A Playbook for Sustainable Growth with Circular Economy Business Models!
I. Understand the Importance of the Circular Economy
Any business that wants to succeed, find new growth opportunities and improve risk management should seize the opportunities of the circular economy
The circular economy (CE) helps us to adapt to five key changes:
1. Climate change and biodiversity loss
2. Regulation and policy
3. Customer-orientation and changing consumption
4. Technology and data
5. Economic rationale
What does the changing business environment mean to companies?
1. License to operate
2. Efficiency and resilience
3. Growth and differentiation
II. Unlock the Circular Opportunities
The global economy is highly inefficient. Only 8,6% of it operates according to circular economy principles. The typical inefficiencies in the value chain include:
1. Unsustainable use of materials
2. Underused capacity
3. Short product lifetime
4. Wasted end-of-life value
5. Not getting the most out of customer relationships
Added value can be created through:
1. Growing revenues
2. Enhancing the brand
3. Reducing costs
4. Reducing risks
III. Define your Circular Economy Business Model
CE business models include:
1. Circular inputs
2. Sharing platforms
3. Product as a service
4. Product life extension
5. Resource recovery
Challenges with implementing circular economy business models are:
1. Internal: implementing new business models requires new capabilities, change in mindsets and internal resourcing.
2. Customers: certain business models require a change in how customers use them, for example buying a service instead of a product
3. Ecosystem: holistically transforming the value chain to the circular economy and closing material loops can't be done alone.
IV. Assess the Cspabilities Needed for Circularity
If a company wants to transform its business towards a circular economy, it should identify the most important capabilities for circular economy and strengthen those in which the company still has shortcomings.
The core capabilities
1. Organisation and culture
2. Functions and innovations
3. Circular economy ecosystem
V. Take Action
A: Test and validate
What: An agile startup-style method to quickly test, learn and validate whether your idea creates value
Who: For companies that want to move fast, focus on adding value and tolerate failure, uncertainty and risk.
Outcome: A successful pilot or lessons learned from what didn't work
B: Vision and roadmap
What: A forward-looking strategic approach to integrating the CE in your strategy
Who: Companies that want to integrate the CE holistically into their strategy.
Outcome: The definition of your preferable circular future and actions driven by strategy that get you there
Check out the playbook by Sitra here: https://lnkd.in/e72MJF2t
#innovation #sustainability #circulareconomy #suplychain #strategy #businessmodelcanvas
I. Understand the Importance of the Circular Economy
Any business that wants to succeed, find new growth opportunities and improve risk management should seize the opportunities of the circular economy
The circular economy (CE) helps us to adapt to five key changes:
1. Climate change and biodiversity loss
2. Regulation and policy
3. Customer-orientation and changing consumption
4. Technology and data
5. Economic rationale
What does the changing business environment mean to companies?
1. License to operate
2. Efficiency and resilience
3. Growth and differentiation
II. Unlock the Circular Opportunities
The global economy is highly inefficient. Only 8,6% of it operates according to circular economy principles. The typical inefficiencies in the value chain include:
1. Unsustainable use of materials
2. Underused capacity
3. Short product lifetime
4. Wasted end-of-life value
5. Not getting the most out of customer relationships
Added value can be created through:
1. Growing revenues
2. Enhancing the brand
3. Reducing costs
4. Reducing risks
III. Define your Circular Economy Business Model
CE business models include:
1. Circular inputs
2. Sharing platforms
3. Product as a service
4. Product life extension
5. Resource recovery
Challenges with implementing circular economy business models are:
1. Internal: implementing new business models requires new capabilities, change in mindsets and internal resourcing.
2. Customers: certain business models require a change in how customers use them, for example buying a service instead of a product
3. Ecosystem: holistically transforming the value chain to the circular economy and closing material loops can't be done alone.
IV. Assess the Cspabilities Needed for Circularity
If a company wants to transform its business towards a circular economy, it should identify the most important capabilities for circular economy and strengthen those in which the company still has shortcomings.
The core capabilities
1. Organisation and culture
2. Functions and innovations
3. Circular economy ecosystem
V. Take Action
A: Test and validate
What: An agile startup-style method to quickly test, learn and validate whether your idea creates value
Who: For companies that want to move fast, focus on adding value and tolerate failure, uncertainty and risk.
Outcome: A successful pilot or lessons learned from what didn't work
B: Vision and roadmap
What: A forward-looking strategic approach to integrating the CE in your strategy
Who: Companies that want to integrate the CE holistically into their strategy.
Outcome: The definition of your preferable circular future and actions driven by strategy that get you there
Check out the playbook by Sitra here: https://lnkd.in/e72MJF2t
#innovation #sustainability #circulareconomy #suplychain #strategy #businessmodelcanvas
