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Marie Curie NetworkCircular European Economy Innovative Training
Centre for
Sustainability
Gertjan de Werk – [email protected] Prof. Arnold TukkerAssociate Director LDE Centre for Sustainability Scientific Director
The circular economy – what is it?
• High quality of life, low resource use
• Strategies
Prolonging product life
Repair
Re-use
Remanufacturing
Recycling
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The circular economy – what is it?
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Centre for Sustainability
Enabling the transition to a circular economy by research based contributions
to demand-driven innovation. Key drivers:
• Resource efficiency especially for critical raw materials
• Proven impact over the whole product chain and life cycle
• Beyond technology. Social, cultural, financial (including ‘the wide society’)
• System innovation by new cooperation and business models
Governance, policy, regulation & transitions
Circular product design & circularbusiness models
Clean technology forresource efficiency
Industrial ecology & economics
Research focus & application areas
Focus: Research & Development Application: Knowledge & Innovation
Raw Materials
Urban Systems
Production Consumption
Chains
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• A collaboration of the Ellen MacArthur Foundation and the LDE
Centre for Sustainability, co-ordinated by TU Delft
• https://www.youtube.com/watch?v=74jLSzBT440
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Feed-in and catalyse the Innovation pipelineCfS is the driver to create dynamics and large amounts of ‘activities’
MinorsProjects
GraduationPhd
Postdoc
ShowcasesSummerschoolsProf. Education
Thought leadership
Living labs/Incubators
Roadmaps
K&I labs
Marie Curie International Training Network
ITN Summarized
• Train new generation of creative, innovative early stage
researchers able to face current and future challenges and to
convert knowledge and ideas into products and services for
economic and social benefit.
• Required Impact
– High quality innovative research and doctoral training
– Trigger ‘inter’cooperation between organisations (PPP)
– Enhance researcher’s employability
– Shape entrepreneurial researchers and raise attractiveness.
ITN: CIRC€UITCircular European Economy Innovative Training
• Mobility scheme for Early Stage Researchers
• Highly competitive: 7% success rate
• Format
– 15 PhD researchers
– 4 Million Euro
– Network of universities (in our case: 7)
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ITN: CIRC€UIT
• University participants
– CfS: Leiden University and TU Delft, Netherlands
– Linkoping University, Sweden
– NTNU, Norway
– University of Grenoble, France
– Aston Business School, UK
– Cranfield University, UK
• Collaborators
– Ellen MacArthur Foundation
– Companies like Toyota, Winnow, Ericson
– More collaborative industries still welcome!
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Objective of the proposal
To develop a scientific framework to understand and further develop
• Service-oriented business required for a sustainable circular economy
• Assessment of its environmental, economic and societal impact.
Method: Interdisciplinary approach to ‘develop’ disciplinary knowledge
• User research, resource economics, environmental sciences, design
engineering, manufacturing, and business and management research will
• to understand and optimize service-oriented business models
Proposition
• Linear economy is stubborn
• Business (model) thinking seems to be the key to transition
• Broad systems perspective lacks in state of the art
• Circular business models still in niches
• Inconvenience, emotions and uncertainty about costs
Hypothesis
Innovative design and manufacturing of products is no longer a guaranty for
competitive advantage. So, we need to get beyond incremental innvoation.
Product Service Systems (=service oriented business) are the solution
• To overcome fierce price pressure, firms have to offer integral solutions, or
even experiences
• Service orientation means: company remains owner of materials
• So less new/raw/critical materials required
Company perspective
PSS poses challenges in terms of Business as Usual. It influences
design, production, distribution and branding/marketing:
• Switching to PSS may pose risks and uncertainty
• PSS might weaken the position in the value chain.
• Radical change of design, manufacturing and retail infrastructures
• Intensified communication with end users to ‘close the cycle’.
• The infrastructure for reverse logistics is not well established.
