MINI-WORKSHOP “CREATING BUSINESS THROUGH CIRCULAR … · BUSINESS OPPORTUNITY: JEANS EXAMPLE...
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MINI-WORKSHOP “CREATING BUSINESS THROUGH CIRCULAR DESIGN” JEANNETTE LEVELS (LBP|SIGHT) CIRCULAR ECONOMY BOOSTER HAARLEM, 8 JUNI 2018
Transcript of MINI-WORKSHOP “CREATING BUSINESS THROUGH CIRCULAR … · BUSINESS OPPORTUNITY: JEANS EXAMPLE...
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? [email protected]
Upcoming CIRCO events
Upcoming CIRCO events
MINI-WORKSHOP “CREATING BUSINESS THROUGH CIRCULAR DESIGN”
THANKS!
JEANNETTE LEVELS (LBP|SIGHT), [email protected], 06 33952904CIRCULAR ECONOMY BOOSTER HAARLEM, 8 JUNI 2018
