Developing Circular Business Models

Four steps toward a circular business model

The workshop series supports SMEs in their transformation to circular business models.

Current studies show that, while many companies view the transition to a circular economy as an opportunity for their existing business model, almost as many are unable to assess its consequences. They lack the necessary specialists and know-how to economically implement the circular transformation.

Our series of workshops will help you overcome these challenges and provide ongoing support for successfully transitioning to a circular business model.

 

Targeted development measures for implementation

To successfully implement circular business models, we analyze existing business models using the Business Model Canvas. This process identifies and defines potential circular improvements.

We use tools that we have developed and tested with industry partners. Key modules include:

  • a general guide to the circular business model development process
  • various tools for diagnosing and designing circular business models
  • a catalog of over 40 circular business model patterns and practical examples
  • checklists, templates, and tools for implementation within a company.

The result is a practical roadmap with targeted development measures.

Four steps toward a circular business model

The development and implementation of a successful circular business model can be divided into four main phases.

Four steps to development and implementation

Step 1: Documentation of business model

After the objectives regarding the circular transition has been defined, a general assessment of the existing business model is carried out to analyze its strengths and weaknesses. A detailed assessment using the Business Model Canvas provides a clear, comprehensive view of existing processes, covering areas such as value proposition, customer relationships, and resources.



Step 2: Extended look at the business model from a circular economy perspective

Using the Business Model Canva sidentification of business model elements that support circular economy practices. Additionally, elements with potential for circular economy improvement are systematically identified.

Step 3: Selection and prioritization of circular business model patterns

Based on this analysis, suitable circular strategies are selected and prioritized. This analysis is based on a comprehensive catalog of circular business model patterns. Individual existing circular economy initiatives and ideas are also considered.

Step 4: Deriving measures and definition of future business model

The final step involves planning and implementing the selected circular strategies and defining a future circular business model. Individual economic conditions are also considered.

Creating a circular business model using business model patterns

The Business Model Canvas (center image) is a common method for visualizing a company's business model. The focus is on the value proposition, i.e., the products or services that are produced or sold. The company site describes all aspect like key partners, resources, activities, and associated costs. The market side is defined by customer relationships, segments, distribution channels, and revenues, which describe how the company interacts with its environment.

In terms of the circular economy, there are five principles that can transform a business model into a circular one: product service systems, life cycle extension, collaboration platforms, circular inputs, and resource recovery. These principles are used to create individually tailored business model patterns, which are then evaluated together in the workshop series. These patterns form the basis for defining strategic measures at the end of the support process.

More on circular business models

 

Circular business models

Circular business models are a key component of the circular economy. These models aim to use resources more efficiently and minimize waste. This distinguishes them from linear business models, where products are discarded once they reach the end of their useful life.

 

FUTUR-Article

BioFusion 4.0

The members of this roundtable are collaborating with other partners, including research institutions, corporations, and start-ups, on the biological transformation of industry as part of the extensive BioFusion 4.0 project. During the FUTUR expert discussion, they will talk about how environmental impacts are operationalized and measured within the project, as well as how to raise awareness of this issue.

What is sustainable management?

Sustainable management involves implementing long-term strategies that promote ecological, economic, and social sustainability within a company.

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