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How to design a circular business model?

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Even though companies and public administrations are starting working on new ways of production, consumption and management for a better future, they still face a lot of obstacles and create strategies that are not diversified.
Several organizations speak about eco-conception or recycling efforts, to ensure an upcycling of the matter or of the components at the end of life. Nevertheless at Circulab we think that circular economy is beyond those solutions that point out only the result and finally neither take the problem from the origin nor comprehend the complexity of systems. An efficient and virtuous transition is not - only - in these actions.

At Circulab we aim to eco-design not only products but also business models.

Published in: Business
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How to design a circular business model?

  1. 1. www.circulab.com Business model & circular economy
  2. 2. What is circular economy? 1
  3. 3. « The circular economy is a continuous positive development cycle that preserves and enhances natural capital, optimises resource yields, and minimises system risks. » Ellen MacArthur Foundation
  4. 4. Circular economy in one scheme RECYCLE REGENERATION EXTRACT RAW MATERIALS MANUFACTURE PIECES PUT TOGETHER PIECES PUT TOGETHER PRODUCTS DELIVER USE REUSEREPAIR REMAKE
  5. 5. What is a business model? 2
  6. 6. « A business model defines the ways an organisation creates, delivers and captures value. » Alexander Osterwalder & Yves Pigneur authors & entrepreneurs, Business Model Canvas creators
  7. 7. Key activities Key 
 partners Value proposition Customer relationship Customer segments Revenues Distribution channelsKey ressources Costs structure To develop and improve a business model, there is an existing tool
  8. 8. which permits to define the value proposition Key activities Key 
 partners Value proposition Customer relationship Customer segments Revenues Distribution channels Key ressources Costs structure
  9. 9. linked with a particular market Key activities Key 
 partners Value proposition Customer relationship Customer segments Revenues Distribution channels Key ressources Costs structure
  10. 10. and to identify the resources we need to build it. Key activities Key 
 partners Value proposition Customer relationship Customer segments Revenues Distribution channels Key ressources Costs structure
  11. 11. The Business Model Canvas
  12. 12. Analyse Improve Synthesize Understand Assess Transform is a powerful tool
  13. 13. … but is limited
  14. 14. Nowadays, the value proposition is still focused on finite resources and one unique revenue stream. EXTRAIRE LES MATIÈRES FABRIQUER LES PIÈCES ASSEMBLER LES COMPOSANTS L RESSOURCES Revenue stream based on property For one use, that is not optimized Finite virgin resources
  15. 15. The building industry example …even when the stock may disappear in the next 20 years. Built thanks to sea sand extraction… Sold to public and private actors… For a lifetime lower than 50 years… …even when the occupancy rate is not optimum. …even when the industry is producing 70% of the total waste in France. Main value proposition : new building
  16. 16. The generated waste during extraction, manufacturing, use and end of life are not considered and represent a real value loss.
  17. 17. For which stakeholders? What flows? What impacts? For what duration? What value are we talking about?
  18. 18. The example of Recy’go
  19. 19. More than creating an economic value… In 2011, La Poste, the french postal service, acquires New Attitude, a social entreprise, to launch the office paper collection and recycling service : Recy’go. By optimizing the existing flows by refilling the trucks on the return journey, and by reselling the collected papers to the papermakers, Recy'go, achieved in 2015 a turnover of 10 million euros. TURNOVER OF 10 MILLION EUROS IN 2015
  20. 20. why don’t we create social value… From 2011 to 2015, more than 30 employees have been working on sorting the papers, depending on the manufacturers’ needs. 
 The offer enriches the postal profession as the f a c t o r b e c o m e s a multiser vice provider, answering better to the c u r re n t n e e d s o f t h e customers. SOCIAL INCLUSION OF MORE THAN 30 PEOPLE
  21. 21. The offer designed by Nouvelle Attitude and La Poste increases the paper recycling rate because this diffuse waste stream can now be better recovered and recycled. Finally, by filling the empty trucks on the return journey with the recovered papers, this solution enable la Poste to optimize the energy consumed for each journey. and environmental value… 1 METRIC TON OF COLLECTED PAPER = 825 KILOGRAMS OF NEW PAPER THAT MEANS 12 TREES ARE SAVED.
