Topic 1 Circular Economy Business Model
Customer Relationships
- Long-term or Recurring: For example, a subscription, a long-term partnership service, and so on
- Transactional: A single sale or a one-time transaction
Customer Segments
- New customer segment: A different customer segment is being sold to
- Vertical customer: Customer who is not part of the main product value chain
Channels
- Re-sale channel: A different sales channel from sales of “new” products
- Return channel: A collection or return channel for a product that has reached the end of its useful life
- Secondary material markets: Markets for the trade of reclaimed materials (co-products, scrap, recycled, etc.)
Revenue Streams
- Product sale Revenue: Sale of product, component or material (customer-owned)
- Service sale Revenue: Sale of service only (no ownership)
- Bundled product-service sale Revenue: Sale of product and service bundle (customer-owned)
- Waste-as-value: Stream of revenue from waste or co-products that are reused rather than discarded
Key Activities
- Product design: Design for repair, maintenance, disassembly, remanufacturing, recyclability, material substitution etc)
- Reverse Logistics: Executed in-house by the company
- Service Provision: Provision of “product-as-service” and/or value-added services (e.g. preventative maintenance, asset diagnostics etc)
- Key Partners
- Circular Materials supplier: Supplier of circular materials
- Reverse Logistics: Provided by a third party
- Technology: Partners providing key technologies
Key Resources
- Asset management Platform: Booking, paying, tracking assets
- Specialized Production process: Specialized processes and facilities (e.g. remanufacturing, 3D manufacturing etc)
- Assets: Assets or product stock available to provide as a service
Cost Structure
- Financial Incentive: To incentive take-back or return of product
- Labor: Labor cost
- Materials: Materials cost
- Financing cost: Costs of customer financing
- Waste Disposal: Cost of disposing waste outputs
- Lower (lifetime) Cost: A lower product cost or a lower end-user lifetime cost of ownership.
- Performance: Provides the outcome and level of performance that corresponds to the “job-to-be-done” of a client (e.g. equipment up-time, output etc.). Models of product-service systems are included.
- Access: On-demand availability, flexibility, and a wider selection of options. Pay-as-you-go, rental, and lease are some of the options.
- Sustainability: Provides a customer-valued outcome related to sustainability (environmental, social etc.)
- Value delivered to a “vertical client” outside of the main value chain is referred to as co-value.