circular economy for the finnish ......product use circular value chain optimize capacity use...

1

CIRCULAR ECONOMY

FOR THE FINNISH

MANUFACTURING INDUSTRY

KICK-OFF

Hosted by:

2

KICK-OFF

AGENDA

09:00 – 09:30 Welcome and backgroundJyri Arponen, SitraLaura Juvonen, Technology IndustriesPekka Vanne, Accenture

09:30 – 09:45 Finnish Companies in Global Circular EconomyMari Pantsar, Sitra

09:45 – 10:00 Enabling the transitionPasi Viitanen, Business Finland

10:00 – 11:00 Leading company examplesCargotec, Soili MäkinenNokia, Pia TanskanenTamturbo, Olli KuismanenMichelin case, Cédric Vatier (Accenture)

11:00 – 11:30 Next steps & questionsJyri Arponen, Sitra

#kasvuakiertotaloudesta

Welcome and backgroundJyri Arponen, Laura Juvonen & Pekka Vanne

4

SUSTAINABILITY IN ESSENCE

CONSIDER ENGAGEMENT, ENVIRONMENTAL

RESPONSIBILITY AND BUSINESS BOTTOM LINE

#kasvuakiertotaloudesta @SitraFund @jyri_Arponen @TechFinland @Laura_Juvonen @AccentureFI @Pekka_Vanne

5

WELCOME

~50 COMPANIES JOINED THE PROGRAMME

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiG84z5jdDaAhULWCwKHZmtA_AQjRx6BAgAEAU&url=https://pitchbook.com/profiles/company/98128-63&psig=AOvVaw36iskjiV2IIlK38zY1Jdl_&ust=1524563012505324

6

PURPOSE

THE PROGRAMME WILL TAKE YOUR COMPANY

FROM LINEAR TO CIRCULAR

From Linear… …to Circular

Take Make Waste

Focusing on the change to customer-centricity and digitally enabled business models


Source: Accenture

7

WHY YOU SHOULD ENGAGE

3 DRIVING FORCES UNDERPIN THE SHIFT

TO CIRCULAR ECONOMY

Circular

Customer centricityDelivers customer outcomes

Right purpose

Right efficiency

Rightdelivery

SustainabilityImprovesresource

utilization

TechnologyEnables new

solutions


Source: Accenture

8

BACKGROUND

CIRCULAR ECONOMY REPORT IN JAN 2015 AND

ROADMAP TO FINLAND 2016

Key take-aways

• Need for taking the next step and realize concrete business opportunities

• Most unexploited opportunities remain within new business and service models

1

2


9

INDUSTRY SCOPE

THE TECHNOLOGY INDUSTRY IS THE LARGEST

EXPORT SECTOR IN FINLAND

• 51 % of total Finnish exports.

• Companies invest about EUR 5.5 billion annually in Finland.

• 70 % of private-sector R&D investment.

• Some 300,000 employed directly in the sector, 700,000employed in total, equalling about 30% of the entire Finnish labour force.

• Technology Industries of Finland has over 1,600 member companies.


10

INDUSTRY SCOPE

TECHNOLOGY, FOREST AND CHEMICAL INDUSTRIES

PROVIDE 81% OF FINLANDS’S EXPORT REVENUE

Goods and service exports: billion euros and the share of Finnish exports in 2017

Technology industry;

43,6; 51%

Forest industry; 12,9; 15%

Chemical industry; 13;

15%

Other branches; 16,1;

19%


11

THIS PROGRAMME

ADDRESSING INEFFICIENCIES IN THE

LINEAR VALUE CHAINS

From inefficiencies in linear value chains… … to business value from circular

5. Offer outcomeoriented solutions

NON-RECYCLEABLE OR RENEWABLE RESOURCES

1. Reform use of resources

UNDERUTILISEDCAPACITIES

2. Optimize capacity use

3. Extend lifecyclesPREMATURELY ENDEDLIFECYCLES

WASTED EMBEDDED VALUES

4. Recover value from waste


Source: Accenture

12

HOW CAN CIRCULAR ADVANTAGE BE ACHIEVED

FIVE CIRCULAR BUSINESS MODELS REDUCE

INEFFICIENCIES AND CREATE VALUE

Reform resource use

Use of renewable energy, bio-based or potentially completely recyclable materials