  22. 22. to share the benefits… By bringing together many actors through local interactions, this cooperation has created new economic activities at several levels. The value resulting from the collection and recycling of paper is shared between La Poste, the employees and the french papermakers. Indeed, the manufacturers benefit from a fixed price for paper, which is cheaper than the market value. It enables them to guarantee their activity and creates an additional revenue stream for La Poste. SHARING BENEFITS WITHIN THE WHOLE FRENCH TERRITORY
  23. 23. at every stage of the lifecycle ? MAKE THE PAPER RECYCLING THE PAPER REUSE THE PAPER USE THE PAPER DISTRIBUTE THE PAPER CUT THE TREES EXTRACTION OF CELLULOSE FIBRES NOUVELLE ATTITUDE OR SOCIAL COMPANIES PAPERMAKERS COMPANIES
  24. 24. How to make this happen? 3
  25. 25. « Problems cannot be solved with the same mindset that created them.» Albert Einstein To create a global and shared value, we must change our way of thinking
  26. 26. Go out of the linear mindset, to think circular. Linear Circular Simple Complex Predictive Adaptive Competition Cooperation
  27. 27. « The design stage determines 80% of a product’s environmental impact» European Comission : Ecodesign your future
  28. 28. Not only design products and services, but above all business models.
  29. 29. Create a holistic offer thanks to a systemic approach.
  30. 30. Anticipate and integrate the change thanks to a long-term way of thinking.
  31. 31. Involve the stakeholders and enhance cooperation.
  32. 32. Thanks to an adapted and dynamic tool: 
 The Circular canvas. toolbox Circulab CircularcanvasThisworkislicensedunderthetermsoftheLicenseCretaiveCommonsAttribution Noncommercial-ShareinSameConditions4.0International. ? What are the existing or potential sources of revenues? What is the main function of the offer? What essential needs are met by the offer? Which natural resources are necessary? Is a circularity of resources possible? Are they biodegradable? Which technological resources are necessary? Which components, machines or other composite materials are used? Which energy resources are required? Are they fossil fuels or renewable? Is an independant energy supply possible? What problems do we resolve? What value are we offering to the customers? What does the experience we are offering look like ? How does it work? What are its key characteristics? For whom are we creating value? Who is at the heart of our customer base? In which relevant contexts can we resolve th problem? What are the situations linked to our value proposition? Who are our key partners and suppliers for the creation of value? What activities and expertise do we provide? What are our key activities creating value? What expertise do we have? What expertise can we acquire? What are the necessary costs and investments? What are the negative impacts of your organisation? What waste is generated, and what are the consequences on health and nature? What are the positive economic, social and environmental impacts for your organisation, society, the planet? NEGATIVE IMPACTS POSITIVE IMPACTS MISSION ENERGY RESOURCES VALUE PROPOSITION USERS & CONTEXTS NATURAL RESOURCESKEY ACTIVITIES PARTNERS TECHNICAL RESOURCES REVENUES COSTS On what occasions do we think about our value proposition? How can we make our offer better known? How does the sale process work? What kind of customer relationship process is in place? How can we develop it? How is the product/service delivered or offered? What happens at the end of the life cycle of the product, and of each of its components? Can they be reused, repaired or recycled ? How can one reach zero waste? Could one involve the user or partners to reach this goal? UPCYCLING DISTRIBUTION
  33. 33. Start from the « raison d’être », the guide of every organization. toolbox Circulab CircularcanvasThisworkislicensedunderthetermsoftheLicenseCretaiveCommonsAttribution Noncommercial-ShareinSameConditions4.0International. ? What are the existing or potential sources of revenues? What is the main function of the offer? What essential needs are met by the offer? Which natural resources are necessary? Is a circularity of resources possible? Are they biodegradable? Which technological resources are necessary? Which components, machines or other composite materials are used? Which energy resources are required? Are they fossil fuels or renewable? Is an independant energy supply possible? What problems do we resolve? What value are we offering to the customers? What does the experience we are offering look like ? How does it work? What are its key characteristics? For whom are we creating value? Who is at the heart of our customer base? In which relevant contexts can we resolve th problem? What are the situations linked to our value proposition? Who are our key partners and suppliers for the creation of value? What activities and expertise do we provide? What are our key activities creating value? What expertise do we have? What expertise can we