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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DOWNSTREAM ARCHITECTURE
Value proposition, delivery, and capture
Digital service packages and dematerialised solutions
Tracking and tracing products,
consumables, and materials
Maintenance management
and prediction
Management of
operational efficiency
Consumption rationalisation
or demand reduction
Performance-based services and solutions
Function as service
• in customisable time-based contracts
• per subscription
Products as collaborative
service in
• pooling platforms
• sharing platforms based on
transaction fee
• sharing platforms with listing fee
• sharing platforms with subscription
Activities management solutions
Access to products as services
Products as through-life care service in
• customisable time-based contracts (e.g. montly fee)
• customisable per-use contracts (e.g. pay-per-use)
• pre-configured packages (e.g. per subscription)
Long life & Next life products
Digital products
Experience or result
as service
Access to products in
• long-term contracts
(e.g. leasing)
• short-term contracts
(e.g. renting)
RETHINK AND RECONFIGURE
business model or value generation architecture
Lifetime products
Buy-back scheme of products based on
• deposit, reimbursement, or swapping systems
• vouchers, or discounts on next purchase
Product sales with through-life
care service packages
Trade of products for
direct reuse in platforms
Bio-based products from
cascaded ingredients
or nutrients
e.g. fertilisers from coffee
grounds, beer from bread
Additional services to add
new life cycles to products
Next-life products
e.g. refurbished,
remanufactured
Trade of surplus food or
agricultural production
in platforms
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