Digitalization of manufacturing for implanting value, configuring circularity and achieving sustainability

Abstract

PurposeThis paper explores the relationships between Industry 4.0-driven technologies and the circular economy-driven business model (CEDBM) components of value creation, delivery and capture along manufacturing processes.Design/methodology/approachBased on the literature, a research model is developed in which the three CEBDM components are represented by five components: product service system (PSS), product design, industrial symbiosis (IS), consumer interaction and pay-per-use/rental. For each of these five components, enabling Industry 4.0 technologies are identified and vague interdependence relationships were assessed using a fuzzy decision-making trial and evaluation laboratory (DEMATEL) method.FindingsThis paper contributes to the literature by exploring the relationships of the CEDBM components of value creation, value delivery and value capture with Industry 4.0-driven technological enablers. In addition, causal relationships between Industry 4.0 technologies and their relevance for facilitating CE-enabled manufacturing processes are identified, and finally, Industry 4.0-driven technological enablers of CE are categorized as base and front-end technologies.Research limitations/implicationsThe findings suggest that value delivery-based differentiation provides new avenues for value creation and innovative forms of value capture in CEDBMs.Practical implicationsPractitioners can use the findings to develop a roadmap for Industry 4.0-driven technological solutions for CE.Social implicationsCE-driven processes of manufacturing provide not only opportunities for value capture, creation and delivery but also avenues for customer-centric product and service development and effective resource utilization.Originality/valueThis paper is the first to identify value creation, delivery and capture processes along with Industry 4.0-enabled manufacturing processes.