Product design and business model strategies for a circular economy

Abstract

The transition within business from a linear to a circular economy brings with it a range of practical challenges for companies. The following question is addressed: What are the product design and business model strategies for companies that want to move to a circular economy model? This paper develops a framework of strategies to guide designers and business strategists in the move from a linear to a circular economy. Building on Stahel, the terminology of slowing, closing, and narrowing resource loops is introduced. A list of product design strategies, business model strategies, and examples for key decision-makers in businesses is introduced, to facilitate the move to a circular economy. This framework also opens up a future research agenda for the circular economy.

Comparing Industrial Cluster Cases to Define Upgrade Business Models for a Circular Economy

“…Closing the material loop (Bocken et al 2016) and thus, providing the customer more sustainably produced products was a driver mainly in the Remanufacturing case of Gispen in Cluster #6. Prolonging the loops (Bocken et al 2016) was considered a challenge or even risk for the OEM companies in Clusters #2 and #5. Instead, these companies offered more sustainable operation of the original equipment as an added value for the customer.…”

“…Several authors have described business models for combining the drivers of the circular economy with the drivers of single companies (Allwood et al 2011;Ellen MacArthur Foundation 2016;Bocken et al 2016;Lacy and Rutqvist 2015). According to Bocken et al (2016), two major strategies for building circular economy business models can be identified: (1) closing the resource loops, and (2) slowing the resource loops.…”

“…According to Bocken et al (2016), two major strategies for building circular economy business models can be identified: (1) closing the resource loops, and (2) slowing the resource loops. The Ellen MacArthur Foundation (2016) has distinguished between finite stock and renewable material.…”

“…While the concept of a circular economy starts at a system-level view on the industrial ecosystem (Stahel 2016) and material flows (Ellen MacArthur Foundation 2016), industrial service business takes the view of the company. The driver behind the circular economy is to achieve an ideal state resembling nature, where internal cycling of material is complete or nearly complete (Bocken et al 2016). …”

Product Family Approach in E-Waste Management: A Conceptual Framework for Circular Economy

“…A circular economy, by definition, covers the entire lifecycle of a product, which requires an optimal combination of business model and design strategy for slowing, narrowing and closing of resource loops [4]. Given the complexity of product design and a fast-paced global market of the e-products, a variety of approaches should be considered.…”