Humanity confronts an existential threat without historic precedent. Environmental pressures have reached such intensity and pace of change that the earth system may be irreversibly tipped into a new and unpredictable state. The emerging global reality is, in turn, redefining overall conditions for business success. Addressing these challenges both demands and brings great opportunities for innovation. An important and sometimes neglected aspect of innovation is the design or redesign of business models, which has been identified as a greater source of lasting competitive advantage than new products and services per se. The business model has also been suggested as a new unit of analysis when discussing sustainability. However, this is still a relatively underexplored area. The aim of this work was therefore to develop an approach to business model design that supports strategic sustainable development, i.e., supports organizations to contribute to society’s transition towards sustainability in a way that strengthens the organization.       To be able to design a business model that supports strategic sustainable development, it is necessary to know what sustainability is and how to develop sustainability-promoting, economically viable strategies. Therefore, the Framework for Strategic Sustainable Development, which includes, e.g., an operational definition of sustainability and strategic guidelines for how to approach it, was used as an overarching framework. Specific research methods and techniques included, e.g., literature reviews, questionnaires, interviews, work with focus groups, participatory action research with partner organizations, creative problem solving techniques, modeling, and simulation.   The literature reviews revealed potential sustainability benefits of developing business models in conjunction with product-service systems (PSS). However, a knowledge gap exists regarding how to effectively connect these fields. Arguably, PSS strategies can best contribute to sustainability when business models support their implementation and when both the business models and the PSS strategies are guided by an understanding of strategic sustainable development. Therefore, an integrated approach to Business Model Design for Strategic Sustainable Development was co-developed and tested in PSS innovation work with partners, e.g., companies within the energy and lighting sectors. The tests indicated that the new approach helped to clarify strengths and weaknesses of current business models from a strategic sustainability perspective; to transform an organization’s vision and strategy into a sustainability-framed vision and a sustainability-promoting strategy; and to communicate the new vision and strategy to the value network as a basis for engaging important stakeholders in the change. For example, the approach supported one of the partner companies in its transformation towards providing sustainable PSS solutions in the form of light as a service. Examples of business benefits of the new approach include improved scalability and risk avoidance, which provide a foundation for better investment strategies. Benefits also include improved differentiability and a broadened view on, and a more solid foundation for, collaboration with stakeholders that are increasingly important to sustainable business success.

This thesis explores the conditions under which traditional Small and Medium Enterprises (SMEs) can be involved in the design of sustainable Product Service Systems (PSS). The integration between design and Information and Communication Technologies (ICT) in the context of sustainable business development was used to define the space for this exploration. The research was carried out through a case study with a group of Colombian Manufacturing SMEs. As a result of the case study a business framework was developed to guide the design of sustainable PSS. In order to establish the basis of the research a review of the literature on sustainable business development, ICT, design, product service systems and SMEs was carried out. This review brought to light the main features of a sustainable PSS and the challenges associated with its design. These challenges were further investigated in the context of SMEs with a scoping study involving a group of 38 Colombian SMEs. Additionally, 36 PSS already on the market were analysed to identify the possible relationships between design and ICT, and to determine how they could contribute to develop sustainable PSS. The scoping study and the analysis of the 36 PSS gave structure to the case study with a second group of Colombian Manufacturing SMEs. This case study aimed to build understanding of the connection between the characteristics of these SMEs and the main features of a sustainable PSS. As a result of this case study a set of concepts, drivers and barriers to take into account to design sustainable PSS formed the basis of a business framework developed and validated in the final part of the research. The business framework proposed can help to understand the resources and changes needed to develop a sustainable PSS, reducing the uncertainty that it may cause. The integration between product and service design and ICT is used in the framework to outline the areas of opportunity in the design of sustainable PSS. This business framework developed as a result of the research promises to be a helpful tool for organisations working to support the transformation of SMEs toward competitive and sustainable business models using as a basis the integration between product and service design and ICT. Despite the Colombian context the results and outcomes of this research are described in general terms to be applicable in other contexts around the world working with SMEs in the design of sustainable PSS.

Purpose – The purpose of this study is to increase knowledge regarding sustainable product-service systems (SPSS) barriers and solutions for non-assembled products. To answer this purpose, we developed the following research questions: (1) what barriers do providers face when utilizing SPSS in a non-assembled product context and (2) what solutions can be used to overcome these barriers? Method – This study was conducted as an abductive case study within SPSS in the renewable energy industry. We interviewed a total of 20 respondents from 16 different companies operating in China, Cyprus, and Sweden. Each respondent was chosen based on their experience and knowledge within the area. Findings – The findings are summarized in a framework that links the identified barriers with specific solutions. In brief, finding stakeholders for large and long-term investments was identified as a major barrier while educating stakeholders was suggested as a common solution. Theoretical and practical implications – The results disqualify two of the barriers in the existing literature while suggesting that varying market conditions is a new barrier. Furthermore, the study provides new insights to the existing literature and presents a framework that managers can use to matchmake SPSS-barriers with solutions. Limitations and future research – The study is limited to a case study focused on barriers and solutions for SPSS-providers. As a result, future research is suggested to validate the findings in another context and among other stakeholders.