This is where the case studies come in
Company/ Organisation Topic
Ellen MacArthur Foundation Circular Economy
Toyota Material Handling Europe Design, Business Models
Winnow Solutions End-of-Life Management
NeoPost Business, DesignPhilips, Ericsson Users
Integrated approach needed
Comprehensive challenges out of obstacles
User level (B2B/B2C):
• User acceptance for circular resource efficiency
• Market introduction, branding and retail of CE value propositions
• Participation in and co-creation of CE value propositions
Comprehensive challenges out of obstacles
Business model level:
• Large scale application of PSSs and relevant value propositions
• Development of product / product-service roadmaps
• Organization strategies and digital enablers (open data)
Supply chain level:
• Sharing value along the value chain
• Reverse logistics
• Recovery strategies and management
Comprehensive challenges out of obstacles
Circular design level:
• Development of design strategies and methods/tools
• Validate design methodologies through creative demonstrators
• Technological aspects of design (Internet of Things, embedded
electronics)
System level:
• Overall environmental impact
• Overall economic effect
• Playing field as defined by regulations
Project structure
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Deliverables
1. Circular business model design methodology, tested with companies
2. Organisational change roadmap for companies with CE business models
3. Model on how digital strategies can create added value in a CE context
WP 1 BusinessHow to create business value in a circular business context?
Deliverables
1. Reverse logistics network design methodology (=CE condition)
2. Best practices and strategies for maximising retained values of PSS
3. Tools and demonstrators to specify a recovery solution
WP 2: Supply ChainsHow to organize supply and delivery chains for circularity?
Deliverables
1. Assessment of user (B2B, B2C) acceptance of circular value propositions
2. Decision making framework to facilitate identification, justification and
marketing of circular value proposition for companies
3. Communication manuals about CE risks and benefits to stakeholders
WP 3: Use and consumptionHow to stimulate and motivate circular use/consumption?
Deliverables
1. Tested approaches and manuals with design strategies, methods and tools
based on user and business requirements.
2. Design methodologies based on company demonstrators.
3. Validated design methodologies for optimal circular implementation of
advanced technologies.
WP 4: DesignHow to design circular value propositions and solutions?
Deliverables
1. Assessment of macro-environmental implications of circular business
2. Assessment of macro-economic implications of circular business models
3. Analysis of effectiveness of policy packages that facilitate the CE
WP 5:SystemsHow to ensure economic and ecological benefits and support?
Focus of the PhD research
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Systems: economic & environmental gains
Business: circular business models
Design: design of circular solutions
Systems: Governance
Supply chains: organisingcircular chains
Consumers: how to stimulate circular cons.?
Conclusion
15 PhDs to form a coherent research program and training network:
• Providing new insights in and business models for CPSS
• Reducing ecologic impact by boosting PSS across Europe
• Driving future innovation in the realization of CPSS
• Connecting industry and academia to develop new approaches to CPSS
• Disseminating the expertise to promote CPSS beyond the current network
• Triggering tripple helix co-operation
CfS: Demand driven innovationScience-based impact together with practice
Centre for
Sustainability
Gertjan de WerkAssociate Director LDE Centre for Sustainability
Goal Delivery mechanismEnhancing employability and career perspectives
Publication of the recent EU circularity package shows the relevance of the resource-efficiency in industry. Europe has currently no interdisciplinary post-graduateprogramme in this field. We therefore provide: Training by top EU universities covering the business, design, consumer and
system level perspective of circular business; some of those partners havealready established a bilateral collaboration on summer schools (i.e. doctoralspring school on PSS amongst Grenoble, Cranfield and Linkoping) or onnumerous European projects (e.g. H2020 ERN – Delft-Linkoping-Grenoble)
On the job training and secondment at the participating industry partners Access to a network of outstanding senior researchers via exchange visits to 1-
2 participating universities Opportunity for the ESRs to get involved in the EIT KIC Raw Materials and the
network of the Ellen MacArthur Foundation (EMF), which also means potentialaccess to more than 100 companies covering a vast industrial sectors
Shaping future generations of entrepreneurial researchers
This ETN focuses on how circular business models can work, addressing aspects oftechnology, business, users and systems. This implies: Training and PhD research inherently focused on entrepreneurship; the
interaction with companies on case studies will stimulates this Inherent project engagement with pro-active business circles (EMF, WBCSD,
EIT KIC RM) giving inspiring examples of circular entrepreneurshipRaising the attractiveness of research careers
We argue that practice-theory interaction is essential and attractive for raising a newgeneration of entrepreneurial academics and the attractiveness of careers in academia.Moreover, this research demonstrates the way the multidisciplinary and appliedresearches can be effectively conducted, by: Placement of the PhD students in activities organised by their university
related to sciences diffusion to first degrees or project sharing Participation to general public events (annual science fairs, annual day for
sustainability, annual day for mobility) Publication in consumers’ magazines, trade journals or to advertising for
companies projects
• Combining knowledge on sustainable consumption and production, disruptive innovations, and transition management (e.g. Christensen, 1997; Geels, 2004), we distinguish five main perspectives that are particularly relevant for a transition towards circular PSS business models.
