@joostbrinkman
Log plot of Resource use and Economic development (2010, 166 countries)1
In today’s growth model increasing wealth is clearly linked to
increasing levels of resource consumption…
2OECD Development Centre, Working Paper No. 285, TheEmergingMiddle Classin Developing Countries
Resourceuse
Economic development
1
10
100
100 10,000 100,0001,000
GDP/Cap
USA
India
Tons/
Cap
Germany
Bangladesh
Australia
Colombia
China
Brazil
Correlation: 0,59
1SERI and Dittrich, M. (2014). Global Material Flow Database, World Bank(2014) GDP per capitaincurrent US$ (outliersMongolia& Bahamasremo ved)
Niger
100
10
100.00010.0001.000
Commodity price & GDP index 1975-2013
Index (2010=100)
0
50
100
150
200
197819761975 200220001998199619941992 2013201220062004 2008 2010199019881986198419821980
GDP index
Precious Metals
Commodity index
Metals & Minerals
Fertilizers
Raw Materials
Food
Energy
World Bank(2014), Accenture analysis
1975-2000
For every 1% growthin GDP commodity
price index fell 0.5%
2000-2013
For every 1% growthin GDP
commodity price index
rose 1,9%
…but the era of cheap and plentiful resources has come to an
end as prices have increased by close to 2% p.a. since 2000
We currently use 1.5x the resources that earth supplies us with.
2.5 billion additional consumers expected to join the middle class by 2030, so we need
4 earths in 2050. We only have 1: We need to become 4x more resource efficient.
So we need to transform our current unsustainable linear
business models …
From linear…
Take
Make
Waste
Into circular value chains, offering the ability and benefits of
environmentally responsible growth in a world of finite resource
To Circular
Asset Life Cycle
Management
Product Design Remanufacture
Repair
& Reuse
Circular
Inputs
Recylce
Repurpose
& Share
Return flows
Circular Economy
decoupling growth from
resource consumption
5 business
models
10 enabling
technologies
5 key
capabilities
50 executive
interviews
120
case studies
Goal: Decoupling
Not only about services
The less you loop the better
Digital customer disruption
GLOBAL VIEW ON THE
CIRCULAR ECONOMY
WASTED
EMBEDDED VALUES
WASTED
LIFECYCLES
WASTED
CAPACITY
WASTED
RESOURCES
5 BUSINESS MODELS TO LEVERAGE
$1 300 billion
$1 700 billion $600 billion
$900 billion
Recovery &
Recycling
WASTED
LIFECYCLES
WASTED
CAPACITY
WASTED
RESOURCES
5 BUSINESS MODELS TO LEVERAGE
$1 700 billion $600 billion
$900 billion
Recovery &
Recycling
Circular
Supply-Chain
WASTED
LIFECYCLES
WASTED
CAPACITY
5 BUSINESS MODELS TO LEVERAGE
$600 billion
$900 billion
Recovery &
Recycling
Circular
Supply-Chain
Sharing
Platform
WASTED
LIFECYCLES
5 BUSINESS MODELS TO LEVERAGE
$900 billion
Recovery &
Recycling
Circular
Supply-Chain
Sharing
Platform
Product Life-
Extension
5 BUSINESS MODELS TO LEVERAGE
Recovery &
Recycling
Circular
Supply-Chain
Sharing
Platform
Product Life-
Extension
Product as a
Service
Copyright © 2014 Accenture All rights reserved.
Three types of technologies are key
20
Advanced
recycling tech
Modular design
technology
Life & Material
sciences
Circular economy enabling technologies
Source: Circular Economybook project
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
Copyright © 2014 Accenture All rights reserved.
Fully biodegradable and recyclable shoes, bags and clothes
21
Copyright © 2014 Accenture All rights reserved.
Three types of technologies are key
22
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 Economybook project
Copyright © 2014 Accenture All rights reserved. 23
Hybrid: 3D printing
Copyright © 2014 Accenture All rights reserved. 24
Hybrid: Trace & return systems
Eco ATM: Instant cash for phones, MP3 players and tablets
Copyright © 2014 Accenture All rights reserved. 25
Hybrid: Trace & Return systems. Tomra: sensor based
solutions to optimize resource productivity
Copyright © 2014 Accenture All rights reserved.
Three types of technologies are key
26
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 Economybook project
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
Copyright © 2014 Accenture All rights reserved. 27
Poshmark combines all digital technologies and realized a
personalized and active secondhand clothing market
Copyright © 2014 Accenture All rights reserved. 28
Click for the prezi!
Copyright © 2014 Accenture All rights reserved.
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
29
Digital, the driver of the Circular Economy
Open Discussion
My company’s current business models
will be able to serve our customer’s
demand in 10 years from now
1
Digital, the driver of the Circular Economy
Open Discussion
I can translate the ‘Circular Economy’
principles to my company’s business
2
Digital, the driver of the Circular Economy
Open Discussion
I see potential for any of the CE business
model to help our company in securing a
sustainable future of our company
3
Digital, the driver of the Circular Economy
Open Discussion
What does my company require to adapt
new, innovative business models to
ensure a sustainable future?
4
WHY: Society needs it and it is good business
HOW: Get started ! (by understanding the Circular Advantage whitepaper)
Thank You and Remember:
WHAT: 5 business models, 10 technologies, 5 capability shifts
@joostbrinkman
AND: if you fly, fly green via greenseats.nl and ParkFlyRent.nl
@parkflyrent

How Digital is an Accelerator for Circular Economy @High Performance Digital Conference

  • 1.
