how digital is an accelerator for circular economy @high performance digital conference

@joostbrinkman

Log plot of Resource use and Economic development (2010, 166 countries)1

In today’s growth model increasing wealth is clearly linked to

increasing levels of resource consumption…

2OECD Development Centre, Working Paper No. 285, The Emerging Middle Class in Developing Countries

Re

so

urc

e u

se

Economic development

1

10

100

100 10,000 100,0001,000

GDP/Cap

USA

India

Tons/

Cap

Germany

Bangladesh

Australia

Colombia

China

Brazil

Correlation: 0,59

1SERI and Dittrich, M. (2014). Global Material Flow Database, World Bank (2014) GDP per capita in current US$ (outliers Mongolia & Bahamas remo ved)

Niger

100

10

100.00010.0001.000

Commodity price & GDP index 1975-2013

Index (2010=100)

0

50

100

150

200

197819761975 200220001998199619941992 2013201220062004 2008 2010199019881986198419821980

GDP index

Precious Metals

Commodity index

Metals & Minerals

Fertilizers

Raw Materials

Food

Energy

World Bank (2014), Accenture analysis

1975-2000

For every 1% growth in GDP commodity price index fell 0.5%

2000-2013

For every 1% growth in GDP commodity price index

rose 1,9%

…but the era of cheap and plentiful resources has come to an

end as prices have increased by close to 2% p.a. since 2000

We currently use 1.5x the resources that earth supplies us with.

2.5 billion additional consumers expected to join the middle class by 2030, so we need

4 earths in 2050. We only have 1: We need to become 4x more resource efficient.

So we need to transform our current unsustainable linear

business models …

From linear…

Take

Make

Waste

Into circular value chains, offering the ability and benefits of

environmentally responsible growth in a world of finite resource

To Circular

Asset Life Cycle

Management

Product Design Remanufacture

Repair

& ReuseCircular

Inputs

RecylceRepurpose

& Share

Return flows

Circular Economy

decoupling growth from

resource consumption

5 business

models

10 enabling

technologies

5 key

capabilities

50 executive

interviews

120

case studies

Goal: Decoupling

Not only about services

The less you loop the better

Digital customer disruption

GLOBAL VIEW ON THE

CIRCULAR ECONOMY

WASTED

EMBEDDED VALUESWASTED

LIFECYCLES

WASTED

CAPACITY

WASTED

RESOURCES

5 BUSINESS MODELS TO LEVERAGE

$1 300 billion

$1 700 billion $600 billion

$900 billionRecovery &

Recycling

WASTED

LIFECYCLES

WASTED

CAPACITY

WASTED

RESOURCES


$1 700 billion $600 billion


Recycling

Circular

Supply-Chain

WASTED

LIFECYCLES

WASTED

CAPACITY


$600 billion


Recycling

Circular

Supply-ChainSharing

Platform

WASTED

LIFECYCLES



Recycling

Circular

Supply-ChainSharing

Platform

Product Life-

Extension


Recovery &

Recycling

Circular

Supply-ChainSharing

Platform

Product Life-

Extension

Product as a

Service

Copyright © 2014 Accenture All rights reserved.

Three types of technologies are key

20

Advanced recycling tech

Modular design technology

Life & Material sciences

Circular economy enabling technologies

Source: Circular Economy book project

Digital

Enabling entirely new ways

to access and understand

product use-phase and aid

customers in use efficiency

Hybrid

Enabling moving physical

objects back and forth from

value chains with digital

services to drive down cost

Engineering

Enabling production and

supply of new types of

resources as well as new

product designs to use

them

http://www.ecouterre.com/puma-unveils-incycle-line-of-cradle-to-cradle-certified-apparel-footwear/



Fully biodegradable and recyclable shoes, bags and clothes

21



22

Digital





Hybrid





Engineering





them

3D Printing


Trace and return systems







Copyright © 2014 Accenture All rights reserved. 23

Hybrid: 3D printing


Hybrid: Trace & return systems

Eco ATM: Instant cash for phones, MP3 players and tablets


Hybrid: Trace & Return systems. Tomra: sensor based

solutions to optimize resource productivity



26

Social

Mobile

M2M Communication

Cloud

Analytics

3D Printing


Trace and return systems





Digital





Hybrid





Engineering





them

https://www.spotify.com/

https://www.spotify.com/

http://www.car2go.com/

http://www.car2go.com/




Poshmark combines all digital technologies and realized a

personalized and active secondhand clothing market


Click for the prezi!

http://prezi.com/nki1jp-b6dpx/?utm_campaign=share&utm_medium=copy




Accenture research show there are five circular business

models to consider

The Circular Economy options

Recovery &

Recycling

Circular

Supply-Chain

Product as a

Service

Product Life-

Extension

Sharing

Platform

29

Digital, the driver of the Circular Economy

Open Discussion

My company’s current business models

will be able to serve our customer’s

demand in 10 years from now1


Open Discussion

I can translate the ‘Circular Economy’

principles to my company’s business2


Open Discussion

I see potential for any of the CE business

model to help our company in securing a

sustainable future of our company3


Open Discussion

What does my company require to adapt

new, innovative business models to

ensure a sustainable future?4

WHY: Society needs it and it is good business

HOW: Get started ! (by understanding the Circular Advantage whitepaper)

Thank You and Remember:

WHAT: 5 business models, 10 technologies, 5 capability shifts

@joostbrinkman

AND: if you fly, fly green via greenseats.nl and ParkFlyRent.nl

@parkflyrent

how digital is an accelerator for circular economy @high performance digital conference

Business

capacity wasted resources

commodity price gdp

circular value chains

world bank2014 gdp

product usephase

world of finite resource

resource efficient

log plot of resource