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Evaluating circular business model innovation tools

Using the QuickScan Circular Business Models as case study

Published onJun 20, 2023
Evaluating circular business model innovation tools
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Maerhaba Yishake*, Timber Haaker
1 Saxion University of Applied Sciences, [email protected]
2 Saxion University of Applied Sciences, [email protected] 
* Corresponding author: [email protected]

Abstract

Developing a practical and effective business model innovation tool (BMIT) can be very challenging (Ebel et al., 2016). It involves aspects such as functionalities, user friendliness, time spent on the tool, effect of the tool, accessibility and etc. Transforming and visualizing the QuickScan Circular Business Models white paper written by Jan Jonker, Niels Fabels and Timber Haaker, to the excel circular business model innovation tool (CBMIT) needed and still needs continue collaboration and fine tuning together with the authors and with the users. It needs testing, reexamining and possibly redesigning.

In this paper, two evaluation instruments are used in evaluating the QuickScan tool; taxonomy of functions and a checklist for CBMI tool development. The results of these evaluations have provided some insight in improving and upgrading the QuickScan. The goal of this paper is to explore the possibilities in upgrading and making this tool more user friendly and effective, which have already been done to some level when the QuickScan tool was adapted to the building industry by the end of 2022. The thorough evaluation of the QuickScan based on existing theories, frameworks, taxonomies and user experiences can not only provide more solid base for redesigning the tool but also contribute to the further advancement of circular business model innovation tools which are more effective in speeding up the circular transition.

Keywords

QuickScan, business model innovation tools (BMIT), circular economy, circular business model innovation tools (CBMIT), tool evaluation

Extended abstract

Introduction

The increasing demand for circular business practices is driven by resource shortages and the move towards a more sustainable future (Schroeder et al. 2019). Companies therefore need to adapt their business models quickly and take a more active role in creating values beyond the economic value with less harmful effects on the environment (Lewandowski, 2016). In this transition, CBMITs can help to visualize and communicate the business logic and the circular transitions, such as the new QuickScan CBM tool (Bocken, 2019).

According to the Dutch National Circular Economy Programme 2023-2030 (2023), time is ticking on organizing a circular economy and achieving the Dutch national ambition of becoming fully circular by the year 2050. It is an collaborative effort to make the adjustments we need to make our economy more circular, sustainable and future proof. BMITs in general can play an important role in making the right decisions by visualizing the choices needs to be made by the companies (McGrath, 2010), at the same time BMITs can contribute to the efficiency and effectiveness of the transition process (Szonpinski, 2020). Yet, not many studies have been done about the effectiveness and functions of the BMITs (Szonpinski, 2020) and since the makers of the tools mostly do not apply the theoretical and empirical knowledge regarding business model development the BMITs are not reaching their full potential as supporting tools (Ebel et al., 2016).

There are many different varieties of business model innovation tools such as printed cards, templates, websites, apps and software (Athanasopoulou & De Reuver, 2020). However, many of the business model innovation tools take the form of a template very similar to the business model canvas developed by Osterwalder and Pigneur (Bocken, 2019). The QuickScan tool developed in the excel is therefore different from other most commonly available and used tools for business model innovation focusing on circularity. As one of the emerging CBMITs the QuickScan tools focuses on the keys components of circular business models and provides an approach in developing a circular business model (Jonker et al. 2021). The QuickScan tool has already been applied in serval occasions solely or in combination with other tools such as the business model template and the circular loop designer. Users, registered and unregistered of the website businessmodellab.nl, can access these tools and other business model tools through the dedicated webpages for each tool available both in English and in Dutch. The English webpage of the QuickScan tool has been visited 613 times with 521 views from 1 Jan.2022-11 Feb. 2023, see Appendix 1.

So far, the QuickScan has been used in facilitated workshops by the research group circular business model of Saxion University of Allied Sciences. Based on our experience until now, there are still several challenges in using the QuickScan tool. First of all, the QuickScan is a relatively comprehensive tool combining a questionnaire and several different models related to circularity which makes it fairly difficult to use for people without prior knowledge and without guidance. Secondly, excel can be less inviting for people who do not use this software regularly and the appearance of the tool can be less appealing. Thirdly, most of the tools use the form of a template as the starting point, whereas the QuickScan results are presented on the excel sheet similar to a template.

Theoretical background

Taxonomy and checklist for evaluation.

Taxonomy of functions

Figure 1 Taxonomy of functions for business model development tools (Szopinski, 2020)

The functions of the QuickScan tool can be analysed by using taxonomy. According to Szonpinski (2020), It is hard to determine which functions a BMIT should have. Based on our experience we could determine which functions are available in the QuickScan tool and which functions could be added in the future.

Checklist for CBMI tool development

Table 1 checklist for CBMI tool (Bocken,2019)

1.The tool is purpose-made for CBMI.

2.The tool is rigorously developed—from both literature and practice insights.

3.The tool is iteratively developed and tested with potential users.

4.The tool integrates relevant knowledge from different disciplines.

5. The final tool version has then been used by practitioners, preferably multiple times , and an evaluation of this process is done to assess tool use and usefulness.