acquire? What are the necessary costs and investments? What are the negative impacts of your organisation? What waste is generated, and what are the consequences on health and nature? What are the positive economic, social and environmental impacts for your organisation, society, the planet? NEGATIVE IMPACTS POSITIVE IMPACTS MISSION ENERGY RESOURCES VALUE PROPOSITION USERS & CONTEXTS NATURAL RESOURCESKEY ACTIVITIES PARTNERS TECHNICAL RESOURCES REVENUES COSTS On what occasions do we think about our value proposition? How can we make our offer better known? How does the sale process work? What kind of customer relationship process is in place? How can we develop it? How is the product/service delivered or offered? What happens at the end of the life cycle of the product, and of each of its components? Can they be reused, repaired or recycled ? How can one reach zero waste? Could one involve the user or partners to reach this goal? UPCYCLING DISTRIBUTION
  34. 34. Identify the human resources, skills and expertise needed to develop the business model. toolbox Circulab CircularcanvasThisworkislicensedunderthetermsoftheLicenseCretaiveCommonsAttribution Noncommercial-ShareinSameConditions4.0International. ? What are the existing or potential sources of revenues? What is the main function of the offer? What essential needs are met by the offer? Which natural resources are necessary? Is a circularity of resources possible? Are they biodegradable? Which technological resources are necessary? Which components, machines or other composite materials are used? Which energy resources are required? Are they fossil fuels or renewable? Is an independant energy supply possible? What problems do we resolve? What value are we offering to the customers? What does the experience we are offering look like ? How does it work? What are its key characteristics? For whom are we creating value? Who is at the heart of our customer base? In which relevant contexts can we resolve th problem? What are the situations linked to our value proposition? Who are our key partners and suppliers for the creation of value? What activities and expertise do we provide? What are our key activities creating value? What expertise do we have? What expertise can we acquire? What are the necessary costs and investments? What are the negative impacts of your organisation? What waste is generated, and what are the consequences on health and nature? What are the positive economic, social and environmental impacts for your organisation, society, the planet? NEGATIVE IMPACTS POSITIVE IMPACTS MISSION ENERGY RESOURCES VALUE PROPOSITION USERS & CONTEXTS NATURAL RESOURCESKEY ACTIVITIES PARTNERS TECHNICAL RESOURCES REVENUES COSTS On what occasions do we think about our value proposition? How can we make our offer better known? How does the sale process work? What kind of customer relationship process is in place? How can we develop it? How is the product/service delivered or offered? What happens at the end of the life cycle of the product, and of each of its components? Can they be reused, repaired or recycled ? How can one reach zero waste? Could one involve the user or partners to reach this goal? UPCYCLING DISTRIBUTION
  35. 35. Distinguish between the different resources necessary at every stage of the product life cycle. toolbox Circulab CircularcanvasThisworkislicensedunderthetermsoftheLicenseCretaiveCommonsAttribution Noncommercial-ShareinSameConditions4.0International. ? What are the existing or potential sources of revenues? What is the main function of the offer? What essential needs are met by the offer? Which natural resources are necessary? Is a circularity of resources possible? Are they biodegradable? Which technological resources are necessary? Which components, machines or other composite materials are used? Which energy resources are required? Are they fossil fuels or renewable? Is an independant energy supply possible? What problems do we resolve? What value are we offering to the customers? What does the experience we are offering look like ? How does it work? What are its key characteristics? For whom are we creating value? Who is at the heart of our customer base? In which relevant contexts can we resolve th problem? What are the situations linked to our value proposition? Who are our key partners and suppliers for the creation of value? What activities and expertise do we provide? What are our key activities creating value? What expertise do we have? What expertise can we acquire? What are the necessary costs and investments? What are the negative impacts of your organisation? What waste is generated, and what are the consequences on health and nature? What are the positive economic, social and environmental impacts for your organisation, society, the planet? NEGATIVE IMPACTS POSITIVE IMPACTS MISSION ENERGY RESOURCES VALUE PROPOSITION USERS & CONTEXTS NATURAL RESOURCESKEY ACTIVITIES PARTNERS TECHNICAL RESOURCES REVENUES COSTS On what occasions do we think about our value proposition? How can we make our offer better known? How does the sale process work? What kind of customer relationship process is in place? How can we develop it? How is the product/service delivered or offered? What happens at the end of the life cycle of the product, and of each of its components? Can they be reused, repaired or recycled ? How can one reach zero waste? Could one involve the user or partners to reach this goal? UPCYCLING DISTRIBUTION