CIRCULAR SUPPLY CHAINLogistics

Marketing& sales

End of lifedisposal

Reverselogistics

Sourcing

Manufacturing

Product use

Circular value chain

Optimize capacity use

Increased usage rates through collaborative models for usage, access, or ownership

SHARING PLATFORM

Extend lifecycles

Prolongation of the life cycle through repair, reprocessing, upgrading and resale

PRODUCT LIFE EXTENSION

Offer of product use with retention of the product at the producer to increase resource productivity

PRODUCT AS A SERVICE

Recover value in waste

Recovery of usable resources or energy from waste or by-products

RECOVERY & RECYCLING

Offer outcome oriented solutions


Source: Accenture

13

CIRCULAR SUPPLY CHAIN

SHARING PLATFORM



Reduce cost of direct material (price reduction)

Reduce complexity through modular design

Reduced energy usage

Increase sales margins

Charge transaction fees

Sell add-on services

Increase service sales (maintenance & repair)

Increase sales of spare parts

Sell second hand products/materials

Reduce material costs (volumes)

Reduce disposal costs


TOTALStep change in growth…

VALUE POTENIAL

SIGNIFICANT VALUE CAN BE CREATED

++

++

++

+

…at attractive margins

New revenue: growth in share of wallet, entry into new segments

Increased sales margins++

N/A

+

+++

N/A

+++

Revenue impact

Margin impact


Source: Accenture

14

LEADING EXAMPLES

EARLY MOVERS WITHIN MANUFACTURING

INDUSTRY HAVE ALREADY STARTED

CIRCULAR SUPPLY CHAIN

SHARING PLATFORM




Machinery & Equipment Marine Energy Transportation


15


NEW CAPABILITIES ARE NEEDED TO

BECOME A CIRCULAR LEADER


Deploy technologies and data for delivering outcomes

Capabilities

Design solutions to deliver customer outcomes

Transform mindset and steering

Orchestrate ecosystem of partners

Design products for circularity

Recover products at end of life

9

7

8

2

1

3

4

5

6

Source recycled or recyclable material

Manage return flows in production

Sell outcomes and life-cycle service

Source: Accenture

16


TECHNOLOGIES ENABLE CIRCULAR MODELS

AND ARE DISRUPTING INDUSTRIES

Legend: Type of technology BiologicalPhysicalDigital

Maturing Scale-upImprovingEmerging


Bio-Energy

Nano-technology

Digital Twin

Artificial intelligence

Energy harvesting

Blockchain

Robotics

Conversational Systems

Bio-based material

New materials

Machine Learning

Big Data

Augmented Reality/ Virtual Reality

Machine Vision

Internet of Things & Industrial Internet

Radio-frequency identification (RFID)

3D Printing

UV/ IR/ NIR/ NMR Spectroscopy

Te

ch

no

log

ies

Constantly advancing digital infrastructure (e.g. Edge / Fog Computing, Cloud, Scalable API…)

17

IMPLEMENTATION

PLAN YOUR JOURNEYC

us

tom

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lue

d

eli

ve

ry

Or

ga

niz

ati

on

&

co

lla

bo

ra

tio

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ha

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I. Explore & Shape II. Attract & Win III. Scale fast & keep growingDevelop concepts for target business models,

look for partners, design and test prototype(s) Develop processes and partnerships and

pilot new solution to convey benefits Adopt multiple circular business models across

own operations and value chain

• Detail concept in customer-centric design process

• Prototype and test with customers

• Ensure dedicated resources • Engage broader organization• Define circular targets to incentivize and

drive change in organization• Formalize partnerships

• Assess and strengthen internal capabilities

• Identify cooperation partners complementing own capabilities

Time

• Implement pilot concepts and enable pilot customers with new solutions

• Improve processes

• Raise awareness and promote new solutions

• Ensure strong buy-in and capabilities across organization

• Scale up delivery capability

• Apply circular concepts across offerings within products and service portfolio, incorporating multiple business models

