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What’s in it for the Provider? : A Lifecycle-Focused Approach towards Designing for Value in Product-Service SystemsMatschewsky, Johannes January 2016 (has links)
Combining products and services into Product-Service Systems (PSS), which are often owned and even operated by the company offering them, is seen as an important element of conducting more sustainable business. The prospective environmental benefits of PSS lie mainly in the improved resource- and operational efficiency. This is achieved by way of a critical shift in incentive structure: If an industrial company assumes responsibility for an offering throughout the lifecycle, the terms on which that company operates are changed substantially in comparison to traditional product sales. Instead of benefiting from a short lifetime through additional sales opportunities or making profit through the sale of spare parts, in highly integrated PSS, each parts exchange, each technicians’ visit and each day the lifetime of the offering is reduced directly affects the bottom line of the provider. Due to that, solely as a result of economic rationality, a provider of these offerings has an incentive to design in such a way that the life of this offering is prolonged, need for spare parts is reduced, service activities are facilitated and simplified, and that the conditions are in place to allow for a second or third life of the offering through remanufacturing. Regardless of this compelling logic, at times, industrial companies fail to establish the preconditions to capturing these benefits as they continue to rely on product and sales-centric design processes even though they provide PSS. This thesis aims to examine this unexploited opportunity from two vantage points. On the one hand, methods conceived in academia to support industry in implementing and executing joint, lifecycle-focused design of products and services, and the use of these methods in practice, are examined. Here, the focus firstly lies on understanding how PSS are designed today, and secondly, on what should change about PSS design methods to improve their implementability and usability in industrial practice, so that they can fulfill their supposed role as facilitators of efficient PSS design and operation. On the other hand, the possible benefits of providing specifically designed and lifecycle-focused PSS as an industrial company are in focus. To this end, the value attained by providers throughout the use phase of PSS is investigated, to then identify possible approaches towards enhancing this value. Eventually, both focus-areas are joined in an effort to examine the interaction between method-supported, lifecycle-oriented PSS design and the value attained by providers of such offerings. As a result of the research, a lacking adaptation of design processes to PSS is identified in the case companies. Further, shortcomings of PSS design methods conceived in academia, e.g. excessive complexity, lacking clarity and rigidity, are found in both literature as well as in a study with an industrial company. To take a first step towards rectifying this issue, six characteristics intended to enhance implementability and usability of PSS design methods, are presented. The value attained by PSS providers has been found to be a complex but important subject. In a case study, value determinants of high relevance to the use phase of the lifecycle have been identified and assessed for their utility as indicators in the evaluation and enhancement of PSS offerings in the design phase. The practitioners involved were supportive of the applicability of the systematic approach presented to capture more value through offering PSS. In joining both the value- and method-oriented approach, the mutual dependency of both aspects is discussed. In order to provide PSS in an economically and environmentally efficient fashion, adapting the existing design processes is imperative. The value attained by the provider can, complementary to existing customer-centric approaches, serve as an important goal for the adaptation of design processes. Ultimately, through understanding the change in incentive structure at the core of PSS, and through implementing a value-driven design process supported by efficient and effective methods aimed at providing both customer value and capturing provider benefits throughout the lifecycle, there is a genuine potential of conducting more sustainable business.
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Value Creation and Decreased Environmental Impact through Circular Economy-based Offerings : A Product-Service System Case StudyEwerlöf, Sofia, Modig, Daniel January 2019 (has links)
This thesis answers how a circular economy-based offering can be designed for increased value creation and decreased environmental impact, compared to a current offering. The study concerns a case company and their current offering of a fire safety solution, namely a 6 kg powder fire extinguisher. The concept Product-Service Systems is used as a base for the research and a foundation of the result.Throughout the study, the method Life Cycle Assessment (LCA) is used as a tool to evaluate and compare the current and the suggested solution in the sense of environmental sustainability amongst different impact categories. It provides a holistic perspective within the study which has been proven by theory to be an important factor when providing a circular economy-based offering. Another important factor is customising the offering to the specific case. This is attended to through an investigation of the company characteristics, the current offering and provider and customer values to find opportunities for the suggested solution. Opportunities found was e.g. a demand for an environmentally sustainable solution and existing infrastructure which can create valuein the future.The process includes, apart from the LCAs, interviews, a workshop at the case company and a survey addressed to end users. The use of visualisation tools such as actors map and Product-Service Blueprint benefits the understanding of both current and suggested solution and provides insights, evaluation and possible improvements. A cost calculation is made to evaluate if the solution is financially making business sense to the provider. Through this thesis, a circular economy-based solution which designs out waste is found. It is proven through the study and LCAs that this solution decreases the investigated environmental impact categories compared to the current existing solution. The suggested solution is based on a refilling process for circulating material which is established through the thesis to be theoretically feasible, hence needs consideration in order to be implementable in reality and make business sense to the provider. / Den här studien svarar på hur ett erbjudande baserat på cirkulär ekonomi kan designas för att öka värdeskapande och sänka miljöpåverkan i förhållande till ett existerande erbjudande. Studien baseras på ett företagsfall och deras nuvarande brandsäkerhetslösning, nämligen en 6 kg pulversläckare. I studien involveras teori om Product-Service Systems som en bas för forskningen och en grund för resultatet. Genom studien har metoden Livscykelanalys (LCA) använts som ett verktyg för att utvärdera och jämföra den nuvarande lösningen med den föreslagna i ett miljömässigt sammanhang och med flera olika påverkanskategorier. Detta skapar ett holistiskt perspektiv, vilket teorin visar är en viktig faktor under utvecklingen av ett erbjudande baserat på cirkulär ekonomi. En annan viktig faktor är att anpassa designen av erbjudandet till ett specifikt fall. Detta uppmärksammas genom en undersökning av företagets egenskaper, det nuvarande erbjudandet och leverantörs- och kundvärde för att finna möjligheter till en föreslagen lösning. Sådana möjligheter var till exempel en efterfrågan på miljömässigt hållbara lösningar och en existerande infrastruktur som kan gagna företagets värdeskapande i framtiden. Processen inkluderar, förutom LCA, intervjuer, en workshop, och en kundundersökning adresserad till slutanvändare. Användandet av visualiseringsverktyg, sådana som aktörskarta och Product-Service Blueprint, gynnar förståelsen för både den nuvarande och den föreslagna lösningen och skapar insikter kring utvärdering och möjliga förbättringar. En kostnadskalkyl görs för att utvärdera om lösningen är finansiellt bra för företaget. Genom denna avhandling upptäcks en cirkulär ekonomi-baserad lösning. Studien visar att denna lösning minskar miljöpåverkan för de valda påverkanskategorierna jämfört med den nuvarande lösningen. Den föreslagna lösningen är baserad på att återfylla brandsläckare och därigenom cirkulera material vilket är teoretiskt genomförbart. Dock behövs ytterligare övervägande för att lösningen ska vara implementerbar och för förföretaget realiserbart.
