A Vision For Industrial Symbiosis
A Vision For Industrial Symbiosis
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Research in Progress
Kosmol, Linda, TU Dresden, Dresden, Germany, [email protected]
Leyh, Christian, TU Dresden, Dresden, Germany, [email protected]
Abstract
Digital platforms, regarded as ecosystem enablers, and ecosystems themselves are currently fields of
action that are frequently addressed in research and in business practice. One area of interest in this
context is the concept of industrial symbiosis, which aims to create sustainable industrial ecosystems
through resource exchange and sharing. Platform-supported industrial symbiosis is considered a prom-
ising way to accelerate sustainable industrial development. However, the diffusion and maturity of both
industrial symbiosis and its corresponding platforms are still low in practice. This paper examines dig-
ital platforms developed specifically for industrial symbiosis. Different, currently neglected, issues lim-
iting the number/diffusion of these platforms in practice are derived and discussed. To address these
issues, we propose adoption of a platform ecosystem perspective, which is currently not present in in-
dustrial symbiosis research. Based on this, we present a novel idea: an industrial symbiosis platform
builder. Within this paper, we describe the concept of this tool and how it could lead to an industrial
symbiosis-specific platform ecosystem. At its core, the tool shall enable and support the development of
multiple different platforms for individual industrial ecosystems in a convenient way.
Keywords: Digital platforms, Industrial symbiosis, Eco-industrial parks, Ecosystems.
1 Introduction
The term sustainability has become omnipresent and a central issue also in discussions of industrial
development. In this context, industrial symbiosis aims to create industrial ecosystems by exchanging
or sharing underutilized resources (material, energy, logistics, capacities, knowledge, etc.) between
companies in geographic proximity, yielding economic, environmental and societal benefits (Lowe,
1997; Chertow, 2000; Lombardi and Laybourn, 2012). Generally, ecosystems are networks of interact-
ing organizations or individuals that form mutually beneficial (symbiotic) relationships (Moore, 1996;
Chertow, 2000; Tsujimoto et al., 2018). They form a community of entities linked by common values
and processes that enable them to participate in (co-)value creation beyond their own capabilities. Ac-
cordingly, industrial ecosystems are characterized by the common pursuit of a sustainable industry.
These days, ecosystems in combination with digital platforms receive large attention in business practice
and research. Digital platforms leveraging information technology (IT) can facilitate the aforementioned
interactions between different actors (e.g., resource buyer and supplier) in order to create, share or ex-
change value of any form, whether it be property, physical goods, monetary value, information, or rep-
utation (Iansiti and Levien, 2004). Platforms are therefore seen as a means of facilitating industrial sym-
biosis (Scafá et al., 2018). Since industrial symbiosis is a very information- and knowledge-intensive
domain (Grant et al., 2010; Kosmol, 2019), in particular the ability of platforms to enable and support
the exchange of (real-time) information and knowledge while reducing transaction costs leads to an
increasing interest in them. However, the diffusion and maturity of industrial symbiosis platforms (ISPs)
are still low in practice for manifold reasons. Many ISPs are no longer operational (Grant et al., 2010;
Maqbool et al., 2018). Although IT support for industrial symbiosis is studied (e.g., Maqbool et al.,
2018; Yeo et al., 2019b), often only its functionality is examined. Research on design aspects of ISPs
and their implications for platform-driven industrial symbiosis in practice is scarce. Especially, the role
of the platform provider and platform management, the actual contribution of ISPs to the creation of
industrial ecosystems, and their implementation in existing industrial structures and processes are insuf-
ficiently investigated (Benedict et al., 2018; Kosmol, 2019).
Since industrial and platform ecosystems have different theoretical backbones, key concepts and actors
both remain separated. However, applying a platform ecosystem perspective, that is, shifting the focus
from the platform toward the “on- and offline ecosystem” that interacts with or emerges from it, may
support the creation of industrial ecosystems and the related platform (ecosystems) (Benedict et al.,
2018). In addition, this perspective may promote the collaboration of companies and raise the motivation
to invest in related IT infrastructure leading to sustainable platforms. Therefore, we have launched a
long-term research project (for detailed research steps see Kosmol and Leyh, 2020) aiming at the design
of an IT artifact to mitigate and overcome informational and managerial issues in industrial symbiosis.
