Integrated Facades as a Product-Service System: An innovative business model for the implementation of Circular Economies in the construction industry

Research output: Book/ReportReportOther research output

Abstract

The challenge of transitioning towards circular economic models requires a
broad reorganization of processes and responsibilities throughout an industry’s
supply chain. Such reorganization can no longer be solely conceptualized by
academics in diverse manufacturing fields, but must be developed and grounded
with the involvement of business-oriented industry partners who represent
the interests and concerns of real supply and demand side stakeholders. The
shift towards circular development starts at a strategic level, by identifying
the business potential of models that extend collaboration, reinforce customer
loyalty for suppliers and optimize performance-oriented services for clients.
This strategic decision must then trickle down their respective organizations
to include all technical, administrative and executive teams and facilitate the
creation of product-service combinations.

Alternative ownership and financing models are emerging, in line with the
principles of circular economies. These models are based on lower initial capital
investments, material ownership retention by suppliers, and the delivery of
buildings as living, dynamic and adaptable platforms, as opposed to current
enclosed and static constructions. The business processes underlying such a shift
in industrial culture can accelerate the rate and effectiveness of energy- and
resource-efficient building renovations by applying the principles of constant
vitalization of systems and components, thus future-proofing buildings and
extending their potential service-life indefinitely.

This report will describe a foundation roadmap towards the implementation of
circular, integrated façade systems, based on our team’s experience developing a
pilot project with the involvement of leading industry partners in the Netherlands.
The process will be described in sequence: starting with the creation of a pilot
supply chain and consortium; working through the integration of independent
technologies into physical and digital product packages which allow (de)
centralized control and management of smart, interconnected, performance delivering
products; and finishing with the new business scheme and value
proposition created by long-term collaboration between suppliers and clients.
Original languageEnglish
Commissioning bodyEIT Climate-KIC
Number of pages54
Publication statusPublished - 2016

Keywords

  • Facades-as-a-Service
  • Facade engineering
  • product-service systems (PSS
  • Circular Economy (CE)
  • Circular business models
  • integrated facades
  • energy transition
  • Built Environment
  • performance contracting

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