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The Value-chain of Biochar : Case developement and value validation for providers and customers from an environmental, economic and social perspectiveEriksson, Markus, Engel, Samuel January 2024 (has links)
The growing need for climate mitigation solutions has contributed so thatbiochar has gained significant interest. Primary for its ability as a carbon sinkbut there is also a growing interest due to several other aspects within industriese.g. substitution effects, increased resource efficiency, an enabler forindustrial symbiosis, and its beneficial properties when put in soil that can increasegrowth. Previous studies of biochar have been dominant within the environmentalperspective of biochar, analyzing detailed characteristics of its propertiesand carbon sink potential. Some studies have a holistic perspective reflectingon countries specific energy mix and the different benefits of producingbiochar. However, previous studies are far too few to determine the value-chainof biochar. Hence previous studies have knowledge gaps within the holistic lifecycle approach from a provider or customer perspective of biochar, not reflectingon demand for quality requirements in different utilization areas and markets.The need for validation of the environmental and the economic performanceof biochar has to be established, and the economic perspective of biochar hasmajor knowledge gaps since previous studies are scarce. The study aims to establish the value-chain of biochar by evaluating theenvironmental, economic, and social perspectives through life cycle thinking.The core of the study is to distinguish value, which first has to reflect thebiochar quality requirements from providers and customers, captured throughinterviews and literature research. The quality requirements enable a goal forproducing biochar and determine what processes and biomass are needed fordifferent markets. This is evaluated through a case development which considersthe different quality requirements. Life cycle assessment (LCA) with acradle-to-grave perspective and life cycle costing (LCC) with a cradle-to-gatewere then used to distinguish biochar´s environmental and economic performance. The interviews and researched literature resulted in three cases being developed,biochar application in electric arc furnaces in steel production, agriculturalapplication, and commercial application through biochar-macadam. Thesteel industry has higher quality requirements due to the need to have a similarcomposition as fossil coal, resulting in biochar produced from wood being theonly option. The limitations for agricultural application are more related tothe allowed amount of phosphorus per ha and thus all the researched biocharapplies to different degrees. Biochar application in biochar-macadam is similarto agricultural application, however limited due to the EBC certification notallowing the production of biochar from sludge. The generated results from the LCA show that the climate performance isvastly different depending on what biomass was utilized and the different markets.Biochar produced from park and garden, and wood results in a higher climateperformance due to the higher carbon sequestration compared to biocharproduced from straw and sludge, however depending on how the biocharis utilized, the performance varies. During biochar application in electric arcfurnaces, the majority of the produced carbon sink is destroyed which resultsin worse climate performance, instead the majority of the reduced emissionscomes from the substituted fossil coal. Compared to biochar application inagricultural and biochar-macadam where the carbon sink stays intact, steel applicationstill has worse climate performance even when including substitution.Biochar-macadam production results in more emissions compared to agriculturalapplication due to the need to mix biochar with stones and compost,thus biochar in agriculture is the best option from a climate perspective. The economic aspects are generated through the conducted LCC which resulted inbiochar produced from park and garden, and sludge being more beneficial dueto the absence of acquisition costs. Production of biochar from wood provesto be difficult when considering a larger time frame, with the market for steelproduction not returning the investment. Biochar produced from straw hasa positive return on investment when considering the agriculture market, butnot for the production of biochar-macadam. The results show that the marketof biochar is very uncertain due to being considered immature and a futuremarket. The major uncertainty is connected with the immaturity of the market.The quality requirements are not reflected in the market pricing which isone of the major reasons for biochar utilization in the steel industry not beingeconomically beneficial. The value chain of biochar is a combination of many different economic,environmental, and social values. The conducted LCA shows that there areclimate benefits due to carbon sequestration, and a possibility to replace fossilreferences. Other than biochar there are also by-products such as heat and oilwhich can be utilized, improving the climate performance further. The multipleproducts also have economic benefits due to the potential of creating multipleproducts. The carbon sink can be sold as carbon credits, and the heat can beutilized in district heating. For providers, the creation of biochar is an enablerto reduce environmental impact, utilize products already within the system,and create value from waste. The structure of biochar generates a lot of valuefor customers. The porosity enables water storing capabilities which increasesthe efficiency of watering. This reduced the amount needed for soil applications,while also securing the harvest from drought and flooding. Even though thevalue chain of biochar shows that there is a lot of potential, it is still uncertainhow it will be integrated into society, and how the market will be shaped in theyears to come.
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