Closed-loop innovation for mobile electronics - the business model innovation approach of the sustainablySMART project

Abstract

Closing the loop for products, components and materials loop promotes resource efficiency. Loop-closing approaches extend the traditional value chain through collection, refurbishment or reprocessing value steps and through new actors and stakeholders in the business environment becoming relevant. The once linear value chains of companies or industries are extended; or linked between industries; re/decomposed; and new value constellations may emerge. Remanufacturing, re-use and recycling approaches entail a multiple-times value creation which includes sustaining value beyond the original new product lifecycle. The paper conceptualises and illustrates a new, environmental sustainable value creation logic from business models. It applies the innovation strategy concept by Slowak and Regenfelder (2016). This is to depict how case studies of the European project sustainablySMART, namely the example of PuzzlePhone, do innovate. This paper extracts the practice of innovators combining technological, organisational and business environment related innovation for closing the materials loop from industry evidence. We discuss how existing business models require change and in that context, value chains are altered.