Redesigning Business Models With Circular Economy

2020 ◽  
pp. 121-153
Author(s):  
Francesca Ceruti ◽  
Laura Gavinelli ◽  
Angelo Di Gregorio ◽  
Marco Frey
Keyword(s):  
Circular Economy ◽  
Business Performance ◽  
Business Models ◽  
Environmental Strategy ◽  
New Paradigm ◽  
Work Plan ◽  
Doing Business

In the last decades, circular economy has become a key in the academic and managerial studies. While there are plenty of contributions on circular economy like environmental strategy, a less developed line of studies is that analyzing circular economy as a new way of doing business. In this context, Italy has initiated the necessary reforms for the transition to the circular economy in 1997, but it is only in 2017 that it has adopted a work plan on that. The chapter presents the evidence of a CAWI interview investigating if the Italian firms are adopting the principles of circular economy and if this affects their competitiveness and business performance. The research contributes to the understanding of this new paradigm by getting into detail with the motivations that drive Italian enterprise to adopt the principles of circular economy, the actions they are taking to be circular economy-oriented, and the possible relationship between the adoption of the circular economy principles and their business performance.

scholarly journals Intesa Sanpaolo Circular Economy Plafond: how to Support Companies’ Transformation

2020 ◽  
pp. 117
Author(s):  
Anna Monticelli
Keyword(s):  
Financial Institutions ◽  
Circular Economy ◽  
Business Models ◽  
Industrial Revolution ◽  
Development Model ◽  
Business And Society ◽  
New Paradigm ◽  
Doing Business ◽  
The People ◽  
Systemic Transformation

The present development model, born with the industrial revolution, has been extremely successful in supporting growth, innovation, wealth for hundreds of years. But not for all the Countries and not for all the people, in an equal way. A new paradigm is envisaged to transform the development model through an economy that follows the same principles used by the Nature and that aims to reconnect business and society. A Circular Economy, regenerative by design and committed to design out waste and pollution, through innovation in materials, in production processes and moreover in business models, is a big opportunity for companies and financial institutions, if they transform the way they’re doing business. Intesa Sanpaolo is committed in re-thinking financial instruments and processes to support companies and accelerate a systemic transformation, within the limits of our Planet, focusing on thrive for all more than on growth for someone.

A SAP-LAP linkages framework for integrating Industry 4.0 and circular economy

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chetna Chauhan ◽  
Abhishek Sharma ◽  
Amol Singh
Keyword(s):  
Circular Economy ◽  
Industry 4.0 ◽  
Business Models ◽  
New Paradigm ◽  
Content Type ◽  
Physical Systems ◽  
Strategic Issues ◽  
Advanced Technologies ◽  
Top Managers ◽  
Process Learning

Purpose In the recent years, the two increasingly popular topics, namely, Industry 4.0 and circular economy (CE) have attracted the attention of many academicians and practitioners. However, the connection between CE and Industry 4.0 has not been much investigated in the literature. Motivated by this gap, the purpose of this paper is to integrate these two streams and attempt to understand the new paradigm of Industry 4.0 for resolving the issues pertaining to CE principles. Design/methodology/approach The study uses situation, actor, process, learning, action, performance (SAP-LAP) linkages framework to analyze the applications of Industry 4.0 mechanisms in realizing the issues of current CE business models. This is done through the interpretation of the cross-interaction and self-interaction relationships among the different interfaces/elements of SAP-LAP. Findings The results suggest that top managers are the most essential actors for integrating the use of Industry 4.0 to achieve sustainability, in the light of CE. In addition, advanced technologies such as Internet of Things and cyber-physical systems are the most important Industry 4.0 actions that help in improving the CE performance parameters. Research limitations/implications This qualitative study is an attempt to analyze and assess the strategic issues pertaining to Industry 4.0 standards in CE. The study identifies learnings (challenges/opportunities) and the corrective actions which are imperative toward achieving CE principles. This study will guide managers and policymakers to understand the importance of implementing Industry 4.0 for accomplishing CE principles. Originality/value This study integrates two important streams of literature – Industry 4.0 and CE. Thus, this paper offers insights about the importance of Industry 4.0 standards in achieving CE principles.

