarket operations. It evaluates the environmental and economic impact of using remanufactured spare parts compared to newly produced ones. Using agent-based and discrete event methods, the simulation model analyzes the effectiveness of the reverse logistics network in terms of CO2 emissions and cost. The findings highlight the benefits of remanufacturing in terms of cost, CO2 emissions, and material savings compared to new production. These findings support the integration of remanufactured parts into the industry’s circular practices. It enables waste reduction, extends the lifespan of products, and contributes to overall sustainability efforts. The simulation model developed in this study can serve as a valuable tool for decision-makers seeking to evaluate the environmental and economic implications of using remanufactured spare parts.

Production automation as a service (PAaaS) is seen as a new trend that enables the possibility to use production automation technologies as a service. The technologies are cloud-based which makes the implementation of production automation more effective and cost-effective. This approach is attractive to the companies that have a limited capital investment. The purpose of this thesis was to analyse and understand the implementation of Production Automation as a Service (PAaaS) in the manufacturing industry. In order to understand its implementation, it is important to know what the drivers and benefits with PAaaS implementation and what challenges there are and how to overcome them for a successful implementation. To provide with a comprehensive answer and conclusion about PAaaS implementation in the manufacturing industry the following research questions was studied:1. What are the drivers and benefits of PAaaS implementation in the manufacturing industry, and what needs does it fulfil?2. What are the challenges of implementing PAaaS in the manufacturing industry, and how can they be overcome for a successful implementation and scale-up?To be able to answer these questions, a qualitative research study based on literature review and interviews was conducted. The combination between the literature and the real-life experience in PAaaS implementation provided a greater understanding of the concept. The aim of the research questions is to provide guidance and recommendation for companies seeking for a successful implementation of PAaaS which leads to improved operational efficiency and the ability to utilise the technological advancement provided through PAaaS. The approach applied in this study has been qualitative research with an abductive research approach. By obtaining data through scientific articles and interviews it was possible to analyse it more in-depth in order to find similarities between them.In conclusion, PAaaS implementation in the manufacturing industry provides with key benefits such as cost-effectiveness, improved flexibility, scalability, productivity, efficiency, and improved product quality. These benefits fulfil several needs of manufacturing companies such as being more flexible and being able to use automated solutions at a lower cost. These needs also act as the drivers for the implementation of PAaaS. The drivers are an important aspect of PAaaS implementation, because without any drive and motivation, there won’t be any implementation of PAaaS that can fulfil a certain need of the company. The drivers and motivation for a PAaaS implementation in the manufacturing industry is the possibility for a business model transformation and the technological advancements that the manufacturer gain with the implementation.In addition, there are key challenges that makes the PAaaS implementation more complex for the manufacturing companies. These challenges are, Integration with legacy systems, internet dependency and lack of expertise and knowledge. To able to achieve a successful implementation, it is important to address the challenges, by addressing these problems it was possible to provide with strategies on how to overcome them. Which lays the foundation for future research about this topic.

Mode-och textilbranschen är en resursintensiv bransch som står för en stor del av de globala utsläppen. Den har uppmärksammats av EU som en särskilt betydande bransch som måste genomgå förändringar för att bidra till en hållbar utveckling. Stora företag i mode-och textilbranschen i EU behöver de närmaste åren göra en omställning till cirkulära affärsmodeller för att möta kraven som angetts i EU:s cirkulära mål. Trots detta finns det få studier som undersöker hur långt dessa företag kommit i denna omställning. Sverige och Danmark har antagit mer ambitiösa krav på företags hållbarhetsrapportering än EU-direktivet NFRD anger. I denna studie utförs en kvalitativ innehållsanalys av hållbarhetsrapporter från sex mode-och textilföretag på den svenska och danska marknaden. Syftet är att beskriva och analysera hur långt dessa företag kommit i hållbarhetsarbetet och jämföra om det finns skillnader i hur företagen på de olika marknaderna presterar. Resultatet av studiens empiriska analys visar att det finns en homogenitet i hur långt fallföretagen kommit i hållbarhetsarbetet med undantag för ett fallföretag på den danska marknaden. Bortsett från detta undantag har alla företagen satt upp mål för sina koldioxidutsläpp i linje med 1,5-gradersmålet. Cirkulära affärsmodeller pilot-testas i dessa företag. Alla studiens företag placeras i nivån av hållbarhet business-as-usual utifrån den information de presenterat i sina hållbarhetsrapporter. Det kan konstateras att alla företag utom ett uppfyller flera subkriterier både i business sustainability 1, 2 och 3. Fallföretagen och de koncerner-och moderbolag de tillhör har investeringsstilar och ESG-betyg som stärker det empiriska resultat som framkommit. / The fashion and textile industry is a resource-intensive industry that accounts for a large part of global emissions. It has been recognized by the EU as a particularly significant industry that must undergo changes in order to contribute to a sustainable development. In the coming years, large companies in the fashion and textile industry in the EU need to make a transition to circular business models to meet the requirements stated in the EU's circular goals. Despite this, there are few studies that examine how far these companies have come in this transition. Sweden and Denmark have adopted more ambitious requirements for corporate sustainability reporting than the EU directive NFRD specifies. In this study, a qualitative content analysis of sustainability reports from six fashion and textile companies in the Swedish and Danish markets is carried out. The purpose is to describe and analyze how far these companies have come towards becoming sustainable businesses and compare whether there are differences in how the companies in the various markets perform. The result of the study's empirical analysis shows that there is a homogeneity in how far the case companies have come towards becoming sustainable businesses, except for one case company in the Danish market. Apart from this exception, all the companies have set targets for their carbon dioxide emissions in line with the 1.5-degree target. Circular business models are tested in the companies. All the companies in the study are placed in the level of sustainability business-as-usual based on the information they presented in their sustainability reports. It can be stated that all but one company meets several sub-criteria both in business sustainability 1, 2 and 3. The case companies and the groups and parent companies they belong to have investment styles and ESG ratings that strengthen the empirical results that emerged.

