A sustainability-oriented tool for evaluating servitization business models in the steel sector

Abstract

The need of undertaking effective actions against the climate change is pushing industrial companies to find new business models and technological solutions to reduce the resource utilization and the waste production. In this context, several companies are moving towards servitization, that has been proved as a promising strategy to enable sustainable business models in a wide spectrum, namely encompassing environmental, economic and social aspects. Nevertheless, companies lacks of tools for evaluating different servitization models with a clear view of economic and environmental benefits. This paper presents a model to estimate the profitability of servitization opportunities by combining economic Net Present Value index and environmental impacts estimation. The model is targeted on the steel sector, for which a preliminary application has been developed and is discussed in the paper. The results show that adopting different servitization business models, several benefits could be exploited both from providers and customers.