CIRCit Workbook 2: Circular Economy Business Modelling

Step 7 supports comparison and prioritisation
of different business model
configurations (task 7C) with an analytical
framework, based on: customer
value fulfilment, economic fulfilment,
and resource decoupling fulfilment.
Tips for facilitation
• Test prototypes of the value proposition
with key customers or end-users,
before starting this activity to
verify assumptions and eliminate
misbeliefs or biases.
Is there potential to make money?
Step 5 of the CEBM Configurator contains
the Economic Potential Calculator,
which supports the estimation of the
business model economic potential,
based on a cost-benefit analysis and
structured in a dynamic business case
framework. This means that depending
on the business model patterns
considered in your configurations (Step
4), different economic indicators will be
suggested by the CEBM Configurator to
compose the business case framework.
These indicators cover six categories:
• Financial factors - e.g. income tax,
depreciation and interest rates
• Market and demand assumptions
• Revenue sources
• Development costs (CAPEX)
• Recurrent costs (OPEX)
• Intangible benefits – e.g. improved
reputation with customers and
brand value.
The tool enables estimating the
economic potential for up to three different
business model configurations
at a time.
To present the final results and enable
comparison among different configurations,
the CEBM Configurator aggregate
the calculations in five composite
economic indicators.
Step 5 can also be used to compare
the sensitivity of variables for the same
configuration. Just repeat the three
configurations in Step 4 and you will
have three identical business case
frameworks in Step 5, which you can
populate with different input data for
some critical variables.
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