Within this research project, we follow the design science paradigm, specifically the approach of Peffers
et al. (2007). In previous studies, we have identified problem areas of industrial symbiosis—in particu-
lar, informational and managerial issues—that can be addressed in information systems research through
IT artifacts (Kosmol, 2019; Kosmol and Otto, 2020) and have confirmed them empirically (Kosmol and
Leyh, 2020) (Identify Problem & Motivate). In a further study (Benedict et al., 2018), we investigated
the current solution space—the ISPs—and presented first conceptual design guidelines (Define Objec-
tives of a Solution). In the present paper, we deepen the investigation of ISPs by identifying further
points to be considered for designing ISPs and extend the scope of our platform concept from a technical
viewpoint (Design & Development) and address the following research questions (RQs):
• RQ1: How are (existing) industrial symbiosis platforms discussed in the literature?
• RQ2: How could industrial symbiosis (platforms) benefit from a platform perspective to facili-
tate sustainable industrial ecosystems and corresponding IT support?
The paper is structured as follows. Section 2 presents a short theoretical background on industrial sym-
biosis and digital platforms. Section 3 addresses RQ1, first describing the design of our literature review
before presenting and discussing the results. Section 4 proposes an IT artifact—the industrial symbiosis
platform builder (ISPB)—as a first answer to RQ2. Section 5 concludes the paper with future steps.
2 Theoretical background
Industrial symbiosis is a subarea of industrial ecology that studies material and energy flows in indus-
trial systems. By applying the principles of circular economy and optimizing material and energy flows,
sustainable industrial systems/networks – ‘industrial ecosystems’ – are created (Frosch and Gallopoulos,
1989; Lowe and Evans, 1995). Industrial symbiosis aims to create such ecosystems through regional
cross-industry collaboration between companies. This collaboration encompasses all (business) models
of interfirm exchange or sharing of underutilized resources such as material, energy, logistics, capacities,
space, expertise, and knowledge (Chertow, 2000; Neves et al., 2019). This concept is realized through
different models: self-organized (bottom-up), planned (top-down) and facilitated (intermediary)
(Chertow and Ehrenfeld, 2012; Paquin and Howard-Grenville, 2012). In this context, a platform-driven
approach toward industrial symbiosis can be regarded as a facilitated model. Depending on the business
model and form of implementation, intermediaries (e.g., third-party logistics providers or treatment
plants) and coordinators (e.g., research institutes or municipalities) are involved in addition to resource
providers and consumers (Benedict et al., 2018).
Industrial symbiosis is often associated with eco-industrial parks (EIPs) in which companies adopt
symbiotic behavior and commit to sustainable development (Lowe and Evans, 1995; Park et al., 2008).
Through this collaboration, this community of co-located businesses becomes an industrial ecosystem
(Ehrenfeld and Gertler, 1997; Lowe, 1997). The two concepts—industrial symbiosis and EIPs— are
often equated, but they differ in terms of geographical scope, actors and practices (Lowe et al., 1996;
Chertow and Park, 2016; Neves et al., 2019). This differentiation is important as it implies differences
in the platform that is required or suitable in terms of users, functionality, governance, etc.
The term platform is used inconsistently in science and practice. In this paper, we refer to digital plat-
forms that are, from a technical viewpoint, an “extensible codebase of a software-based system that
provides core functionality shared by the modules that interoperate with it and the interfaces through
which they interoperate“ (Tiwana et al., 2010, p. 676). Such platforms are increasingly perceived as
management and economic concepts that create value by acting as an intermediary or digital broker
between different actors with different interests (Evans et al., 2011; Tsujimoto et al., 2018).
Within the context of platforms, the ecosystem perspective is increasingly being adopted, leading to the
introduction of the platform ecosystem, in which the platform additionally mediates the relationship
between third parties who complement the platform (Iansiti and Levien, 2004). In line with the defini-
tions above, a platform ecosystem is about the community and business environment, not just the plat-
form, which is a tool or particular way an ecosystem is organized to interact and create value. Key roles
in a platform ecosystem are platform providers, demand-side and supply-side users (Eisenmann et al.,
2009). Platform providers provide and own the technical infrastructure (e.g., software developer). They
are responsible for the existence of a platform and the growth of the platform ecosystem evolving around
the platform. Individuals/organizations are either demand-side or supply-side users. Demand-side users
(e.g., resource buyer) consume, use and/or access the value created by and on the platform, while supply-
side users are third parties that create complements offering additional value through collaboration with
platform owners (e.g., plugin developers). Supply-side users access so-called boundary resources (e.g.,
APIs), which are provided by the platform owner, to develop new applications based on the platform
(Ghazawneh and Henfridsson, 2013).
