From Theory to Practice: A Holistic Process Model for Sustainable Product and Business Model Development in SMEs

Small- and medium-sized enterprises (SMEs) need accessible ways to integrate sustainability into product and business model development. This project report documents the UPGRADE initiative at Otto von Guericke University Magdeburg, funded by the German Federal Environmental Foundation. Building on Integrated Design Engineering and established methods, this project developed a four-phase process model, a guide, and digital toolkit content. Six partner-linked development case studies were conducted in three iterations of two parallel case studies, each lasting approximately 6 months, through supervised student seminars. Case study outputs, milestone discussions, and participant feedback informed iterative refinement. Six illustrative cases show how teams addressed reuse, urban water use, and renewable energy concepts while also revealing late application of assessment techniques, learning demands, and coordination difficulties. Evaluation forms provided limited evidence about the model itself; the findings therefore document practical application and product development lessons rather than validated effectiveness. Environmental considerations were addressed more explicitly than social and economic outcomes, and no comparable life-cycle or longitudinal impact assessment is reported. The main project achievement is an integrated set of practical development resources. Future work should examine independent SME use, record resource requirements, and assess sustainability and business outcomes against explicit baselines.