Purpose: To facilitate the design of viable business models by proposing a novel business model design framework for viability. Design: A design science research method is adopted to develop a business model design framework for viability. The business model design framework for viability is demonstrated by using it to design a business model for an energy enterprise. The aforementioned framework is validated in theory by using expert opinion. Findings: It is difficult to design viable business models because of the changing market conditions, and competing interests of stakeholders in a business ecosystem setting. Although the literature on business models provides guidance on designing viable business models, the languages (business model ontologies) used to design business models largely ignore such guidelines. Therefore, we propose a business model design framework for viability to overcome the identified shortcomings. The theoretical validation of the business model design framework for viability indicates that it is able to successfully bridge the identified shortcomings, and it is able to facilitate the design of viable business models. Moreover, the validation of the framework in practice is currently underway. Originality / value: Several business model ontologies are used to conceptualise and evaluate business models. However, their rote application will not lead to viable business models, because they largely ignore vital design elements, such as design principles, configuration techniques, business rules, design choices, and assumptions. Therefore, we propose and validate a novel business model design framework for viability that overcomes the aforementioned shortcomings.
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Business rule models are widely applied, standalone and embedded in smart objects. They have become segregated from information technology and they are now a valuable asset in their own right. As more business rule models are becoming assets, business models to monetize these assets are designed. The goal of this work is to present a step towards business model classification for organizations for which its value position is characterized by business rule models. Based on a survey we propose a business model categorization that is aligned to different types of assets and business model archetypes. The results show five main categories of business models: The value adding business rule model, the ‘create me a business rule model’ business model, the KAAS business model, the bait and hook business model and the market place business model.
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This paper seeks to make a contribution to business model experimentation for sustainability by putting forward a relatively simple tool. This tool calculates the financial and sustainability impact based on the SDG’s of a newly proposed business model (BM). BM experimentation is described by Bocken et al. (2019) as an iterative-multi-actor experimentation process. At the final experimentation phases some form of sustainability measurement will be necessary in order to validate if the new proposed business model will be achieving the aims set in the project. Despite the plethora of tools, research indicates that tools that fit needs and expectations are scarce, lack the specific focus on sustainable BM innovation, or may be too complex and demanding in terms of time commitment (Bocken, Strupeit, Whalen, & Nußholz, 2019a). In this abstract we address this gap, or current inability of calculating the financial and sustainability effect of a proposed sustainable BM in an integrated, time effective manner. By offering a practical tool that allows for this calculation, we aim to answer the research question; “How can the expected financial and sustainability impact of BMs be forecasted within the framework of BM experimentation?
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Pressure on natural resources, unsustainable production and consumption, inequality and a growing global population lie at the base of the big challenges that people face. This chapter investigates how businesses can take responsibility in dealing with these challenges by means of frugal business model innovation. The notion of ‘frugal innovation’ was first introduced in the context of emerging markets, giving non-affluent customers opportunities to consume affordable products and services suited to their needs. Business modelling with a frugal mindset opens up a path that provides significant value while minimizing the use of resources such as energy, capital and time. Business models require intentional design if they are to deliver aspired sustainability impacts. Diminish or simplify resources can be described as the means to remove or reduce features, resources, required activities and/or waste streams. Decompose can be described as the removal of resources from the commercial value proposition and replacing them with resources the user/consumer already can access or uses. This is an Accepted Manuscript of a book chapter published by Routledge/CRC Press in Circular Economy : Challenges and Opportunities for Ethical and Sustainable Business on 2021, available online: https://doi.org/10.4324/9780367816650
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Industrial design practice has broadened from designing (mass-)products towards more open, complex, dynamic, and networked design. Organizations are increasingly hire design professionals and turn their attention towards design as an important capability that can help them generate innovation and improve business outcomes. Organizing design beyond organizations is becoming an interdisciplinary collaboration process rather than a design creation process. This has brought change for industrial designers with regards to the design process and the application of methods. By means of process research methods, this study addresses the question ‘how does an industrial design process evolve in a broadening field of design practice?’. Based on theoretical interpretation of an empirical narrative that tells the story of a design project in healthcare, this paper provides understanding in the messy and complex progression in design processes, and unstable and unpredictable dynamics. It works towards a process innovation model that fits contemporary roles for industrial designers who are adapting their ways of working in novel design challenges.