  • 2.
    Log plot ofResource use and Economic development (2010, 166 countries)1 In today’s growth model increasing wealth is clearly linked to increasing levels of resource consumption… 2OECD Development Centre, Working Paper No. 285, TheEmergingMiddle Classin Developing Countries Resourceuse Economic development 1 10 100 100 10,000 100,0001,000 GDP/Cap USA India Tons/ Cap Germany Bangladesh Australia Colombia China Brazil Correlation: 0,59 1SERI and Dittrich, M. (2014). Global Material Flow Database, World Bank(2014) GDP per capitaincurrent US$ (outliersMongolia& Bahamasremo ved) Niger 100 10 100.00010.0001.000
  • 3.
    Commodity price &GDP index 1975-2013 Index (2010=100) 0 50 100 150 200 197819761975 200220001998199619941992 2013201220062004 2008 2010199019881986198419821980 GDP index Precious Metals Commodity index Metals & Minerals Fertilizers Raw Materials Food Energy World Bank(2014), Accenture analysis 1975-2000 For every 1% growthin GDP commodity price index fell 0.5% 2000-2013 For every 1% growthin GDP commodity price index rose 1,9% …but the era of cheap and plentiful resources has come to an end as prices have increased by close to 2% p.a. since 2000
  • 4.
    We currently use1.5x the resources that earth supplies us with. 2.5 billion additional consumers expected to join the middle class by 2030, so we need 4 earths in 2050. We only have 1: We need to become 4x more resource efficient.
  • 5.
    So we needto transform our current unsustainable linear business models … From linear… Take Make Waste
  • 6.
    Into circular valuechains, offering the ability and benefits of environmentally responsible growth in a world of finite resource To Circular Asset Life Cycle Management Product Design Remanufacture Repair & Reuse Circular Inputs Recylce Repurpose & Share Return flows Circular Economy decoupling growth from resource consumption
  • 7.
    5 business models 10 enabling technologies 5key capabilities 50 executive interviews 120 case studies Goal: Decoupling Not only about services The less you loop the better Digital customer disruption GLOBAL VIEW ON THE CIRCULAR ECONOMY
  • 8.
    WASTED EMBEDDED VALUES WASTED LIFECYCLES WASTED CAPACITY WASTED RESOURCES 5 BUSINESSMODELS TO LEVERAGE $1 300 billion $1 700 billion $600 billion $900 billion Recovery & Recycling
  • 10.
    WASTED LIFECYCLES WASTED CAPACITY WASTED RESOURCES 5 BUSINESS MODELSTO LEVERAGE $1 700 billion $600 billion $900 billion Recovery & Recycling Circular Supply-Chain
  • 12.
    WASTED LIFECYCLES WASTED CAPACITY 5 BUSINESS MODELSTO LEVERAGE $600 billion $900 billion Recovery & Recycling Circular Supply-Chain Sharing Platform
  • 14.
    WASTED LIFECYCLES 5 BUSINESS MODELSTO LEVERAGE $900 billion Recovery & Recycling Circular Supply-Chain Sharing Platform Product Life- Extension
  • 16.
    5 BUSINESS MODELSTO LEVERAGE Recovery & Recycling Circular Supply-Chain Sharing Platform Product Life- Extension Product as a Service
  • 18.
    Copyright © 2014Accenture All rights reserved. Three types of technologies are key 20 Advanced recycling tech Modular design technology Life & Material sciences Circular economy enabling technologies Source: Circular Economybook project 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
  • 19.
    Copyright © 2014Accenture All rights reserved. Fully biodegradable and recyclable shoes, bags and clothes 21
  • 20.
    Copyright © 2014Accenture All rights reserved. Three types of technologies are key 22 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 Economybook project
  • 21.
    Copyright © 2014Accenture All rights reserved. 23 Hybrid: 3D printing
  • 22.
    Copyright © 2014Accenture All rights reserved. 24 Hybrid: Trace & return systems Eco ATM: Instant cash for phones, MP3 players and tablets
  • 23.
    Copyright © 2014Accenture All rights reserved. 25 Hybrid: Trace & Return systems. Tomra: sensor based solutions to optimize resource productivity
  • 24.
    Copyright © 2014Accenture All rights reserved. Three types of technologies are key 26 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 Economybook project 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
  • 25.
    Copyright © 2014Accenture All rights reserved. 27 Poshmark combines all digital technologies and realized a personalized and active secondhand clothing market
  • 26.
    Copyright © 2014Accenture All rights reserved. 28 Click for the prezi!
  • 27.
    Copyright © 2014Accenture All rights reserved. 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 29
  • 28.
    Digital, the driverof the Circular Economy Open Discussion My company’s current business models will be able to serve our customer’s demand in 10 years from now 1
  • 29.
    Digital, the driverof the Circular Economy Open Discussion I can translate the ‘Circular Economy’ principles to my company’s business 2
  • 30.
    Digital, the driverof the Circular Economy Open Discussion I see potential for any of the CE business model to help our company in securing a sustainable future of our company 3
  • 31.
    Digital, the driverof the Circular Economy Open Discussion What does my company require to adapt new, innovative business models to ensure a sustainable future? 4
  • 32.
    WHY: Society needsit and it is good business HOW: Get started ! (by understanding the Circular Advantage whitepaper) Thank You and Remember: WHAT: 5 business models, 10 technologies, 5 capability shifts @joostbrinkman AND: if you fly, fly green via greenseats.nl and ParkFlyRent.nl @parkflyrent