ProjectSUMMA: SUstainable business Model for a MAnufacturing firm

SUMMA: SUstainable business Model for a MAnufacturing firm

SUMMA: SUstainable business Model for a MAnufacturing firm.

 The prevailing ”linear” business model of most manufacturing firms is causing a demand for virgin material and waste and emissions that are eco-unsustainable. Reductions of 50%-80% or even more are claimed to be needed before 2050. 

This challenge may be met through the closing of material flows, which also should be reflected in the firm’s business model. Such business model changes support a shift to product service systems, i.e. customers pay for the provided function rather than for the product itself.

If this is going to be possible to provide with a simultaneous improvement of profits and/or competitiveness, the closing may have to be done in ways that retain the added value from previous (re)manufacturing, i.e. at a subsystem level. This option increase the solution space for designers and engineers when they seek optimal solutions, i.e. the innovation logic and mental models for decisions are changed within the firm.

At the same time, it is crucial to ensure that the customer experience remains at the same or a higher level of satisfaction.

 

The SUMMA project is primarily an organizational change project, helping a B2C manufacturing firm in the process of implementing a more eco-sustainable business model for a new product segment. The aim is to change to a PSS offering (Product Service System) including closer end-user relations, remanufacturing of subsystems, lifetime cost minimization and improved profit.

 The project is run in collaboration with Chalmers and is financed through VGR's "FoU kort Avancerat", which is part of their campaign to encourage SME's to collaborate more with universities and institutes.