business model and circular economy

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Business model & circular economy

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Business model &

circular economy

What is circular economy?

« The circular economy is a continuous positive development cycle that

preserves and enhances natural capital, optimises resource yields, and minimises

system risks. »Ellen MacArthur Foundation

Circular economy in one scheme

Wiithaa

RAW MATERIALS

USE

MAKE

SELL&

DELIVER

REUSE

REPAIR

REMAKEPRODUCT

RECYCLING

PUT TOGETHER PIECES

PUT TOGETHER PRODUCTS

What is a business model?

« A business model define the ways an organisation creates, delivers and captures

value. »

Alexander Osterwalder & Yves Pigneur authors & entrepreneurs, Business Model Canvas creators

La valeur est To develop and improve a business model, there is a tool

which permits to define the value proposition

La valeur est meeting to the needs of one specific market

and to identify the ressources we need to build it.

The Business Model Canvas…

Analyze

Improve

Synthesize

Understand

EvaluateTransform

is a powerful tool…

Test

but limited.

This is not a pipe.

Revenue stream based on property

For one use, that is not optimized

Finite virgin resources

Nowadays, the value proposition rests on finite resources and one unique revenue stream.

The building industry example

L’exemple de la filière bâtiment

…even when the stock may disappear in the next 20

years.

Built thanks to sea sand extraction…

Sold to public and private actors…

For a lifetime lower than 50 years…

…even when the occupancy rate is not optimum.

…even when the industry is producing 70% of the total

waste in France.

Main value proposition : new building

The wastes that are generated during the extraction, manufacturing, use and end of life are not taken into account and represent a real value loss.

« A business model define the ways an organisation creates,

delivers and captures value. »

What do we mean by value ?

What do we mean by value ?

Which actors?Which flows?

Which terms?

Which impacts?

The example of Recy’go

Service of collect and recycling of papers

PAPERS

More than creating an economic value…

In 2011, La Poste, the french postal service, acquires New Attitude, a social entreprise of professional integration, to launch the office paper collection and recycling service : Recy’go. By optimizing the existing flows by refilling the trucks on the return journey, and by reselling the collected papers to the papermakers, Recy'go, achieved in 2015 a turnover of 10 million euros.

TURNOVER OF10 MILLIONS EUROS IN 2015

why do not we create a social value…

From 2011 to 2015, more than 30 employees have been work ing on sort ing the papers, depending on the manufacturers’ needs. The offer enriches the postal profession as the postman becomes a mult iserv ice provider, answering better to the current needs of the customers.

PROFESSIONAL INTEGRATION OF MORE THAN 30 EMPLOYEES

The offer offered by Nouvelle Attitude and La Poste increases the valorisation of waste paper because this diffuse waste stream can now be better recovered and recycled.

Finally, by filling the empty trucks on the return journey with the recovered papers, this solution enable la Poste to optimize the energy consumed for each journey.

and environmental…

1 METRIC TON OF COLLECTED PAPER = 825 KILOGRAMS OF NEW PAPER

BEING, 10 TREES PROTECTED

to share the benefits…

By bringing together many actors through local interact ions, th is cooperation has created new economic activities at several levels. The value resulting from the collection and recycling of paper is shared between La Poste, the employees and the french papermakers.

Indeed, the manufacturers benefit from a fixed price for paper, which is cheaper than the market value, what enable them to guarantee their activity and create an additional revenue stream for La Poste.

€€

SHARING BENEFITS WITHIN THE WHOLE FRENCH TERRITORY

at every stage of the lifecycle ?

MAKE THE PAPER

RECYCLING THE PAPER

REUSE THE PAPER

USE THE PAPER

DISTRIBUTE THE PAPER

CUT THE TREES

EXTRACTION OF CELLULOSE FIBRES

NOUVELLE ATTITUDE OR SOCIAL COMPANIES

PAPERMAKERS

COMPANIES

How to make this happen ?

« Problems cannot be solved with the same mind set that created them.» 

Albert Einstein

To create a global and shared value, we have to change our way of thinking

Go out of the linear mindset, to think circular.

Linear Circular

Simple Complex

Predictive Adaptive

Competition Cooperation

« The design stage determines 80 % of a product's environmental

impact. » European Comission : Ecodesign your future

Not only design products and services, but above all business models.

Create an hollistic offer thanks to a systemic approach.

Anticipate and integrate the change, thanks to long-terme thinking

Involve the stakeholders and enhance cooperation.

Thanks to adapted and dynamic tools.

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Start from the « raison d’être », the guide of every organization.

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Design tool for Circular business modelsIdentify the human resources, skills and expertise necessary to develop the business model.

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Design tool for Circular business modelsDistinguish between the different resources necessary at every stage in the product life cycle.

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Design tool for Circular business modelsRepresent the user experience, the customers for whom we create value and the context.

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Design tool for Circular business modelsBrainstorm about the best way to distribute it, and comprehend the end of life as an opportunity.

Design tool for Circular business modelsTake into consideration externalities in order to reduce the negative one or transform them into positive one.

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Design tool for Circular business modelsUnderstand the economical flows, at each stage of the business model.

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‣ Design business models that renew the economy and ecosystems.

‣ Stop doing less wrong, but do it right.

‣ Integrate truly the CSR, as a driver for value creation.

In order to :

Ensemble, activons

l’économie circulaire