Functional sales in manufacturing industry for circular business models

Purpose and goal

The project´s aim has been to develop expertise in business model innovation at three industrial partners. Research aim was to further develop the existing theory of organizational prerequisites for implementation of- and methodology for development of product/service systems (PSS) in established manufacturing industry, especially functional sales for circular business models. The project was conducted as a collaborative research project between the three industrial partners and the two research units.

Expected results and effects

Greater and more nuanced understanding of the key factors behind the challenges and opportunities that mature machine manufacturing industries face when they want to increase their share of function / performance offerings. The results are documented in scientific publications and have been circulated through debate articles, seminars and videos. Expected effects: increased understanding on differences in management and organizational skills needed in threat-/competition-driven/incremental innovation versus the opportunity-driven, novel/radical innovation.

Planned approach and implementation

The project consisted of three work packages, two thematic and one on the dissemination of results. The two thematic work packages have included one focusing on methodology for development of function-based offerings, and one focusing on organizational conditions for the transition to functional sales. The project was conducted as a collaborative research project between industrial partners and research units. Knowledge was developed based on tools and theories tested and modified through practical application at the industrial partners.