Circular Business Model Value Dimension Canvas: Tool Redesign for Innovation and Validation through an Australian Case Study

Abstract

Circular business models (CBMs) are integral to the concept of the circular economy (CE). The aims of the study are to (1) redesign a canvas for CBM and (2) validate it through a single case study. The developed canvas is called the “Circular Business Model Value Dimension Canvas”. For the validation, a semi-structured interview with a social enterprise (SE) operating in hybrid CBM (i.e., resource recovery, sharing platform, and product use extension) in Australia has been performed. Results showed that a successful hybrid CBM for a SE necessitates the integration of forward and reverse supply chains through partnerships with new product retailers and resource recovery companies. Other important factors include the presence of physical stores, an effective product return strategy, initial funding support from the government, the employment of young individuals with special needs, and the promotion of behavioral change among low-income customer segments. Although the canvas was applied to the enterprise, it can also be applied to other organizations as the canvas integrates all essential components for business modeling. The proposed canvas serves as a supportive tool for CBM innovation (CBMI) and provides a framework for researchers to investigate the CBMI process in organizations transitioning from linear to circular.

Green Business Innovation: Sustainable Business Model Development through Integration of Business Model Canvas, Design Thinking, and Islamic Business Ethics

“…Innovation in technology includes the adoption of the latest technologies to improve operational efficiency and reduce environmental impact. The Internet of Things (IoT) can be used not only to manage energy, but also to monitor and optimize the use of other resources such as water and raw materials (Islam & Iyer-Raniga, 2023). Ideas related to blockchain technology can help create transparent and accountable supply chains, ensuring that the entire supply chain of green businesses adheres to sustainability standards.…”

“…Sustainability is no longer an ancillary issue, but at the core of strategic planning and business model development. BMC provides a highly relevant and effective framework, enabling companies to look at the business as a whole and embed sustainability principles in every key element (Islam & Iyer-Raniga, 2023). In its implementation, BMC plays a crucial role in enabling companies to describe and design business models holistically.…”

Circular Business Model Frameworks: A Review

“…Islam & Iyer-Raniga [95] developed a canvas-like CBMI tool called circular business model value dimension canvas. Figure 8 shows various tools for CBMI.…”

Circular Economy Business Model in the Construction Industry: A Systematic Review

“…Relatedly, Pollard and Osmani [89] positioned the development of a CEBMC for electrical and electronic product manufacturers as one layer of a larger framework related to internal and external factors, including CEBM opportunities and barriers. Islam and Iyer-Raniga [90] introduced a canvas for the value dimensions of CEBM. To comprehend and revamp the fundamental elements and struc- While the BMC provides a structure for what the business is expected to do at a given point in time, it is often reduced to a checklist and does not build a story of "how" an organisation can transform its operations, processes, and capabilities [82,83].…”