Digital product- and business innovation in the waste & recycling industry

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Hier bitte vollflächig Titelbild einfügen ODER Diesen Text und Begrenzungslinie unten mit einem weissen Kasten überdecken. Titel: Zweite Zeile Orange+ fett formatieren! © mm1 Consulting & Management, Stuttgart/Aichwald Bild immer bis zu den Kanten führen Connected Business Insight Digital Business Innovation in the Recycling Industry February 2017

Transcript of Digital product- and business innovation in the waste & recycling industry

Page 1: Digital product- and business innovation in the waste & recycling industry

Hier bitte vollflächig

Titelbild einfügen

ODER

Diesen Text und Begrenzungslinie unten

mit einem weissen Kasten überdecken.

Titel: Zweite Zeile Orange+ fett formatieren!

© mm1 Consulting & Management, Stuttgart/Aichwald

Bild immer

bis zu den

Kanten führen

Connected Business Insight

Digital Business Innovation in the Recycling Industry

February 2017

Page 2: Digital product- and business innovation in the waste & recycling industry

mm1 – The Consultancy for Connected Business

The waste and recycling industry has changed rapidly in the

last decade and is on the verge of its digital transformation

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Yesterday Today Tomorrow

Profitability

&

customer

value Traditional

Conventional

optimization

Digital

transformation

Novel digital services and

new distribution channels

Increased digitization of core

business operations

Digital technology improved

recycling processes (logistics,

fleet and transportation

management)

Data based identification,

collection and processing of

valuable resources

Increasing efficiency of

recycling processes

Access to and distribution of

secondary resources via

longstanding customer

relationships

Diversification in offered

services

Capital and labor

intense collection and

recovery

Regional fragmentation

of disposal contractors

Page 3: Digital product- and business innovation in the waste & recycling industry

mm1 – The Consultancy for Connected Business

Startups often pioneer digitalization in the industry & begin

threatening established players with new business models

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Page 4: Digital product- and business innovation in the waste & recycling industry

mm1 – The Consultancy for Connected Business

Logistics optimization

Logistics support and optimization of processes within the recycle value network

Re-Commerce Platforms

Broker activity between waste providers & resource processors; allows for comparison of offers of valuable resources

and therefore increase transparency in the market

Waste usage

Transformation of waste into valuable

resources or consumer products

Waste sorting

Smart sorting of waste &

assortment of resources

Waste acquisition

Collection of a defined set of waste

and extraction of valuable resources

Startups are taking on the complete recycling value chain

and accelerate the unbundling process of the industry

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Page 5: Digital product- and business innovation in the waste & recycling industry

mm1 – The Consultancy for Connected Business

Manufacturing companies

buy valuable materials from

haulers

Materials are reused and

recycled

Example: Rubicon Global – a cloud-based platform

connecting businesses and independent haulers

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Recycling Companies

Rubicon supports businesses of all sizes to get out of existing waste disposal contracts

Businesses can arrange for trash pick up within one hour via Rubicon‘s app

Disposal job auctioned on the Rubicon platform

Producers of waste

On demand pick-ups

Cost reduction (~30%)

Customized reports

CSR management

+

+

+

+

Haulers acquire their

business by bidding on the

disposal job

The app helps haulers to

optimize their routes and get

real-time information on

their truck fleet

Independent haulers

Low-cost acquisition of

new customers

Increase route efficiency

Customized reports

+

+

+

Cost-efficient acquisition

of valuable resources

Diversion of waste from

landfills

+

+

Leonardo Di Caprio

- Hollywood actor –

Marc Benioff

- Founder & CEO of –

Investors

Current valuation

500+ Mio. $

Page 6: Digital product- and business innovation in the waste & recycling industry

mm1 – The Consultancy for Connected Business

The recycling industry faces serious additional challenges &

needs to accelerate its digital transformation to respond

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Excess capacities in classical waste

incineration

Threat for commercial collection through

re-communalization1

Inhomogeneous regulatory conditions

across different states

Low public acceptance of waste

incineration

Unclear regulatory conditions due to

tensions between EU and Federal bodies2

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4

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Growing informal sector

Increase of waste and change of waste

composition1

No uniform national concepts for waste

management and recycling

Weak legal framework in emerging

economies

Increasing transportation costs through

urbanization2

3

4

5

GermanyGlobally

Page 7: Digital product- and business innovation in the waste & recycling industry

mm1 – The Consultancy for Connected Business

Digital Transformation requires

systemic change in 4 key areas:

A startup inspired approach can speed up solving industry

challenges and initiate digital transformation in the industry

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3 - Digital Operating Models

Adopt digital operating models for decision

making, communication & execution

1 - Digital Business Models

Identify, validate, develop and launch new

business ventures

2 - Digital Talent and Skills

Source and attract new talents, enable and

educate existing employees

4 - Digital Analytics and Metrics

Identify and monitor new metrics to

supplement traditional KPIs

A startup inspired approach to business

innovation initiates & drives the process

1. Apply existing deep industry know-how &

problem awareness to identify problems

to be solved

2. Scan startup landscape and talk with

customers to expand list of problems

3. Finalize & prioritize the problems list

4. Scan & understand technology landscape

5. Identify and validate product & business

models for selected problems of the list

6. Invest in selected product concepts

7. Build, measure and learn

8. Execute fast & in an agile, independent

environment free from bureaucracy

Educate

Inform

Inspire

Initiation

Page 8: Digital product- and business innovation in the waste & recycling industry

mm1 – The Consultancy for Connected Business

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Managing Partner

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Marius Kempf

Consultant

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Dr. Markus Eurich

Senior Consultant

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