Exploring How Usage-Focused Business Models Enable Circular Economy through Digital Technologies
Open accessAbstract
Recent studies advocate that digital technologies are key enabling factors for the introduction of servitized business models. At the same time, these technologies support the implementation of the circular economy (CE) paradigm into businesses. Despite this general agreement, the literature still overlooks how digital technologies enable such a CE transition. To fill the gap, this paper develops a conceptual framework, based on the literature and a case study of a company implementing a usage-focused servitized business model in the household appliance industry. This study focuses on the Internet of Things (IoT), Big Data, and analytics, and identifies eight specific functionalities enabled by such technologies (improving product design, attracting target customers, monitoring and tracking product activity, providing technical support, providing preventive and predictive maintenance, optimizing the product usage, upgrading the product, enhancing renovation and end-of-life activities). By investigating how these functionalities affect three CE value drivers (increasing resource efficiency, extending lifespan, and closing the loop), the conceptual framework developed in this paper advances knowledge about the role of digital technologies as an enabler of the CE within usage-focused business models. Finally, this study shows how digital technologies help overcome the drawback of usage-focused business models for the adoption of CE pointed out by previous literature.
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The proliferation of tracking and measurement devices, such as IoT, into personal spaces is often a prerequisite for AI-powered CE products.
“the proliferation of tracking and measurement devices, such as IoT, into personal spaces is often a prerequisite for AI-powered CE products.”
From Artificial intelligence in support of the circular economy: ethical considerations and a path forward (2024) · cites this paper as Bressanelli et al. 2018
AI-powered digital twins can help study product performance over time and generate possible improvements, ensuring longevity.
“For example, AI-powered digital twins-virtual models that accurately reflect physical objects-can help study performance over time and generate possible improvements (What Is a Digital Twin? n.d.2022).”
From Artificial intelligence in support of the circular economy: ethical considerations and a path forward (2024) · cites this paper as Bressanelli et al. 2018
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References 60 · Cited by 666
Research works printed but not linked: 2
- Porter, M.E.; Heppelmann, J.E. How Smart, Connected Product Are Transforming Competition. Harv. Bus. Rev. 2014, 92, 64-89.
- Yin, R.K. Case Study Research: Design and Methods, 4th ed.; SAGE: Newcastle upon Tyne, UK, 2009; ISBN 978-1-4129-6099-1.
- Authors
- Bressanelli, G., Adrodegari, F., Perona, M., & Saccani, N.
- Affiliations
- University of Brescia (IT)
- Corresponding author
- Bressanelli, Gianmarco
- Venue
- Sustainability
- Publisher
- MDPI AG
- Published
- 2018-02-28
- Volume
- 10
- Issue
- 3
- Pages
- 639
- ISSN
- 2071-1050 (ISSN-L)
- OpenAlex
- W2793838027
- Cited by
- 666
- References
- 60
- Citations by year
- 2026: 77 · 2025: 92 · 2024: 91 · 2023: 120 · 2022: 91 · 2021: 91 · 2020: 61 · 2019: 36 · 2018: 7
- FWCI
- 81.46
- Type
- journal article
- Language
- en
- Open access
- gold
- doi.org
- Licence
- Locations
- Sustainability (publishedVersion, cc-by)
- RePEc: Research Papers in Economics (submittedVersion)
- DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
- Institutional Research Information System (Università degli Studi di Brescia) (submittedVersion, cc-by-nc-nd)
- Funders
- European Union Seventh Framework Programme (FP7/2007-2013) (609005)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Sustainable Supply Chain Management
- Social Sciences › Business, Management and Accounting › Marketing › Service and Product Innovation
- Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Digital Innovation in Industries
- Keywords
- circular economy, digital technologies, Internet of Things, big data analytics, home appliance industry, predictive maintenance, product design, end-of-life management, resource efficiency, product life extension, conceptual framework
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