CIRCULAR DESIGN CLASS

November 3th 2016

CIRCULAR BUSINESS MODELS

1. Classic long-life model

2. Hybrid model

3. Gap exploiter

• Repair service

• 2nd hand trader

• Recovery provider

4. Access model

5. Performance model

Product

Dienst

1. The classic long-life model Primary revenue stream from sales of high-grade products with a long useful life.

CIRCULAR BUSINESS MODELS

1. The classic long-life model Primary revenue stream from sales of high-grade products with a long useful life. Long lifespan of the product Today, Miele is the only manufacturer in the industry that designs and tests all appliances for 20 years product life.

Service and repair With the Service Certificate and Exclusive Care Service, Miele provides preventive maintenance and cleaning services. Using efficient appliances longer makes sense. The case has been argued for replacing older appliances with new, more efficient appliances before the end of their life for environmental considerations. However, it makes less sense with modern Miele appliances. Naturally, the company still continues to develop more energy-efficient appliances and is also working on new ways to cut costs.

CIRCULAR BUSINESS MODELS

2. The hybrid model Combination of a durable product and short-lived consumables. Primary revenue stream generated from repeat sales of dedicated consumables, like soap and detergent cartriges. o Long lasting product (low price) o Replacement parts (to guarantee quality /

performance)

CIRCULAR BUSINESS MODELS

2. The hybrid model Combination of a durable product and short-lived consumables. Primary revenue stream generated from repeat sales of dedicated consumables, like soap and detergent cartriges. Important: Make the additional consumables also circular! Océ - Toner Peals Océ TonerPearls – are converted into gel, which then can be applied to any type of paper. The first product based on this technique is the Colorwave 600. For this printer GBO has designed and engineered the cartridges. • No ozone emissions / No odor • Minimal waste disposal • Toner waste is completely non-toxic and solid and can be

disposed of as part of regular office waste • No system contamination by "powder“ or ink

CIRCULAR BUSINESS MODELS

3. The gap-exploiter model - repair Exploits ‘lifetime value gaps’ or leftover value in product systems. Main revenue stream from selling products, parts and services based on the mixed product life of components. o Repair and maintenance services o Extends the working life cycle of products and

components by repairing or upgrading

CIRCULAR BUSINESS MODELS

3. The gap-exploiter model – 2nd hand market

Exploits ‘lifetime value gaps’ or leftover value in product systems. Main revenue stream from selling products, parts and services based on the mixed product life of components. o Using the ‘left-over’ life-span of another product o Refurbishes and maintains used products and re-

sells them

CIRCULAR BUSINESS MODELS

TweedehandsLundia TweedehandsLundia.nl is onafhankelijk van Lundia en legt zich toe op de opslag, distributie, hergebruik en recycling van (houten) stellingkasten en gerelateerde items middels drie afhaalmagazijnen, vanwaar de Lundia-onderdelen worden gerestaureerd, geschikt gemaakt voor hergebruik en deze via internet worden verkocht.

3. The gap-exploiter model - recovery

Exploits ‘lifetime value gaps’ or leftover value in product systems. Main revenue stream from selling products, parts and services based on the mixed product life of components. o Recovery provider: Provides take-back systems and

collection services to recover useful resources out of disposed products or bi-products

CIRCULAR BUSINESS MODELS

4. The access model Provides product access rather than ownership. Main revenue stream from payments for product access. o Sharing, renting and pooling in stead of owning o Considerations: affordability, freedom, identity/status,

time, accessibility

CIRCULAR BUSINESS MODELS

4. The access model Provides product access rather than ownership. Main revenue stream from payments for product access. Floow2 Sharing Marketplace for Business Equipment and Services • Most popular: car, meeting room, MRI, communication

specialist, truck, aerial platform, designer

CIRCULAR BUSINESS MODELS

5. The performance model Delivers product performance rather than the product itself. Primary revenue stream from payments for performance delivered. o Products that are in use for what they do, rather than

for what they are o Provider owns and maintains the product o Clients pays for functionality (pay per use)

CIRCULAR BUSINESS MODELS

PHILIPS – Pay per Lux “I told Philips, ‘I’m not interested in the product, just the performance. I want to buy light, and nothing else.” Thomas Rau

5. The performance model Delivers product performance rather than the product itself. Primary revenue stream from payments for performance delivered. Rolls Royce – Power by the Hour • Total Cost of Ownership

CIRCULAR BUSINESS MODELS

Clustering the result of existing research has led to the identification of six design strategies for circular product design: 1. Design for Product Attachment and Trust 2. Design for Product Durability 3. Design for Standardization & Compatibility 4. Design for Ease of maintenance and Repair 5. Design for Upgradability & Adaptability 6. Design for Dis- and Reassembly

CIRCULAR DESIGN STRATEGIES

Product

Component

1. Design for Product Attachment and Trust Creating products that will be loved, liked or trusted longer. o User develops a bond with the product Examples: • Do Create (Droog Design) • Expensive watches • Teddy Bears

CIRCULAR DESIGN STRATEGIES

2. Design for Product Durability Developing products that can take wear and tear without breaking down. o Defining optimum product reliability o Product’s durability should match its economic and

stylistic lifespan

Example: • Toyota Hillux

CIRCULAR DESIGN STRATEGIES

Top Gear: “Killing a Toyota”

3. Design for Standardization & Compatibility Creating products with parts or interfaces that fit other products as well. o Tension between setting standards and personal customization

Example: • Damen Shipyards Bad example: • Adaptor mobile phones

CIRCULAR DESIGN STRATEGIES

4. Design for Ease of maintenance and Repair Enabling products to be maintained in tip-top condition. o Maintenance and repair are divided among: OEM, Gap exploiting

service providers and users o Repair by users is often not allowed for technical products

CIRCULAR DESIGN STRATEGIES

5. Design for Upgradability & Adaptability Allowing for future expansion and modification o Incorporate possibilities to change or upgrade the product o Digital technology develops very fast

CIRCULAR DESIGN STRATEGIES

6. Design for Dis- and Reassembly Ensuring products and parts can be separated and reassembled easily. o Disassembly is a classic requirement for sustainability o Reassembly with components (new, upgraded or from

other products)

Examples: • Herman Miller - Mira chair • Timberland - Earthkeepers

CIRCULAR DESIGN STRATEGIES

CIRCO The matching game

THE MATCHING GAME

Warming up: Match one (or more) Circular Business Models and Design Strategies to the cases.

Exercise 1: Redesign your own Business Model a) Redesign your Value Proposition for each of the five Circular Business

Models (5 x 10 minutes!)

b) Which Circular Business Model fits best to your Case? (10 minutes) Result: Present your CIRCULAR BUSINESS MODEL on the wall.

CIRCULAR BUSINESS MODELS

Exercise 2: Redesign your product for the Circular Business Model, using different Circular Design Strategies a) Redesign your product / service using several Circular Design

Strategies.

b) Combine several solutions in one or two concepts that fit best to your Case?

Result: Present your CIRCULAR DESIGN on the wall

CIRCULAR DESIGN STRATEGIES

CIRCO DEELNEMERS presentaties

CIRCO Community • Grote waarde kruisbestuiving, contact met peers

• Inspiratie uit cases, tools, leerervaring

• Uitgewisseld in community

• Events in 2016 • DDW in Oktober

• Online interactie en content • Linked-in groep NLCirculair • Circulairondernemen.nl • Facebook

• CE Best Practise

DRINKS!