How customer value is proposed in circular product as a service models?: Demonstrating a deconstruction tool in the textile industry

Päivi Petänen; Jouko Heikkilä; Maria Antikainen

How customer value is proposed in circular product as a service models? Demonstrating a deconstruction tool in the textile industry

Päivi Petänen (Corresponding author), Jouko Heikkilä, Maria Antikainen

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceedings › Scientific

Abstract

Purpose: This study investigates how customer value is proposed in the product as a service business models, that implement the principles of the circular economy. More specifically, the purpose of this study is to identify and characterize the manageable components of customer value propositions (CVPs) that reflect a company’s strategic value creation in circular service business models.

Design/Methodology/Approach: This paper adopts the deconstruction approach to systematically decompose the concept of CVPs in the product as a service model. To demonstrate the deconstruction of CVPs, a qualitative multiple case study is conducted in the context of the textile industry.

Findings: A framework for a deconstruction tool for proposing customer value in the product as a service model is suggested. A description of the elements of use, core of value points, elements of service, and core of customer value trade-off is presented as a result of the empirical study.

Originality/Value: This paper integrates frameworks from the circular service business models and CVP literature and contributesto the theoretical conceptualization of customer value and implications of servitization in the context of circularity.

Original language	English
Title of host publication	Achieving Net-Zero through Servitization
Subtitle of host publication	Spring Servitization Conference 2022 9 & 10 May 2022, Florence, Italy
Pages	19-27
ISBN (Electronic)	978-1-85449-805-2
Publication status	Published - 5 Sep 2022
MoE publication type	B3 Non-refereed article in conference proceedings
Event	Spring Servitization Conference, SSC 2022: Achieving Net-Zero through Servitization - Florence, Italy Duration: 9 May 2022 → 10 May 2022

Conference

Conference	Spring Servitization Conference, SSC 2022
Country/Territory	Italy
City	Florence
Period	9/05/22 → 10/05/22

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

https://cris.vtt.fi/admin/files/59830731/SSC2022_Proceedings_Final.pdf#page=28Licence: CC BY-NC

1 Finished

Telaketju 2 BF: Liiketoimintaa tekstiilien kiertotaloudesta
Järnefelt, V., Heikkilä, J., Antikainen, M., Petänen, P., Heikkilä, P., Harlin, A., Kamppuri, T., Lehto, J. & Saarimäki, E.
1/05/19 → 30/04/21
Project: Business Finland project

Cite this

Petänen, P., Heikkilä, J., & Antikainen, M. (2022). How customer value is proposed in circular product as a service models? Demonstrating a deconstruction tool in the textile industry. In Achieving Net-Zero through Servitization: Spring Servitization Conference 2022 9 & 10 May 2022, Florence, Italy (pp. 19-27) https://cris.vtt.fi/admin/files/59830731/SSC2022_Proceedings_Final.pdf#page=28

@inproceedings{76d47ca4657848baa3f31df9284e3bc6,

title = "How customer value is proposed in circular product as a service models?: Demonstrating a deconstruction tool in the textile industry",

abstract = "Purpose: This study investigates how customer value is proposed in the product as a service business models, that implement the principles of the circular economy. More specifically, the purpose of this study is to identify and characterize the manageable components of customer value propositions (CVPs) that reflect a company{\textquoteright}s strategic value creation in circular service business models. Design/Methodology/Approach: This paper adopts the deconstruction approach to systematically decompose the concept of CVPs in the product as a service model. To demonstrate the deconstruction of CVPs, a qualitative multiple case study is conducted in the context of the textile industry. Findings: A framework for a deconstruction tool for proposing customer value in the product as a service model is suggested. A description of the elements of use, core of value points, elements of service, and core of customer value trade-off is presented as a result of the empirical study. Originality/Value: This paper integrates frameworks from the circular service business models and CVP literature and contributesto the theoretical conceptualization of customer value and implications of servitization in the context of circularity. ",