scholarly journals Eco-innovation and Circular Business Models as drivers for a circular economy

2018 ◽  
Vol 64 (1) ◽  
pp. 64 ◽  
Author(s):  
Xavier Vence ◽  
Ángeles Pereira
Keyword(s):  
Supply Chains ◽  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Holistic Approach ◽  
Short Supply ◽  
Doing Business ◽  
Smart Energy Systems ◽  
The Way

<p>Eco-innovation is defined as any directed/oriented innovation aiming at reducing environmental impacts. Eco-innovation is not only a technology change; it also embraces organisational, social and system innovations. This systemic and complex thinking is necessary to understand the role of eco-innovation as an enabler of Circular Economy (CE). Circular Economy appears as a promising approach towards a sustainable transition from the linear socioeconomic paradigm. The objective of the Circular Economy is to maintain and to share value along the time. Eco-innovation for Circular Economy can be of technological and non-technological character. Indeed, it is acknowledged that CE needs to address important challenges regarding business models and socio-institutional frameworks, while technological change may not be necessarily radical. In order to pave the way to Circular Economy through eco-innovation, business models are considered a key driver. The business model is seen as a holistic approach towards the way of doing business. From the eco-innovation perspective, a business model needs to add ecological and social value to the value proposal and changing the producer and the consumer practices. In particular, eco-innovations with the potential to enable the transition to a resource-efficient circular economy model include efforts to change dominant business models (from new product and service design to reconfigured value chains, new/short supply chains), transform the way citizens interact with products and services (ownership, leasing, sharing, repairing, reducing, remanufacturing, etc.) and develop improved systems for delivering value (green mobility, smart energy systems, short supply chains,  etc.).<strong></strong></p>

Rethinking the production and consumption on the transition

2020 ◽  
Author(s):  
Heikki Ruohomaa ◽  
Vesa Salminen ◽  
Tapani Pöykkä
Keyword(s):  
Circular Economy ◽  
Business Models ◽  
Industrial Revolution ◽  
New Technology ◽  
Transition Process ◽  
Business Environment ◽  
Raw Material ◽  
New Paradigm ◽  
Industrial Transformation ◽  
Fourth Industrial Revolution

&lt;p&gt;&lt;strong&gt;Abstract.&lt;/strong&gt; The new opportunities offered by technologies have caused societies to break through towards the fourth industrial transformation. It will change the whole society and its structures alongside the business and the transition process is still speeding. The world is also facing big megatrends like global warming, urbanization, digitalization, new revolutionary technologies.&lt;/p&gt;&lt;p&gt;Like the industrial revolutions before, the whole paradigm of society is changing, and it will happen also in the fourth industrial revolution, so there is a need to think how we should take a step towards to the new paradigm, so that we could be able to response to future challenges on sustainable way.&lt;/p&gt;&lt;p&gt;The fourth industrial revolution (4IR) technologies like sensor, IoT-platforms, artificial intelligence etc., give new possibilities to develop new, more efficient, more sustainable and more customer driven supply chain, prolong the lifetime of products and create new services and business models and this way reduce the use of materials of energy. There is also an argument to rethink the source of raw material, and in which extent the cities itself could be seen the source of needed materials and energy, by using new technology.&lt;/p&gt;&lt;p&gt;The move towards new ICT based technologies will happen unexpected fast, including exponential growth of data. That is the reason, why it is essential to understand the challenges of change and have a strategic view, identify the key elements and see the new opportunities in all levels of society development.&lt;/p&gt;&lt;p&gt;Circular Economy has been very much a hot topic in many discussions, but there has been quite little discussion about reengineering the value chains and production based on circular economy principles by using the new opportunities on 4IR technologies not only in production but also in creating service, which change the need/thinking of ownership and build new business models. In addition to this, the elements to improve business environment by local or national authorities and legislators.&lt;/p&gt;&lt;p&gt;Finland has is as a goal to develop to one of the leading countries in circular economy, In Finland, Forssa region is considered to be one of the most advanced region in bio-based circular economy.&lt;/p&gt;&lt;p&gt;In this article has been described the development of regional industrial symbiosis in order to have competitive of business and future development.&lt;/p&gt;

scholarly journals Business Models Addressing Sustainability Challenges—Towards a New Research Agenda

