The document discusses the concept of the circular economy, detailing five circular business models and three types of enabling technologies that facilitate their implementation. It highlights significant shifts in business capabilities required to transition to this model, including strategy, innovation, sourcing, sales, and return chains. The document emphasizes the importance of technology, collaboration, and government support in fostering a successful circular economy.

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

2. Copyright © 2015 Accenture All rights reserved.
Example companies studied
2
Accenture and WEF YGL have studied 120 successful circular
pioneers
5 business
models
10 enabling
technologies
5 capability
shifts
50 executive
interviews
120 case
studies

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

4. Three types of technologies are key
4
Digital
Enabling entirely new ways
to access and understand
product use-phase and aid
customers in use efficiency
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
Advanced
recycling tech
Modular design
technology
Life & Material
sciences
Circular economy enabling technologies
Source: Circular Economy book project

5. Fully biodegradable and recyclable shoes, bags and clothes
5

6. Three types of technologies are key
6
Digital
Enabling entirely new ways
to access and understand
product use-phase and aid
customers in use efficiency
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
3D Printing
Advanced
recycling tech
Trace and
return systems
Modular design
technology
Life & Material
sciences
Circular economy enabling technologies
Source: Circular Economy book project

7. 7
Hybrid: 3D printing

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

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

10. Three types of technologies are key
10
Digital
Enabling entirely new ways
to access and understand
product use-phase and aid
customers in use efficiency
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
Social
Mobile
M2M
Communication
Cloud
Analytics
3D Printing
Advanced
recycling tech
Trace and
return systems
Modular design
technology
Life & Material
sciences
Circular economy enabling technologies
Source: Circular Economy book project

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

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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

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

14. Copyright © 2015 Accenture All rights reserved.
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. Copyright © 2015 Accenture All rights reserved.
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

16. Copyright © 2015 Accenture All rights reserved.
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. Copyright © 2015 Accenture All rights reserved.
17
3. Capability shift in Sourcing and Manufacturing
From homogenous supply chain to heterogeneous resource flow innovation and
cascading

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18
3. Capability shift in Sourcing and Manufacturing
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 annual benefit through recycling efforts
From homogenous supply chain to
heterogeneous resource flow innovation and cascading

19. Copyright © 2015 Accenture All rights reserved.
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
4. Sales & product use
From never seeing your
product again to customer
and asset life cycle
management
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
19

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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. Copyright © 2015 Accenture All rights reserved.
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
4. Sales & product use
From never seeing your
product again to customer
and asset life cycle
management
3. Sourcing and
manufacturing
From homogenous supply
chain to heterogeneous
resource flow innovation and
cascading
5. Return chains
From compliance to
opportunity driven
take-back
1. Strategy
From focus only on
core business to
manage complex &
collaborative
networks
21

22. Copyright © 2015 Accenture All rights reserved.
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

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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
Right, but how to get started?

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

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

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More information
Joost Brinkman
Lead Sustainable Services Benelux
Joost.Brinkman@accenture.com
@JoostBrinkman
Or google “Circular Advantage”
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Jakob Rutqvist
Global Lead Circular Economy
Jakob.Rutqvist@accenture.com
@JakobRutqvist
>

27. Questions?
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