Design Strategy Framework for Circular Business Models

In our latest Impact Shakers Talk with Ana Espada, we examined how you can rewire your business, services or products into circular business models. Circular Economy is not just a buzzword, but a viable and conscious economic strategy.

But how do you design circular business models?

Ana created this framework to help you rewire your business, services or products into circular models by design.

Firstly, keep 3 principles in mind when working on circular design:

1. Slowing the loop: Designers should incentivize users to retain the value of the products for as long as possible. Circular products are made to last: the users want to use them longer and once they cannot be used anymore, there are easy ways to return them and recycle.
2. Commitment to circular: Design can also support businesses on the transition from a profit maximization to a benefit optimization mindset by closing, slowing and narrowing the loop, adopting a circular-oriented value proposition and cultivating a circular-minded network.
3. Add and retain value: Designers should develop products by adding value to all stages of the product lifecycle from the pre-use to the post-use stage by optimizing for refurbishing, remanufacturing and reusing.

Secondly, diagnose your business model by relocating your business into the future and asking yourself the following questions:

Strategical

• Did you already define strong sustainable strategic actions?
• Does your team have that aspiration?
• Does your company have the key capabilities and resources to do so?

Tactical

• Are you working on your strategic initiatives?
• What do you have to change internally and what externally to shift from a linear to a circular business model?
• Do you measure your strategic initiatives and analyse different scenarios?

Operational

• What are the key capabilities; resources and partners to deliver on your strategic initiatives?

And Thirdly, make sure you are doing the right thing, not just doing things right.

For more information get in touch with Ana Espada at ana@utop.be

Want to connect and grow together with other value-driven entrepreneurs? Apply here to join our global online impact entrepreneurship community!