MINI-WORKSHOP CREATING BUSINESS THROUGH CIRCULAR DESIGN. Jeroen Hinfelaar (CIRCO / Nuovalente) Arthur ten Wolde (Ecopreneur.eu / De Groene Zaak)

Transcription

1 MINI-WORKSHOP CREATING BUSINESS THROUGH CIRCULAR DESIGN Jeroen Hinfelaar (CIRCO / Nuovalente) Arthur ten Wolde (Ecopreneur.eu / De Groene Zaak)

2 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 anthropocene

3 SCARCITY

4 LINEAR BUSINESS #valuehill

5 CIRCULAR BUSINESS #valuehill

6 VISION Circular Economy is the accumulated result of Circular Entrepreneurship starts with the development and market introduction of Circular Propositions are being developed, using Circular Design of products, services and business models by closely cooperating in a Closing the Loop Context

7 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

8 FIRST PARTICIPANTS 2015 (120+ NOW)

9 LET S GO!

10 PLAN FOR THIS WORKSHOP Learning by Doing Touching new paradigms Apply circular (re)design process to your product (or a consumer product you re familiar with) Scope: Product Service Business model Pressure cooker

11 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

12 VALUE LOSS

13 EXAMPLE OF VALUE LOSS: JEANS 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 Ecological value Economic value End-of-life Jeans stay in the closet Thrown away Bulk collection

14 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)

15 LOOK DIFFERENT EVERY MOMENT OF VALUE LOSS INCLUDES AN OPPORTUNITY FOR NEW BUSINESS

16 BUSINESS OPPORTUNITY: JEANS EXAMPLE 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?... Focus on longer use Make jeans more personal, for longer use, create closer attachment to product Claim/organize the next life (2 nd 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

17 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

18 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

19 5 CIRCULAR BUSINESS MODEL ARCHETYPES Sell more, sell faster 1. Classic long-life model Product 2. Hybrid model 3. Gap-exploiter model 4. Access model Service 5. Performance model

20 BM1: CLASSIC LONG LIFE Product What? Sell a high quality product, often with high margin Service Miele long life washing machine Why Circular? Long life products

21 BM3: GAP EXPLOITER MODEL Product What? - Repair service - Second hand use - Efficient reversed logistics Service Taurus refurbished milking robots Why circular? -prevent value loss by refurbishing and sales of product, component and/or materiaal -product stays longer on upper layers of Value Hill

22 BM5: PERFORMANCE MODEL Product What? Offers the function of the product as a service, NOT selling the product. Service Rolls-Royce leasing aircraft engines by force/hour 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

23 STAP 3. APPLY CIRCULAR BUSINESS MODELS Which circular business model leads to a maximum (economical and/or ecological) value creation? Classic long-life model Hybrid model JEANS EXAMPLE: Gap exploiter Buy jeans back after use Clean and Repair jeans Sell jeans on next life market Gap-exploiter model Access model Performance model

24 6 CIRCULAR DESIGN STRATEGIES 1. Product Attachment & Trust Product Component 2. Product Durability 3. Standardization & Compatibility 4. Ease of maintenance & Repair 5. Upgradability & Adaptability 6. Dis & Reassembly

25 DS1: ATTACHMENT & TRUST 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

26 DS5: UPGRADEABILITY & ADAPTABILITY Product Component Project Ara modular smartphone 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

27 DS6: DIS- & RE-ASSEMBLY Product What? Easy to separate components Why circular? Low effort for re-use of material and therefore relatively high recovery rates Component Philips SlimSystem LED

28 STEP 4. APPLY CIRCULAR DESIGN STRATEGIES 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 Complete trousers Attachment & Trust: personalization by the user Upgradability; length of legs and variable waist size Material Dis- & reassembly; zipper en button biodegradable and/oor easy to separate

29 STEP 5. CIRCULAR IMPLEMENTATION Where can you start? What will be your first action?

30 THANKS! MINI-WORKSHOP CREATING BUSINESS THROUGH CIRCULAR DESIGN Jeroen Hinfelaar (CIRCO / Nuovalente) Arthur ten Wolde (Ecopreneur.eu / De Groene Zaak)