Sustainability Transition in Industry 4.0 and Smart Manufacturing with the Triple-Layered Business Model Canvas

Abstract

Sustainability transition is becoming increasingly relevant at a manufacturing level, especially for resource- and energy-intensive industries. In addition, the 4.0 industry paradigm opens new opportunities in terms of sustainable development. The aim of this research is to analyze the introduction of sustainability in the corporate value proposition, through the evolution from a traditional to a sustainable business model. The business model innovation will be investigated in the case of a ceramic tile producer in the district of Sassuolo, Italy. The company has introduced several sustainability practices over the years and, through investments in Industry 4.0 technologies, is able to conduct impact assessments of its production process. The applied tool for the business model transition will be the Triple-Layered Business Model Canvas by Joyce and Paquin. The results illustrate the new company’s sustainable value proposition, considering all three pillars of sustainability: environment, economy, and society. Despite the limitations resulting from the individual case study, the findings can be easily adapted to other ceramic tile companies in the sector. Besides, the paper could inspire other manufacturing companies in the drafting of a sustainable business model. The paper explores the still limited literature on the application of sustainable business models in operational scenarios.