decoupling growth from resource consumption – is your business ready?

Transforming to a circular economy requires a shift in business models from one-off sales to focusing on the use, performance, and results of a product. By maximising resource productivity, consumable goods turn into durable goods.

Many businesses are already placing circular models at the core of their strategy. They see that it is possible to generate both economic and ecological value by prioritising customer needs and considering the entire product lifecycle – including quality, repairability, and recycling.

Let’s take one example: product-as-a-service models. The provider retains ownership of the product; the aim is ongoing product performance and customer satisfaction – and ultimately customer loyalty. Manufacturers of high-quality products such as bicycles, IT equipment or furniture, can actively control the secondary market and build up a competitive advantage via refurbishment and resale models. In the B2B area, we are seeing tools being offered in the fleet model, machines being operated in a pay-per-part model… even turbines being billed by the operating hour.

The companies that make circular business models work for them are ambitious. They’ve realised that they need to fine-tune their business model, as well as adapting the entire lifecycle of their product to circularity. Simply offering existing products in a rental scheme is not enough. What often distinguishes the leaders is their ability to optimise a model, making it impactful by bringing in additional elements: be that a circular design that fits their business model (including product design and operational structures), a strong delivery partnership model, or advancing the data side.

Systemiq partners with companies to explore, develop, and pilot circular strategies and business models across a number of sectors – from industrial machines to sports and fashion to white goods and retail.