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LIFE CYCLE-BASED GENERIC BUSINESS STRATEGIES FOR SUSTAINABLE BUSINESS MODELS

LIFE CYCLE-BASED GENERIC BUSINESS STRATEGIES FOR SUSTAINABLE BUSINESS MODELS

초록/요약

The study aims to identify generic business strategies that conventional manufacturers can use to improve their business models and thus be more sustainable and/or develop new sustainable business models. In order to identify such strategies, data were gathered from 105 Korean business cases involving a wide range of prod-ucts and services via online searches and interviews. Business cases were chosen based on whether they relied on a new business model (servicizing only, manufactur-ing and servicizing at the same time, or manufacturing and selling eco-products) and directly or indirectly generated economic, social, and environmental benefits. Through the analysis of the data, generic business strategies were extracted for each life cycle stage. The results showed that success of a sustainable business model depends on a mixture of pertinent generic business strategies from the life cycle perspective. A conventional business model that focused on a particular life cycle stage and strategy was not successful. However, a new business model using the generic business strat-egies such as PSS-oriented strategies (i.e., encouraging customers to abandon owner-ship by providing financial benefits or offering additional services such as mainte-nance and ultimate disposal in the sales and use stages) and the conventional solu-tions such as ecodesign or waste reutilization (i.e., recycling materials to reduce virgin feedstock use in production in the production and end-of-life stages) produced significant environmental, economic, and social performance improvements. A rental business model applied to water purifier was chosen as a specific case of a new business model based on the generic business strategies, to quantify the changes in the environmental performance compared to the conventional business model. From a life cycle perspective, the conventional business model emitted 4,592 kg CO2-eq. over the 15 years period. On the other hand, the new business models (the water purifier rental business models with or without new and upgraded product replacement) emitted 3,107 kg CO2-eq. and 3, 141 kg CO2-eq., respectively over the same period. Based on these findings, rental under the five-year contract with mainte-nance service and renewal of the contract for the provision of a new and upgraded water purifier model and service for the remaining 10 years was the best business option for the water purifier over the 15 years period. However, for radical improve-ments of the new business models for sustainability, strategic approaches were need-ed. These approaches include adopting effective technique for educating or informing the user to change his/her use behavior, or designing product equipped with the power on/off function. In addition, promotion strategy or incentive that incites positive response to the product reuse is necessary. Furthermore design parameters controlling deterioration of components which increases energy consumption over time, modularity, restoration for reconditioning or remanufacturing, and the distance traveled of service delivering need to be controlled to reduce GHG emissions from the new business models. The verification study showed that new business models I and II (the water purifier rental business models with or without new and upgraded product replace-ment) generated 67.66% and 68.40% of GHG emissions of the conventional business model (sales of product). In order to draw general conclusion that the generic busi-ness strategies of a new business model always have room for reduction of the envi-ronmental impacts, more case studies covering other types of products (e.g., furniture, agriculture products) should be implemented.

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목차

List of Tables viii
List of Figures x
1. INTRODUCTION 1
1.1 Introduction 1
1.2 Objective 4
2. LITERATURE REVIEW 5
2.1 Introduction of Product-Service System (PSS) 5
2.2 Environmental Sustainability of PSS 9
2.3 The Rental Service and Environmental Issues 13
2.4 Problem Statement 16
3. METHOD 20
3.1 Methodological Concept for Identifying Generic Business Strategies 20
3.2 Verification Method 26
3.2.1 Functional unit, reference flow and baseline scenarios 26
3.2.2 System boundaries of the conventional and new business models 30
3.2.3 Consideration of the transportation during the maintenance services in the new business models 33
3.2.4 Impact category and additional assumptions for quantifying the environmental performance of the conventional and new business models 34
3.2.5 Equations for GHG emissions from the product maintenance stage 35
3.2.6 Sensitivity analysis 38
3.2.7 Uncertainty analysis 40
4. RESULTS 42
4.1 Generic Business Strategies for Sustainable Business Models 42
4.1.1 Successful sustainable business cases in Korea 42
4.1.2 Business strategies applied in each life cycle stage 43
4.1.3 Life cycle-based generic business strategies for sustainable business models 46
4.2 Environmental Performance of the New Business Model 51
4.2.1 GHG emissions from the conventional and new business models 51
4.2.2 Sensitivity analysis results 55
4.2.3 Uncertainty analysis results 69
5. DISCUSSION 72
6. CONCLUSIONS 83

REFERENCES 87
APPENDIX A 94
APPENDIX B 102

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