Circular business and design opportunities
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This presentation was created for the CIRCO track "Creating Business Through Circular Design". It presents business models and design strategies based on circular economy principles. The content is based on work of Circle Economy, TU Delft and Oxford. clicknl.nl/circo
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Circular business and design opportunities
- 2. BUSINESS THROUGH CIRCULAR DESIGN CIRCO ELEVATES DESIGN TO A SYSTEMS LEVEL STRIVES TO MAINTAIN PRODUCT INTEGRITY IS ABOUT CYCLING AT A DIFFERENT PACE EXPLORES NEW RELATIONSHIPS AND EXPERIENCES WITH PRODUCTS IS DRIVEN BY DIFFERENT BUSINESS MODELS In the research of the book “Products That Last” 5 principles for circular design are identified: CIRCULAR DESIGN
- 3. BUSINESS THROUGH CIRCULAR DESIGN CIRCO remaining owner of materials - material is not lost and residual material value can be retrieved improved competitive position - increases competition and declining margins in traditional markets - maintain and gain new market shares, customers and profits green image long term contracts improve relationship life cycle costs may drop - products with longer life times and easier to repair - possibility to upgrade and access to latest technology - less unexpected costs (replacement of disfunctional product) green image discontinuation of ownership, responsibility & risk producer / supplier customer BENEFITS
- 5. BUSINESS THROUGH CIRCULAR DESIGN CIRCO LABOURENERGYMATERIALS VALUE CREATION PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USERMINING/ MATERIAL MANUFACTURING RECAPTURING VALUE
- 6. BUSINESS THROUGH CIRCULAR DESIGN CIRCO PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER LANDFILLMINING/ MATERIAL MANUFACTURING VALUE DESTUCTIONLABOURENERGYMATERIALS VALUE CREATION RECAPTURING VALUE
- 8. BUSINESS THROUGH CIRCULAR DESIGN CIRCO LONGER USE EFFICIENT USE RE-USE PRODUCT/PARTS RECYCLING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER LANDFILLMINING/ MATERIAL MANUFACTURING RECAPTURING VALUE
- 9. BUSINESS THROUGH CIRCULAR DESIGN CIRCO LONGER USE EFFICIENT USE RE-USE PRODUCT RE-USE PARTS RECYCLING MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL RECAPTURING VALUE
- 10. BUSINESS THROUGH CIRCULAR DESIGN CIRCO LONGER USE EFFICIENT USE RE-USE PRODUCT RE-USE PARTS RECYCLING MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL RECAPTURING VALUE Products that last
- 12. BUSINESS THROUGH CIRCULAR DESIGN CIRCOBUSINESS THROUGH CIRCULAR DESIGN CIRCOLONGER USE STRATEGIES LONGER USE MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL CLASSIC LONG LIFE MODEL Primary revenue stream generated from sales of high qualtity product with a long lifespan at a high price point.
- 13. BUSINESS THROUGH CIRCULAR DESIGN CIRCOBUSINESS THROUGH CIRCULAR DESIGN CIRCOLONGER USE STRATEGIES LONGER USE MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL CLASSIC LONG LIFE MODEL HYBRID MODEL Primary revenue stream generated from repeat sales of dedicated consumables, like soap and detergent cartridges.
- 14. BUSINESS THROUGH CIRCULAR DESIGN CIRCOBUSINESS THROUGH CIRCULAR DESIGN CIRCOLONGER USE STRATEGIES LONGER USE MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL CLASSIC LONG LIFE MODEL HYBRID MODEL GAP EXPLOITER MODEL Primary revenue stream generated from providing repair services or sales of refurbished units.
- 15. BUSINESS THROUGH CIRCULAR DESIGN CIRCOBUSINESS THROUGH CIRCULAR DESIGN CIRCOLONGER USE STRATEGIES LONGER USE MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL DESIGN FOR ATTACHMENT & TRUST The product design encourages the user to become attached to a product and enables long use.
