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Systematic Review - Network for Business Sustainability

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sustain growth without costly social and environmental<br />

impacts. The PSS approach successfully addresses<br />

sustainability issues in both developed and developing<br />

economies.<br />

In Practice<br />

Interface trans<strong>for</strong>med its business from<br />

selling carpets to offering a service package.<br />

It leased floor coverings and retained the<br />

responsibility <strong>for</strong> maintenance, such as<br />

replacing worn sections, thus avoiding<br />

the need to replace an entire carpet when<br />

a small section has worn through. This<br />

approach could potentially save Interface<br />

and its clients money, while reducing<br />

resource use. 16 Adapted from Carrillo-<br />

Hermosilla et al. (2010) and Joshi et al.<br />

(2008).<br />

Tukker (2004) discusses eight archetypical PSS<br />

business models in terms of their value added <strong>for</strong> the<br />

business and the extent to which the PSS generates<br />

fewer material flows and emissions than the competing<br />

product-oriented models. (See Appendix 5 <strong>for</strong> a<br />

diagram of the business models and their relations.)<br />

The complexity of PSSs varies, though typically they<br />

co-ordinate a firm’s long-term vision with a cluster of<br />

products, services, stakeholder groups, supporting<br />

networks and infrastructures (Luiten, Knot & Van Der<br />

Horst, 2001; Tukker, 2004).<br />

Tietze et al. (2011) argue that firms must master<br />

three complementary capabilities to support PSS<br />

development: a product development capability, service<br />

development capability and, most critically, a network<br />

infrastructure development capability.<br />

In Practice<br />

Grameen Telecom’s Village Phone Project<br />

provided telephone access to villagers <strong>for</strong><br />

whom private phone ownership was not<br />

possible due to lack of infrastructure <strong>for</strong><br />

land lines and prohibitively expensive cellular<br />

telephones. However, mobile telephones<br />

and a PSS model provided access <strong>for</strong> all<br />

villagers. Grameen Bank members took<br />

loans to lease or purchase mobile telephone<br />

sets and thus had the opportunity to start<br />

an additional business of providing mobile<br />

phone services in their village. Adapted<br />

from Singhal et al. (2008).<br />

2. Search <strong>for</strong> product innovation ideas in new areas:<br />

e.g. use biomimicry and engage with bottom-ofthe-pyramid<br />

customers<br />

Innovators can also draw inspiration <strong>for</strong> product<br />

innovation from nature. The term biomimicry (Benyus,<br />

1997) literally means “to imitate life.” As a design<br />

science, biomimicry recognizes that current life <strong>for</strong>ms<br />

are the result of 3.8 billion years of research and<br />

development and that natural organisms have survived<br />

by adapting to the planet’s diverse conditions. By<br />

learning from materials, behaviours and processes<br />

observed in the natural environment, innovators<br />

can extract design principles to help solve human<br />

sustainability issues (Chang, 2010). Examples of<br />

biomimicry-inspired innovation include the following:<br />

Innovating <strong>for</strong> <strong>Sustainability</strong> 50

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