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Deze publicatie richt zich vooral op het concept Design Based Research,gezien vanuit het perspectief van de bijna 40 lectoren die de hogeschool rijk is. Dit lectoratenoverzicht kan worden beschouwd als een atlas of reisgids waarmee de lezer een route kan afleggen langs de verschillende lectoraten. De lectoraten die actief zijn op het gebied van de Service Economy worden beschreven in hoofdstuk 2. De lectoraten die actief zijn op het gebied van Vitale Regio worden beschreven in hoofdstuk 3. De lectoraten die actief zijn op het gebied van Smart Sustainable Industries worden beschreven in hoofdstuk 4. De lectoraten die actief zijn op het gebied van de hogeschoolbrede thema’s Design Based Education en Research worden beschreven in hoofdstuk 5. Tenslotte wordt er in hoofdstuk 6 een eerste aanzet gedaan om één of meer verbindende thema’s of werkwijzen te ontdekken in de aanpak van de verschillende lectoraten. Het is niet de bedoeling van deze publicatie om een definitief antwoord te geven op de vraag wat NHL Stenden precies bedoelt met het concept Design Based Research. Het doel van deze publicatie is wel om een indruk te krijgen van wat er allemaal gebeurt binnnen de lectoraten van NHL Stenden, en om nieuwsgierig te worden naar meer.
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This article proposes a model for the design of a hybrid VET curriculum across the school-work boundary.
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The Dutch government and leading academics in the field of circular economy propose that “repurposing”, i.e., finding new usages for discarded material, is important to reduce resource usage. Waste collectors, municipalities and start-ups increasingly find ways to develop circular business models, aiming for minimum loss of material integrity. Repurpose is a circular business model strategy which entails using a discarded product or its parts in a new product with a different function.The aim of this research is to gain a better understanding of this promising but academically underexposed circular strategy by empirically exploring its key characteristics and developing a taxonomy that reflects the scope and potential of the concept. The taxonomy development was based on clustering and comparing 96 case examples using key characteristics and critical factors empirically collected by means of 11 semi-structured expert interviews. The taxonomy was iteratively refined and validated by means of workshops with experts.This paper proposes a taxonomy and a comprehensive definition for repurposing. The Repurpose taxonomy distinguishes three main categories with increasing levels of material integrity: “Reprocess”, “Reshape” and “Recontextualize”. The taxonomy provides a refinement of existing circular business model patterns and frameworks for closing material loops strategies. It shows how repurposing may exploit the creative potential of design to fill the gap between reuse and recycling by retaining previously added value with three levels of physical adjustment.
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The purpose of the model is to explore the influence of the design of circular business models (CBMs) on CBM viability. The model represents an Industrial Symbiosis Network (ISN) in which a processor uses the organic waste from suppliers to produce biogas and nutrient rich digestate for local reuse. CBM viability is expressed as value captured (e.g., cash flow/tonne waste/agent) and the survival of the network over time (shown in the interface).In the model, the value captured is calculated relative to the initial state, using incineration costs as a benchmark. Moderating variables are interactions with the waste incinerator and actor behaviour factors. Actors may leave the network when the waste supply for local production is too low, or when personal economic benefits are too low. When the processor decides to leave, the network fails. Theory of planned behaviour can be used to include agent behaviour in the simulations.
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The viability of novel network-level circular business models (CBMs) is debated heavily. Many companies are hesitant to implement CBMs in their daily practice, because of the various roles, stakes and opinions and the resulting uncertainties. Testing novel CBMs prior to implementation is needed. Some scholars have used digital simulation models to test elements of business models, but this this has not yet been done systematically for CBMs. To address this knowledge gap, this paper presents a systematic iterative method to explore and improve CBMs prior to actual implementation by means of agent-based modelling and simulation. An agent-based model (ABM) was co-created with case study participants in three Industrial Symbiosis networks. The ABM was used to simulate and explore the viability effects of two CBMs in different scenarios. The simulation results show which CBM in combination with which scenario led to the highest network survival rate and highest value captured. In addition, we were able to explore the influence of design options and establish a design that is correlated to the highest CBM viability. Based on these findings, concrete proposals were made to further improve the CBM design, from company level to network level. This study thus contributes to the development of systematic CBM experimentation methods. The novel approach provided in this work shows that agent-based modelling and simulation is a powerful method to study and improve circular business models prior to implementation.
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