Circular business and design opportunities
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Transcript of Circular business and design opportunities
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
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
BUSINESS THROUGH CIRCULAR DESIGN
CIRCO
LABOURENERGYMATERIALS
VALU
EC
REAT
ION
PARTSMANUFACTURER
PRODUCTMANUFACTURER
BRAND/COMPANY
USERMINING/MATERIAL MANUFACTURING
RECAPTURING VALUE
BUSINESS THROUGH CIRCULAR DESIGN
CIRCO
PARTSMANUFACTURER
PRODUCTMANUFACTURER
BRAND/COMPANY
USER LANDFILLMINING/MATERIAL MANUFACTURING
VALUE DESTUCTIONLABOURENERGYMATERIALS
VALU
EC
REAT
ION
RECAPTURING VALUE
BUSINESS THROUGH CIRCULAR DESIGN
CIRCO
LONGER USE
EFFICIENT USE
RE-USE PRODUCT/PARTS
RECYCLING
PARTSMANUFACTURER
PRODUCTMANUFACTURER
BRAND/COMPANY
USER LANDFILLMINING/MATERIAL MANUFACTURING
RECAPTURING VALUE
BUSINESS THROUGH CIRCULAR DESIGN
CIRCO
LONGER USE
EFFICIENT USE
RE-USE PRODUCT
RE-USEPARTS
RECYCLING
MINING/MATERIAL MANUFACTURING
PARTSMANUFACTURER
PRODUCTMANUFACTURER
BRAND/COMPANY
USER
RECOVERYSTRATEGIES
RECOVERYFACILITY
MATERIAL
RECAPTURING VALUE
BUSINESS THROUGH CIRCULAR DESIGN
CIRCO
LONGER USE
EFFICIENT USE
RE-USE PRODUCT
RE-USEPARTS
RECYCLING
MINING/MATERIAL MANUFACTURING
PARTSMANUFACTURER
PRODUCTMANUFACTURER
BRAND/COMPANY
USER
RECOVERYSTRATEGIES
RECOVERYFACILITY
MATERIAL
RECAPTURING VALUE
Products that last
BUSINESS THROUGH CIRCULAR DESIGN
CIRCOBUSINESS THROUGH
CIRCULAR DESIGN
CIRCOLONGER USE STRATEGIES
LONGER USE
MINING/MATERIAL MANUFACTURING
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.
BUSINESS THROUGH CIRCULAR DESIGN
CIRCOBUSINESS THROUGH
CIRCULAR DESIGN
CIRCOLONGER USE STRATEGIES
LONGER USE
MINING/MATERIAL MANUFACTURING
PARTSMANUFACTURER
PRODUCTMANUFACTURER
BRAND/COMPANY
USER
RECOVERYSTRATEGIES
RECOVERYFACILITY
MATERIAL
CLASSIC LONG LIFEMODEL
HYBRIDMODEL
Primary revenue stream generated from repeat
sales of dedicated consumables, like
soap and detergent cartridges.
BUSINESS THROUGH CIRCULAR DESIGN
CIRCOBUSINESS THROUGH
CIRCULAR DESIGN
CIRCOLONGER USE STRATEGIES
LONGER USE
MINING/MATERIAL MANUFACTURING
PARTSMANUFACTURER
PRODUCTMANUFACTURER
BRAND/COMPANY
USER
RECOVERYSTRATEGIES
RECOVERYFACILITY
MATERIAL
CLASSIC LONG LIFEMODEL
HYBRIDMODEL
GAP EXPLOITERMODEL
Primary revenue stream generated
from providing repair services or sales of refurbished units.
BUSINESS THROUGH CIRCULAR DESIGN
CIRCOBUSINESS THROUGH
CIRCULAR DESIGN
CIRCOLONGER USE STRATEGIES
LONGER USE
MINING/MATERIAL MANUFACTURING
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.
BUSINESS THROUGH CIRCULAR DESIGN
CIRCOBUSINESS THROUGH
CIRCULAR DESIGN
CIRCOLONGER USE STRATEGIES
LONGER USE
MINING/MATERIAL MANUFACTURING
PARTSMANUFACTURER
PRODUCTMANUFACTURER
BRAND/COMPANY
USER
RECOVERYSTRATEGIES
RECOVERYFACILITY
MATERIAL
DESIGN FORATTACHMENT
& TRUST
The product design ensures optimum product
reliability. Ideally the durability should match its economic and stylistic
lifespan.DESIGN FOR DURABILITY
BUSINESS THROUGH CIRCULAR DESIGN
CIRCOBUSINESS THROUGH
CIRCULAR DESIGN
CIRCOLONGER USE STRATEGIES
DESIGN FORATTACHMENT
& TRUST
DESIGN FOR DURABILITY
LONGER USE
MINING/MATERIAL MANUFACTURING
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.