3.1 Procedure
To obtain an overview of platforms in current industrial symbiosis research and thus to address RQ1,
we conducted a systematic literature review following the steps of Fettke (2006) who proposes a sys-
tematic procedure (problem statement (see Section 1), literature search, literature evaluation, literature
analysis, presentation) similar to other researchers (e.g., vom Brocke et al., 2009).
Search: The databases Scopus, AISeL, IEEEXplore and Web of Science were queried with the follow-
ing search string in the title, abstract and keywords: ("industrial symbiosis" OR "eco-industrial park"
OR "industrial ecosystem") AND (platform AND [digital OR web OR online OR ICT OR information]).
Evaluation: Removing duplicates resulted in 78 articles of which the full texts were screened to deter-
mine their relevance. Articles were considered relevant if the investigated industrial ecosystem ad-
dressed material and energy flows within the manufacturing industry, and if digital platforms were dis-
cussed in this context. Applying these criteria, we excluded 11 articles because they were not relevant;
23 articles as they focused on other ecosystems (e.g., software ecosystem); and 13 articles because they
only pointed out that platforms are relevant for industrial symbiosis without going into detail.
Analysis: To analyze the contributions of the remaining 31 articles from a methodological viewpoint,
we followed the categorization of Malhotra et al. (2013), who divide the value space of research into
four groups: conceptualize (review papers, conceptual frameworks, etc.), analyze (case studies, empiri-
cal analyses, etc.), design-oriented (design science), and impact-oriented (action research, impact of use,
etc.). To investigate the design of ISPs, we further analyzed the contents of the papers in terms of plat-
form features (e.g., components) and design choices (e.g., access). After these contents were extracted,
they were discussed among the authors and affiliated researchers.
3.2 Results
Table 1 lists all investigated articles. Please note that some articles refer to the same ISP. Regarding the
value space of research, little research is being done in the areas of analysis and impact. From twelve
conceptual papers, four are reviews of IT tools for industrial symbiosis (see Halstenberg et al., 2017;
Maqbool et al., 2018; van Capelleveen et al., 2018; Yeo et al., 2019b), examining the different tool
types, supported industrial symbiosis phases, shortcomings, etc. The term platform is used for various
IT tools for industrial symbiosis (e.g., social network platform, knowledge repository, online waste mar-
ket, synergy identification system) without a specific definition. Some researchers refer to ISPs as ‘in-
formation platforms’ as they create interoperable, integrated and shared information and knowledge
bases by multiple actors to collaborate (e.g., Chen and Feng, 2012; Migliore et al., 2020). Articles of the
category analysis are primarily case studies demonstrating how the developed ISP works. An exception
is the article by Fric and Rončević (2018), which presents the results of a survey on industrial symbio-
sis/circular economy. However, this survey contains only one question about ISPs. This question ad-
dressed the willingness of 25 industrial actors to use an ISP, if it was available. Nineteen of the 25
participants (four abstentions) were in favor of ISPs, regardless of their current involvement in industrial
symbiosis. However, the platform was not specified.
the continuous management of a park and the creation of interorganizational information systems (e.g.,
Qin and Guo, 2011). In addition, most platforms support exchange- rather than sharing-based synergies.
Only five platforms were actually developed and put to use, and two were prototypes. The role of a
facilitator introducing a platform or coordinating activities on it is mentioned in only four articles but
without further explanation. Although different user groups (e.g., resource provider/owner, technology
provider, researcher) are distinguished in the various platform concepts, their permissions and access to
the platform (components) are rarely discussed. Access to the platforms is often not specified or enabled
via self-registration. However, the level of openness has implications for platform utilization. For ex-
ample, it can be assumed for an EIP that only park members can use the platform. The park size would
accordingly determine the number of potential users, which in turn would affect the usefulness and
economy of the platform. Only Cutaia et al. (2015) describe a restrictive approach. A registered user
may search for resources, but only associated users, who offer information about their resources, are
allowed to use the full functionality of the platform. The role of a facilitator introducing a platform or
coordinating activities on it is mentioned in only four articles but without further explanation. The role
of the platform provider is also neglected and not specified. Most tools are developed with public fund-
ing (Maqbool et al., 2018), with the developers usually being research institutes (e.g., Cecelja et al.,
2015), and are rarely cooperative projects between research institutes and software developers (e.g.,
Stirna et al., 2016). Although the platforms are provided and operated by the developers, this seems to
be limited to the funding period. Furthermore, ISP development effort and economics are unclear (time,
cost, etc.). A platform ecosystem perspective is adopted in only one paper (Benedict et al., 2018). How-
ever, such a perspective could contribute to mitigating the fragmented nature of available tools support-
ing industrial symbiosis that operate in isolation of each other (Yeo et al., 2019b). Reuse and integration
into existing information infrastructures is not a topic of discussion even though most ISPs have similar
objectives and components, and work with the same types of data (e.g., waste quantity).
