Retail Rollout The Next Innovation Frontier in Architecture, Engineering & Construction

Philip ThomasOptumplus

philip.thomas@optumplus.com

Context: Anthropocene & the

Circular Economy01

table of contents

Current Roll-out: The Linear

Approach02The New Way: The Circular

Approach03

A Whole Systems Model:

Leverage Sustainability & Deliver

a Competitive Advantage04

A Paradigm Shift: To an Economic

Opportunity 05Snapshot: Retail Rollout

The Next Innovation Frontier 06

3

Anthropocene & The Circular Economy

In recent years an new term emerged: Anthropocene

It rightly implies that in this age humans became the dominant

force shaping our physical environment

We live in an economy that:

extracts resources at increasing rates

without consideration for the environment in which it operates,

without consideration for our natural planetary boundaries,

It cannot continue indefinitely.The solution is:

The Circular Economy

Where products do not quickly become waste, but are:

• reused to extract their maximum value before safely and

• productively returning to the biosphere.

context

A Duarte-Slidedocs template

section 01

"In a world of soon to be 9

billion consumers who are

actively buying

manufactured goods, this

approach (of waste ) will

hamper companies and

undermine economies.

We need a new way of doing

business.

The concept of a circular

economy promises a way out."

Paul Polman

Chief Executive Officer,

Unilever

4

Rebuild / SellReconfigureRe-LeaseMaintainBuildDesignLease/Acquire

The Linear Approach

The retail industry is locked in a linear paradigm:

This model has been exceptionally successful in providing:

affordable service or products to consumers and

material prosperity to many.

But has its issues with the following:

It downgrades material as it goes through the system

Lengthy time to market

Restrictive re-use or reconfiguration

Unable to respond quickly to volatility in customer preference and loyalty

current rollout

A Duarte-Slidedocs template

section 02

"The linear ‘take-make-

dispose’ economic model

relies on large quantities of

easily accessible resources

and energy. Much of our

existing efforts to decouple

the global economy from

resource constraints focus

on driving ‘linear’."

Towards a Circular Economy

- the Ellen MacArthur

Foundation Report

5

The Circular Approach

The sensitivity to our environment requires an industrial

system that is restorative by design.

This model has been exceptionally successful in providing:

Re-use of Building blocks individually or collectively

Reconfigure Building blocks separately or individually

Relocate Building blocks on different sites or same site

Responding quickly to changing change in customer preference and loyalty

the new way

A Duarte-Slidedocs template

section 03

"The circular economy goes

beyond recycling as it is

based around a restorative

industrial system geared

towards designing out

waste. The goal is not just to

design for better end-of-life

recovery, but to minimise

energy use.

Towards a Circular Economy

- the Ellen MacArthur

Foundation Report

Lease /Acquire

Product Development

Site PrepManufacture

Assembly /Hook up

Re-use

6

Cradle to Cradle Methodology

Restoration by design in a Cradle to Cradle methodology:

A “Workhouse of the Future”

Stage 1: Product Development

Brand Design & Specification > Kit of Parts > Store - Building Blocks

Stage 2: (parallel to Stage 3) Site Prep

Prep work activities at site > providing hooks up to the various skids

Stage 3: Manufacture

Component Level Assembly offsite > Manufacture individual Building blocks

offsite > Modularize into individual building blocks >

Stage 4: Assembly /Hook up

Final assembling of the store building blocks

Stage 4: Reuse

Pull out of building blocks for restoration > Reuse of building blocks at same site /

or other sites

the new way

A Duarte-Slidedocs template

section 03

“Cradle to cradle design

refocuses product

development from a process

aimed at limiting end-of-

pipe liabilities to one geared

to creating safe, healthful,

high-quality products right

from the start.”

William McDonough and

Michael Braungart

7

Leveraging Sustainability

The creation of a whole system approach that:

Leverages sustainability through:

Non traditional approach to design and procurement cycle

Earlier freeze of key equipment/concepts

Reduce Plot size through defined process blocks

Lower carbon print with work taken offsite in a controlled environment

Lower Environmental/Socioeconomic impact

Transfer of work from the field to offsite & move man-hours out of the field

Mitigate environmental permitting

Provide early start up & commissioning

Reduce laydown area for storage and fabrication

a whole system model

A Duarte-Slidedocs template

section 04

‘Ultimately, a closed loop

approach to

the reuse of not just textiles,

but all types of resources, is

basic common sense’.

Cyndi Rhoades , CEO, Worn

again & Nick Ryan

8

Delivering a Competitive Advantage

The creation of a whole system approach leads to:

A competitive advantage through:

Reduced time to market within a closed loop ecosystem

Early start of business at location due to reduced delivery time line

Minimum affect on bottom line due to reduced delivery time line

Predictable delivery & risk in a closed loop ecosystem

Reduced capital cost with a product mindset

a whole system model

A Duarte-Slidedocs template

section 04

"Upward trending and

volatile materials and energy

prices, difficult credit

conditions and the myriad

opportunities of the digital

revolution are combining to

make a circular economy the

key value driver for the

coming decades."

Sarah Churchill-Slough - A

New Dynamic - Effective

business in a circular

economy

9

To an Economic Opportunity

An economic opportunity exist for retail brands that

understand & leverage the difference between a linear &

circular approach:

Opportunities such as:

Tapping new and bigger profit pools through lower input cost

Create entire new profit streams by reducing material costs

New business opportunities due to systems redesign/rethinking

Obtain finance for R&D for designing a circular delivery

Building greater resilience to address greater volatility, declining customer loyalty

a paradigm shift

A Duarte-Slidedocs template

section 05

Your company’s survival may

depend on the way you

answer one question: “How

will your company adapt” -

Fast Company

A Paradigm Shift

Retail Rollout

The Next Innovation Frontier

- leveraging Sustainability

and delivering a Competitive

Advantage.

snapshot

11

Retail Rollout – The Next Frontier

We live in an Anthropocene age where we cannot continue

indefinitely and the solution is the Circular Economy

The retail industry is locked in a linear paradigm where through its

lengthy time to market and restrictive re-use or reconfiguration

systems are unable to respond quickly to volatility in customer

preference and loyalty.

The sensitivity to our environment requires an industrial system that is restorative by

design a Cradle to Cradle methodology: A “Workhouse of the Future”

a “Whole system” model that leverages sustainability and creates Competitive

Advantage within a closed loop circular system.

An economic opportunity exist for retail brands that understand & leverage the

difference between a linear & circular approach.

summary

A Duarte-Slidedocs template

section 06

"“A corporation is a living

organism; it has to

continue to shed its skin.

Methods have to change.

Focus has to change.

Values have to change. The

sum total of those changes

is transformation.”

Andrew Grove. Intel

Please attribute

SmartWerke with a link to:

www.smartwerke.com

This work is licensed under

the Creative Commons

Attribution 4.0 International

License. To view a copy of

this license, visit

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/licenses/by/4.0/

coordinates

For more information &

consulting based on the

content, please contact:

Philip Thomas

info@ optumplus.com

1 778 724 0233

www.optumplus.com

www.smartwerke.com

thank you