HOW CAN THE CIRCULAR ECONOMY CREATE VALUE FOR YOUR BUSINESS?
THE OPPORTUNITY FOR BUSINESS
Our current economic model is inefficient. Much of what we produce ends up in landfill, with only a fraction (circa 5%) of the value we put into making things recovered after use.
With a finite level of resources, volatile commodity prices, and a growing consumer middle class, business cannot keep doing business the same way.
This is more than an existential threat to businesses. Companies thinking differently, thinking circular, are finding ways of creating value now. Creative thinking about business models based on service propositions, and capturing the embedded value in products are helping companies like Philips, Renault, British Sugar, and Brambles compete in markets in new ways.
We believe the Circular Economy will increasingly be a disruptive force, and that businesses need to understand the opportunities and threats it presents. They need to rethink, and transform, and they need to do that now before they get left behind.
THE CIRCULAR ECONOMY MODEL
Today’s economy is primarily linear, and follows a ‘take, make, use, and dispose’ model, relying on large quantities of cheap, easily accessible materials and energy.
A Circular Economy is restorative and regenerative by design, and aims to keep products, components and materials at their highest utility and value at all time. They do this by focusing the entire product value-chain on:
• Reusing, refurbishing and recycling;
• Maximizing inherent value in products and by-products;
• Reducing material and energy costs;
• Consumption of services rather than purchasing assets.
THE BENEFITS TO BUSINESS
Globally, CircularEconomy could save $700B in material costs alone, annually (World Economy Forum 2014). Adopting circular principles could mean you will:
• Access additional value from your materials and assets – create new sources of wealth;
• Apply more efficient operating models – reduce operating costs;
• Develop longer term service-based relationships with end consumers – build customer intimacy;
• Create opportunities for financial returns with less risk – attract more investment;
• Attract consumers and employees who care about their global impact – enhance your brand;
• Foster deeper collaboration across value chains – identify new opportunities;
• Create less waste in a world with finite resources – build in resilience.
HOW WE CAN HELP YOU
We can help you start implementing the Circular Economy.
Our time-bound and focused Circular Economy Assessment Toolkit can help you identify what the opportunities are for your business. We will:
• Inspire and gather people to raise awareness of the Circular Economy, and opportunities using proven techniques for innovation and design
• Prioritize the opportunities based on potential value, sector readiness, and the potential of technology
• Develop prioritized opportunities and assess their feasibility
• Justify and develop the commercial case to seek funding to deliver the opportunity.
We can then help you deliver the opportunities, drawing on our breadth and depth or our sector and service capabilities:
• Define new circular business models – assess market opportunities, design new customer value, propositions, tilt from product to service orientation, develop circular two-way processes and systems;
• Create new service experiences – design new customer experiences, ‘sensorise’ products, visualize and interpret ‘big data’, develop new pricing and revenue models;
• Design products for upgrade and disassembly – identify and asses new technologies and IP, product tear-down and lifecycle assessment, design for upgrade and disassembly, redesign packaging;
• Reinvent manufacturing – new production techniques and technologies, the process for disassembly and re-manufacturing, improvement of throughput, cost and waste;
• Collaborate with partners – establish effective partnering across the supply chain, and cross-industry, renegotiate contracts, optimize reverse logistics and distribution, digitize the supply chain;
• Make it happen – accelerate early-stage technology development, make the investment case, rapidly deliver out of the ordinary transformation in an agile way, engage leaders and staff to think circular.