CIRCit Workbook 2: Circular Economy Business Modelling
This workbook provides a step-by-step approach and tools to support the creation of sustainable circular business models, based on a company’s position in the value chain, current and new products & services, best practice, success cases, and the company’s strategic goals. Questions that the workbook will help you to answer include: How ready are the internal business capabilities of your company, to enable the implementation of new concepts and pilot new business forms that are not based on single-transactional product sales? And how can your company conceive, develop and implement new Circular Economy business models?
This workbook provides a step-by-step approach and tools to support the creation of sustainable circular business models, based on a company’s position in the value chain, current and new products & services, best practice, success cases, and the company’s strategic goals. Questions that the workbook will help you to answer include: How ready are the internal business capabilities of your company, to enable the implementation of new concepts and pilot new business forms that are not based on single-transactional product sales? And how can your company conceive, develop and implement new Circular Economy business models?
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RETHINK AND RECONFIGURE
business model or value generation architecture
1 2 3
4 5 6
RESULT AND PERFORMANCE ACCESS AND AVAILABILITY LONG LIFE PRODUCTS
Result or
performance
agreements
Activity
management
agreements
Sharing /
pooling
platforms
Temporary
contract-based
services
1st life
Lifetime
Buy-back schemes
products
/ agreements
2nd life
Direct
reuse
1 2 3
4 5 6
RESTORE, REDUCE & AVOID
impacts in the areas of:
1 2 3
RECIRCULATE 4 5 6
parts & products
SWOT Matrix
Business overview and challenges for Circular Economy
Strengths
Weaknesses
change of paradigm
REINVENT
strive for full decoupling
1 2 3
4 5 6
RAW MATERIALS &
SOURCING
renewables
recyclable
materials
secondary source
sourcing
1 2 3
4 5 6
MANUFACTURING
lean manufacturing &
cleaner production
rework
(pre-user refurbishment
or remanufacturing)
recycle
(pre-user)
1 2 3
4 5 6
PRODUCT USE &
OPERATION
product longevity
low consumables
(energy, water, materials)
use idle product
capacity
reduced ‘value’
upgrade
repair & maintenance
reuse
refurbish
remanufacture
repurpose
1 2 3
RECIRCULATE 4 5 6
materials
Extend to new
Extend
use-cycles
existing
use-cycle
Internal
(current situation)
restorative
cascade
sourcing
(industrial symbiosis)
non-toxic &
recover
benign materials
(energy recovery, composting)
lowest suitable
grade
prevent excess use, improve efficiency, improve circularity potential
LOGISTICS
reduced ‘value’
recycle
(chemical & physical recycling)
cascade
(to other product system)
recover
(energy recovery / composting)
effective application
in end-of-life
Opportunities
Threats
External
(Future opportunities)
2.B
(i)
2.B
(ii)
2.B
(iii)
25
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