- 16. BUSINESS THROUGH CIRCULAR DESIGN CIRCOBUSINESS THROUGH CIRCULAR DESIGN CIRCOLONGER USE STRATEGIES LONGER USE MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL DESIGN FOR ATTACHMENT & TRUST The product design ensures optimum product reliability. Ideally the durability should match its economic and stylistic lifespan. DESIGN FOR DURABILITY
- 17. BUSINESS THROUGH CIRCULAR DESIGN CIRCOBUSINESS THROUGH CIRCULAR DESIGN CIRCOLONGER USE STRATEGIES DESIGN FOR ATTACHMENT & TRUST DESIGN FOR DURABILITY LONGER USE MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL DESIGN FOR EASE OF MAINTENANCE & REPAIR Construction enables easy repair by the customer or repair service. Less durable components must be accessible for repair and exchange.
- 19. BUSINESS THROUGH CIRCULAR DESIGN CIRCO EFFICIENT USE MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL BUSINESS THROUGH CIRCULAR DESIGN CIRCOEFFICIENT USE STRATEGIES ACCESS MODEL Primary revenue stream generated from providing a washing machine to a customer for a limited period of time or a fixed amount of wash cycles.
- 20. BUSINESS THROUGH CIRCULAR DESIGN CIRCOBUSINESS THROUGH CIRCULAR DESIGN CIRCO EFFICIENT USE MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL EFFICIENT USE STRATEGIES ACCESS MODEL PERFORMANCE MODEL Primary revenue stream generated from providing the service of cleaning clothes. The product being used stays in the ownership of the company.
- 21. BUSINESS THROUGH CIRCULAR DESIGN CIRCOBUSINESS THROUGH CIRCULAR DESIGN CIRCO EFFICIENT USE MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL EFFICIENT USE STRATEGIES DESIGN FOR DURABILITY DESIGN FOR EASE OF MAINTENANCE & REPAIR DESIGN FOR EASY USE The product is only being used and not owned by by the user. Therefore the design should be as self explainatory as possible.
- 23. BUSINESS THROUGH CIRCULAR DESIGN CIRCOBUSINESS THROUGH CIRCULAR DESIGN CIRCO RE-USE PRODUCT RE-USE PARTS MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL RE-USE STRATEGIES BUY BACK MODEL BUY BACK MODEL In order to regain the product with it‘s embedded value, the company buys it back or trades the old product for a discount on a new model.
- 24. BUSINESS THROUGH CIRCULAR DESIGN CIRCOBUSINESS THROUGH CIRCULAR DESIGN CIRCO RE-USE PRODUCT RE-USE PARTS MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL RE-USE STRATEGIES BUY BACK MODEL CASCADE MODEL BUY BACK MODEL Alternative sourcing of materials and using the output of one company as the input of another.
- 25. BUSINESS THROUGH CIRCULAR DESIGN CIRCOBUSINESS THROUGH CIRCULAR DESIGN CIRCO RE-USE PRODUCT RE-USE PARTS MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL RE-USE STRATEGIES BUY BACK MODEL CASCADE MODEL A second revenue stream can be generated by re-selling used products. Either by second hand dealers or the original company. RE-SELL MODEL BUY BACK MODEL
- 26. BUSINESS THROUGH CIRCULAR DESIGN CIRCOBUSINESS THROUGH CIRCULAR DESIGN CIRCO RE-USE PRODUCT RE-USE PARTS MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL RE-USE STRATEGIES DESIGN FOR REVERSE SYSTEMS Material choice and construction should be suited for the reverse systems. This includes collection mechanisms and reuse/recycle treatment.
- 27. BUSINESS THROUGH CIRCULAR DESIGN CIRCOBUSINESS THROUGH CIRCULAR DESIGN CIRCO RE-USE PRODUCT RE-USE PARTS MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL RE-USE STRATEGIES DESIGN FOR REVERSE SYSTEMS DESIGN FOR STANDARDISATION & COMPATIBILITY Enables replacement or reuse of components and allows collaborative use of products or production and recovery machinery.
