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PHILIPP BUDDEMEIER
BRATISLAVA, NOVEMBER 6TH, 2017
VENESS THROUGH THE CIRCULAR ECONOMY TODAYS PRACTICES ARE VERY - - PowerPoint PPT Presentation
VENESS THROUGH THE CIRCULAR ECONOMY TODAYS PRACTICES ARE VERY - - PowerPoint PPT Presentation
PHILIPP BUDDEMEIER BRATISLAVA, NOVEMBER 6 TH , 2017 REDEFINING COMPETITI- VENESS THROUGH THE CIRCULAR ECONOMY TODAYS PRACTICES ARE VERY WASTEFUL AT ANY GIVEN MOMENT , $7 TRILLION WORTH OF PASSENGER CARS SIT IDLE AROUND THE WORLD
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PIONEERS SHOW WHAT IS POSSIBLE PLENTY YIELDS UP TO 350X 350X MORE PRODUCE PER AREA THAN CONVENTIONAL F ARMS USING 99% LESS WATER
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FIVE BUSINESS MODELS OF THE CIRCULAR ECONOMY COMBINED IMPACT OF THESE MODELS AT $4.5 TRILLION BY 2030
PR PRODU ODUCT CT LIF LIFE-EXT EXTENS ENSION ION SHAR SHARIN ING G PL PLATF TFOR ORM PR PROD ODUC UCT T AS A AS A SE SERVIC VICE RECO RECOVER VERY Y & R & RECY ECYCLIN CLING CIR CIRCU CULAR LAR SUPP SUPPLY-CH CHAIN AIN
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$400 $400-600 600 BN BN ADD’L REVENUES IN 2030 THROUGH CE
Use Phase Material Processing Component Manufacturing Assembly Remanufacturing 2.0 Waste (eliminate) Collection Other loops Recycling & energetic recovery (minimize) Product Design Repurpose Closed-loop recycling Distribution Circular Materials Recycled materials, byproducts Other loops
Source: Accenture Strategy analysis; 1 – peer-to-peer car and ride sharing; 2 – entails mainly car and ride sharing (mobility) as a service, can also be for components etc.
Legend:
Linear value chain Circular Supply Chain Product Life Extension Sharing Platform Recovery & Recycling Product as a Service
Circular Economy value chain
Product as a Service2 Resell / Reuse / Refurbish Maintenance 2.0 Sharing Platform1
4-6% P .A. GROWTH FOR REMAN AND 1.5-2.5% P .A. FOR MAINTENANCE 2.0 => $255-300BN IN 2030 FOR “PRODUCT LIFE EXTENSION” P .A. GROWTH RA TE FROM INITIALL Y 30%, TOWARDS 10% => $140-280BN IN 2030 FOR PRODUCT AS A SERVICE AND $5-20BN IN COMMISSION FOR SHARING PLA TFORMS
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MAJOR CHALLENGES TO SCALE CE PERSIST
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CIRCULAR PILOTS
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CIRCULAR COMPANY CIRCULAR ECOSYSTEM
Business case: Total cost/value of ownership perspective is missing Silo structures: Functional orientation prevents cross-functional solutions and ecosystem-driven innovation Legacy: Existing units “kill off” Circular Economy disruption Ecosystem: Few partnering options Adoption Adoption: Costumers are locked into linear assets and value chains Regulation: Policy frameworks have not yet created a “level playing field” for Circular Economy solutions CHALLENGES TOWARDS A CIRCULAR COMP ANY CHALLENGES TOWARDS A CIRCULAR ECOSYSTEM Cir Circular cular Adv Advanta antage ge
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BUT CIRCULAR LEADERS ARE EMERGING
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mation tion Cir Circular cular Adv Advanta antage ge
CIRCULAR PILOTS CIRCULAR COMPANY CIRCULAR ECOSYSTEM
Main elements of the success
- 5 year vision: Targeting Circular value creation over
a 5 year horizon
- Changing the organization: Re-organizing the
procurement organization around strategic resource cycles
- Consumer pull: Engaging consumers and building
brand equity CASE EXAMPLE #1: TRANSFORMING THE PROCUREMENT ORGANIZATION OF A MULTINATIONAL Main elements of the success
- Systematic: Screening of large number of potential
partners for material re-use using a structured assessment process
- Long-term win-win: Providing circular solutions,
contractual certainty and commercial benefits for both partners
- Branding: Using the positive brand association and
innovation potential of the waste originator CASE EXAMPLE #2: CASCADING MATERIAL WASTES ACROSS VALUE CHAIN P ARTNERS
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