Circular Economy Innovation in IT Industry
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This document discusses HP's efforts to implement circular economy practices in its IT industry. It outlines HP's circular economy strategy of shifting to service models, reducing waste, and extending product lifespans. HP is pursuing closed-loop recycling programs, service-based models like Instant Ink that reduce product footprints, and advances in 3D printing that could dematerialize production. Challenges to scaling circular solutions include legislative barriers, maintaining recycled material quality, customer adoption, retailer impacts, and disruptions to existing business models.
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Circular Economy Innovation in IT Industry
- 1. © Copyright 2017 HP Development Company, L.P. The information contained herein is subject to change without notice. Circular economy innovation in IT industry Brigitte Lahm Circular Economy Program Manager EMEA, HP
- 2. AGENDA • Circular economy at HP • 3 areas of propelling a more circular economy • Scaling the strategy in core, growth and future business • Learnings during scaling circular solutions
- 3. HP’s circular economy User Maintenance/upgrade model HP Indigo, HP PageWide Web Presses, modular design, freely available service manuals Materials recovery and reuse Product recycling, print supplies closed loop (rPET, rPP, r2P2), hardwarerecycled content (PCs, printers) Reuse/refurbishment HP Indigo ReconditioningProgram, PC and printer reuse Product-as-a-service HP SubscriptionServices, HP Managed Print Services, HP InstantInk Parts Services Product s Circular economy enablers HP Jet Fusion TM 3D printing solution HP commercial and industrial graphics printing solutions Materials reduction/reuse and renewable energy initiatives in HP’s supply chain and operations also support the circular economy © Copyright 2017 HP Development Company, L.P. The information contained herein is subject to change without notice.
- 4. HP’s strategy • Shift to service models • Reduce waste and costs • Extend product lifespans and increase reuse and recycling Disrupt industry business models • Transform product design, manufacture, and distribution • Create in more efficient and environmentally sound way Digitize supply chains and production • Keep materials in use at highest state of value • Reduce resource use • Repurpose materials properly Decouple growth from consumption © Copyright 2017 HP Development Company, L.P. The information contained herein is subject to change without notice.
- 5. Propelling a more circular economy Closed-loop processes improve product end-of-life options Service-based models reduce product footprints 3D printing will dematerialize and democratize how the world creates and delivers goods and services
- 6. HP in action: closed-loop recycling program In past five years, HP has helped divert on average more than 1 million bottles per day More than 3.4 billion cartridges produced using 3.8 billion bottles and 70 million apparel hangers Recycled plastic has up to a 33% smaller footprint than virgin plastic 33% smaller Manufacturing new cartridges using returned cartridges and other plastics contributes to circular economy Process enables HP to reduce fossil fuel consumption by 54% and water consumption by 75% 54% 75% 1 million 3 billion © Copyright 2017 HP Development Company, L.P. The information contained herein is subject to change without notice.
- 7. Advancing responsible recycling in Haiti Providing workers with educational, training, and healthcare opportunities Purchasing recycled PET plastic to manufacture new HP print cartridges Driving a more inclusive circular economy by opening up markets for collected plastic
- 8. Propelling a more circular economy Closed-loop processes improve product end-of-life options Service-based models reduce product footprints 3D printing will dematerialize and democratize how the world creates and delivers goods and services
- 9. Ensure users always have ink: improved recycling, massive waste reductions Connected printers mean that: • Ink replacement cartridges automatically delivered when printer is running low on ink • Used cartridges returned to HP and fed directly into “closed loop” recycling program • Enables customers to save up to 50% on ink • Printers generate up to 57% less waste per printed page than conventional business models Instant Ink: subscription services enabled by Internet of Things
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- 11. Propelling a more circular economy Closed-loop processes improve product end-of-life options Service-based models reduce product footprints 3D printing will dematerialize and democratize how the world creates and delivers goods and services
- 12. 3D printing: will reinvente manufacturing Streamline prototyping process Reduce materials needed to make finished parts Improve economics of short-run manufacturing Better match supply with demand Reduce waste by shifting from physical to digital inventories © Copyright 2017 HP Development Company, L.P. The information contained herein is subject to change without notice.
- 13. 3D Printing will reinvent supply chains Case study: Automotive industry
- 14. How it works today Kirstie’s car Part designed & packaged Manufactured Warehoused ?
- 15. 3D Printing can save energy, eliminate waste, and reduce carbon footprints Part designed HP 3D Printer located in Henley prints the part Kirstie’s car
- 16. Rethinking repair - keep products out of landfill and in use longer 3D allows manufacturing on demand of an infinite inventory of spares, electronically eSpares.com carries over 9600 different oven knobs!“We are no longer able to supply spare parts, or carry out service or repairs for several models.”
- 17. 17 HP: Scaling the circular economy Mega-trends are converging: IoT, digital intelligence, 3D printing, circular economy, resource constraints, supply chain transparency. Reverse cycles – “closed loop” recycling, reuse and refurbishment New business models – service-based solutions for all customers, everywhere Breakthrough innovation – disrupting global supply chains and manufacturing CORE FUTURE GROWTH
- 18. What did we learn? Challenges HP faced scaling circular solutions •Legislative barriers: government policy and regulation not always kept pace with circular economy requirements, e.g. in EU all electronics considered waste -> difficult to move across borders, consolidate repair •Material quality: technical performance of recycled material is key to maintain customer confidence -> prerequisites: control of reverse logistics routes and development of pure material streams •Customer take-up: consumer mind-shift needed •Retailer impacts: different incentive structures needed for shift to product as a service •Disruptive innovation: new business models can destroy or cannibalise a company‘s existing value proposition _new capabilities and investments often needed _innovations may be not as or more profitable for a time
- 20. The Circular Economy in the Asia Pacific Region www.circularecconomyasia.org