How can circular product-service systems contribute to a company’s environmental and economic success? There is not a single answer to this question. One approach has been described by Dr. Anja Eisenreich, Dr. Marianne Kuhlmann, Dr. Manuel Braun and myself, Patrick Hypscher.
Success Factors
Based on academic literature review and our industry experience we suggest thirteen success factors (reflected in the table of contents):
- Customer Experience
- Offer a Compelling Solution to Customer Problems
- Make Circular Product-Service Systems More Attractive than
Buying - Optimize Offer for Positive Environmental Impact
- Communicate Circular Ambition Compared to Reality
- Product & Operations
- Optimize Product Design for Circular Product-Service Systems
- Create Circular Operations
- Adapt Customer Journey
- Stay Flexible about the Best Circular Proposition
- Secure Financing and Mitigate Risks
- Business & Organizational Capabilities
- Collaborate with External Stakeholder Networks
- Build a Holistic Set of Indicators to Assess Your Transition
- Embed in Organizational Set-Up and Corporate Strategy
Five-Step Approach
But how do we turn that into action? This article is supposed to help academic-driven practitioners. Therefore, we provide an actionable five-step approach:
The essential aspect is the recurring character of each step. Building circular product service systems is not a linear endeavour. Learnings and progress from one field can and should lead to adaptation in other fields.
Abstract
Circular product-service systems are a driver of the circular economy and can make an important contribution to a company’s environmental and economic success. However, several business and sustainability challenges make implementation difficult. Based on an analysis of academic literature and industry practice, success factors covering customer experience, product & operations, and business & organizational capabilities are proposed. A five-step approach can help to launch circular product-service systems in companies.
Full Article
Access to the full article can be gained via https://link.springer.com/chapter/10.1007/978-3-658-45148-6_16
The article is part of the book Sustainable Service Management, which is part of the series Forum Dienstleistungsmanagement by Manfred Bruhn & Karsten Hadwich.