Circular Design Class

April 21st 2015

The five business model archetypes for “Products That Last” are intended to serve as a starting point for businesses and designers in thinking about longer-lasting products in a circular economy. They range from being primarily about product to being primarily about service.

1. The classic long-life model

2. The hybrid model

3. The gap-exploiter model

4. The access model

5. The performance model

CIRCULAR BUSINESS MODELS

1. The classic long-life modelPrimary revenue stream from sales of high-grade products with a long useful life.o Long lifespan of the producto Service and repair

CIRCULAR BUSINESS MODELS

2. The hybrid modelCombination of a durable product and short-lived consumables. Main revenue stream from repeat sales of the fast-cycling consumables.o Long lasting product (low price)o Replacement parts (to guarantee quality / performance)

CIRCULAR BUSINESS MODELS

3. The gap-exploiter modelExploits ‘lifetime value gaps’ or leftover value in product systems. Main revenue stream from selling products, parts and services based on the mixed product life of components.o Using the ‘left-over’ life-span of another producto Repair and maintenance serviceso Unsold goods (overstock)

CIRCULAR BUSINESS MODELS

4. The access modelProvides product access rather than ownership. Main revenue stream from payments for product access. o Sharing in stead of owningo Considerations: affordability, freedom, identity/status, time, accessibility

CIRCULAR BUSINESS MODELS

5. The performance model Delivers product performance rather than the product itself. Primary revenue stream from payments for performance delivered.o Products that are in use for what they do, rather than for what they areo Provider owns and maintains the producto Clients pays for functionality (pay per use)

CIRCULAR BUSINESS MODELS

Exercize 1A: Business Models

• Place examples of business models cases on the wall• Add your own CURRENT business model

CIRCULAR BUSINESS MODELS

Film Business Model Canvas

https://www.youtube.com/watch?v=QoAOzMTLP5s

Exercize 1B: Business Models

What could be your CIRCULAR business model?• Describe and discuss your own case with your colleague.• What could be your NEW circular business model?• Describe the main features in the Business Model Canvas

CIRCULAR BUSINESS MODELS

CIRCULAR DESIGN STRATEGIES

Clustering the result of existing research has led to the identification of six design strategies for circular product design:

1. Design for Product Attachment and Trust

2. Design for Product Durability

3. Design for Standardization & Compatibility

4. Design for Ease of maintenance and Repair

5. Design for Upgradability & Adaptability

6. Design for Dis- and Reassembly

CIRCULAR DESIGN STRATEGIES

1. Design for Product Attachment and TrustCreating products that will be loved, liked or trusted longer.o User develops a bond with the product

Examples:• Volkswagen• Expensive watches• Do Create (Droog Design)

CIRCULAR DESIGN STRATEGIES

2. Design for Product DurabilityDeveloping products that can take wear and tear without breaking down.o Defining optimum product reliabilityo Product’s durability should match its economic and stylistic lifespan

Examples:• Toyota Landcruiser • Boeing 747

CIRCULAR DESIGN STRATEGIES

3. Design for Standardization & CompatibilityCreating products with parts or interfaces that fit other products as well.o Tension between setting standards and personal customization

Examples:• Meccano• Volkswagen Group (MQB Platform)• Adaptor mobile phones

CIRCULAR DESIGN STRATEGIES

4. Design for Ease of maintenance and RepairEnabling products to be maintained in tip-top condition.o Maintenance and repair are divided among: OEM, Gap exploiting service

providers and userso Repair by users is often not allowed for technical products

CIRCULAR DESIGN STRATEGIES

5. Design for Upgradability & AdaptabilityAllowing for future expansion and modificationo Incorporate possibilities to change or upgrade the producto Digital technology develops very fast

CIRCULAR DESIGN STRATEGIES

6. Design for Dis- and ReassemblyEnsuring products and parts can be separated and reassembled easily.o Disassembly is a classic requirement for sustainability o Reassembly with components (new, upgraded or from other products)

Examples:• Herman Miller - Mira chair• Timberland - Earthkeepers

CIRCULAR DESIGN STRATEGIES

Exercise 2: Circular Design Strategies

A: Choose one or two Circular Design Strategies

• Which Circular Design Strategies fit to your Business Model?

• Sketch some designs using this Circular Design Strategies on your product.

B: Prepare to present your CIRCULAR DESIGN

CIRCULAR DESIGN STRATEGIES