The document is a slide presentation on circular economy. It introduces concepts like global challenges, the shift from linear to circular models, and new business models in the value chain enabled by technologies. It discusses opportunities for servitization through product-as-a-service models and sharing platforms. It also outlines challenges to overcome, like validating problems and solutions, activating value chains, and overcoming resistance. Finally, it provides nine tips to empower ecosystems through inspiration, awareness, understanding user needs, experimentation, and coalition building.

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CONFIDENTIAL Template Innovation Day 2017CONFIDENTIAL
A closer look at circular economy
Stijn Smet Philip Marynissen
Innovation Consultant
Stijn.smet@verhaert.com
TRACK 2 - SERVITIZATION & NEW BUSINESS MODELS
Facilitator VITO at Vlaanderen Circulair
Philip@vlaanderen-circulair.be

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“I’m not interested in the product,
just the performance.
I want to buy light, and nothing else”
- Thomas Rau, RAU Architects

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CONTENT
Introduction to circular economy
●
Servitization opportunities
●
Overcoming challenges
●
9 tips to empower your ecosystem

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INTRODUCTION TO CIRCULAR ECONOMY
Global challenges
From linear to circular
Markets in motion
Technologic enablers

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Ground material scarcity leads to new business models in the value chain
FROM LINEAR TO CIRCULAR

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FLEMISH POTENTIAL TO INNOVATE

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MARKETS IN MOTION
Consumer awareness
Regulations, guidelines and dedicated
policy on boosting CE
CSR & branding
Technologies like track & trace (I 4.0),
new recycling technologies, sharing
economy platforms etc.

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POLICY IN ACTION ON ALL LEVELS
• 2 Ministers providing ca. 15mio EUR
• 17 core partners of Circular Flanders
pooling 6mio EUR for action in the field
• >100 public & private organisations
engaged to carry out >200 pilot
projects on circular procurement by
June 2019
• 3 open calls > 145 proposals > project
budget of 35 à 40 mio EUR,
• A numerous amount of actions taken up
by profit & non-profit organisations,
citizens, and young potentials

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Product as a service
FIVE CIRCULAR BUSINESS MODELS
Sharing platforms
Product life extension
Raw material recuperation
Circular input

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Service innovations in the circular economy
require a shift in product ownership
along the value chain

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SERVITIZATION OPPORTUNITIES

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SIX BUSINESS STRATEGIES
Product oriented pss
Product-service system focused
on the extension of services
around a product (eg. Repair
service, extended warranty …)
Use oriented pss
Product-service system focused
on the provision of a service by
renting/leasing a product (eg.
Rental of cleaning equipment)
Result oriented pss
Product-service system entirely
focused on delivery of a
performance (eg. Amount of clean
products)
Shared use
Generating value from the shared
use of products by customers
Design-build-operate
Business model that grants a
company the full rights on design,
building, financing and operation of
a good (usually) infrastructure, in
compliance with performance
goals and boundary conditions
defined by the owner
On demand
Production on demand, eliminating
unused stocks

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OVERCOMING 6 CHALLENGES
Validation of problem-solution fit
Activating the value chain
Organizing reverse logistics
Building the business case
Bridge the knowledge gap
Overcome resistance with credibility

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VALIDATION OF PROBLEM-SOLUTION FIT
Crowdfunding is not a scam.
It’s market research!

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VALIDATION OF PROBLEM-SOLUTION FIT
FairPhone
used
crowdfunding
as a deliberate
tool to validate their
value proposition before
heading to production

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ACTIVATING THE VALUE CHAIN
Gather cross-sectoral
stakeholders to discuss
common challenges
and to find common ground
for transforming and
accelerating the current
activities.

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ACTIVATING THE VALUE CHAIN
Using co-creational
workshop methods to create
a shared vision,
an ambitious roadmap and
concrete pilots

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ORGANIZING REVERSE LOGISTICS
Cirkle case
+ case van VIL?

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BUILDING THE BUSINESS CASE
Moving away from your
current business model
will require
careful validation
of additional revenues.
This exercise can also be
driven from financial
risk mitigation
of competitor’s moves.

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BRIDGE THE KNOWLEDGE GAP
To really know
why and how
products are used limits the risk
of failed introductions.
Set up pilots to
gain user-centric
insights.

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OVERCOME RESISTANCE WITH CREDIBILITY
Build trust
to overcome behavioral
resistance with a
credible offering.

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9 TIPS TO EMPOWER YOUR ECOSYSTEM

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1. Get inspired by (technologic) enablers and pioneering cases (eg. Circulator.eu)
2. Create awareness with your management by sharing interesting cases, competitor
moves and trend predictions. Nudge customers and value chain in corporate
communication, meetings, annual reports etc.
3. Focus on understanding the user’s job-to-be-done to connect business opportunities
4. Understand pain points of current use cases
5. Start small. Experiment new offerings in specific, containable pilot cases
6. Figure out the (current tasks and consequences of) the full value chain
7. Set up a coalition of the willing. Connect with ecosystem peers to share learnings and
best practices
8. Start building a credible (B2B) brand to shift control and ownership
9. Leverage existing expertise and resources from governmental accelerators
X TIPS TO EMPOWER YOUR ECOSYSTEM

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THANK YOU FOR YOUR ATTENTION

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1. www.vlaanderen-circulair.be
2. www.circulator.eu
3. www.ellenmacarthurfoundation.org
4. www.circulardesignguide.com
USEFUL SOURCES

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Philip Marynissen
Philip@vlaanderen-circulair.be
Facilitator VITO
at Vlaanderen Circulair
SPEAKER CONTACT INFORMATION
Stijn Smet
Stijn.smet@verhaert.com
Innovation Consultant
at Verhaert Masters In Innovation

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Innovation Day is an initiative of Masters in Innovation,
the umbrella brand of the Verhaert Group which aims
to connect, train and accelerate professional innovators.
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