Circular Business Models, 1st ed. 2018 Developing a Sustainable Future

This book explores the need to develop business strategies, organise and fund transformation projects and manage the transformation programme in order to further a circular economy. Circular Business Models outlines sustainable business models that can be used by companies to move transformation forward on a large scale. In addition to business models the book will cover and discuss a number of other factors necessary for a successful transformation, such as business and innovation strategy, entrepreneurship and change management. Including original interviews with circular economy practitioners, this book will be applicable to industries as diverse as manufacturing, food processing, transportation and mechanical engineering. Addressing the different challenges that meet circular economy visionaries, it outlines strategies and business models needed to gain momentum in these different sectors.

1.      Mankind vs. Reality. 10

References. 12

2.      Development as a Process of Organization.. 13

The Organization of a Circular Economy. 15

A Development Over a Century. 17

3.      The Author’s Journey. 20

Earlier Thoughts on Sustainability, Circular Economy, and Transformation.. 21

Sustainability. 21

Circular Economy. 22

Technology Development, Business Transformation, and Peak Oil 23

References. 23

4.      The Circular Economy and Business Challenges. 25

Understanding Innovation and Business Development 26

Crossing the Chasm – from Idealistic to Demanding Customers. 30

Carbon Dioxide and Global Warming vs. Resource Depletion.. 31

References. 33

5.      Complexity – The Tightly Woven Fabric of Society. 34

The Increasing Specialization in the Linear Economy. 36

Increasing Specialization of the Circular Economy. 37

6.      Could Resource Shortages Cause Problems?. 39

Complex Development 41

A Development in Steps. 42

Driving Change. 46

A Collaborative Effort 46

A Systems Perspective. 47

References. 47

The Role of Governments. 49

Research and Training. 51

Non-Government Organizations. 52

Civic Society and the General Public. 53

References. 55

Examples of Roles. 60

The Savings Paradox. 61

Dismantling Obsolete Systems. 63

Mind-Set and Behaviour Change. 64

Leading Through Change. 64

References. 68

9. Local Production and Distribution Systems. 69

The Current Situation.. 70

The Development of Local Markets. 71

Efficient Systems for Local Production.. 72

Local Value Chains. 73

Local Food Production.. 73

Secondary Qualities. 76

The Role of Large Firms. 77

Customers Form Industries. 78

Steps to Change. 78

Step 2: Local Production and Distribution Concepts. 79

Step 3: Integrated Local Value Chains. 80

Step 4: Volume Competition.. 81

Step 5: Local and Circular Concepts Dominate. 81

From Global to Local Production and Distribution.. 82

Procurement Strategies. 82

A New Focus. 83

Opportunities for Local Production Offered by Digitalization.. 84

Step 1: Indifferent Majority. 86

Step 2: Emerging Preferences. 86

Step 3: Widespread Adoption and Volume Growth.. 86

Step 4: Circular Majority. 87

References. 87

10. Sharing and Extended Use. 88

The Present Situation.. 88

Sharing Models. 88

The Product as a Service. 92

Inexpensive Alternatives. 92

Potential Growth Areas. 92

Integration.. 92

Flow.. 92

High Value. 93

Steps to Change. 94

Step 2: More Customers Prioritize Sharing. 95

Step 3: Sharing becomes the new normal 96

Extended Use. 97

Business-to-Business. 99

Steps to Product Life Extension.. 100

Step 1 – Occasional Extended Use. 101

Step 2: Behaviour Change and Systems in Place. 101

Step 4: Extended Use Becomes the Norm.. 103

Aspects of Disruptive Change. 103

11.       Standardization and modularization.. 104

The Development and Growth of Lean Production.. 105

Design and Re-design.. 108

Step 2: Training and research.. 109

Step 3: Widespread adoption.. 109

Step 4: Legislation and procurement requirements. 110

Step 5: Modularization Becomes the Norm.. 111

References. 111

Corporate Re-manufacturing. 113

Materials Recycling. 114

Materials Difficult to Recycle. 114

Steps to Recycling and Upcycling. 115

Step 2: Increased Materials Recycling. 116

Step 3: Increased Upcycling. 116

Step 4: Increased Use of Biologically Based Materials. 116

Aspects of Disruptive Change. 116

13.       Biologically based materials. 117

Existing value chains. 118

Transforming Plastics. 118

Plastics from Wood. 121

Competition with Food Production.. 121

Steps to New Materials. 123

Step 1: Pilot Introduction.. 123

Step 2: Volume Growth.. 124

Step 3: Resource Constraints. 124

Aspects of Disruptive Change. 124

References. 125

14.       Transportation systems, renewable fuels and energy efficiency. 126

Scarcity and Climate Change. 126

Reduced Dependence on Oil?. 128

The Challenge of Transportation.. 129

A Web of Interrelationships. 135

Saving Power in Existing Applications. 136

Steps to the Transformation of Transport Systems. 138

Step 2: Volume Growth.. 138

Step 3: Electric Car Dominance. 139

Step 4: The Last of Petroleum Cars. 140

Steps for Heavy Vehicles. 140

References. 146

Healthy and Sustainable Buildings. 148

Flooring. 148

Digitalization.. 149

Examples of Circular Business Models Based on Digital Technologies. 149

The Main Direction of Digital Development 149

Brief, But Important 150

References. 150

Utilities. 152

Risk Management 153

17.       Financial Innovations. 155

Financial Risk Taking. 156

Financial Innovations Support Circular Development 157

Crowd Funding. 157

Complementary Monetary Systems. 158

Reforming the Global Economy?. 160

Aspects of Disruptive Change. 161

References. 162

18.       General Purpose Technologies as the Basis for Transformation.. 163

The Organization of Hypocrisy and Organization Man.. 165

The Transformation of US Industry to War Production.. 168

The Marshall Plan.. 169

Venice and the Preparations for the Fourth Crusade. 170

The Volume Issue Revisited. 171

References. 172

Part Three – A Way Forward. 173

Great Expectations. 174

Some Numbers. 176

Peak Oil 176

Peak Gas. 177

Phosphorous. 177

Rare Earth Elements. 178

The Paths of Peak Resources. 178

Understanding and prioritizing. 180

Fallacies of Experts and Decision Makers. 183

Failure to Realise That Society is Vulnerable. 183

Failure to Recognize the Scale and the Systemic Aspects. 184

Failure to Understand Markets. 184

Mistaking a High-Level Description of the Solution for the Transformation Strategy and Plan   185

References. 185

Steps to Circular Economic Flows. 186

Step 1: Trying Out Circular Models on a Small Scale. 186

Step 2: Evaluation of Progress and Simulation of Scale-Up. 186

Step 3: Avoidance of Conclusions. 186

Step 5: Development of Strategies. 187

Reality Check. 187

Increasing Complexity Complicates Change. 187

Few Short Term Incentives to Change. 188

Focus on a Description of Energy and Fuel Resources as a Sources of Pollution.. 188

It Takes Time to Calibrate World-Views and Resource Needs. 188

21.       Paradigms, at Last 190

Scientific Revolutions. 190

The Circular Economy as a Paradigm Shift 191

Merging Paradigms. 192

References. 193

Critically examines business models for the circular economy

Employs a multi-helix approach

Focuses upon real-life examples of business models and their application