6.The tool provides a transparent procedure and guidance on how others can use the tool.

7.Circular economy or broader sustainability objectives and impact are firmly integrated into the tool and safeguarded when tool application is facilitated by others than the tool developer.

8.The tool is simple and not too time-consuming.

9.The tool inspires or triggers (business) change.

10.The tool is adaptable to different (business) contexts.

The above checklist will be applied in doing the first check of the current state of QuickScan tool and in determining the next steps of upgrading and redesigning the tool.

The research objective

The research objective of the paper is to evaluate the QuickScan tool based on existing theories, frameworks, taxonomies and user experiences and to find out how this tool can be further developed, fine-tuned and redesigned focusing on effectiveness and functions.

Research design

To evaluate and improve the QuickScan tool, desk research is mainly applied in exploring different instruments of evaluating BMITs and CBMITs. Existing taxonomy, checklist and frame works are applied in evaluating the functions and effectiveness of the tool.

Preliminary results

The QuickScan tool has been analysed using the taxonomy and the checklist:

Results taxonomy

Green: available functions
Orange: functions which could be added
Dark orange: functions which do not exist
Light blue: undefined

Results checklist

1.The tool is purpose-made for CBMI.

x

2.The tool is rigorously developed—from both literature and practice insights.

x

3.The tool is iteratively developed and tested with potential users.

4.The tool integrates relevant knowledge from different disciplines.

x

5. The final tool version has then been used by practitioners, preferably multiple times , and an evaluation of this process is done to assess tool use and usefulness.

6.The tool provides a transparent procedure and guidance on how others can use the tool.

x

7.Circular economy or broader sustainability objectives and impact are firmly integrated into the tool and safeguarded when tool application is facilitated by others than the tool developer.

x

8.The tool is simple and not too time-consuming.

9.The tool inspires or triggers (business) change.

x

10.The tool is adaptable to different (business) contexts.

x

Items 3, 5 and 8 are not chosen because there is not enough evidence to support these claims. These items need to be verified in the next stage of the research.

Discussion

There are limited existing instruments, being taxonomy, checklists and frameworks to help evaluating BMITs and CBMITs. The taxonomy used in this paper is limited to the functions of the tool but less about the effectiveness. The checklist is relatively comprehensive and can be implemented in the designing, evaluating and upgrading stages of the of the CBMITs.

An interdisciplinary approach is needed in combining knowledge about business model development and designing interactive tools. De designers lack the theoretical knowledge about business models and researchers lack design skills and understanding of the tooling aspect of business models innovation (Ebel et al., 2016).

The results of taxonomy and the checklist can be used in generating a questionnaire for further quantitative research on the functions and the effectiveness of the tool. The taxonomy and the checklist can also contribute to the questions for a semi-structured or structured interview for further qualitative research of the QuickScan tool.

Conclusion

Evaluating BMITs and especially evaluating CBMITs has a great potential and not have been carried out in systematic way. There are limited literature and frameworks available on evaluating and redesigning CBMITs and BMITs in general. Results of taxonomy and the checklist needs to be tested and verified by the users to ultimately come up with some improvement suggestions and recommendations.

References

Athanasopoulou, A., & de Reuver, M. (2020). How do business model tools facilitate business model exploration? Evidence from action research. https://doi.org/10.1007/s12525-020-00418-3/Published

Bocken, N., Strupeit, L., Whalen, K., & Nußholz, J. (2019). A Review and Evaluation of Circular Business Model Innovation Tools. Sustainability 2019, Vol. 11, Page 2210, 11(8), 2210. https://doi.org/10.3390/SU11082210

Ebel, P., Bretschneider, U., & Leimeister, J. M. (2016). Leveraging virtual business model innovation: a framework for designing business model development tools. Information Systems Journal, 26(5), 519–550. https://doi.org/10.1111/ISJ.12103

Jonker, J., Faber, N., & Haaker, T. (2021). QuickScan Circulaire Businessmodellen Inspiratie voor het organiseren van waardebehoud in kringlopen.

McGrath, R. G. (2010). Business models: A discovery driven approach. Long Range Planning, 43(2–3), 247–261. https://doi.org/10.1016/j.lrp.2009.07.005

Nationaal Programma Circulaire Economie | 2023 - 2030. (2023). Nationaal Programma Circulaire Economie 2023 - 2030 | Beleidsnota | Rijksoverheid.nl

Schroeder, P., Anggraeni, K., & Weber, U. (2019). The Relevance of Circular Economy Practices to the Sustainable Development Goals. Journal of Industrial Ecology, 23(1), 77–95. https://doi.org/10.1111/jiec.12732

Szopinski, D., Schoormann, T., John, T., Knackstedt, R., & Kundisch, D. (2020). Software tools for business model innovation: current state and future challenges. Electronic Markets, 30(3), 469–494. https://doi.org/10.1007/S12525-018-0326-1/TABLES/7

Appendix

Appendix 1: google analytics Quickscan tool English webpage (1 Jan.2022-11Feb. 2023)

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