Short answer

When designing Product-Service Systems, prioritize circular economy principles to ensure long-term value creation for all stakeholders involved.

Field
Sustainability
Source
Procedia CIRP (2018)
Method
Conceptual and Case Study Analysis
Evidence
Moderate effect

Integrating circular economy principles into Product-Service Systems (PSS) can unlock value for a wider range of stakeholders by optimizing resource use and extending product lifecycles. This sustainability research insight is drawn from a 2018 study published in Procedia CIRP. Using Conceptual and case study analysis, researchers explored how this design variable affects real-world outcomes. The key design takeaway: When designing Product-Service Systems, prioritize circular economy principles to ensure long-term value creation for all stakeholders involved.

Study
SustainabilityHigh ImpactModerate effect

Circular Product-Service Systems Drive Stakeholder Value Creation

Integrating circular economy principles into Product-Service Systems (PSS) can unlock value for a wider range of stakeholders by optimizing resource use and extending product lifecycles.

Procedia CIRP · 2018

01

Key Findings

  • 01Product-Service Systems (PSS) are a suitable framework for operationalizing circular economy principles.
  • 02Applying circular economy principles to PSS can lead to value creation for a broader group of stakeholders.
  • 03System and lifecycle thinking are crucial for realizing the full benefits of circular PSS and avoiding negative rebound effects.
02

Application

Design takeaway

When designing Product-Service Systems, prioritize circular economy principles to ensure long-term value creation for all stakeholders involved.

How to apply

When developing new product or service offerings, consider a PSS model that incorporates leasing, maintenance, and take-back schemes, explicitly measuring value created for users, the provider, and the environment.

Project actions

  • 01Focus on how your design can be part of a service rather than just a standalone product.
  • 02Consider the entire lifespan of your design, from creation to disposal or reuse.
  • 03Think about who benefits from your design beyond the primary user.
03

Method & Evidence

AimHow can circular economy principles be integrated into Product-Service Systems to create value for multiple stakeholders?
MethodConceptual and Case Study Analysis
ProcedureThe study defines circular economy principles and their relevance to Product-Service Systems (PSS). It then analyzes how these principles can be applied in supply chain network design and demonstrates value creation through a 'mobility as a service' example, emphasizing system and lifecycle thinking.
ContextBusiness Model Innovation, Supply Chain Design, Sustainable Development

Variables

IV["Integration of circular economy principles into PSS design"]
DV["Stakeholder value creation"]
CV["Type of Product-Service System (e.g., product-oriented, use-oriented, result-oriented)","Industry sector"]
04

Strengths & Limitations

Strengths

  • +Connects the abstract concept of circular economy to practical business models (PSS).
  • +Emphasizes the importance of a holistic, lifecycle perspective.

Limitations

The definition of 'value creation' can be subjective and difficult to quantify comprehensively across all stakeholders.

Reliability & validity

The study's findings are based on conceptual analysis and a case example, which may limit generalizability. Further empirical research with diverse case studies would enhance reliability and validity.

Think critically

To what extent can the 'value' created by circular PSS be objectively measured and compared across different stakeholder groups?

05

Design Principles

"Design for circularity within Product-Service Systems to maximize stakeholder value and minimize environmental impact."

This research highlights that a shift towards circularity in business models, particularly PSS, is not just an environmental imperative but a strategic driver for economic and social value. Designers and engineers can leverage this understanding to create solutions that are both sustainable and commercially viable, appealing to a broader set of stakeholders.

06

What This Means for Your Design

Making products into services (like renting a car instead of buying one) and designing them to be reused and recycled can create benefits for everyone involved, not just the company selling the service.

How to use in your project

  • 1.Reference this study when discussing the strategic advantages of adopting circular economy principles in your design project's business model or lifecycle analysis.
07

Add to My Project

08

Quick Cite

Paragraph starter

This research supports the integration of circular economy principles within Product-Service Systems (PSS) as a strategy for generating multi-stakeholder value. By shifting from product ownership to service provision and designing for longevity and resource efficiency, PSS can unlock economic, social, and environmental benefits, aligning with sustainable development goals.

09

Source

Procedia CIRP

Defining value creation in the context of circular PSS

journal · 2018

View source

Questions About This Research

What does the research say about circular product-service systems drive stakeholder value creation?
When designing Product-Service Systems, prioritize circular economy principles to ensure long-term value creation for all stakeholders involved. Evidence: Procedia CIRP (2018).
Why does "Circular Product-Service Systems Drive Stakeholder Value Creation" matter for design?
This research highlights that a shift towards circularity in business models, particularly PSS, is not just an environmental imperative but a strategic driver for economic and social value. Designers and engineers can leverage this understanding to create solutions that are both sustainable and commercially viable, appealing to a broader set of stakeholders.
How can designers apply this research?
When designing Product-Service Systems, prioritize circular economy principles to ensure long-term value creation for all stakeholders involved.
What were the main findings?
Product-Service Systems (PSS) are a suitable framework for operationalizing circular economy principles.. Applying circular economy principles to PSS can lead to value creation for a broader group of stakeholders.. System and lifecycle thinking are crucial for realizing the full benefits of circular PSS and avoiding negative rebound effects.
What research method was used?
Conceptual and Case Study Analysis.
How strong is the evidence?
Evidence strength is rated Moderate effect, based on a 2018 journal from Procedia CIRP.
What should I do differently in my next project?
When developing new product or service offerings, consider a PSS model that incorporates leasing, maintenance, and take-back schemes, explicitly measuring value created for users, the provider, and the environment.
What are the limitations?
The study relies on conceptual definitions and a single case example, requiring further empirical validation across diverse industries.