MINI-WORKSHOP “CREATING BUSINESS THROUGH CIRCULAR DESIGN”

JEANNETTE LEVELS (LBP|SIGHT)CIRCULAR ECONOMY BOOSTER HAARLEM, 8 JUNI 2018

1750 1800 1850 1900 1950 2000

Population

CO2 Concentration

Ozone depletion

Water use

Species extinction

Northern Hemisphere

average surface

temperature

Foreign investment

Loss of tropical rainforest & woodland

Fisheries exploited

GDP

Paper Use

Motor vehicles

Source: Adapted from:

The New Scientist. WRI, WHO,

World Bank, OECD Factbook 2013

2050

EXPONENTIAL GROWTH?

anthropocene

SCARCITY

LINEAR BUSINESS

#valuehill

CIRCULAR BUSINESS

#valuehill

VISION Circular Economyis the accumulated result of

Circular Entrepreneurshipstarts with the development

and market introduction of

Circular Propositionsare being developed, using

Circular Designof products, services

and business models

by closely cooperating in a

“Closing the Loop” Context

APPROACH

• Goal: helping companies to start

with circular entrepreneurship

• “Creating business through

circular design”

• 3 one-day workshops

• 10 companies, 2p per company

• Results: circular value

proposition: product, service

and/of business model, and

• Implementation Road Map

SOME PARTICIPANTS (200+ NOW, SINCE 2015)

PLAN FOR THIS WORKSHOP

• Learning by Doing

• Touching new paradigms

• Apply circular (re)design process• to your product

• (or a consumer productyou’re familiar with)

• Scope:

• Product

• Service

• Business model

• Pressure cooker

FIVE STEPS IN PRESSURE COOKER

1. Identify value loss of a product (moments, places)

2. Choose an opportunity

3. Apply circular business models

4. Apply circular design strategies

5. Choose your next step

VALUE LOSS

EXAMPLE OF VALUE LOSS: JEANS

• Ecological value

• Economic value

Jeans

Use phase

• “Fast fashion”, short cycles

• Out of fashion before end of technical lifecycle

• Mis-buy / mis-fit: keep it in the closet

• Jeans repair: seldom

End-of-life

• Jeans stay in the closet

• Thrown away

• Bulk collection

STEP 1: IDENTIFY VALUE LOSS

• Choose a (your?) product

• Identify moments of value loss,

from the moment of sales,

to ‘end of life’

• Note these down at (1)

LOOK DIFFERENTLY

EVERY MOMENT OF

VALUE LOSS

INCLUDES AN OPPORTUNITY FOR

NEW BUSINESS

BUSINESS OPPORTUNITY: JEANS EXAMPLE

Focus on longer use

• Make jeans more personal, for longer use,

create closer ‘attachment’ to product

• Claim/organize the “next life” (2nd hand) market

Focus on end-of-life

• Collect discarded jeans, for re-use of product

or material (textiles), lower your production

costs, deepen your customer relation by

communicating Values

• How to foster longer use?

• How to increase the value of the

product / material ?

• How to re-gain and re-use the

product / component /material?

• ...

STEP 2: CHOOSE AN OPPORTUNITY TO

WORK ON

• Reflect on the moments of Value Loss (step 1)

• Which moment of value loss contains the

biggest opportunity for new business?

• Note this one down

PRODUCTS THAT LAST

• Result of 3 yr study Technical University Delft / IDE

• Book offers good working structure for companies that

want to start with circular entrepreneurship:

• 5 archetypes business models

• 6 design strategies

5 CIRCULAR BUSINESS MODEL ARCHETYPES

Product

Service

Sell more, sell faster

1. Classic long-life model

2. Hybrid model

3. Gap-exploiter model

4. Access model

5. Performance model

BM1: CLASSIC LONG LIFE

Miele long life washing machine

Product

Service

What?

Sell a high quality

product, often with

high margin

Why Circular?

Long life products

Taurus refurbished milking robots

Product

Service

What?

- Repair service

- Second hand use

- Efficient reversed logistics

Why circular?

-prevent value loss by refurbishing

and sales of product, component

and/or materiaal

-product stays longer on upper

layers of Value Hill

BM3: GAP EXPLOITER MODEL

Rolls-Royce leasing aircraft engines by force/hour

Product

Service

What?

Offers the function of the

product as a service, NOT

selling the product.

Why Circular?

Provider stays responsible for

the product during full lifecycle.

leads to more efficiency, cost

control, (remote monitoring and)

better maintenance, and end-of-

life management

BM5: PERFORMANCE MODEL

STAP 3. APPLY CIRCULAR BUSINESS MODELS

JEANS EXAMPLE: Gap exploiter

• Buy jeans back after use

• Clean and Repair jeans

• Sell jeans on “next life” market

Which circular business model

leads to a maximum (economical

and/or ecological) value creation?

• Classic long-life model

• Hybrid model

• Gap-exploiter model

• Access model

• Performance model

6 CIRCULAR DESIGN STRATEGIES

1. Product Attachment & Trust

2. Product Durability

3. Standardization & Compatibility

4. Ease of maintenance & Repair

5. Upgradability & Adaptability

6. Dis & Reassembly

Product

Component

1. Product Attachment & Trust

Patek Philippe watch to be inherited

What?

Product design that seduces

and binds user

Why circular?

User builds an emotional

connection with product, so

he’ll not neglect it easily

Product

Component

DS1: ATTACHMENT & TRUST

DS5: UPGRADEABILITY & ADAPTABILITY

Project Ara modular smartphone

Product

Component

What?

Easy to adapt / adjust a Product

during its life-cycle

Why circular?

Product can stay up-to-date,

following changing customer

demands, and/or technical

improvements

DS6: DIS- & RE-ASSEMBLY

Philips SlimSystem LED

Product

Component

What?

Easy to separate components

Why circular?

Low effort for re-use of material

and therefore relatively high

recovery rates

STEP 4. APPLY CIRCULAR DESIGN STRATEGIES

Complete trousers

• Attachment & Trust: personalization by the

user

• Upgradability; length of legs and variable

waist size

Material

• Dis- & reassembly; zipper and button

biodegradable and/or easy to separate

Which design strategy leads (for your

product) to maximum value retention

1. Attachment & Trust

2. Product Durability

3. Standardization & Compatibility

4. Ease of maintenance & Repair

5. Upgradability & Adaptability

6. Dis & Reassembly

STEP 5. CIRCULAR IMPLEMENTATION

• Where can you start?

• What will be your first action?

Join the community!

Volg @CIRCOnl voor updates

Doe mee via www.circonl.nl

Vragen? info@circonl.nl

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MINI-WORKSHOP “CREATING BUSINESS THROUGH CIRCULAR DESIGN”

THANKS!

www.circonl.nlinfo@circonl.nl

JEANNETTE LEVELS (LBP|SIGHT), JLV@LBPSIGHT.NL, 06 33952904CIRCULAR ECONOMY BOOSTER HAARLEM, 8 JUNI 2018