Comparing Industrial Cluster Cases to Define Upgrade Business Models for a Circular Economy

Magnus Simons (Corresponding author)

    Research output: Chapter in Book/Report/Conference proceedingChapter or book articleProfessional

    Abstract

    Upgrading is often seen as a means to strengthen customer loyalty between investments in new equipment, but there is more to it. It is a means to introduce innovation in small, but continuous steps keeping both OEMs and their customers at the innovative forefront of technical and business development. Upgrading also improves sustainability and it is a driver in the development of the circular economy. Basically upgrading means transformation of a used piece of capital-intensive equipment to meet the new conditions in the user’s business environment, but in practice it can take on a variety of forms depending on what type of added value is provided to the customer. In this article, we define four generic types of upgrade business models based on the industrial cluster cases in the UIW-project. Using a modified business canvas approach, we define the four Upgrade business models and compare how they create value for the customers, how they organise their main activities and how they earn money. A central means of achieving profitable upgrade business is to develop efficient business processes through digitalisation and through the use of modern information technology. Here we identify four areas where technologies such as AR and VR help to create an efficient environment for information management and communication in the upgrade value network.
    Original languageEnglish
    Title of host publicationDynamics of Long-Life Assets
    Subtitle of host publicationFrom Technology Adaptation to Upgrading the Business Model
    PublisherSpringer
    Pages327-356
    Number of pages30
    ISBN (Electronic)978-3-319-45438-2
    ISBN (Print)978-3-319-45437-5
    DOIs
    Publication statusPublished - 10 May 2017
    MoE publication typeD2 Article in professional manuals or guides or professional information systems or text book material

    Fingerprint

    Circular economy
    Business model
    Upgrade
    Industrial cluster
    Upgrading
    Added value
    Business process
    Value network
    Business environment
    Sustainability
    Innovation
    Communication
    Business development
    Customer loyalty
    Information management

    Keywords

    • digitalization
    • Business model
    • Upgrading
    • Information technology
    • Value proposition
    • Value network
    • Earnings logic
    • Business process
    • circular economy

    Cite this

    Simons, M. (2017). Comparing Industrial Cluster Cases to Define Upgrade Business Models for a Circular Economy. In Dynamics of Long-Life Assets: From Technology Adaptation to Upgrading the Business Model (pp. 327-356). Springer. https://doi.org/10.1007/978-3-319-45438-2_17
    Simons, Magnus. / Comparing Industrial Cluster Cases to Define Upgrade Business Models for a Circular Economy. Dynamics of Long-Life Assets: From Technology Adaptation to Upgrading the Business Model. Springer, 2017. pp. 327-356
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    Simons, M 2017, Comparing Industrial Cluster Cases to Define Upgrade Business Models for a Circular Economy. in Dynamics of Long-Life Assets: From Technology Adaptation to Upgrading the Business Model. Springer, pp. 327-356. https://doi.org/10.1007/978-3-319-45438-2_17

    Comparing Industrial Cluster Cases to Define Upgrade Business Models for a Circular Economy. / Simons, Magnus (Corresponding author).

    Dynamics of Long-Life Assets: From Technology Adaptation to Upgrading the Business Model. Springer, 2017. p. 327-356.

    Research output: Chapter in Book/Report/Conference proceedingChapter or book articleProfessional

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    Simons M. Comparing Industrial Cluster Cases to Define Upgrade Business Models for a Circular Economy. In Dynamics of Long-Life Assets: From Technology Adaptation to Upgrading the Business Model. Springer. 2017. p. 327-356 https://doi.org/10.1007/978-3-319-45438-2_17