Transforming your business

Transcription

1 @JoostBrinkman Transforming your business Circular Economy Congress Rotterdam, March 26 th 2015

2 Accenture and WEF YGL have studied 120 successful circular pioneers Example companies studied 50 executive interviews 120 case studies 5 business models 10 enabling technologies 5 capability shifts 2

3 Accenture research show there are five circular business models to consider The Circular Economy options Circular Supply-Chain Sharing Platform Product as a Service Recovery & Recycling Product Life- Extension 3

4 Three types of technologies are key Circular economy enabling technologies Life & Material sciences Modular design technology Digital Enabling entirely new ways to access and understand product use-phase and aid customers in use efficiency Advanced recycling tech Source: Circular Economy book project Hybrid Enabling moving physical objects back and forth from value chains with digital services to drive down cost Engineering Enabling production and supply of new types of resources as well as new product designs to use them 4

5 Fully biodegradable and recyclable shoes, bags and clothes 5

6 Three types of technologies are key Circular economy enabling technologies Life & Material sciences Modular design technology Digital Enabling entirely new ways to access and understand product use-phase and aid customers in use efficiency Advanced recycling tech 3D Printing Trace and return systems Hybrid Enabling moving physical objects back and forth from value chains with digital services to drive down cost Engineering Enabling production and supply of new types of resources as well as new product designs to use them Source: Circular Economy book project 6

7 Hybrid: 3D printing 7

8 Hybrid: Trace & return systems Eco ATM: Instant cash for phones, MP3 players and tablets 8

9 Hybrid: Trace & Return systems Tomra: sensor based solutions to optimize resource productivity 9

10 Three types of technologies are key Circular economy enabling technologies Life & Material sciences Modular design technology Cloud Digital Enabling entirely new ways to access and understand product use-phase and aid customers in use efficiency Advanced recycling tech 3D Printing Trace and return systems Analytics Mobile Social M2M Communication Hybrid Enabling moving physical objects back and forth from value chains with digital services to drive down cost Engineering Enabling production and supply of new types of resources as well as new product designs to use them Source: Circular Economy book project 10

11 Poshmark combines all digital technologies and realized a personalized and active secondhand clothing market 11

12 The five major shifts in business capabilities cover all components of the business operations 5 Circular economy capability shifts 1. Strategy From focus only on core business to manage complex & collaborative networks 12

13 1. Capability shift in Strategy From focus only on core business to manage complex and collaborative networks 13

14 The five major shifts in business capabilities cover all components of the business operations 5 Circular economy capability shifts 2. Innovation & product development From designing for single use to designing for many life cycles and users 1. Strategy From focus only on core business to manage complex & collaborative networks 14

15 2. Capability shift in Innovation & Product Development From designing for single use to designing for many life cycles and users Design for Longevity Leasing or Service Reusability Material recovery 15

16 The five major shifts in business capabilities cover all components of the business operations 5 Circular economy capability shifts 2. Innovation & product development From designing for single use to designing for many life cycles and users 3. Sourcing and manufacturing From homogenous supply chain to heterogeneous resource flow innovation and cascading 1. Strategy From focus only on core business to manage complex & collaborative networks

17 3. Capability shift in Sourcing and Manufacturing From homogenous supply chain to heterogeneous resource flow innovation and cascading 17

18 3. Capability shift in Sourcing and Manufacturing From homogenous supply chain to heterogeneous resource flow innovation and cascading General Motors is applying the Reduce, Reuse, Recycle principle and created 102 landfill-free facilities in the USA. Most materials are reused or recycled onsite and the materials unsuitable for this purpose are converted into energy. $1B Copyright annual 2015 Accenture benefit All rights through reserved. recycling efforts 18

19 The five major shifts in business capabilities cover all components of the business operations 5 Circular economy capability shifts 2. Innovation & product development From designing for single use to designing for many life cycles and users 3. Sourcing and manufacturing From homogenous supply chain to heterogeneous resource flow innovation and cascading 1. Strategy From focus only on core business to manage complex & collaborative networks 4. Sales & product use From never seeing your product again to customer and asset life cycle management 19

20 4. Capability shift in Sales and Product Use From never seeing your product again to customer and asset life cycle management SKF developed advanced services for maintaining, monitoring, repairing and optimizing its customers assets, thus, helping customers maximize productivity while minimizing total cost of ownership of machinery. $3,5bn net sales is generated from the asset efficiency optimization offer (40% of total revenue) Refurbishing, certifying and reselling of Kindles (e-readers) at a reduced price to customers. Amazon makes a profit on the e-books sold not on the Kindles so reducing costs of the e-reader is profitable. Substantial lower costs in providing Kindles to customers 20

21 The five major shifts in business capabilities cover all components of the business operations 5 Circular economy capability shifts 2. Innovation & product development From designing for single use to designing for many life cycles and users 3. Sourcing and manufacturing From homogenous supply chain to heterogeneous resource flow innovation and cascading 1. Strategy From focus only on core business to manage complex & collaborative networks 5. Return chains From compliance to opportunity driven take-back 4. Sales & product use From never seeing your product again to customer and asset life cycle management 21

22 5. Capability shift in Return Chains From compliance to opportunity driven take-back The networking equipment company established nine different reverse logistics programs. 25% of all returned products are refurbished, reused or resold at 80% of the new price. More than $360 million of reused equipment Encouraging customers to participate in return chains by awarding customers with credits when recycling, reducing and choosing consciously. Credits can be used to get a discount at multiple businesses. Sustainability becomes a priority and awareness is created. 22

23 Right, but how to get started? 1. Identifying and concentrating on the actual opportunity 2. Rethinking how value is created and delivered to customers 3. Putting in place a focused set of new capabilities (and not trying to implement the perfect circular setup, at least not initially) 4. Investing in technology to make value chains circular 5. Timing the balance between capturing near-term, low-hanging fruit and engendering long-term, large scale change 23

24 Along the way of business transformation, governments play an essential role in facilitating the transition towards a circular economy 24

25 For inspiration: The Circulars & Accenture Innovation Awards thecirculars.org innovation-awards.nl 25

26 More information Joost Brinkman Lead Sustainable Services Jakob Rutqvist Global Lead Circular Economy Or google Circular Advantage 26

27 Questions? 27