author = "P{\"a}ivi Pet{\"a}nen and Jouko Heikkil{\"a} and Maria Antikainen",

note = "{"}The reviewing committee will invite successful authors to develop their extended abstract into a full conference submission.{"} This study was carried out as part of PaaS Pilots research project, funded by The Finnish Innovation Fund Sitra, and Telaketju2 research project, funded by Business Finland. The authors acknowledge project research partners and the companies who were willing to open their cases for research. ; Spring Servitization Conference, SSC 2022 : Achieving Net-Zero through Servitization ; Conference date: 09-05-2022 Through 10-05-2022",

year = "2022",

month = sep,

day = "5",

language = "English",

pages = "19--27",

booktitle = "Achieving Net-Zero through Servitization",

}

Petänen, P , Heikkilä, J & Antikainen, M 2022, How customer value is proposed in circular product as a service models? Demonstrating a deconstruction tool in the textile industry. in Achieving Net-Zero through Servitization: Spring Servitization Conference 2022 9 & 10 May 2022, Florence, Italy. pp. 19-27, Spring Servitization Conference, SSC 2022, Florence, Italy, 9/05/22. <https://cris.vtt.fi/admin/files/59830731/SSC2022_Proceedings_Final.pdf#page=28>

How customer value is proposed in circular product as a service models? Demonstrating a deconstruction tool in the textile industry. / Petänen, Päivi (Corresponding author); Heikkilä, Jouko ; Antikainen, Maria.

Achieving Net-Zero through Servitization: Spring Servitization Conference 2022 9 & 10 May 2022, Florence, Italy. 2022. p. 19-27.

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceedings › Scientific

TY - GEN

T1 - How customer value is proposed in circular product as a service models?

T2 - Spring Servitization Conference, SSC 2022

AU - Petänen, Päivi

AU - Heikkilä, Jouko

AU - Antikainen, Maria

N1 - "The reviewing committee will invite successful authors to develop their extended abstract into a full conference submission." This study was carried out as part of PaaS Pilots research project, funded by The Finnish Innovation Fund Sitra, and Telaketju2 research project, funded by Business Finland. The authors acknowledge project research partners and the companies who were willing to open their cases for research.

PY - 2022/9/5

Y1 - 2022/9/5

N2 - Purpose: This study investigates how customer value is proposed in the product as a service business models, that implement the principles of the circular economy. More specifically, the purpose of this study is to identify and characterize the manageable components of customer value propositions (CVPs) that reflect a company’s strategic value creation in circular service business models. Design/Methodology/Approach: This paper adopts the deconstruction approach to systematically decompose the concept of CVPs in the product as a service model. To demonstrate the deconstruction of CVPs, a qualitative multiple case study is conducted in the context of the textile industry. Findings: A framework for a deconstruction tool for proposing customer value in the product as a service model is suggested. A description of the elements of use, core of value points, elements of service, and core of customer value trade-off is presented as a result of the empirical study. Originality/Value: This paper integrates frameworks from the circular service business models and CVP literature and contributesto the theoretical conceptualization of customer value and implications of servitization in the context of circularity.

AB - Purpose: This study investigates how customer value is proposed in the product as a service business models, that implement the principles of the circular economy. More specifically, the purpose of this study is to identify and characterize the manageable components of customer value propositions (CVPs) that reflect a company’s strategic value creation in circular service business models. Design/Methodology/Approach: This paper adopts the deconstruction approach to systematically decompose the concept of CVPs in the product as a service model. To demonstrate the deconstruction of CVPs, a qualitative multiple case study is conducted in the context of the textile industry. Findings: A framework for a deconstruction tool for proposing customer value in the product as a service model is suggested. A description of the elements of use, core of value points, elements of service, and core of customer value trade-off is presented as a result of the empirical study. Originality/Value: This paper integrates frameworks from the circular service business models and CVP literature and contributesto the theoretical conceptualization of customer value and implications of servitization in the context of circularity.

M3 - Conference article in proceedings

SP - 19

EP - 27

BT - Achieving Net-Zero through Servitization

Y2 - 9 May 2022 through 10 May 2022

ER -

How customer value is proposed in circular product as a service models? Demonstrating a deconstruction tool in the textile industry

Abstract

Conference

UN SDGs

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Projects

Telaketju 2 BF: Liiketoimintaa tekstiilien kiertotaloudesta

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