• Business models. New ways are required to organise and value businesses and services. In addition to the businesses involved along the value chain, the interactions with design, user and system are explicitly taken into account. The core research question here is: How to create business value by circular provisioning?
• Supply chains. The role and weight of players along the supply chain will change, especially asking for developments in the areas of services, reverse logistics and remanufacturing. New ways of data acquisition and data management need to be implemented The core research question here is: How can we organize supply and delivery chains for circularity?
• User, i.e consumer (B2C), user (B2B) or government (B2G), but also stakeholders like retailers, or interest organisations and other NGOs. Social and behavioural practices have to be better considered to determine if a circular value proposition is going to be successful. Awareness creation in the public and corporate domain is of high importance. A focus on users is then necessary – of course including end-users, but also on other actors in the value chain. The core research question here is: How can we stimulate, facilitate and motivate circular consumption?
• Design of circular solutions – products that are for example suitable for inclusion in PSSs, or for upgrading, reuse, refurbishing or remanufacturing may require different design strategies, user involvement processes, assembly and disassembly processes, and marketing strategies compared to more traditional products. Using new technologies and ways of communication will be enablers. The core research question here is: How can we design circular value propositions(products, services or PSS)?
• System. For assessment of socio-economic and environmental aspects the larger system is relevant to avoid sub-optimisation in a small segment with adverse effects elsewhere. Scenario building and simulation tools for circular economy need to be further developed to support decision making when trade-offs occur. The core research question here is: How to ensure economic and environmental benefits and support change related to circularity?
Discipline Methodology Innovative stepsBusiness perspectiveEconomics Value chain analysis, transaction costs,
activity based costing, user valueassessments
Developing insights in the trade-offs with regard to value creation between‘linear’ and ‘circular’ value propositions. Assessment of how transition coststowards circular business models can be minimized.
