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Services Innovation in a Circular Economy

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The Handbook of Service Innovation

Abstract

This chapter reviews various concepts captured under the term Circular Economy, drawn together from various service innovation perspectives. The circular economy is built on the principle that all intermediary outputs that are of no further use in the firm’s value-creating activities are provided as inputs into other firm’s value-creating activities. The chapter identifies complexities around monetising value, monetising non-monetary benefits, different attributes that consumers and customers’ value in the services space, and the substitution effects that services can have on product sales. From insights and methodologies developed in the service design area, combined with the ability to measure and compare alternative attributes from a value performance point of view, it is identified that further research is needed to facilitate both a higher adoption and a greater success rate among services developed. The chapter explores service innovation in the circular value chain as a growing domain of activity, and points towards a need for development of an appropriate business model framework within a circular economy for firms to engage in service innovation and delivery.

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Notes

  1. 1.

    for examples of such services see, e.g. Goedkoop et al. (1999), Hockerts (1999), Meijkamp (2000), Kerr and Ryan (2001), Mont (2002), Manzini and Vezzoli (2003), Mont (2004), Bourg and Buclet (2005); Sempels and Vandercammen (2009), Hu and Seliger (2013), Sempels and Hoffmann (2013).

  2. 2.

    a more detailed discussion can be found in, e.g. Chaves (2009), Bucolo and Matthews (2011a, b, 2012), Brunswicker et al. (2013), Matthews et al. (2013), Price et al. (2013).

  3. 3.

    And more examples in Burgman and Roos (2004), Garnett et al. (2006), Pike and Roos (2006), McCallum et al. (2007), Rødseth et al. (2007), Millar et al. (2010) and the details around the methodology is outlined in Pike and Roos (2004, 2007).

  4. 4.

    See Maxwell and Van der Vorst (2003), Durgin and Grierson (2005), O'Rafferty et al. (2009), Shih et al. (2009a, b), Moffat (2010), Adams et al. (2012), Anttonen (2012), Müller (2012), Thompson (2012), Trevisan et al. (2012), Bhamra et al. (2013), Jing and Jiang (2013), Komoto and Mishima (2013), Yang et al. (2013), Ceschin (2014), Kota and Chakrabarti (2014).

  5. 5.

    See also e.g. Wimmer et al. (2010), Henriksen et al. (2012), Joller (2012), Niemi and Burén (2012), Verhulst et al. (2012), Boons et al. (2013), Holgado et al. (2013), Jing and Jiang (2013a, b), Bocken et al. (2014), Sharpe and Agarwal (2014).

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    Göran Roos & Renu Agarwal

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  2. University of the Sunshine Coast, Queensland, Australia

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    Göran Roos

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Roos, G., Agarwal, R. (2015). Services Innovation in a Circular Economy. In: Agarwal, R., Selen, W., Roos, G., Green, R. (eds) The Handbook of Service Innovation. Springer, London. https://doi.org/10.1007/978-1-4471-6590-3_23

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