drive 2016 | 27 october - circo: circular business models - we know why but do we know how?

CIRCULAR BUSINESS MODELS:WE KNOW WHY, BUT DO WE KNOW HOW?Speaker: Rick Veenendaal | GispenHost: Jeroen Hinfelaar | Nuovalente & CIRCO

CIRCULARBUSINESSMODELS:WEDOKNOWWHY,BUTDOWEKNOWHOW?

RickVeenendaalGISPENJeroenHinfelaar Nuovalente&CIRCOOct 27#DRIVEFEST#DDW16

VISIONCircular Economy

is the accumulated result of

Circular Entrepreneurshipstarts with the developmentand market introduction of

Circular Propositionsare being developed, using

Circular Designof products, servicesand business models

LINEAR BUSINESS

#valuehill

CIRCULAR BUSINESS

#valuehill

CIRCULAR BUSINESS ACTIVITIES:FOUR CATEGORIES

1. GISPEN AND “CIRCULAR DESIGN”

DESIGNPRODUCTSANDMATERIALSWITHTHEAIMOFLONGTERMVALUERETENTION

Gispenchoices,experiences so far,and questionto the audience

SMARTERPRODUCTUSEANDDESIGN

Refuse

Rethink

Reduce

LIFETIMEEXTENSION

Re-use

Repair

Refurbish

Remanufacture

Repurpose

USEFULAPPLICATIONOF

MATERIALS

Recycle

Recover

10 CIRCULAR STRATEGIES

source:circulaireeconomie:innovatiemetenindeketen– PBL23juni2016

*developed with TNO

Frameworkaspect DefinitionDesignforre-use Re-useofproducts,partsorcomponentsforany(other)purposeafteracertainuseperiod

insteadofbreakingthemdownintorawmaterials.Inaclosedloopsystemmaximisationofreuserequireshighqualityandflexibilityassupportedbydesigncriteriaforproductmodularity.Maintenanceofproducts,bytakingcareofproductsthrough(un)scheduledmaintenanceactivitiesonaregularbasis,willextendtheproductlifetimeandretaintheproduct’svalue.Upgradingaproduct,byaddingorremovingpartsfromtheoriginalproductleadstoanfunctionaloraestheticimprovementoftheproductwithoutreplacingtheproductasawholeandtherebyextendstheproductlifetime.

Designforlogistics Bytakingintoaccountproductpackagingandproductdesignitself,volume,weight,waste,etc.willbereducedandtherebyenvironmentalimpactandproductdamagewilldecreaseduringthetransportationofproducts.

Designformaterialuse

Inordertocreateaclosedloopsystemmaterialwastedoesnotexist.Designchoicesofmaterialsarebasedontheabilitytore-usematerialswithminimalenergy,useofrenewableresourcesanduseofnon-toxicmaterials.

Designfordisassembly

Productsaredesignedfortakingapart(disassembly)complexproductsintointerchangeablemodules,partsorcomponentstokeepmaterialsattheirhighestutilityandvalue.Inaclosedloopsystemproductsshouldbedesignedforeffectivedisassemblywithoutlosingvalueinmaterials,energyandlabour.

Process–manufacturing

Aclosedloopsystemshouldavoidanyconsumptionduringthemanufacturingprocess.Manufacturingenergymustcomefromrenewablesource.

Process–(reversed)logistics

Theenvironmentalimpactofthesupplyofmaterialsandtransportationofproductshasbeenminimizedbyoptimizingmodesoftransportation,strongcollaborationwithsuppliers,localsourcingofmaterialsandlocal(re)manufacturingandrecyclingofproducts.

Designformaintenance&upgrade

DEFINITIONS FRAMEWORK ASPECTS

Kwalificatie Sterren ScorePASS ê ≥30%GOOD êê ≥45%VERYGOOD êêê ≥55%EXCELLENT êêêê ≥70%OUTSTANDING êêêêê ≥85%

RESULTS FRAMEWORK

Material

1 Hetmateriaalisaanheteindvandelevensfasevoor80%herbruikbaarineenanderproductieproces(hethergebruikvanhetmateriaalomvatminimaal5hergebruiks-cycli)

2Degebruiktematerialenineenproductbestaanuitgrondstoffendiehoogwaardiggerecycled(=gelijkwaardigofhogerdanoorspronkelijkewaarde)kunnenwordenwaarbijzoveelmogelijkduurzame/nietschadelijkegrondstoffengebruiktworden.Of,debronvandegrondstof(fen)vanhetmateriaalherstelt(hernieuwt)zichbinnen10jaartotdeoudesituatienadewinningvanhetmateriaal.

3 Hetproductis,indienbeschikbaar(verkrijgbaarindemarkt),gemaaktvangerecycledematerialen.Hierbijkijkendnaarindividuelematerialen,mixtussenrecycleenvirginistoegestaan.

4 HetgebruikvangrondstoffenenproductiemethodenisvoordelevenscyclusscenariodoorgerekendmetdeCirculaireLCAmethode vanGispen.Descoredientineencirculairscenarioaltijdbetertezijndanineenlineairscenario.

5 Vermengingenvanmaterialenisvermeden.Materialenzijnaltijdvanelkaartescheiden.

6 Deafbraakvanmateriaalisanaeroob(zuurstofloos)endraagtbijaanenergievoorziening(totbijvoorbeeldbiogas).Of,hetmateriaalkanbijafbraakwordenomgezettotingrediëntterverbeteringandebiosfeer.