• Use circularity as a differentiator to remain competitive and profitable


Source: Accenture

18

• Difficulty of customer-centric innovation and cross-functional collaboration

• Difficulty of changing old mindsets of employees

• Pressure of day-to-day priorities

• Lack of skills in new technologies

• Lack of skills in solution selling

• Circular business models have different funding requirements (e.g. Product as a service requires higher working capital)

• Difficulty of finding financing partners

• Insufficient understanding of risks and mitigation strategies

• Complex supply chains make it difficult to control products after sale, tracking materials and components

• Difficulty of finding suitable partners need to be identified to fill gaps

Type of Barrier

Inte

rn

al

Ex

ter

na

l

Challenges

Organizational & Cultural

Financial

Ecosystem

IMPLEMENTATION

PREPARE FOR BARRIERS


Source: Accenture

19

KICK-OFF

AGENDA







SUOMALAISET YRITYKSET OSANA GLOBAALIA KIERTOTALOUTTA

24.04.2018

Johtaja Mari Pantsar, Sitra

Globaali kestävyyskriisi

- Jos globaalia kestävyyskriisiä, jonka keskiössä on ilmastokriisi ja

luonnonvarojen ylikäyttö, ei saada ratkaistua, putoaa pohja pois

kaikelta muulta: taloudelta, hyvinvoinnilta ja turvallisuudelta.

- Globaali kestävyyskriisi on luonut maailman nopeimmin kasvavan

markkinan puhtaille ratkaisuille. Pariisin sopimuksen tavoitteiden

saavuttamiseksi tarvitaan 16,500 mrd dollarin investoinnit 2030

mennessä (We mean business coalition, 2016).

- Suomella voisi olla ennennäkemätön rooli globaalin kestävyyskriisin

ratkaisemisessa!

#kasvuakiertotaloudesta @SitraFund @MariPantsar

Maailma on täynnä hukkaa, vaikka ylitämme jo

maapallon kantokyvyn

Miksi heitämme pois noin 80 % kuluttajatuotteista ja niiden materiaaleista ja käytämme niitä tehottomasti?

Toimistojenkäyttöaste on noin

40 %

Keskimäärin materiaaleja käytetään Euroopassa

vain kerran

Autojenkeskimääräinenkäyttöaste onnoin

4%

10-15 %rakennusmateriaaleista menee jätteeksi rakennusaikana

31 % ruuasta menee hukkaan

arvoketjussaan. Suomessa määrä on noin

300-400 miljoonaa kg/v

Raaka-aineiden tarve kasvaa 20 vuoden aikana

Energia

+ 32 %

Teräs

+ 57 %

Vesi

+ 137 %

Viljelysmaa, yli

+ 200 %Lähteet: EEA, GSA, UN FAO, EU, McKinsey, Luke#kasvuakiertotaloudesta @SitraFund @MariPantsar

Circular EconomySystem-, digital- and service-based

Renewable energy & materials(resource efficiency)

Market based, direction through structures and incentives

Biological &technical cycles

Decoupling: Products, materials and their value remain in circulation

Access over ownership

Product design: life cycle, adaptability & high quality

Cross-sectoral and across value chains

Sources: Ellen MacArthur Foundation, Sitra#kasvuakiertotaloudesta @SitraFund @MariPantsar

FACTOR10

Kiertotalous on $4.5 biljoonaa liiketoimintamahdollisuus

30 johtavaa yritystä, joiden liikevaihto on $1.3 triljoonaa yhdistivät voimansa

kiertotalouden implementoimiseksi Davosissa 2018.

Tavoite: jätteetön toiminta ja kiertotalouden liiketoimintamallien

valtavirtaistaminen.

Fokusalueet:

Kehittää transformatiivisia arvoketjut ylittäviä kiertotalousratkaisuja

Kasvattaa yritysten tietoisuutta kiertotaloudessa läpi koko arvoketjun

Vavhistaa yritysten “ääntä” globaalisti.#kasvuakiertotaloudesta @SitraFund @MariPantsar

Renewable, recyclable and biodegradable materials, as well as the principles of eco-design, are preferred for products and their design. Fossil fuels are replaced by renewable energy.