  36. 36. Redesign the user experience, the customers or contexts for whom we create value. toolbox Circulab CircularcanvasThisworkislicensedunderthetermsoftheLicenseCretaiveCommonsAttribution Noncommercial-ShareinSameConditions4.0International. ? What are the existing or potential sources of revenues? What is the main function of the offer? What essential needs are met by the offer? Which natural resources are necessary? Is a circularity of resources possible? Are they biodegradable? Which technological resources are necessary? Which components, machines or other composite materials are used? Which energy resources are required? Are they fossil fuels or renewable? Is an independant energy supply possible? What problems do we resolve? What value are we offering to the customers? What does the experience we are offering look like ? How does it work? What are its key characteristics? For whom are we creating value? Who is at the heart of our customer base? In which relevant contexts can we resolve th problem? What are the situations linked to our value proposition? Who are our key partners and suppliers for the creation of value? What activities and expertise do we provide? What are our key activities creating value? What expertise do we have? What expertise can we acquire? What are the necessary costs and investments? What are the negative impacts of your organisation? What waste is generated, and what are the consequences on health and nature? What are the positive economic, social and environmental impacts for your organisation, society, the planet? NEGATIVE IMPACTS POSITIVE IMPACTS MISSION ENERGY RESOURCES VALUE PROPOSITION USERS & CONTEXTS NATURAL RESOURCESKEY ACTIVITIES PARTNERS TECHNICAL RESOURCES REVENUES COSTS On what occasions do we think about our value proposition? How can we make our offer better known? How does the sale process work? What kind of customer relationship process is in place? How can we develop it? How is the product/service delivered or offered? What happens at the end of the life cycle of the product, and of each of its components? Can they be reused, repaired or recycled ? How can one reach zero waste? Could one involve the user or partners to reach this goal? UPCYCLING DISTRIBUTION
  37. 37. Brainstorm about the best way to distribute it, and consider the end of life as an opportunity. toolbox Circulab CircularcanvasThisworkislicensedunderthetermsoftheLicenseCretaiveCommonsAttribution Noncommercial-ShareinSameConditions4.0International. ? What are the existing or potential sources of revenues? What is the main function of the offer? What essential needs are met by the offer? Which natural resources are necessary? Is a circularity of resources possible? Are they biodegradable? Which technological resources are necessary? Which components, machines or other composite materials are used? Which energy resources are required? Are they fossil fuels or renewable? Is an independant energy supply possible? What problems do we resolve? What value are we offering to the customers? What does the experience we are offering look like ? How does it work? What are its key characteristics? For whom are we creating value? Who is at the heart of our customer base? In which relevant contexts can we resolve th problem? What are the situations linked to our value proposition? Who are our key partners and suppliers for the creation of value? What activities and expertise do we provide? What are our key activities creating value? What expertise do we have? What expertise can we acquire? What are the necessary costs and investments? What are the negative impacts of your organisation? What waste is generated, and what are the consequences on health and nature? What are the positive economic, social and environmental impacts for your organisation, society, the planet? NEGATIVE IMPACTS POSITIVE IMPACTS MISSION ENERGY RESOURCES VALUE PROPOSITION USERS & CONTEXTS NATURAL RESOURCESKEY ACTIVITIES PARTNERS TECHNICAL RESOURCES REVENUES COSTS On what occasions do we think about our value proposition? How can we make our offer better known? How does the sale process work? What kind of customer relationship process is in place? How can we develop it? How is the product/service delivered or offered? What happens at the end of the life cycle of the product, and of each of its components? Can they be reused, repaired or recycled ? How can one reach zero waste? Could one involve the user or partners to reach this goal? UPCYCLING DISTRIBUTION
