By basing business models and value propositions on a circular logic, companies can reduce their environmental impact while strengthening their business. Instead of producing material products with primary resources and offering these via linear sales, companies can invest in creating, delivering and capturing value based on circular principles.
Business models based on circular logic for value creation and value capture steer the economy and society's resource management towards slow, closed material cycles and increased material productivity. But there are many challenges such as cannibalization of new sales, unclear willingness to pay among customers, and impact on the aftermarket business. For many years, RISE has both supported companies that have begun their transition to a circular economy and conducted cutting-edge research in the field. We have gathered a breadth of insights into how companies can work to develop business models for circular economy and handle associated challenges. We usually describe circular business model innovation in the form of a process with three main phases (Address the right things, Design things right, and Implement things the right way) that requires both divergent and convergent work. There are challenges and decisions to be made in all phases and the work often requires iterations between the phases and, in parallel, organizational changes within the company. For example, it is important to also review the company's long-term vision, degree of maturity and competence and continuously work to create better conditions for the circular transition.
Take the opportunity to collaborate with us to develop your business model based on circular principles and the latest research! We offer practical support for working with circular business model innovation and can support companies to explore what is economically feasible, desirable by customers and sustainable in the long run. RISE works partly with applied research projects and partly with advisory assignments where there is great potential for sustainability gains. In both cases, the work is carried out in close collaboration between RISE and the company so that knowledge and solutions can be co-created and so that the new circular initiatives become well anchored internally within the company.