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.

Converging business, sustainability, and technology is a challenge that manufacturing firms face to create value and be competitive. Energy- and raw material-intensive manufacturing industries are particularly aware of environmental issues and circular economy practices due to the large amounts of resources they use. However, manufacturing companies must also be mindful of economic sustainability in order to make their business profitable. For this, appropriate economic evaluation tools are needed, one of which is life cycle costing (LCC). LCC, when applied to the manufacturing context, is often considered as a simple extension of the life cycle assessment (LCA). This is the main limitation of LCC, as it only contributes to determining the economic value of environmental damage. This research aims to overcome this limitation, analyzing the Italian ceramic tile manufacturing sector as a case study in order to conceptually develop, through the abductive methodology, a calculation framework that extends the potential of LCC by including circularity parameters. Subsequently, the conceptual framework is empirically validated using sectoral industrial costs by configuring two scenarios (with and without circularity practices) and building a benchmark for individual firms in this industry. Finally, the research includes some considerations on the positive implications and potential of life cycle costing in an open innovation context.

In manufacturing, Industry 4.0 operating models enable greener technologies. Thanks to digital technologies, environmental sustainability and organizational competitiveness are mutually reinforcing. The challenge for manufacturing organizations is to understand and quantify the magnitude of this synergistic action, and the holistic perspective of life cycle assessment tools may be a solution to the problem. Organizational Life Cycle Assessment (O-LCA) unlike Product Life Cycle Assessment (LCA) is still an under-researched methodology with few applications in manufacturing contexts. This paper aims to fill this gap by implementing and validating O-LCA in the case of an Italian ceramic tile manufacturer. Following the O-LCA guidelines and exploiting Industry 4.0 technologies to perform the inventory analysis, the environmental assessment was conducted in three different plants, comparing the sum of the partial impact results with the overall results scaled to the whole organization. The experimental results demonstrated the validity of the organizational approach as an appropriate methodological option to obtain relevant information on environmental performance that, being based on empirical evidence, better support decision-making processes. Furthermore, the study provides empirical evidence of how Industry 4.0 is an enabler not only for the adoption of greener technologies, but especially for facilitating the organizational environmental impact assessment that is the necessary condition in order to set up and maintain greener manufacturing contexts.

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