Renewability

Product-life extension

Products are used according to their original purpose for as long as possible or repaired and refurbished for multiple re-uses, thus reducing the need for purchasing and manufacturing new products.

Sharing platforms

Digital-based platforms are used to promote the increased use of goods and resources and the extension of their life cycle, such as by renting, selling, sharing and re-use.

The customer pays for certain functions or performance and avoids the risks of ownership. The total costs of ownership remain with the service provider, with revenue being earned by means of, for example, a leasing or rental agreement.

Product as a service

Resource efficiency and recycling

Technological development enhances resource efficiency in value chains, processes and products, and allowsfor more effective recycling. Side-streams are valuable raw materials for recycled products and materials.

Five business models for the circular economy

Example companies on the list

3 Step IT Ekox Emmy RealGreen Valtra

EkoRent Enevo L&T Leasegreen Lem-Kem Lindström

MaaS Global

Martela

RePack Solnet Valtavalo

Lunchie Maapörssi ResQ Shareit Blox Car Swap.com

Sharetribe

Vähänkäytetty.fi

ArcticBiomaterials

BioGTS Gasum Jarmat Kotkamills Metener

Neste Paptic Soilfood St1

CrisolteQ Destaclean Durat Finlayson Fortum Globe Hope Grano Kekkilä

Kierrätyskeskus Lovia Novarbo Pure Waste Raisioagro RecAlkaline Remake

Tarpaper Recycling TouchPoint

Palpa Versofood

Examples available: https://www.sitra.fi/en/projects/interesting-companies-circular-economy-finland/

sitra.fi/hankkeet/kiertotalouden-kiinnostavimmat

sitra.fi | seuraavaerä.fi

@sitrafund

Kiitos!

Mari Pantsarp. [email protected]@maripantsar

https://www.instagram.com/sitrafund/

https://www.linkedin.com/company/sitra

https://www.youtube.com/user/sitrafund

http://www.slideshare.net/SitraFund

28

KICK-OFF

AGENDA







Enabling the transitionPasi Viitanen, Business Finland

BUSINESS FINLANDFUNDING2018

PASI VIITANEN

24.4.2018#1916550

#kasvuakiertotaloudesta @BusinessFinland

STARTUP

Under 5 years old companies aiming at international markets

SME & MIDCAP

Small and medium-sized enterprises and Midcap

companies that have passion and capabilities to develop and boost exports.

LARGE

Large companies seeking to renew

themselves alongside SMEs and research

organisations

RESEARCHAND PUBLIC

ORGANISATIONScooperating with

companies

FOR WHOM?


AMBITIOUS COMPANIES

SEEKING FOR I NTERNATI ONAL

GROWTH

WHAT ARE LOOKINGFOR?

PASSION FOR GROWTH

A GREAT TEAM

SUFFICIE NT RESOURCES

COMPETITIVEADVANTAGE


SERVICES FORDIFFERENT PHASES

SCALE YOUR BUSINESS

GO TO MARKET

INNOVATE

DISCOVER OPPORTUNITIES


SERVICES FORDIFFERENT PHASESPartnerships & networks

• contacts and experts around the world

• networking events, workshops, business delegations

Funding

• research and product development to enhance your competitive advantages, services and business models

• information about target markets, feedback from potential clients

Knowledge and know-how

• advice and coaching to speed up international growth

• sales leads and market opportunities


6

FUNDING SERVICES FOR YOUNG GROWTH COMPANIES

LEARN,INVESTIGATE, TEST

(under 5 years old startups)

RESEARCH,DEVELOPMENT

SCALE UP

TEMPO

Enter the export markets

Explore demand

R&D

Develop a service, product, process or a

business model

YOUNG INNOVATIVECOMPANY FUNDING

Develop your business

comprehensively and grow rapidly in a

global scale

▪ Grant 75 %▪ max. 50 000 €

▪ Loan 50 - 70 %▪ (Grant max 50 %)

