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WELCOME

PRESENTATION RESULTS PILOT STUDY BUSINESS MODELS FOR THE CIRCULAR ECONOMY.

08 NOVEMBER 2016, ROYAL AUPING (DEVENTER)

THE BMCE TEAM

NIELS FABER (HANZE UAS & RADBOUD UNIVERSITY)JAN JONKER (INITIATIVE & RADBOUD UNIVERSITY)

IVO KOTHMAN (SAXION UAS & RADBOUD UNIVERSITY)HANS STEGEMAN (CHIEF ECONOMIST RABOBANK)

TARA JANSSEN (RABOBANK)

... AND IN ADDITION PEOPLE THAT PRACTICE METHODOLOGY, MARKETING, PUBLICITY, WEBSITE DESIGN, EDITING, ADMINISTRATION …

SPONSORED BY

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THE CIRCULAR ECONOMY IS ...

• Not a form of accelerated recycling 3.0;• Implies that the production of goods will decrease;• Demands revaluation of resources, semi-finished goods, and finished

goods;• Creates new employment in organising and populating different forms

of high and low value cycles;• Only flourishes as an organisational assignment between organisations

and other parties (companies, citizens, and government);• Needs to be shaped in a new generation of business, organisation and

revenue models.

PRACTICE BECOMING

Much interest, a lot of talk;

Practice often relabelled eco-efficiency (WBCSD, 1994)

Core concepts: reuse, reduce, and recycle

Trying to be circular in a linear context

Search for real CE organisation models

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OUTLINE PILOT STUDY

Focus CE of companies in East-NetherlandsSpring 2016Provinces Gelderland and OverijsselResponse: N = 543, N-valid = 250, Interviews N = 39Revealing cases N = 8

REVEALING CASES

ROOF2ROOF (construction)VITENS (utilities)FOENIX (recycling)BENTHEM TRADE (trade)EEKO GROUP (recycling)ROELOFS (infrastructure)BMA ERGONOMICS (office supplies)DIJKHUIS AANNEMERSBEDRIJF (construction)

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BUILDING BLOCKS

1. ORGANISING CYCLES

2. REVENUE MODEL

3. VALUE CREATION

4. STRATEGY

1. ORGANISING CYCLES

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ELEMENTS OF THE CE

9.4%

10.9%

12.7%

19.3%

20.6%

0% 5% 10% 15% 20% 25%

Conscious about other business models

New revenue opportunities

Saving energy

Cautiously dealing with the environment

Reduction consumption/use resources

9.4%

13.1%

13.4%

16.8%

17.6%

0% 5% 10% 15% 20%

re-design: redesign products for reuse

re-create: create sustainable solutions for products and/or services

re-cycle: get resources and products into use again

re-use: focus on the reuse of resources, heat, etc.

re-duce: focus on the reduction of waste, materials, etc.

FOCUS ACTIVITIES

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ORGANISING CYCLES

• FACT: ESSENCE OF CE IS RESOURCES AND ENVIRONMENTAL AWARENESS

• SIGNIFICANT: CYCLES INDEED PLAY AN IMPORTANT ROLE IN THE CE

• FUTURE: ORGANISE CYCLES FIRST WITHIN AND THEN OUTSIDE THE ORGANISATION

2. REVENUE MODELS

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REVENUE FROM CE ACTIVITIES

8.6%

10.9%

14.7%

15.9%

22.9%

0% 5% 10% 15% 20% 25%

Pay for use

Higher scrap value

Higher benefits from resources

Longer lifespan

Pay for product or service

SHARE CE IN TURNOVER: NOW AND IN 10 YEARS

45.5%

16.8%

8.2%

29.5%

15.6%

28.4%

14.2%

41.7%

0% 5%

10% 15% 20% 25% 30% 35% 40% 45% 50%

0 to 10 % 11 to 25 % 26 to 50 % over 50 %

NowAfter 10 years

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REVENUE MODELS

• FACT: CLASSICAL SALES MOST IMPORTANT

• SIGNIFICANT: HIGHER BENEFITS FROM RESOURCES AND HIGHER SCRAP VALUE

• FUTURE: HIGH EXPECTATIONS FOR CE AND NEW REVENUE MODELS

3. VALUE CREATION

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WHAT VALUES ARE CREATED?

Other, namely ...3.8%

Social values28.1%

Financial values30%

Ecological values38%

WITH WHOM IS VALUE CREATED?

11.6%

17.4%

17.7%

21.4%

25.5%

0% 5% 10% 15% 20% 25% 30%

Consultants

Knowledge institutes

Governments

Suppliers

Buyers/customers

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VALUE CREATION

• FACT: 3 P’S ALL MATTER FOR THE CE

• SIGNIFICANT: COOPERATION ESSENTIAL PART OF THE CE

• FUTURE: MORE INTEREST FOR OTHER VALUES AND MORE COOPERATION

4. STRATEGY

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WHY CE?

12.1%

13.7%

16.4%

17.6%

23.9%

0% 5% 10% 15% 20% 25% 30%

We see the financial advantage

We want to stay ahead of competition

The market changed into the direction of the CE

Awareness of other business models

As a company we want to act responsibly

STRATEGY

• FACT: ACTING RESPONSIBLY AND NEW BUSINESS MODELS ARE STRATEGIC MOTIVES

• SIGNIFICANT: HIGH NEED FOR SUPPORT WHEN COOPERATING

• FUTURE: STRATEGY AIMED AT SUSTAINABLE ACTING AND COOPERATION

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BUILDING BLOCKS BMCE

1. CYCLES

2. VALUE CREATION

3. STRATEGY (5S)

4. ORGANISATION MODELS

5. REVENUE MODELS

FITTING ORGANISATION MODELS

• CLASSICAL: LTD, INC ETC.

• PARTICIPATIVE: FOUNDATION, UNION, CO-OPERATIVE ETC.

• SOCIAL ENTERPRISES: B-CORP (US), SOCIAL ENTERPRISE (UK), COMMUNITY INTEREST COMPANY (CIC) ETC.

• HYBRID: MIX OF ABOVE FORMS OR …

• INTEGRALLY NEW FORMS OF ORGANISING?

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CitizenInitiative(s)

MultipleConstituents

LocalOrientation

Multiple Value

Creation

New ways ofOrganizing

CommunityDevelopment

Wicked problems

HUBS

IN VOIDS BETWEEN ORGANISATIONS AND OTHER ACTORS

NEXT: NATIONAL SURVEYBUSINESS MODELS CIRCULAR

ECONOMY

HANS STEGEMAN AND JAN JONKER

PARTICIPATE?HTTP://BIT.LY/2DSU9S8 (DUTCH)

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THE CIRCULAR ECONOMY HAS JUST BEGUN ...