20150336 presentation circular economy joost brinkman

Transforming your business

Circular Economy Congress

Rotterdam, March 26th 2015

@JoostBrinkman

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

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

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

http://www.ecouterre.com/puma-unveils-incycle-line-of-cradle-to-cradle-certified-apparel-footwear/

Fully biodegradable and recyclable shoes, bags and clothes

5


6

Digital





Hybrid





Engineering





them

3D Printing


Trace and return systems






7

Hybrid: 3D printing

8

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

9

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


10

Digital





Hybrid





Engineering





them

Social

Mobile

M2M Communication

Cloud

Analytics

3D Printing


Trace and return systems





https://www.spotify.com/

http://www.car2go.com/


11

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


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

Copyright © 2015 Accenture All rights reserved. 13

1. Capability shift in Strategy

From focus only on core business to manage complex and collaborative networks




2. Innovation & product development From designing for single use to designing for many life cycles and users


14


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





3. Sourcing and manufacturing From homogenous supply chain to heterogeneous resource flow innovation and cascading



3. Capability shift in Sourcing and Manufacturing

From homogenous supply chain to heterogeneous resource flow innovation and cascading


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





4. Sales & product use From never seeing your product again to customer and asset life cycle management



19


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





4. Sales & product use From never seeing your product again to customer and asset life cycle management


5. Return chains From compliance to opportunity driven take-back


21


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


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?


Along the way of business transformation, governments play an essential role in facilitating the transition towards a circular economy

www.govsgocircular.com


For inspiration: The Circulars & Accenture Innovation Awards

thecirculars.org

innovation-awards.nl


More information

Joost Brinkman

Lead Sustainable Services Benelux

[email protected]

@JoostBrinkman

Or google “Circular Advantage”

26

Jakob Rutqvist Global Lead Circular Economy [email protected] @JakobRutqvist >

Questions?

27

20150336 presentation circular economy joost brinkman

Business

Transcript of 20150336 presentation circular economy joost brinkman