▪ Grant max. 500 000 €▪ Loan max. 750 000 €▪ 75 %▪ In 3 - 4 phases

GO /NO GO

GO /NO GO


EXPLORE, TEST, GO GLOBAL RESEARCH, DEVELOP, RENEW, GROW

FUNDING SERVICES FOR SMEs

KIITO

Renew and prepare to grow into a new

international market

Develop a product,service, process ora business model

Test the functionality

R&D INTO

Increase your innovation knowledge

to support your growth targets

INNOVATION VOUCHER

Buy innovationexpertise

EXPLORER

Purchase knowledge about

a new export market

TRADE FAIR

A group of SMEs participating

together in an international

trade fair

• Grant 100 %• 5000 € + VAT

• Grant 50 %• max 10 000 €

• Grant 50 %• max 30 000 €

• Grant 50 %• max 50 000 €

• Loan 50% / 70 % • Grant 50 %• Grant max 50 % • Grant max 50 %

The amount of funding depends onthe company’s needs and resources

7#kasvuakiertotaloudesta @BusinessFinland

SAMPO - Made in Finland

Data based business inManufacturin Industry

Under construction

Circular Economy

Under construction

39

KICK-OFF

AGENDA







CargotecSoili Mäkinen

Cargotec digitalizingmaritime ecosystems

Soili Mäkinen, CIO, Cargotec

Kalmar history started over 100 years ago.

Over the past 70 years Hiab has delivered more than0.5 million loader cranes to its customers.

Equipment designed for arcticconditions can operate in -50° Celsius

Cargotec has operations in more than 100 countries

Every year, over 700

million container moves are

being made globally in ports.

Every fourth of them is handled

by a Kalmar solution.

Every other ship in the world carriesMacGregor equipment

27 April 2018 2

14

Cargotec, a leader in intelligent cargo handling

/

....

CRRGOTEC

Inefficiency in the cargo handling chain: separate blocks between actors without connectivity

27 April 2018 4

Source: McKinsey

€17 BILLION inefficiency

19milj. CO2eqv tonnes on movingonly empty containers

Planning & Execution: plan and

execute all moves across terminal/

Increases throughput and lowers cost

Automate & improve

truck turn times

Track vessel operational

performance and

environmental compliance

Optimise vessel load and

discharge across cranes

Optimise vessel

stowage planning

Analytics for better operational

decision making

Optimise container yard moves,

save cost and reduce moves

Capture all billable events

for accurate and timely billing

Optimise vehicle

routing and costs

Optimise rail load and

discharge processes

Cargotec provides common digitalised platform enabling the data flow in real-time , increasing efficiency

