ABSTRACT
Operations is the doing part of a business, be it providing an interactive service or transforming raw materials into a valued product and subsequently recovering the technical and biological materials to be reused or naturally recycled. The chapter introduces circular business models that address the entire life cycle, which is contrasted with the traditional linear model of ‘take–make–waste’. Directions for improvement are explored, together with case evidence, acknowledging the importance of technology in enabling a trade-off-free transition.
The theory of performance frontiers is used to convey the importance of understanding trade-offs and how technology can enable higher environmental performance at lower cost. However, more importantly, the theory identifies that the actual performance is found to significantly lag, due in large part, to inherent inertia in realigning policies, measurements, and behaviours (PMB). This theory originally emerged to explain the importance of realigning PMB in the adoption of flow management systems, such as the Toyota Production System/Lean, and is included here as similar issues apply as we widen our systems perspective further when dealing with the environment. The chapter concludes that service-driven business models provide an exciting challenge to operations management, but the main constraint is the speed with which business and society are able to embrace the new paradigms made possible by the existing as well as future technologies.
