Sustainability process innovations resulting in new value-added byproducts: principal lessons from second-order system-dynamics engineering (SOSDE)

Abstract

Purpose Second-order system-dynamics engineering (SOSDE) involves constructing and running enterprise manufacturing simulation models with new proposals for operational processes, byproducts, supply chain and/or downstream marketing designs. This paper aims to describe sustainability the principal lessons from enacting SOSDE research for achieving goals in large manufacturing firms. Design/methodology/approach This study is a case research commentary in the agricultural industry that contributes abductively derives six principal lessons from SOSDE research on introducing sustainability-focused manufacturing and product innovations. Operational processes in large-scale poultry processing plants in an emerging market represent the specific industry and firm domain of this case study. Alternative SOSDE simulation models of decisions, materials flow and outcomes with versus without operational innovations were constructed following one-to-one interviews with experienced farm managers and entrepreneurs. Findings The principles demonstrate how large farms in a developing nation (i.e. Bangladesh) go about adopting radically innovative manufacturing, supply chain and marketing operations to improve traditional operations. This study confirms and expands on the general observation that SOSDE can help achieve sustainability and environmental, social and governance goals, contribute new value outcomes by converting unused production wastes into valuable byproducts and introduce design efficiencies in production, supply chain and marketing processes. SOSDE complements, while being a revolutionary departure from, “six sigma management programs” that focus on achieving exceptional and near mistake-free manufacturing operations. Both represent distinct philosophies and sets of actions that sometimes can conflict with one another. Embracing both successfully in the same enterprise is a goal that may appear unreachable, seemingly impossible to achieve and yet represents a manufacturing/marketing epitome that is observable in exceptional enterprises. Research limitations/implications This paper may generate controversy as well as advance interest in applying SOSDE in introductions of improved manufacturing, supply chain and marketing operations aiming to accomplish radical improvements in sustainability goals. Practical implications This commentary describes how using SOSDE and running alternative production simulations with versus without including superior, radically new, process innovations enable the firm to find and eliminate glitches in system changes and reduce the fear associating with breakdowns and financial losses due to inadequate knowledge of operating new industrial procedures and outcomes. Social implications Introductions of superior radically new innovations in industrial manufacturing and marketing via SOSDE frequently include manufacturing firms embracing new environment sustainability objectives and additional marketable byproducts from the firm's main productions lines. This commentary offers details on how this process is enacted in poultry manufacturing in an economically emerging nation. Originality/value Running simulations in SOSDE research offers a low-cost, fast and in-depth method to test “what-if” impacts of enhanced and radical innovations into product/service manufacturing operations – benefits supporting the recommendation to apply systems dynamics in business and industrial marketing.