Although each ISP has its own unique features, all contain similar platform components. The majority
enable communication and sharing of information in order to support synergy identification and assess-
ment (Maqbool et al., 2018). Therefore, the main component of an ISP is a matching module. Various
matching algorithms (e.g., inference engines) dealing with the same kind of data are used for this pur-
pose. The platforms contain various databases and (ontology-based) knowledge repositories that provide
a basis to match resource providers and consumers. In some cases, the knowledge base is predefined
and only extensible by the developers (e.g., Cecelja et al., 2015), whereas in other cases it can be col-
laboratively extended by users of the platform (e.g., Enipedia). This knowledge base is a distinctive
feature compared to other platforms in other areas (e.g., Sharing Economy). Some platforms also pro-
vide databases of general information for practitioners, such as case study data. Many concepts for EIP
platforms also include technological (e.g., cleaner production information) and policy information (e.g.,
Guo et al., 2014) intended to help park operators planning and managing the industrial park. Since
matching only enables the identification of potential partners, some ISPs provide a market function that
enables the transactions necessary for the realization of the exchange. Thus, two-sided markets are cre-
ated. Social network applications (e.g., forum or event calendar) are fairly new components with regard
to ISP. Their aim is to support information and knowledge exchange between different actors in the
community and to connect people with similar interests (Ghali et al., 2016). Management functionalities,
such as reporting and real-time monitoring, are primarily included in EIP platforms.
the time, workforce and competencies to deal with industrial symbiosis, let alone to design a platform
from scratch for an existing (eco)system (Golev et al., 2015; Kosmol, 2019).
2. Design flexibility: Suitability and adaptability to a region and its actors seem to play subordinate
roles. Many approaches are based on the idea that a large range of services or functions will lead to a
better platform. However, not every function is necessarily relevant or desirable for each system and its
actors. One size does not fit all. Moreover, a system that is not imposed but is jointly devised may
encourage cooperation between companies and convince them to participate in an exchange of unused
resources in any form (e.g., materials, energy, knowledge). Design capability and flexibility are prob-
lems that were confirmed to us by industrial experts.
3. Platform sustainment: The role of the platform owner/provider responsible for platform sustaina-
bility is hardly addressed in the literature (as discussed in Benedict et al., 2018). The analysis of IT tools
and ISPs by Maqbool et al. (2018, p. 11) shows that successful tools are those developed by “facilitators
whose core business is coupled with the development of such a tool,” indicating that clear ownership by
a third party and continuous improvement is advisable. In addition, many ISPs do not provide support
beyond initial tasks (e.g., synergy identification) and are thus obsolete in the further course of the de-
velopment of synergies and industrial ecosystems. Against the backdrop that synergies often already
exist, especially in industrial districts, ISPs should support the management of existing synergies. This
can also be a starting point to motivate companies to use ISPs.
4. Strategic embeddedness: Being able to construct an ISP does not necessarily mean that companies
will use it. It seems hard to convince multiple companies to participate in industrial symbiosis. Technical
factors determine whether the potential for cooperation exists, but people turn that potential into reality.
This problem cannot be overcome by a platform per se. However, instead of isolating ISPs, their inte-
gration into existing processes and interfaces to information systems can push their use (Kosmol, 2019).
3. Build it yourself – an individual ISP can be developed with a company’s or park’s own resources.
However, the problems mentioned (issues 1 to 3) may occur.
