Functional sales and circular business models create opportunities for the manufacturing industry to achieve competitive advantage and simultaneously reduce environmental impact. Developing and selling product functionality places new demands on the organization, on its traditional partners, and on the partners required to deliver full value the the customer. It also affects the design and communication of the value proposition to the customer.
Three industry actors and two research organizations are engaged: Volvo Construction Equipment (VCE), Volvo Car Corporation (VCC) and AB SKF (SKF). The research organizations are Viktoria Swedish ICT and Chalmers Center for Business Innovation.
The project is collaborative where the researchers take an active role in the development of functional sale offerings, while simultaneously examining organizational and partner network hindrances and enablers for transformation to functional sales.
Practical results from the project include on the one hand specific and tested market ready business concepts, and on the other hand packaged knowledge to facilitate similar transformations of other Swedish manufacturers.
The packaged knowledge include checklists, conceptual tools and organizational prerequisits for an effective transformation towards a circular business model.