Sustainable Business Model Innovations in the Value Uncaptured Manufacturing Industry: Fitting Gains—Gain Creators

Abstract

Increased manufacturing activity has an impact on environmental quality degradation. Waste generated from manufacturing activities is one of the causes. Previous studies have referred to this waste as value uncaptured. Minimizing value uncaptured is a solution to improve environmental quality. This study aims to reduce value uncaptured by converting it into value captured. This process requires a value proposition design approach because of its advantages. One of the advantages of this approach is that it can improve existing or future products/services. To do so, this research uses a case study of a furniture company. To implement a converting process, a sustainable business model is proposed to solve this problem. This business model combines several methods: value proposition design, house of value and the product sustainability index matrix. Recently, the existing value proposition problem-solving has been using the value proposition design method. This research proposed implementing a house of value to replace the fitting process. The questionnaire is developed to obtain various value uncaptured in the company. To the weight of the value uncaptured, this research utilized the pairwise comparison method. Then, the weights could represent the importance of jobs. Based on the highest weight of these jobs, the alternative gains would be selected. To provide the weight of the gain creators and value captured, the house of value method is developed. Referring to three pillars of sustainability, the value captured should be considered. This research proposed implementing a product sustainability index which in turn produces eco-friendly products. This study produces “eco-friendly products” as sustainability value captured. The sustainability business model could be an alternative policy to minimize the existence of value uncaptured.

Do SMEs actually know what Business Model Innovation is? Evidence from Switzerland.

“…López-Nicolás et al (2021) set the tone by contending that BMI is the deliberate, unique, and major change ushered unto the key components of the organisation's operational architecture. Burhan et al (2021) define BMI as the changes that are employed by established or new organisations to their value creation, value delivery, and value capture infrastructure in response to changing customer needs, changing times, and sustainability. From these definitions, it can be summarised that BMI is the change, whether holistic or atomistic, that is applied to the way organisations, whether existing or new, conduct their business.…”

Evolution of Business Models of Mining and Energy Sector Companies according to Current Market Trends

“…A sustainable business model (SBM) is a business model that contributes to sustainable development by ensuring a competitive advantage through the superior value offered to customers [14]. Here, the definition of SBM refers to all business activities that draw attention to the three pillars of sustainable development (profit, people, planet-3P) [15,16]. SBM, within the concept of sustainability, defines a company's ability to constantly learn, adapt and grow, organized, reconstruct and reorient.…”

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