How Do Intelligent Goods Shape Closed-Loop Systems?

by Risto Rajala, Mika Westerlund, Esko Hakanen, Juri Mattila, Timo Seppala


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Abstract

Disruptive technologies can increase the intelligence of goods and revitalize business models in the circular economy. Applying an industrial ecology perspective, this article discusses how intelligent goods can boost the sustainability of industrial ecosystems. North American and European cases highlight how business model innovators can utilize goods-related information to develop more competitive closedloop systems. The authors identify three archetypes of closed-loop systems--inner circles, decentralized systems, and open systems--and delineate how they leverage information resources for collaboration. This study advances the understanding of closed-loop systems in the circular economy, which is more dependent than ever on digital platforms.

California Management Review

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