3. Business level & System Level SI

Question 1

What are the main attributes to a sustainable business model?

Answer 1

• Life cycle resource minimisation
• Multi functional products
• Distributed manufacture
• Meet needs, not wants
• Reusable or upgradable products

Question 2

What is a product service system?

Answer 2

A shift from only designing physical products, to designing a system of products and services.

Question 3

What are the advantages to product service systems?

Answer 3

• Fulfil customer needs in integrated and customized way
• Construct unique relationships with clients/enhance customer loyalty
• Follow clients needs better so can innovate faster

Question 4

What are the 3 categories of Product Service systems PSS?

Answer 4

1. Product orientated (aimed towards sale of products) e.g new car
2. Use orientated (product is never sold, remains company property - leased to customer) e.g lime bike

3.Results orientated (results agreed upon with no predetermined product involved) e.g post office

Question 5

What are the main drivers for change related to the energy business in SI?

Answer 5

Distributed energy systems (increasing share of renewables, increasing competition and digitalisation)

Opportunities (digitalisation allows for new business models beyond traditional energy generation.)

Response - New companies:

• regulated network ownership investment in renewable generation with consumer centric retail business.
• Both strategies focus on the end consumer market and renewables as a back bone for their business.

Question 6

Compare product innovators with value added enablers:

Answer 6

Product innovator changes to selling energy per hour, more consumer centric service position.

Value added enabler managing energy consumption based on customers preferences. Extends knowledge of energy providers to the customer.

Question 7

What Is the sharing economy? Give an example.

Answer 7

• Collaborative consumption.
• Economic model of sharing access to goods or services online.
• Airbnb

Question 8

What are the pros and cons of sharing economy?

Answer 8

Pros:

• Cheaper goods or services
• Extra income for providers
• New and better opportunities
• Stronger communities

Cons:

• Privacy/safety concerns
• No or few guarantees
• Cooperation with others

Question 9

What is System level sustainable innovation?

Answer 9

• Big picture
• Shifts a system (city, sector, economy)

Question 10

Give an example of system change.

Answer 10

Transition in the shipping world. Change from loose items to standard size container for boats and trucks.

Question 11

What are the 6 steps to system level change?

Answer 11

1. The need for change
2. Diagnose system
3. Create pioneering practices
4. Enable the tipping
5. Sustain the transition
6. Set the rules of the new mainstream

Question 12

What is circular economy?

Answer 12

• Value of materials or products is maintained in the economy for as long as possible
• Resources kept in economy when product reached end of life.

Question 13

What is the framework for circular economy? What are the guiding principles?

Answer 13

BS8001

1. Systems thinking - interaction of individuals with system
2. Innovation - constant innovation
3. Stewardship - organisations manage their impacts across their system
4. Collaboration - internal and external collaboration between companies
5. Value optimisation - products kept at their highest value at all times.
6. Transparency - organisations open about decisions

Question 14

What are the current challenges to circular economy?

Answer 14

• Inadequate support
• Current economic models are incompatible
• Business models favour linear systems