  38. 38. Take into consideration externalities to reduce the negative ones or transform them into positive ones. toolbox Circulab CircularcanvasThisworkislicensedunderthetermsoftheLicenseCretaiveCommonsAttribution Noncommercial-ShareinSameConditions4.0International. ? What are the existing or potential sources of revenues? What is the main function of the offer? What essential needs are met by the offer? Which natural resources are necessary? Is a circularity of resources possible? Are they biodegradable? Which technological resources are necessary? Which components, machines or other composite materials are used? Which energy resources are required? Are they fossil fuels or renewable? Is an independant energy supply possible? What problems do we resolve? What value are we offering to the customers? What does the experience we are offering look like ? How does it work? What are its key characteristics? For whom are we creating value? Who is at the heart of our customer base? In which relevant contexts can we resolve th problem? What are the situations linked to our value proposition? Who are our key partners and suppliers for the creation of value? What activities and expertise do we provide? What are our key activities creating value? What expertise do we have? What expertise can we acquire? What are the necessary costs and investments? What are the negative impacts of your organisation? What waste is generated, and what are the consequences on health and nature? What are the positive economic, social and environmental impacts for your organisation, society, the planet? NEGATIVE IMPACTS POSITIVE IMPACTS MISSION ENERGY RESOURCES VALUE PROPOSITION USERS & CONTEXTS NATURAL RESOURCESKEY ACTIVITIES PARTNERS TECHNICAL RESOURCES REVENUES COSTS On what occasions do we think about our value proposition? How can we make our offer better known? How does the sale process work? What kind of customer relationship process is in place? How can we develop it? How is the product/service delivered or offered? What happens at the end of the life cycle of the product, and of each of its components? Can they be reused, repaired or recycled ? How can one reach zero waste? Could one involve the user or partners to reach this goal? UPCYCLING DISTRIBUTION
  39. 39. Evaluate the economical flows at each stage of the business model. toolbox Circulab CircularcanvasThisworkislicensedunderthetermsoftheLicenseCretaiveCommonsAttribution Noncommercial-ShareinSameConditions4.0International. ? What are the existing or potential sources of revenues? What is the main function of the offer? What essential needs are met by the offer? Which natural resources are necessary? Is a circularity of resources possible? Are they biodegradable? Which technological resources are necessary? Which components, machines or other composite materials are used? Which energy resources are required? Are they fossil fuels or renewable? Is an independant energy supply possible? What problems do we resolve? What value are we offering to the customers? What does the experience we are offering look like ? How does it work? What are its key characteristics? For whom are we creating value? Who is at the heart of our customer base? In which relevant contexts can we resolve th problem? What are the situations linked to our value proposition? Who are our key partners and suppliers for the creation of value? What activities and expertise do we provide? What are our key activities creating value? What expertise do we have? What expertise can we acquire? What are the necessary costs and investments? What are the negative impacts of your organisation? What waste is generated, and what are the consequences on health and nature? What are the positive economic, social and environmental impacts for your organisation, society, the planet? NEGATIVE IMPACTS POSITIVE IMPACTS MISSION ENERGY RESOURCES VALUE PROPOSITION USERS & CONTEXTS NATURAL RESOURCESKEY ACTIVITIES PARTNERS TECHNICAL RESOURCES REVENUES COSTS On what occasions do we think about our value proposition? How can we make our offer better known? How does the sale process work? What kind of customer relationship process is in place? How can we develop it? How is the product/service delivered or offered? What happens at the end of the life cycle of the product, and of each of its components? Can they be reused, repaired or recycled ? How can one reach zero waste? Could one involve the user or partners to reach this goal? UPCYCLING DISTRIBUTION
  40. 40. ‣ Design regenerative business models to conciliate business and ecosystems ‣ Stop doing less bad, and do better ‣ Consider CSR as a real opportunity In order to:
  41. 41. Ask for a demo It’s your turn to play…
  42. 42. It’s your turn to play… Download the tools
  43. 43. www.circulab.com Paris • London • Milan • Madrid • Berlin • Luxembourg • Brussel • Geneve • Johannesburg • Lima • Buenos Aires • Perth • Amsterdam • Hongkong • Jakarta • Mexico +339 50 95 03 99 hello@circulab.com 37bis rue Lebour 93100 Montreuil FRANCE Design for regeneration

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