BUSINESS THROUGH CIRCULAR DESIGN
CIRCO
EFFICIENT USE
MINING/MATERIAL MANUFACTURING
PARTSMANUFACTURER
PRODUCTMANUFACTURER
BRAND/COMPANY
USER
RECOVERYSTRATEGIES
RECOVERYFACILITY
MATERIAL
BUSINESS THROUGH CIRCULAR DESIGN
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.
BUSINESS THROUGH CIRCULAR DESIGN
CIRCOBUSINESS THROUGH
CIRCULAR DESIGN
CIRCO
EFFICIENT USE
MINING/MATERIAL MANUFACTURING
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.
BUSINESS THROUGH CIRCULAR DESIGN
CIRCOBUSINESS THROUGH
CIRCULAR DESIGN
CIRCO
EFFICIENT USE
MINING/MATERIAL MANUFACTURING
PARTSMANUFACTURER
PRODUCTMANUFACTURER
BRAND/COMPANY
USER
RECOVERYSTRATEGIES
RECOVERYFACILITY
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.
BUSINESS THROUGH CIRCULAR DESIGN
CIRCOBUSINESS THROUGH
CIRCULAR DESIGN
CIRCO
RE-USE PRODUCT
RE-USEPARTS
MINING/MATERIAL MANUFACTURING
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.
BUSINESS THROUGH CIRCULAR DESIGN
CIRCOBUSINESS THROUGH
CIRCULAR DESIGN
CIRCO
RE-USE PRODUCT
RE-USEPARTS
MINING/MATERIAL MANUFACTURING
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.
BUSINESS THROUGH CIRCULAR DESIGN
CIRCOBUSINESS THROUGH
CIRCULAR DESIGN
CIRCO
RE-USE PRODUCT
RE-USEPARTS
MINING/MATERIAL MANUFACTURING
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
BUSINESS THROUGH CIRCULAR DESIGN
CIRCOBUSINESS THROUGH
CIRCULAR DESIGN
CIRCO
RE-USE PRODUCT
RE-USEPARTS
MINING/MATERIAL MANUFACTURING
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.
BUSINESS THROUGH CIRCULAR DESIGN
CIRCOBUSINESS THROUGH
CIRCULAR DESIGN
CIRCO
RE-USE PRODUCT
RE-USEPARTS
MINING/MATERIAL MANUFACTURING
PARTSMANUFACTURER
PRODUCTMANUFACTURER
BRAND/COMPANY
USER
RECOVERYSTRATEGIES
RECOVERYFACILITY
MATERIAL
RE-USE STRATEGIES
DESIGN FOR REVERSESYSTEMS
DESIGN FOR STANDARDISATION& COMPATIBILITY
Enables replacement or reuse of components and allows collaborative use of products or production and recovery machinery.
BUSINESS THROUGH CIRCULAR DESIGN
CIRCOBUSINESS THROUGH
CIRCULAR DESIGN
CIRCORE-USE STRATEGIES
DESIGN FOR REVERSESYSTEMS
DESIGN FOR STANDARDISATION& COMPATIBILITY
RE-USE PRODUCT
RE-USEPARTS
MINING/MATERIAL MANUFACTURING
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’.
BUSINESS THROUGH CIRCULAR DESIGN
CIRCO
RECYCLING
MINING/MATERIAL MANUFACTURING
PARTSMANUFACTURER
PRODUCTMANUFACTURER
BRAND/COMPANY
USER
RECOVERYSTRATEGIES
RECOVERYFACILITY
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.
BUSINESS THROUGH CIRCULAR DESIGN
CIRCO
RECYCLING
MINING/MATERIAL MANUFACTURING
PARTSMANUFACTURER
PRODUCTMANUFACTURER
BRAND/COMPANY
USER
RECOVERYSTRATEGIES
RECOVERYFACILITY
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.
BUSINESS THROUGH CIRCULAR DESIGN
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
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
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?
CLASSIC LONG LIFEMODEL
PERFORMANCEMODEL
BUY BACKMODEL
BUY BACKMODEL
CASCADEMODEL
SELL MOREFASTER
DESIGN FORATTACHMENT
& TRUST
DESIGN FOR DURABILITY
DESIGN FOR EASE OF
MAINTENANCE& REPAIR
DESIGN FOR MATERIAL
RECYCLINGDESIGN FOR
REVERSESYSTEMS
DESIGN FOR EASY USE