Abstract

Sustainability transition is becoming increasingly relevant at a manufacturing level, especially for resource- and energy-intensive industries. In addition, the 4.0 industry paradigm opens new opportunities in terms of sustainable development. The aim of this research is to analyze the introduction of sustainability in the corporate value proposition, through the evolution from a traditional to a sustainable business model. The business model innovation will be investigated in the case of a ceramic tile producer in the district of Sassuolo, Italy. The company has introduced several sustainability practices over the years and, through investments in Industry 4.0 technologies, is able to conduct impact assessments of its production process. The applied tool for the business model transition will be the Triple-Layered Business Model Canvas by Joyce and Paquin. The results illustrate the new company’s sustainable value proposition, considering all three pillars of sustainability: environment, economy, and society. Despite the limitations resulting from the individual case study, the findings can be easily adapted to other ceramic tile companies in the sector. Besides, the paper could inspire other manufacturing companies in the drafting of a sustainable business model. The paper explores the still limited literature on the application of sustainable business models in operational scenarios.

Highlights

  • In recent years, the theme of sustainability in manufacturing contexts has been assuming a primary role in the political agendas of many states and public opinion, the latter increasingly sensitive to the commitment of companies on this issue [1]

  • The perspective of a traditional business model canvas does not allow the reader to intuitively perceive the path of sustainability that a company is undertaking

  • The Triple-Layered Business Model Canvas (TLBMC) created by Joyce and Paquin [10] is a comprehensive choice to better represent the environmental and social point of view

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Summary

Introduction

The theme of sustainability in manufacturing contexts has been assuming a primary role in the political agendas of many states and public opinion, the latter increasingly sensitive to the commitment of companies on this issue [1] In response to this pressure, manufacturing companies have reacted by introducing new sustainability pathways in their production processes and they have increased the level of communication of these practices to customers and stakeholders [2]. The new industry 4.0 management and data collection tools, which are able to collect timely process data, can facilitate companies in the evaluation of the sustainability practices introduced [4] This sustainable transition process, facilitated by the industry 4.0 paradigm, is naturally based on the successful operational introduction of sustainability practices, but it cannot disregard the strategic evolution of the company in terms of value creation. Sustainability, if properly introduced and communicated, can change this value proposition and differentiate the product or brand from the competition [7]

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