2020 ◽  
Vol 12 (9) ◽  
pp. 3534 ◽  
Author(s):  
Claudia Ogrean ◽  
Mihaela Herciu
Keyword(s):  
Business Models ◽  
New Paradigm ◽  
Global Business ◽  
Doing Business ◽  
Long Run ◽  
Global Business Ethics ◽  
Short Run ◽  
Sustainability Challenges ◽  
Contingent Approach ◽  
New Research

From just another buzzword a few decades ago, sustainability has become a hot topic on strategists’ agenda—and it is here to stay. The growing pressures on businesses to address the ever-complex sustainability challenges and to (consequently) assess their performance against a variety of sustainability-related goals are imperatively asking for a new paradigm—grounded on a global business ethics perspective and able to support a fundamental change in the traditional ways of doing business; placed at the heart of any company’s way of doing business, business models are instrumental in these transformative changes, both as triggers (in the short run) and backbones (in the medium to long run). Building on existing literature and capitalizing on the opportunities provided by inter- and trans-disciplinary research, this theoretical analysis aims to (re)frame the (research in) search of the most appropriate business models to address sustainability challenges. Thus, the purpose of the study is: (1) To advocate for a complex yet contingent approach at the business level—able to capture the bigger picture (the sustainability imperative) without missing its idiosyncrasies (the best fitted to the business model context)—when searching for strategic performance; (2) to propose an integrative, multi-level conceptual framework (able to provide widespread synergies for companies and their broader environment) as guidance for this kind of approach, and to suggest specific directions with respect to its implementation.

scholarly journals Boosting the Firm Transformation in Industry 5.0: Experience-Agility Innovation Model

2019 ◽  
Vol 8 (2S9) ◽  
pp. 735-742 ◽  
Keyword(s):  
Business Models ◽  
Customer Experience ◽  
Value Proposition ◽  
New Paradigm ◽  
Doing Business ◽  
Proposed Model ◽  
Model Sample ◽  
New Business ◽  
Innovation Model ◽  
New Business Models

Industry 5.0 brings collaborative and automatic environment, thus creating a new paradigm for companies in doing business. The way organizations manage resources and capability, especially in relationship with people, culture and process in creating new business models have changed. Previous studies on developing innovation based on customer experience and agility of organization focus on the concept, relationship among variables and the implication. However, in the context of industry 5.0, the study on those topics has not been revealing. Hence, this study aims to assess the concept of experience-agility innovation model to support transformation in the context of digital transformation to face Industry 5.0. The proposed model was assessed with 195 Indonesia ICT firms using SEM-PLS statistical tools. The findings demonstrate that the firm that offers compelling value proposition from customer experience while concurrently developing agility in the organization to create business model innovation could boost the transformational performance. For further researches, the study can be enhanced through expanding the model, sample, and time

Emerging Industrial Revolution: Symbiosis of Industry 4.0 and Circular Economy: The Role of Universities

2020 ◽  
Vol 25 (3) ◽  
pp. 505-525 ◽  
Author(s):  
Seeram Ramakrishna ◽  
Alfred Ngowi ◽  
Henk De Jager ◽  
Bankole O. Awuzie
Keyword(s):  
Economic Growth ◽  
Circular Economy ◽  
Industry 4.0 ◽  
Business Models ◽  
Industrial Revolution ◽  
New Technologies ◽  
Production Systems ◽  
Fourth Industrial Revolution ◽  
New Jobs

Growing consumerism and population worldwide raises concerns about society’s sustainability aspirations. This has led to calls for concerted efforts to shift from the linear economy to a circular economy (CE), which are gaining momentum globally. CE approaches lead to a zero-waste scenario of economic growth and sustainable development. These approaches are based on semi-scientific and empirical concepts with technologies enabling 3Rs (reduce, reuse, recycle) and 6Rs (reuse, recycle, redesign, remanufacture, reduce, recover). Studies estimate that the transition to a CE would save the world in excess of a trillion dollars annually while creating new jobs, business opportunities and economic growth. The emerging industrial revolution will enhance the symbiotic pursuit of new technologies and CE to transform extant production systems and business models for sustainability. This article examines the trends, availability and readiness of fourth industrial revolution (4IR or industry 4.0) technologies (for example, Internet of Things [IoT], artificial intelligence [AI] and nanotechnology) to support and promote CE transitions within the higher education institutional context. Furthermore, it elucidates the role of universities as living laboratories for experimenting the utility of industry 4.0 technologies in driving the shift towards CE futures. The article concludes that universities should play a pivotal role in engendering CE transitions.

