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Smart Circularity in Manufacturing: Value Propositions from Five Industrial Use Cases
Mälardalen University, Faculty of Engineering and Health Sciences, Department of Engineering Sciences. Abo Akad Univ, Turku, Finland..ORCID iD: 0000-0002-7512-4425
Mälardalen University, Faculty of Engineering and Health Sciences, Department of Engineering Sciences.ORCID iD: 0009-0005-0923-4174
Mälardalen University, Faculty of Engineering and Health Sciences, Department of Computer Science & Engineering.ORCID iD: 0000-0002-3548-2973
Lulea Univ Technol, Lulea, Sweden..
2026 (English)In: 12TH SWEDISH PRODUCTION SYMPOSIUM, 2026, IOP PUBLISHING LTD , 2026, Vol. 1342, article id 012035Conference paper, Published paper (Refereed)
Abstract [en]

The manufacturing sector is undergoing a paradigm shift driven by the dual imperatives of sustainability and digital transformation. The convergence of circular economy strategies and advanced digitalization-often described as Smart Circularity-offers new pathways for creating economic, environmental, and social value simultaneously. However, translating Smart Circularity into concrete industrial practices remains a challenge, particularly within the manufacturing sector. This study addresses this gap by examining one of the key starting points in business modelling: the kind of value a company creates for its customers through its products and services, commonly referred to as the value proposition. The paper explores how manufacturing companies conceptualize and approach Smart Circularity through the design of value propositions that are embedded in manufacturing systems and lifecycle activities. The study is based on qualitative data consisting of semi-structured interviews with five companies and two multi-company workshops involving ten organizations. The analysis identifies three overarching value propositions that characterize Smart Circularity in manufacturing: (1) Smart life extension and circular services, (2) Sustainable material and digital integration, and (3) Circular intelligence and system integration. Together, these value propositions form the basis of a proposed guiding model that connects material circularity, product longevity, and digital intelligence within manufacturing systems into a single systemic framework for Smart Circularity. The findings contribute to the emerging discourse on smart circular economy and circular manufacturing by providing a preliminary empirical understanding of how firms can operationalize Smart Circularity through production-oriented, data-driven approaches to circular value creation.

Place, publisher, year, edition, pages
IOP PUBLISHING LTD , 2026. Vol. 1342, article id 012035
Series
IOP Conference Series-Materials Science and Engineering, ISSN 1757-8981
Keywords [en]
Smart circular economy, Digital technologies, Business model innovation, Value proposition design
National Category
Production Engineering, Human Work Science and Ergonomics
Identifiers
URN: urn:nbn:se:mdh:diva-78655DOI: 10.1088/1757-899X/1342/1/012035ISI: 001803535300035OAI: oai:DiVA.org:mdh-78655DiVA, id: diva2:2088748
Conference
12th Swedish Production Symposium-SPS-Leading the Transformation towards net Zero Industry, MAR 24-26, 2026, Lulea, SWEDEN
Available from: 2026-07-29 Created: 2026-07-29 Last updated: 2026-07-29Bibliographically approved

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Chirumalla, KoteshwarNagendra, NithinAl-Dulaimy, Auday

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