CIRCO Circular Business Designtrack Pilot - workshop 1: presentation Circle Economy

BUSINESS THROUGH CIRCULAR DESIGN

CIRCO

CIRCULARBUSINESSANDDESIGNOPPORTUNITIES


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


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


CIRCO

RECAPTURING VALUE


CIRCO

LABOURENERGYMATERIALS

VALU

EC

REAT

ION

PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USERMINING/MATERIAL MANUFACTURING

RECAPTURING VALUE


CIRCO

PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER LANDFILLMINING/MATERIAL MANUFACTURING

VALUE DESTUCTIONLABOURENERGYMATERIALS

VALU

EC

REAT

ION

RECAPTURING VALUE


CIRCORECAPTURING VALUE


CIRCO

LONGER USE

EFFICIENT USE

RE-USE PRODUCT/PARTS

RECYCLING

PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER LANDFILLMINING/MATERIAL MANUFACTURING

RECAPTURING VALUE


CIRCO

LONGER USE

EFFICIENT USE

RE-USE PRODUCT

RE-USEPARTS

RECYCLING

MINING/MATERIAL MANUFACTURING

PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

MATERIAL

RECAPTURING VALUE


CIRCO

LONGER USE

EFFICIENT USE

RE-USE PRODUCT

RE-USEPARTS

RECYCLING


PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

MATERIAL

RECAPTURING VALUE

Products that last


CIRCO

LONGERUSESTRATEGIES


CIRCOBUSINESS THROUGH

CIRCULAR DESIGN

CIRCOLONGER USE STRATEGIES

LONGER USE


PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

MATERIAL

CLASSIC LONG LIFEMODEL

Primary revenue stream generated from sales

of high qualtity product with a long lifespan at

a high price point.



CIRCULAR DESIGN


LONGER USE


PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

MATERIAL


HYBRIDMODEL

Primary revenue stream generated from repeat

sales of dedicated consumables, like

soap and detergent cartridges.



CIRCULAR DESIGN


LONGER USE


PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

MATERIAL


HYBRIDMODEL

GAP EXPLOITERMODEL

Primary revenue stream generated

from providing repair services or sales of refurbished units.



CIRCULAR DESIGN


LONGER USE


PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

MATERIAL

DESIGN FORATTACHMENT

& TRUST

The product design encourages the user to become attached to a product and enables

long use.



CIRCULAR DESIGN


LONGER USE


PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

MATERIAL


& TRUST

The product design ensures optimum product

reliability. Ideally the durability should match its economic and stylistic

lifespan.DESIGN FOR DURABILITY



CIRCULAR DESIGN



& TRUST

DESIGN FOR DURABILITY

LONGER USE


PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

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.


CIRCO

EFFICIENTUSESTRATEGIES


CIRCO

EFFICIENT USE


PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

MATERIAL


CIRCOEFFICIENT USE STRATEGIES

ACCESSMODEL

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.



CIRCULAR DESIGN

CIRCO

EFFICIENT USE


PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

MATERIAL

EFFICIENT USE STRATEGIES

ACCESSMODEL

PERFORMANCEMODEL

Primary revenue stream generated from providing

the service of cleaning clothes. The product being used stays in the ownership

of the company.



CIRCULAR DESIGN

CIRCO

EFFICIENT USE


PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

MATERIAL

EFFICIENT USE STRATEGIES


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.


CIRCO

RE-USESTRATEGIES



CIRCULAR DESIGN

CIRCO

RE-USE PRODUCT

RE-USEPARTS


PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

MATERIAL

RE-USE STRATEGIES

BUY BACKMODEL

BUY BACKMODEL

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.



CIRCULAR DESIGN

CIRCO

RE-USE PRODUCT

RE-USEPARTS


PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

MATERIAL

RE-USE STRATEGIES

BUY BACKMODEL

CASCADEMODEL

BUY BACKMODEL

Alternative sourcing of materials and using the output of one company as the input of another.



CIRCULAR DESIGN

CIRCO

RE-USE PRODUCT

RE-USEPARTS


PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

MATERIAL

RE-USE STRATEGIES

BUY BACKMODEL

CASCADEMODEL

A second revenue stream can be generated by

re-selling used products. Either by second hand dealers or the original

company.RE-SELLMODEL

BUY BACKMODEL



CIRCULAR DESIGN

CIRCO

RE-USE PRODUCT

RE-USEPARTS


PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

MATERIAL

RE-USE STRATEGIES

DESIGN FOR REVERSESYSTEMS

Material choice and construction should be suited for the reverse systems. This includes

collection mechanisms and reuse/recycle treatment.



CIRCULAR DESIGN

CIRCO

RE-USE PRODUCT

RE-USEPARTS


PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

MATERIAL

RE-USE STRATEGIES


DESIGN FOR STANDARDISATION& COMPATIBILITY

Enables replacement or reuse of components and allows collaborative use of products or production and recovery machinery.



CIRCULAR DESIGN

CIRCORE-USE STRATEGIES


DESIGN FOR STANDARDISATION& COMPATIBILITY

RE-USE PRODUCT

RE-USEPARTS


PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

MATERIAL

DESIGN FOR ADAPTABILITY & UPGRADABILITY

Implies to incorporate possibilities to change a product and keep it ‘up

to date’.


CIRCO

RECYCLINGSTRATEGIES


CIRCO

RECYCLING


PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

MATERIAL


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.


CIRCO

RECYCLING


PARTSMANUFACTURER

PRODUCTMANUFACTURER

BRAND/COMPANY

USER

RECOVERYSTRATEGIES

RECOVERYFACILITY

MATERIAL


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.


CIRCO

door concrete

movable fixed stock

infrastructure

consumable

soap battery textile furniture mobilephone

washingmachine car

wearable usable consumer electronics

household appliances transportationcarrier

product

single use

mono product

complex product

multi use

PRODUCT TYPOLOGY

PRODUCT CHARACTERISTICS

Example

Price

Embodied value

Complexity

Maturity

Lifetime

Effectiveuse

Multi use Infrastructure

Consumable Carrier product

Mono Product

usable

Complex product

Consumer electronics Household appliciances Transportation Movable Fixed stockWearable

Textile FurnitureMobile phones

Washing Machine CarsBatterySoap Doors Concrete

Product typology

High value reuse options

Design opportunities

upgrade

Repair

Remanufacture

Resell

Recycle

Business models

Sharing

Leasing

Durability

Dissambly

Upgradabiliy

Toxicity?

?

Single use

Example

Price

Embodied value

Complexity

Maturity

Lifetime

Effective use

Product characteristics


CIRCO

THINKINSYSTEMS


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


CIRCOCIRCOBUSINESS THROUGH

CIRCULAR DESIGN

STEP INTOTHE ARENA

1234

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?


PERFORMANCEMODEL

BUY BACKMODEL

BUY BACKMODEL

CASCADEMODEL

SELL MOREFASTER


& TRUST


DESIGN FOR EASE OF

MAINTENANCE& REPAIR

DESIGN FOR MATERIAL

RECYCLINGDESIGN FOR

REVERSESYSTEMS

DESIGN FOR EASY USE

CIRCO Circular Business Designtrack Pilot - workshop 1: presentation Circle Economy

Design

Transcript of CIRCO Circular Business Designtrack Pilot - workshop 1: presentation Circle Economy