Title: Value creation for lifecycle based product development through the sustainable half-life return model

Authors: K. Daniel Seevers; Fazleena Badurdeen; I.S. Jawahir

Addresses: Lexmark International Inc., Lexington, KY, USA ' College of Engineering, University of Kentucky, Lexington, KY, USA ' College of Engineering, University of Kentucky, Lexington, KY, USA

Abstract: In product development, many organisations struggle to create a value proposition that can overcome the headwinds of technology change and regulatory requirements, while satisfying the longer term goals of sustainability. Current product development business models focus on financial return on investment, in the form of a narrow definition of the time value of money. This often leads to the lost portfolio value and the lack of visibility to sunk costs over the entire product lifecycle. This paper presents a value creation framework for three dependent stakeholders (consumers, producers and socio-environment) through the creation of the sustainable products value proposition and the half-life return models. These models integrate the time value of resources into the product delivery process, and show that shareholder value can be enhanced by improving the product design process and extend the life of product platforms.

Keywords: sustainable value creation; product design; product half-life; PHL.

DOI: 10.1504/IJPLM.2018.091656

International Journal of Product Lifecycle Management, 2018 Vol.11 No.1, pp.47 - 65

Received: 07 Mar 2017
Accepted: 14 Dec 2017
Published online: 10 May 2018 *

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