7 Bijhet(her)producerenvanhetmateriaalkomengeenschadelijkestoffenvrij.

8 Massaenvolumevanhetmateriaalzijnminimaal(bijkeuzevanmateriaalmoetrekeninggehoudenwordenmetandermateriaaldatvoormindermateriaalkanzorgen).

EXAMPLE ASPECT MATERIAL

• WORKSGOODFORNEWDESIGNSANDTOIMPROVEPRODUCTS

• ALL(PRODUCTDESIGN)THEMESARECOVERED

• ONLYPRODUCTDESIGN,NOTPRODUCTUSE• NEWVSREFURBISH/REMANUFACTURE• PRODUCTVSSYSTEM

EXPERIENCES SO FAR

QUESTION 1:

IS THE DESIGN FRAMEWORKTHE RIGHT TOOLTO MEASURE CIRCULARITY?

HOW CAN WE IMPROVE THE DESIGN FRAME?

QUESTION 2:

IS THIS WAY OF THINKING APPLICABLE FOR YOUR BUSINESS?

2. GISPEN AND “OPTIMAL USE”

SUPPORTBETTERUSAGEANDPRODUCTPRODUCTIVITY


LIFETIME

UTILIZATIONRATE/PRODUCTUSE

?

DILEMMA=INTENSIFYPRODUCTUSE>REDUCESTHELIFETIME

OPTIMAL USE

PRODUCTS:GISPENCOLLECTION

SERVICES:FURNITUREMANAGEMENT(STORAGE,LOGISTICSANDINVENTORY)GISPENGREENLIFE(SECONDLIFE)

BUSINESSMODELS:PAYPERUSE

TO OPTIMIZE THE UTILIZATION RATE

PRODUCTS:GISPENCOLLECTIONREVIVED&REMADEBYGISPEN

SERVICES:MAINTAINANCE(CORRECTIVE&PREVENTIVE)RE-USE,REPAIR,REFURBISH,REMANUFACTURE,REPURPOSE

TO EXTEND THE LIFETIME

LINEARPRODUCTS:GISPENCOLLECTION

SERVICES:INTERIORDESIGNMAINTAINANCE(CORRECTIVE)PROJECTMANAGEMENTCABLEMANAGEMENT

CIRCULARPRODUCTS:GISPENCOLLECTION(DESIGNFRAMEWORK)REVIVEDANDREMADEBYGISPEN

EXTRA SERVICES:MAINTAINANCE(CORRECTIVE&PREVENTIVE)RE-USE,REPAIR,REFURBISH,REMANUFACTURE,REPURPOSEFURNITUREMANAGEMENT(STORAGE,LOGISTICSANDINVENTORY)GISPENGREENLIFE(SECONDLIFE)

FROM PRODUCT TO SERVICE

• CUSTOMERSWANTSTOBEUNBURDENED• GISPENISTHEEXPERT• NEWBUSINESSMODEL

• FEARGISPEN:COSTSANDCONSEQUENCESOFSTORAGE,LOGISTICSANDINVENTORY

• FEARGISPEN:OWNERSHIPSSTAYSWITHMANUFACTURER(US!),BUTHOWWILLTHECUSTOMERTREATTHE(OUR!)FURNITURE?

• NEWVS SOGOODASNEW

EXPERIENCES SO FAR

QUESTION 1:

HOW TO DEFINE THE CIRCULAR OPTIMUM?

LIFETIME

UTILIZATIONRATE

?

QUESTION 2:

WHAT IS THE BEST WAY TO EARN (MORE) MONEY WITH IMPROVING “OPTIMAL USE”?

FOCUS ON UTILIZATION RATE OR LIFETIME?PRODUCT VS SERVICE?NEW (100%) VS SO GOOD AS NEW (60-70%)

3. GISPEN AND “VALUE RECOVERY”

CAPTUREVALUEAFTERUSERLIFE


CLOSING THE LOOPS

PROCESSTERMS FINANCIALINCENTIVES

PARTNERS

VALUERECOVERY

GISPEN GREENLIFE

RE-USEREPAIRREFURBISH

REMANUFACTUREREPURPOSE

RECYCLERECOVER

PLANET PEOPLE PROFIT

#SALETOGISPEN#DONATE#SALEOWNPERSONALKGRECYCLE/RECOVER

GREENCARD

EXAMPLE FINANCIAL INCENTIVE

PRICEPRODUCT– 100%

DEPOSIT(STATIEGELD)– 10%

EXAMPLE FINANCIAL INCENTIVE

PRICEPRODUCT– 100%

SALEWITHGUARANTEEDRESIDUALVALUE– 10%

• VALUERECOVERYSEEMSIMPORTANT• THEMANUFACTURERTAKESHISRESPONSIBILITY

• RISK/REWARD• TOOMUCHFOCUSONFINANCIALINCENTIVES

EXPERIENCES SO FAR

QUESTION 1:

WHAT CAN BE EFFECTIVE INCENTIVES TO MOTIVATE OUR CUSTOMERS TO BRING OUR PRODUCTS BACK & HELP CLOSE THE LOOP?

ARE FINANCIAL INCENTIVES REALLY NECESSARY?IS IT NECESSARY THAT THE MANUFACTURER STAYS OWNER?WHO PAYS FOR THE COSTS FOR RETURNING THE PRODUCTS?WHAT ARE THE CONSEQUENCES OF GROWING RETURN STREAMS?

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