- 28. BUSINESS THROUGH CIRCULAR DESIGN CIRCOBUSINESS THROUGH CIRCULAR DESIGN CIRCORE-USE STRATEGIES DESIGN FOR REVERSE SYSTEMS DESIGN FOR STANDARDISATION & COMPATIBILITY RE-USE PRODUCT RE-USE PARTS MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL DESIGN FOR ADAPTABILITY & UPGRADABILITY Implies to incorporate possibilities to change a product and keep it ‘up to date’.
- 30. BUSINESS THROUGH CIRCULAR DESIGN CIRCO RECYCLING MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL CIRCOBUSINESS THROUGH CIRCULAR DESIGN RECYCLING STRATEGIES DESIGN FOR DIS- & REASSEMBLY In order to maintain material quality product need to be diassembled into pure materials. Reassembly enables reuse of the product and parts.
- 31. BUSINESS THROUGH CIRCULAR DESIGN CIRCO RECYCLING MINING/ MATERIAL MANUFACTURING PARTS MANUFACTURER PRODUCT MANUFACTURER BRAND/ COMPANY USER RECOVERY STRATEGIES RECOVERY FACILITY MATERIAL CIRCOBUSINESS THROUGH CIRCULAR DESIGN RECYCLING STRATEGIES DESIGN FOR DIS- & REASSEMBLY DESIGN FOR MATERIAL RECYCLING Materials have to be recycable with todays technology. Only if the recycling procedure requires less energy and expense than virgin material it‘s economically beneficial.
- 32. BUSINESS THROUGH CIRCULAR DESIGN CIRCO door concrete movable fixed stock infrastructure consumable soap battery textile furniture mobile phone washing machine car wearable usable consumer electronics household appliances transportation carrier product single use mono product complex product multi use PRODUCT TYPOLOGY PRODUCT CHARACTERISTICS Example Price Embodied value Complexity Maturity Lifetime Effective use
- 34. BUSINESS THROUGH CIRCULAR DESIGN CIRCO CUSTOMER NEED CUSTOMER NEED BUSINESS MODEL BUSINESS MODEL PRODUCT DESIGN PRODUCT DESIGN MATERIAL MATERIAL CONSTRUCTION CONSTRUCTION PRODUCTION PRODUCTION THINK IN SYSTEMS LINEAR PRODUCT CREATION CIRCULAR PRODUCT CREATION
- 35. BUSINESS THROUGH CIRCULAR DESIGN CIRCOCIRCOBUSINESS THROUGH CIRCULAR DESIGN
- 37. 1 2 3 4 THE MATCHING GAME Philips Pay Per Lux Spotify Instead of selling light bulbs, Philips recently started providing LED lighting as a service. Philips will pay the upfront costs of installation and be compensated through a performance contract – the energy savings the retrofit produces. For customers this means that they can adopt energy-efficient lighting without the hurdle of large upfront costs. Philips recycles existing equipment and installs efficient lighting, remaining the owner of the lighting after installation. The firm then pays customer energy bills and recycling costs at the end of the equipment’s life. Spotify is a commercial music streaming service. The application is available on desktop, tablet, and smartphone. In the application it is possible for users to browse music by artist, album, genre, playlist, or record label. Users are also able to integrate the application with their Facebook and Twitter accounts. Users register with the program as either free or premium account members. A monthly subscription fee is paid for the premium account, which provides users with the benefit of ad-free listening and the ability to download music to listen to offline. Clip business models and design strategies that you think have been applied to the case description. Explain why you chose these icons. Choose that model that you think is most/less circular. How could these cases become more circular? CLASSIC LONG LIFE MODEL PERFORMANCE MODEL BUY BACK MODEL BUY BACK MODEL CASCADE MODEL SELL MORE FASTER DESIGN FOR ATTACHMENT & TRUST DESIGN FOR DURABILITY DESIGN FOR EASE OF MAINTENANCE & REPAIR DESIGN FOR MATERIAL RECYCLING DESIGN FOR REVERSE SYSTEMS DESIGN FOR EASY USE