The circular economy (CE) has been identified as a catalyst in sustainable development and economic growth that has the potential to move society from the traditional linear model of resource consumption in the form of take-make-waste to an innovative circular model in the form of reduce-reuse-recycle. Transitioning from the linear economy to the CE requires changes in four areas: material and product design, business models, global reverse networks and enabling business environments. This study considers the financing needs of CE companies as a result of business model changes. Through the case studies of Ragn-Sellsföretagen AB and Inrego AB, analysed with secondary data from ING Bank and primary data collected through semi-structured interviews with the case companies, this research sheds more light on the financing needs of circular economy companies and how they are financed. Findings from this research suggest that the financing needs of circular economy companies depend on the value proposition of the company. In accordance with the pecking order of capital structure, all financing needs of the companies studied are financed from internal sources, particularly retained earnings before external debt financing is accessed. Findings indicate the willingness of banks to finance circular economy companies. The results of this research suggest that the circular economy companies studied do not need financial support from the government or its agencies to succeed even though favourable laws are welcomed. They report that their long-term success depends on their ability to remain innovative in their business models, aligning with Schumpeter’s creative destruction model.

The aim of this project is to investigate the influence of AI on CBMs, specifically focusing on the aggregated dimensions of value proposition, value creation and delivery, and value capture. This study employs a qualitative research design inspired by a deductive approach. A systematic literature review was conducted from scientific articles. Interviews with manufacturing companies and AI experts are also utilized to enrich understanding and validate the theoretical model. A thematic analysis was conducted to extract and examine patterns and themes and from that a framework has been developed about how AI influences the circular business values of value proposition, value creation and delivery, and value creation. The key enablers and challenges are outlined, categorized into three main groups: Technological, Organizational, and Environmental factors. The conclusion is that AI enables CBMs in manufacturing by optimizing materials, enhancing predictive maintenance, improving recycling processes, and enabling dynamic pricing models. Key enablers include robust AI infrastructure, organizational support, and regulatory frameworks. Challenges encompass inadequate infrastructure, data issues, and skill shortages. Competitive pressures and regulations drive adoption but also pose hurdles.

Purpose: This study explores circular business models from the perspective of distributors, focusing on how they can create, deliver, and capture value within circular supply chains. Method: This study is an exploratory case study of a leading Nordic distributor. Qualitative data were gathered through 36 interviews conducted in three phases with the distributor, six customers, and six suppliers. Thematic analysis was utilized to analyze the data. Findings: The results indicates that there are multiple activities distributors can conduct to create, deliver, and capture value in a circular business model. Distributors can create value through these activities: create awareness, curate and develop products, ensure compliance with legislation and coordinate partnerships. Distributors can deliver value by manage transportation, manage warehouse logistics, provide reused, refurbished, and repaired products, provide rental and leasing models, offer service agreements, and recycle products and materials. Distributors can capture value by evaluate investments and costs, create pricing strategies, implement additional revenue streams, and manage warranties. Managerial implications: The result of this thesis concretizes activities that distributors can incorporate within a CBM regarding circular value creation, circular value delivery and circular value capture. The activities are either categorized as unique for distributors or activities that can be managed either by distributors or other parties such as suppliers, customers, or a third party. Distributors should execute activities unique for distributors within a CBM to contribute to a CSC. Furthermore, distributors can execute activities that are not unique for distributors when applicable and determined favorable for their CBM. Additionally, the listed activities concern different departments at distributors including sustainability, sales, purchasing, logistics, and management. The different departments should bear responsibility for their respective activities. Theoretical contribution: This study contributes to previously unexplored area within circular business models from the distributor perspective. First, it addresses the pivotal role of distributors in fostering collaboration within the circular supply chain, demonstrating how distributors are not just participants but enablers of the flow of goods, information, and money. Distributors can manage their own CBM or contribute to another party’s CBM. Secondly, it broadens the current understanding of value creation and value delivery in a circular business model. Our findings regarding circular value creation reveal that educating customers about the benefits of circular products is essential for fostering acceptance and driving circular value creation. Our findings regarding circular value delivery reveal critical and previously underexplored challenges in the logistics processes. Distributors face significant hurdles in handling products as specific units rather than in batches, complicating reverse logistics and exponentially increasing costs. Limitations and future research: The exploratory nature of our study highlights the nascent understanding of CBMs for distributors. Consequently, the results of this study are indicative rather than definitive. Future research can explore diverse company sizes to enhance generalizability. Additionally, deeper investigation into specific mechanisms of value creation, delivery, and capture within circular business models is recommended. Furthermore, the concept of whether distributors should create their own CBM or contribute to another party’s CBM could be further investigated since this a concept we introduced in this thesis. Additionally, further studies could therefore consider a perspective broader range of company sizes and types, of the research. Additionally, another area for future research could involve taking a global perspective, as practices and systems related to circular activities can differ significantly between countries.