4/27/2018Soili Mäkinen, Cargotec 5

Stowage

Planning

BCOs/

Shippers

Truck & Rail

Bookings

Ship Schedules

Geo-

Tracking

Carrier–Terminal

Collaboration

Berthing

Ocean Carriers

ETA

3rd PARTY

APPLICATIONS

Port CommunityVSA Partners

Port Call

Optimisation

BI &

Analytics

Local

Agents

Terminals

Identify new opportunities to increase terminal efficiency by using

terminal resources (cranes, gangs, etc.) more effectively

Reduce excess bunker fuel consumption caused by speeding to

terminals only to wait outside the terminal, or by unnecessary

delays departing the terminal

Increase opportunities for slow steaming by informing pilots of

early completion as soon as terminal operations are complete

Improve vessel utilisation via better stowage plans and increased

ability to accommodate last-minute loading opportunities

Optimise stowage plans for the current available cranes & labour,

eliminating waste of terminal capacity and shortening port stays

Improve safety and eliminate stowage errors by ensuring all

parties are working from the same accurate, current ship files

Improve compliance through a complete recorded history of each

vessel call, changes from plan to actual, and full post-call analysis


Digitalised systems decreasing waste in maritime transportation


Circularity thinking as part of new business development

Recovery & re-cycling

Product as a Service

Product-life extension

Sharing platform

Circular supply chain

Sourcing

ManufacturingLogistics

Marketing &

Sales

Product use

End-of-life

disposal

Reverse

logistics

Source: Accenture

Nokia Pia Tanskanen

© 2017 Nokia1

Connecting the world

in a responsible way. TogetherPia Tanskanen

Nokia Head of Environment

AcquiredWithings

Created

Nokia Siemens Networks

SoldDevices

&Services

2007

Acquired Motorola Solutions wireless networks

Created Nokia

Technologies

Sold

HERE

2011

Created Nokia Shanghai Bell

Acquired

Deepfield

Gainspeed

Comptel

Acquired

Alcatel-Lucent

Pulp,

Paper,

Rubber, Cable,

Aluminum,

Mobile phones

More than 150 years of successful reinvention

#kasvuakiertotaloudesta @Nokia @piatanska

#Stop The

Waste

Avoid waste generation

Increase reuse

Improve recycling

Minimize landfill

Circular Goal

© 2017 Nokia#kasvuakiertotaloudesta @Nokia @piatanska

Connectivity •Sharing economy

•Product as a service

Products•Design for Environment

•Life extension; upgrade

•Asset recovery & repair

•WEEE, batteries

Operations•Office waste

•Supplier waste

•Packaging waste

Levels of impact

© 2017 Nokia#kasvuakiertotaloudesta @Nokia @piatanska

Takeback data (2016)

2450 tons oldequipment

to recycling

© 2017 Nokia

85800 units refurbished

https://networks.nokia.com/services/care/asset-recovery

www.nokia.com/people&planet

#kasvuakiertotaloudesta @Nokia @piatanska

https://networks.nokia.com/services/care/asset-recovery

http://www.nokia.com/people&planet

Thank You !

© 2017 Nokia

@nokia

@piatanska

Tamturbo Olli Kuismanen

CIRCULAR ECONOMY IN

COMPRESSED AIR MARKET

12-15 %of all industrial

electricity

Industrial Compressed Air electricity consumption:

5 %of worlds total

electricity

Olli Kuismanen

VP, Partnerships

Tamturbo Oy

COMPANY PURPOSE

Tamturbo develops and sells oil-free

turbo compressors and OEM turbo units.

#kasvuakiertotaloudesta @TamturboLtd

NEW WAY TO SOLVE AN OLD NEED

EFFICIENCY LOSS

HIGH MAINTENANCE

REQUIRES OIL

AIR PURITY IS IMPERATIVE FOR INDUSTRIESCUSTOMER PAIN: ”OIL-FREE” DRY

SCREW COMPRESSOR

SOLUTION: TAMTURBO 100 %

OIL-FREE COMPRESSOR

100% OIL-FREE

TOUCH-FREE™

CARE-FREE


TAMTURBO VALUE PROPOSITION

20 - 30 % life cycle savings

30 - 40 k € / year

600 - 800 k € in life cycle

+ Environmental benefits

100 %

oil-free

Min. 10 % lower

electricity

consumption

Smaller size -

no barrier to

change

Less waste

treatment

90 % less

maintenance

Over 90 %

energy

recovery


PURCHASE ALTERNATIVES

Investment + maintenancetraditional compressor business

Investment + extended warrantyUp to 10 years. All wearing parts, spare parts, and labor included

Touch-Free™ AirCompressor + all related expenses included

Pricing: €/m3 or €/month

→ production changes easy, adaptive to customer needs, OPEX

Real-time

remote

monitoring

and

optimization.

Predictive

Maintenance.


RAHOITUSVAIHTOEHTOJA


10% better energy efficiency, leading to

> 2,6 GWh saving over 15 years per unit

Highest level of energy recovery,

additionally 93% savings

Virtually maintenance-free technology,

saving > 300k€ savings over life-cycle,

extended life-cycle

No oil waste, no oily waste, no oil in

condensate water

Touch-Free™ Air grows with your business– no need to discard and buy new.