Business modelling Compilation of value propositions,assessment of company corecompetences
Supply chain perspectiveLogistics Reverse logistics network design Development of a typology of optimized supply and delivery chains for circular
products, and insight into how to organise such chains so that actors in each stepof the chain have incentives to pursue circularity
Economics Assessment of end-of-life value
User perspectiveDesign User centered design (Applied
Ethnography, Contextual Enquiry,Cultural probes, Surveys, Focus groups)DfX-tools)
Incorporate end-of-life and behavioral aspects.Extend to end-of-lifecycle treatmentsFrom hotspots to scenariosTrade-offs between intangible/emotial factors and environmental and economic factors
Psychology Ethnography, Interviews, Observation Incorporate psychological reactions into sustainable transitions
Sociology Social practice theory Define segments that differ on acceptance of sustainable service
Business modelling Consumer research, User incentives incorporate renewal strategies in marketing/new product development
Design perspectiveDesign engineering Cradle-to-Cradle,
biomimicryCorrelate to front-end design
User centered design,value engineering
Incorporate end-of-life cycle input
Case study methodology Using circular solution demonstrators to generate new design methodologies
Data management Internet of Things Develop design rules such that application is beneficial from sustainabilityperspective
Environmental Science Life cycle assessmentSocial Life cycle assessment
Link to design featuresTrade-offs between environmental and intangible/emotial factorsCross-boundary rebound effects
(Re-)manufacturing Assembly/disassembly, Connection Development of a typology of product designs that make for which
The circular innovation pipelineFrom connecting by inspiration towards implementation
Examples of promising joint projects
Application: Knowledge & Innovation
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Governance, policy, regulation & transitions
Circular product design & circularbusiness models
Clean technology forresource efficiency
Industrial ecology & economics
Focus: Research & Development
Circular Products
Innitiative
PhD with company X
MOOCSustainable
Business Models
Raw Materials
Urban Systems
Production Consumption
Chains
Circular Area
Develop-ment
Reversed Logistics
EIT KIC Raw
Materials
Changes to circularity – what designs and
business models?• Circular product design, business
models and consumer behavior
Design for life time extension, repair,
manufacturing
Needs new business models: based
on value creation, not product sales
Needs new business competencies,
cultures, strategies
Particularly in B2C consumer
acceptance of new business models
is key
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Light: Pay-per-lux
Cars: sharing
Copiers: pay-per-print, design for component re-use
Changes to circularity – what governance?
• Governance, policy, regulation & transitions Production-consumption systems are
inert ‘Regime’: sunk costs, sunk habits and
relations in the value chain
‘Landscape’: a myriad of ‘taken for granted’ frameworks, like free markets and individual choice
We need concepts that can make systems more fluid and sustainable
Bottom up actions from the ‘Energetic society’: EMF, WBCSD, entrepeneurs
High profile actions aimed at changing mindsets: Dutch Urgenda
Tax from labor to resources…..
……..
Governance: the key challenge3
Means to build the bridge
• Mastertracks and courses
– Demand driven cases
– Outcomes communicated to society
– Master courses open to all LDE students
• Knowledge labs
– Thematic (virtual) labs with (PhDs) students working on shared roadmaps
– Strongly demand driven
– Output: inspiration, popular articles, papers, books, online learning.
• Professional course young professionals (Life Long Learning)
Unique positions CfS at various levels
Key activities and agenda’s
Glo
bal
• UL CML staff involved in UNEP International Resource Panel • UL CML staff regularly involved in OECD resource activities• EUR-RSM Prof in Residence at WBCSD World Business Council for Sustainable Dev.• TUD EMF-pioneer university for Ellen MacArthur Foundation ‘Circular Economy’ initiative• EUR-RSM has top expertise on business models• Int. Council of Science (ICSU) ‘Future Earth’ Initiative asked CML to develop ‘societal metabolism’ programme
EU
• Resource-efficiency agenda and ERAP: UL CML leads 15 Mio in EU projects• European Innovation Partnership and KIC RM: TUD core and CML associate partner KIC, LDE CfS mentioned• EU H2020, EC-DG ENTR, EC-DG ENV: TUD & UL CML strongly involved
Nat
ion
al &
R
egi
on
al /
Lo
cal • CML involved Development of ‘Grondstofloket’
• Innovation Quarter: TUD Cleantech activities• Circularity Centre Rotterdam invited LDE CfS to participate• TUD-UL MSc IE and governance experience can contribute to support The Hague as City of Peace and Justice to become
prominent in solving resource conflicts• City municipality & inhabitants initiatives from Leiden, Delft, Rotterdam, Den Haag, Westland, etc.
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Means to build the bridge
• Mastertracks
– Material science
– Industrial Ecology
– Technology in Sustainable Development
– Vakken selecteren en daarna integraal tot mastertrack ontwikkelen
• Kennislabs
– Oprichten rondom de onderzoeksgroepen op de verschillende universiteiten met masters/PhD’s
– Vraag gestuurd en uiteindelijk gefinancierd door bedrijven
– Output: papers, boeken, presentaties
• Professional course young professionals (i.h.k.v. Life Long Learning)