scholarly journals Circular Bioeconomy Business Models to Overcome the Valley of Death. A Systematic Statistical Analysis of Studies and Projects in Emerging Bio-Based Technologies and Trends Linked to the SME Instrument Support

2021 ◽  
Vol 13 (4) ◽  
pp. 1899
Author(s):  
Fabiana Gatto ◽  
Ilaria Re
Keyword(s):  
Circular Economy ◽  
Success Factors ◽  
Business Models ◽  
Raw Materials ◽  
Action Plan ◽  
Future Perspective ◽  
The European Union ◽  
Strategic Orientations ◽  
Start Ups ◽  
Valley Of Death

Reducing the environmental pressure along the products life cycle, increasing efficiency in the consumption of resources and use of renewable raw materials, and shifting the economic system toward a circular and a climate-neutral model represent the heart of the current macro-trends of the European Union (EU) policy agendas. The circular economy and bioeconomy concepts introduced in the EU’s Circular Economy Action Plan and the Bioeconomy Strategy support innovation in rethinking economic systems focusing on market uptaking of greener solutions based on less-intensive resource consumption. In recent decades, industrial research has devoted enormous investments to demonstrate sustainable circular bio-based business models capable of overcoming the “Valley of Death” through alternative strategic orientations of “technological-push” and “market-pull”. The study highlights industrial research’s evolution on bio-based circular business model validation, trends, and topics with particular attention to the empowering capacity of start-ups and small and medium-sized enterprises (SMEs) to close the loops in renewable biological use and reduce dependence on fossil fuels. The research methodology involves a bibliographic search based on the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) approach and the European Innovation Council (EIC) Accelerator Data Hub investigation to understand SMEs’ key success factors and start-ups of the circular bioeconomy sector. Eco and bio-based materials, nutraceuticals, and microalgae represent the most sustainable industry applications, leading to circular bioeconomy business models’ future perspective.

scholarly journals From Barriers to Enablers: The Role of Organizational Learning in Transitioning SMEs into the Circular Economy

2021 ◽  
Vol 13 (3) ◽  
pp. 1021
Author(s):  
Sara Scipioni ◽  
Meir Russ ◽  
Federico Niccolini
Keyword(s):  
Organizational Learning ◽  
Circular Economy ◽  
Business Models ◽  
Small And Medium Enterprises ◽  
Sustainable Business ◽  
Fine Grained ◽  
Contextual Elements ◽  
Transfer And Retention ◽  
Multi Level ◽  
Medium Enterprises

To contribute to small and medium enterprises’ (SMEs) sustainable transition into the circular economy, the study proposes the activation of organizational learning (OL) processes—denoted here as multi-level knowledge creation, transfer, and retention processes—as a key phase in introducing circular business models (CBMs) at SME and supply chain (SC) level. The research employs a mixed-method approach, using the focus group methodology to identify contextual elements impacting on CBM-related OL processes, and a survey-based evaluation to single out the most frequently used OL processes inside Italian construction SMEs. As a main result, a CBM-oriented OL multi-level model offers a fine-grained understanding of contextual elements acting mutually as barriers and drivers for OL processes, as possible OL dynamics among them. The multi-level culture construct—composed of external stakeholders’, SC stakeholders’, and organizational culture—identify the key element to activate CBM-oriented OL processes. Main implications are related to the identification of cultural, structural, regulatory, and process contextual elements across the external, SC, and organizational levels, and their interrelation with applicable intraorganizational and interorganizational learning processes. The proposed model would contribute to an improved implementation of transitioning into the circular economy utilizing sustainable business models in the construction SMEs.

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