Optimized capacity use - always

CONCLUSIONS


Michelin CaseCédric Vatier, Accenture

66

MICHELIN CASE – OVERALL CONTEXT

MOVE FROM PRODUCTS TO SERVICES… AND

CIRCULAR ECONOMY


• 2nd largest tire manufacturer in the world

• High-quality products, with price premium

• Well positioned in all mature market

• Strong operational and financial

performance (vs competitors)

• Strong pressure from Emerging Market Players (in

particular, Chinese)

• Limited Revenue Growth

• Progressively limited to the upper segments

But

MOVE FROM PRODUCTS TO SERVICES

Escape to product commoditization, price war and lack of growth

Generate profitable growth

Ensure market differentiation, while leveraging historical growth

Optimize costs

…

CREATION OF MICHELIN SOLUTIONS AND MICHELIN INCUBATOR

Source: Accenture

67

MICHELIN CASE – OVERALL CONTEXT

…LEVERAGING ALL THE DIMENSIONS OF

CIRCULAR ECONOMY…


From inefficiencies in linear value chains… … to business value from circular

5. Offer outcome

oriented solutions

NON-RECYCLEABLE OR

RENEWABLE RESOURCES1. Reform use of resources

UNDERUTILISED

CAPACITIES2. Optimize capacity use

3. Extend lifecyclesPREMATURELY ENDED

LIFECYCLES

WASTED EMBEDDED

VALUE4. Recover value from waste

Source: Accenture

68

MICHELIN CASE

NUMEROUS OPPORTUNITIES OF SERVICES…

When you think about tire… …do you think about all the potential associated services

➢ Pay per mile

➢ Trailer Asset Optimization

➢ Fuel Efficiency

➢ Driver coaching / Driver Assistance

➢ Services associated to tire maintenance

➢ Services for fleet management

➢ Services associated to tire recycling

➢ …

A potential of 3bn€ in 10 Years – with “win-

win” Business Cases

69

MICHELIN CASE

…WITH AN APPROACH LEVERAGING THE

OVERALL ECOSYSTEM…

“Pay as you drive” services (insurance,

tires, car…)

• Strategic Partners :

• Tire manufacturer

• Insurance company

• Telecom provider

• Large data analysis specialist

• Business Partners

• OEM

• Potential Partners

• Infrastructure companies

• Bank (Leasing solutions)

• Driving academies

Exam

ple

Strategic Partners• Develop solutions in common

with industry leaders

• Ensure credibility solution

through a network of

recognized partners

Business Partners• Benefit from technical /

commercial expertise or

means of specialized actors

• Extend solution benefits with

non-core services

Potential Partners• Prospect new partners for

further solution extension

• Find anchorage points in new

markets

Source: Accenture

70

MICHELIN CASE

…AND A “STEP-BY-STEP” APPROACH

Firm up existing Tire-

as-a-Service business1

Federate an

ecosystem of

business partners3

Strategic

Usage DataEco

Driving

Fuel-

Efficiency

Vehicle

Fleet

Uptime

Bring new services to

the market2

Goal:

from

€300m

to €3b

+ 10 yrs

Source: Accenture

71

MICHELIN MINING TIRE SOLUTION

“TIRE AS A SERVICE” CIRCULAR BUSINESS MODEL

HIGHLIGHTS FROM JULY 19TH, 2013 PRESS RELEASE

• "We have collaborated with one of the world's leading tire manufacturers to launch a ground-breaking strategic business that transforms the company from selling products to selling solutions around mobility," explained Jean Cabanes, managing director for the automotive and industrial equipment industries in France and Benelux, Accenture

• "Accenture used a combination of consulting and technology services to collaborate, launch and monetize Michelin solutions' offerings in a very short time-to-market. Working side by side with Michelin solutions, we are being paid based on the future performance of Michelin solutions – which gives us a vested interest to create a successful project."

• "Based on strong collaboration, Michelin solutions and Accenture are using a value-based deal built on a pay-per-use model," said Philippe Miret, Michelin solutions' CEO. "This model creates a shared interest in long-term results, giving both organizations the opportunity to benefit directly from success."

