David Peck Design for a Circular Economy - Company pathways …€¦ · Circular economy models...

1 Challenge the future

David Peck

May 24, 2014 David Peck [email protected]

Design for a Circular Economy - Company pathways responding to the challenge of Critical Raw Materials


• ‘Critical’ & ‘Substitution’. Setting the scene.

• Results from TU Delft research with 30 companies. The gap.

• Product designs that utilise new business models – a different starting point?

• Designs for longer life, disassembly, reuse and remanufacture. Some examples. Addressing the gap?

Design for a Circular Economy - a Company Pathway to the Challenge of Critical Raw Materials


Overview of critical elements Critical materials are…..

REPORT ON CRITICAL RAW MATERIALS FOR THE EU

Report of the European Commission and the Ad hoc Working Group on defining critical raw materials and European Commission matter

January 2014


Critical Materials – used in…..

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Paradigm shift?

Jeremy Grantham, Living on a finite planet (2012).


Kooroshy J, Rare Earths After the Hype: Current Situation and Key Trends, Energy, Environment and

Resources Chatham House, Royal institute of International Affairs, 2013

Why…


Substitution


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Assessing the effects materials criticality has

on companies. Do they perceive it as a

problem? What solutions are they

developing?

Results from research with 30 companies. The gap.

Who 30 companies – design

& produce products How

In depth structured interviews

9 Challenge the future 9

Can you name critical materials in your product range? The gap.

Moreland & Peck 2013


Critical material change expected – 3 to 5 years. The gap.



Measures taken in response to CRM issues. The gap.



Existing business models – time and loss

13 Challenge the future May 24, 2014

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Ever thought some stuff doesn’t last so long?…


New business models – a different starting point?

Circular economy models propose a transition scenario


1.The Classic Long Life Model

Value proposition built around: High grade product with ling life Primary source of revenue: Sale of a durable product

2.The Hybrid Model Value proposition built around: A durable product in combination with short life consumables Primary source of revenue: Repeat sale of consumables

5 Business models

Den Hollander, 2013


3.The Gap Exploiter Model

Value proposition built around: •Competitive advantage created by exploiting ‘lifetime value gaps’ in the product/system Primary source of revenue: •Unit sales of service or product

4.The Access Model

Value proposition built around: Product access instead of product ownership Primary source of revenue: Revenue from product access

5 Business models

Den Hollander, 2013


5.The Performance Model

Value proposition built around: Delivery of desired result Primary source of revenue: Revenue streams based on results

5 Business models

5 business models: Now for the design strategies….

Den Hollander, 2013


6 design strategies that facilitate product life extension and closed loop / circular

1. Design for attachment and trust

2. Design for product part durability 3. Design for standardization and compatibility 4. Design for ease of maintenance and repair 5. Design for upgradability and adaptability 6. Design for disassembly and reassembly

Den Hollander, 2013


Addressing the gap?

Approaches make sense….but • Each context is different – no single silver bullet. • The scale of the change should not be underestimated. • Not enough understood – a lot forgotten. • Vested interests can block progress – national,

disciplinary, organisational, international…. • New networks – enhanced networks.

20 Challenge the future May 24, 2014

David Peck

Moreland, 2012

Questions?

David Peck Design for a Circular Economy - Company pathways …€¦ · Circular economy models...

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