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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Across Dutch municipalities, unusual collaborative initiatives emerge that aim to stimulate the creation of value from municipal waste resources. Circular economy literature proposes that experimentation competences are important for developing initiatives towards circular business models and a wide range of innovation frameworks and business model toolkits have been developed to support the development of circular business models based on experimentation.However, more insight is needed to understand how experimentation contributes to the development of urban upcycling initiatives, in particular those where collaborative business models are created. Literature suggest that business model experimentation occurs differently in various collaborative contexts. For example, depending on the type of initiating focal actors involved, collaborative business models develop along different pathways Therefore, we aim to understand how experimentation occurs in various types of collaborative urban upcycling initiatives and we investigate the following research question: How do stakeholders in collaborative urban upcycling initiatives use experimentation to develop circular business models?
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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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To facilitate energy transition, in several countries regulators have devised ‘regulatory sandboxes’ to create a participatory experimentation environment for exploring revision of energy law. These sandboxes allow for a two-way regulatory dialogue between an experimenter and an approachable regulator to innovate regulation and enable new socio-technical arrangements. We focus on the Dutch Energy Experimentation Decree (EED) that invites homeowners’ associations and energy cooperatives to propose projects prohibited by extant regulation. In order to localize, democratize and decentralize energy provision, local experimenters can, for instance, organise peer-to-peer supply and determine their own tariffs for energy transport.
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Purpose: This paper aims to summarize the results of an empirical project to understand the perceptions of consumers of the future high end products in the USA. This project was a precursor of a larger global project on the topic. Design/methodology/approach: The approach utilizes the consumer insights-driven process, rule-developing experimentation (RDE), introduced by the senior authors and developed in cooperation with Wharton School of Business (University of Pennsylvania). The empirical part was conducted with qualified US consumers (middle- and upper-middle class respondents). Based on a series of in-depth qualitative interviews with global leaders of luxury and premium companies, star designers and thought leaders, five dimensions of high end offering were identified, with each dimension having a unique set of four factors (elements). The second part included a quantitative survey based on RDE (modified conjoint analysis) conducted in the USA with 373 qualified middle- and upper-middle class respondents to discover the driving forces behind their perceptions of high end. Findings: There are four distinct consumer mindsets towards future high end products. The segmentation is based on a disciplined experimentation afforded by RDE and produces a more targeted understanding of the consumer mind. Practical implications: The paper provides insights of what might drive the consumer perception of high end products in the near future. The pattern-based consumer mind-set segmentation creates actionable directions for corporations in answering today's big question "How can brands migrate from being cost-driven commodities to higher margins and profits?" The answer is in the high end. Originality/value: The approach offered here could help designers and brand managers to efficiently create better products that consumers like and perceive as high end. This will result in higher margins and help marketers to differentiate their respective products from the competition.
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To facilitate energy transition, in several countries regulators have devised ‘regulatory sandboxes’ to create a participatory experimentation environment for exploring revision of energy law. These sandboxes allow for a two-way regulatory dialogue between an experimenter and an approachable regulator to innovate regulation and enable new socio-technical arrangements. However, these experiments do not take place in a vacuum but need to be formulated and implemented in a multi-actor, polycentric decision-making system through collaboration with the regulator but also energy sector incumbents such as the distribution system operator. We are, therefore, exploring new roles and power division changes in the energy sector as a result of such a regulatory sandbox. We research the Dutch Energy Experimentation Decree (EED) that invites homeowners’ associations and energy cooperatives to propose projects prohibited by extant regulation. In order to localize, democratize and decentralize energy provision, local experimenters can, for instance, organise peer-to-peer supply and determine their own tariffs for energy transport. Theoretically, we rely on Ostrom’s concept of polycentricity to study the dynamics between actors involved in and engaging with the participatory experiments. Empirically, we examine 4 approved EED experiments through interviews and document analysis. Our conclusions focus on the potential and limitations of bottom-up, participatory innovation in a polycentric system. The most important lessons are that a more holistic approach to experimentation, inter-actor alignment, providing more incentives, and expert and financial support would benefit bottom-up participatory innovation.
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This article seeks to contribute to the literature on circular business model innovation in fashion retail. Our research question is which ‘model’—or combination of models—would be ideal as a business case crafting multiple value creation in small fashion retail. We focus on a qualitative, single in-depth case study—pop-up store KLEER—that we operated for a duration of three months in the Autumn of 2020. The shop served as a ‘testlab’ for action research to experiment with different business models around buying, swapping, and borrowing second-hand clothing. Adopting the Business Model Template (BMT) as a conceptual lens, we undertook a sensory ethnography which led to disclose three key strategies for circular business model innovation in fashion retail: Fashion-as-a-Service (F-a-a-S) instead of Product-as-a-Service (P-a-a-S) (1), Place-based value proposition (2) and Community as co-creator (3). Drawing on these findings, we reflect on ethnography in the context of a real pop-up store as methodological approach for business model experimentation. As a practical implication, we propose a tailor-made BMT for sustainable SME fashion retailers. Poldner K, Overdiek A, Evangelista A. Fashion-as-a-Service: Circular Business Model Innovation in Retail. Sustainability. 2022; 14(20):13273. https://doi.org/10.3390/su142013273
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While there is much focus on interventions to foster ethical reflection in the design process of AI, there is less focus on fostering ethical reflection for (end)users. Yet, with the rise of genAI, AI technologies are no longer confined to expert users; non-experts are widely using these technologies. In this case study in a governmental organization in the Netherlands, we investigated a bottom-up approach to foster ethical reflection on the use of genAI tools. An approach of guided experimentation, including an intervention with a serious game, allowed civil servants to experiment, to understand the technology and its associated risks. The case study demonstrates that this approach enhances the awareness of possibilities and limitations, and the ethical considerations, of genAI usage. By analyzing usage statistics, we estimated the organization’s energy consumption.
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Participatory experimentation involving farmers and researchers is often forwarded as a suitable approach for developing natural, human and social livelihood capital through technology, learning and empowerment, contributing in this way to resilience and sustainability. Learning in such processes takes place through interaction of farmers and researchers. Aspects like momentum, scientific rigor and farmer responsibility are, however, often at odds. This study explored how distribution of responsibilities affected outcomes for farmers and researchers.
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From the article: Abstract. This exploratory and conceptual article sets out to research what arguments and possibilities for experimentation in construction exists and if experimentation can contribute towards more innovative construction as a whole. Traditional, -western- construction is very conservative and regional, often following a traditional and linear design process, which focuses on front-loaded cost savings and repetitive efficiency, rather than securing market position through innovation. Thus becoming a hindrance for the development of the sector as a whole. Exploring the effects of using the, in other design-sectors commonly and successfully practiced, “four-phased iterative method” in architectural construction could be the start of transforming the conservative construction industry towards a more innovative construction industry. The goal of this research is to find whether the proposed strategy would indeed result in a higher learning curve and more innovation during the - architectural- process. Preliminary research indicates that there is argumentation for a more experimental approach to construction.
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