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=RKfWUMZcBjpTkM&tbnid=NyJmTGZM0ozkrM:&ved=0CAUQjRw&url=http://www.haulagetoday.com/michelin-solutions-makes-cv-show-debut/&ei=xklpU52APIOsyAS8xoCYDQ&bvm=bv.66111022,d.aWw&psig=AFQjCNG-lT3zUoK1MYRNn-ZWgmzHUjQ-qg&ust=1399495455932979

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MICHELIN CASE

CHANGING THE GAME REQUIRES NEW

CAPABILITIES

Source: Accenture

73

KICK-OFF

AGENDA

09:00 – 09:30 Welcome and background

Jyri Arponen, Sitra

Laura Juvonen, Technology Industries

Pekka Vanne, Accenture

09:30 – 09:45 Finnish Companies in Global

Circular Economy

Mari Pantsar, Sitra

09:45 – 10:00 Enabling the transition

Pasi Viitanen, Business Finland

10:00 – 11:00 Leading company examples

Cargotec, Soili Mäkinen

Nokia, Pia Tanskanen

Tamturbo, Olli Kuismanen

Michelin case, Cédric Vatier (Accenture)

11:00 – 11:30 Next steps & questions

Jyri Arponen, Sitra


Next steps & questionsJyri Arponen, Laura Juvonen & Pekka Vanne

75

PROGRAMME OVERVIEW

WORKSHOPS WILL GUIDE COMPANIES TO ASSESS

OPPORTUNITIES AND IDENTIFY PILOT PROJECT

Readiness for pilot project

Assess & shortlist your opportunities

Evaluate required technologies & capabilities

Plan for your journey

Understand drivers & opportunity

Kick-off:

”WHY”

Workshop 1:

”WHAT”

Workshop 2:

”HOW”

Workshop 3:

”NEXT STEPS”

CIRCULAR INNOVATIONS


Today (24/4) Week 19 (7-9 May) Week 21 (21-22 May) Week 23 (4-5 June)

Clarified strategy

Source: Accenture

76

Define vision and market position

Screen business opportunities

Size value and prioritize

Assess capability gaps

Design roadmap

Sta

rt f

irst

pil

ot

1 2 3 4 5

Ke

y a

cti

vit

ies

Vision

Ecosystem position

Business models

Value proposition

Product portfolio

Value case

Set target

Capability assessment

Technology assessment

Financing models

Ecosystem partneringapproach

Implementation & piloting approach

WS1 WS2 WS3

WORKSHOP OVERVIEW

WE WILL WALK THROUGH 5 STEPS IN

3 UPCOMING WORKSHOPS BEFORE SUMMER


Source: Accenture

77

WORKSHOP OVERVIEW

ACCENTURE EXPERTS WILL

SUPPORT THE WORKSHOPSWS1 WS2 WS3

Anna B. Töndevold

• Business Models

• Value case definition

Philipp Buddemeier

• Opportunity Identification

• Best practice examples

Peter Thompson

• Digital Manufacturing

Ville Mickelsson

• Digital/IoT

Kris Hvidsteen

• Transformation journey

Quentin Drewell

• Financing models


78

WORKSHOP OVERVIEW

WORKSHOP PARTICIPANTS AND GROUPS

Machinery & Equipment #1 Machinery & Equipment #2 Energy Transportation & Marine

Enabling companies


https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiG84z5jdDaAhULWCwKHZmtA_AQjRx6BAgAEAU&url=https://pitchbook.com/profiles/company/98128-63&psig=AOvVaw36iskjiV2IIlK38zY1Jdl_&ust=1524563012505324

79

WORKSHOP PREPARATIONS

ACTIVE ENGAGEMENT BEFORE AND DURING

WORKSHOPS NEEDED TO EXTRACT VALUE

In preparation for the workshop During/after each workshop

• Engage with the experts to get ideas and answers relevant to you

• Share your ideas and questions for others to benefit as well

• Own your outcome – build your Circular Economy plan based on learnings in workshops

• Prepare for the workshop

• Gather required information

• Document your starting point / current thinking in pre-sent templates

• Think of questions for the experts

Jyri Arponen &


80

WORKSHOP OVERVIEW

WHAT YOU GET AT THE END – BY SUMMER

• An increased understanding of Circular Economy business opportunities for your company• Generated by expert discussions and peer feedback

• A prioritized set of top opportunities to pursue

• A business plan for your chosen opportunity/-ies including• Business canvas• Value quantification• Technology requirements• Capability requirements• Implementation plan for pilot project

• A readiness to start your pilot project and apply for funding

• A head start of 5 months in using the playbook

1

2

3

4

5

Jyri Arponen &


Questions?

circular economy for the finnish ......product use circular value chain optimize capacity use...

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