To address and solve these issues, we propose an approach that combines all three aspects: A platform
provided and maintained by a knowledgeable third party (2) providing interfaces to or integrating exist-
ing tools (1) and offering tools and services to create individual platforms and marketplaces (3). We call
this tool the “Industrial Symbiosis Platform Builder” (ISPB) (Figure 1). This concept is not new per se.
IT technologies to build such a system exist but have not yet been applied to industrial symbiosis. Hence,
the main challenge is to apply it for industrial symbiosis and organize the affected industrial ecosys-
tem(s). The ISPB aims to support a more convenient and individual platform development according to
a specific setting and the needs of a community leading to a higher diffusion of industrial symbiosis
(platforms) and the reuse of already developed ISP components. Thus, both EIPs and industrial symbi-
osis communities spread across a broader region can be supported by one or more platforms.
The ISPB offers different modules (e.g., matching, analysis, exchange market, social network) that can
be integrated into a platform and added or removed as needed, enabling platform customization. As
ecosystems are characterized by evolution, they may require additional services over time. Hence, the
supporting platform should be adaptable. Furthermore, the platform must support operational activities
and analysis to maintain synergies and improve current practices. Otherwise, it may become obsolete.
In addition, by feeding back declassified (synergy) data into a repository, analyses and statistics can be
made available for eligible external entities, such as researchers or policymakers, who in turn can con-
tribute to regional development or the industrial symbiosis (research) community.
In the case of an industrial symbiosis network with open geographic boundaries, a participant-to-partic-
ipant interaction, that is, direct interaction, is required, whereas in an EIP, a facilitator model should be
chosen in addition. The facilitator model supports collaboration and the establishment of a network by
employing project management and collaboration software. The primary role of the facilitator, which
may be the EIP operator or a policymaker in a certain region, is to collect information, make knowledge
accessible and encourage cooperation through participatory processes (Grant et al., 2010).
In order to create a platform ecosystem, the platform must provide tools for third-party developers (e.g.,
software developers or researchers) to add complementary services to the platform and services for de-
mand-side users. Platforms must be open to innovation through supply-side users by providing appro-
priate boundary resources (e.g., information and interoperability standards) (Tiwana, 2013). Economic
viability for the platform provider and attractiveness of a platform to potential users results from com-
plementary assets that are generated by supply-side users creating a self-sustaining ecosystem
(Ghazawneh and Henfridsson, 2013). Providing these may counteract the currently isolated tool devel-
opments. Hence, the platform provider plays a crucial role providing the ISPB and the technical infra-
structure to host platforms built via the ISPB. Furthermore, the platform provider is responsible for
maintenance and continuous improvement of the tool. As highlighted by Maqbool et al. (2018), the
platform provider should be someone whose core business is the provision of the platform. This would
ensure the design capability of the platform owner and platform sustainment. Demand-side users of the
built platforms are the park operator and park members (resource providers, consumers and intermedi-
aries) in the case of an EIP or industrial actors in the case of industrial symbiosis networks. Especially
in the case of an EIP, the park operator would have an economic self-interest in discovering and facili-
tating new opportunities for synergies, finding suitable new industries and managing the park. An ISP
for an EIP may be easier to embed into an overall strategy of the park and its associated members.
Another important role is the platform constructor—the entity building the platform with the ISPB uti-
lizing design flexibility. Depending on the size, structure and willingness of the setting, the entity in
charge may differ. In an industrial park, the role can be performed by the park operator. In an industrial
area without operator, the constructor can be a local company. Alternatively, the platform provider con-
structs the platform according to the wishes of the industrial actors or other entities. Another option
would be the construction of a platform by researchers or political entities in the region. Moreover, it
seems valuable to enable the flow of information and knowledge and thus link the different regions/plat-
forms and the entities therein (Kosmol, 2019). In all scenarios, users need to cooperate to determine the
modules of the platform. Although the constructor may act as coordinator, it is important that the indi-
vidual actors can use the platform themselves.
Platform Environment Business Environment
Industrial Park
ISPB M1 c c PO
instance of PM
M2 Platform 1 PM
Module 1
ppl - PM
APIs M4 PM
Module 2 ide er
Platform
B ilder
Tool Module 3 pro ide
C
Industrial
M1 C
Area
instance of
Module n Platform 2
C
M3 P
da a/
f a
Repositor
External
M5
Entities
instance of Platform 3 P
Infrastructure M6
M= d e, PO = a e a , PM = a e be ,
platform pro ider demand-side users
C=c a , R = e ea che , P = c a e
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