CIRCO - Circular Design Class (8 september) Siem Haffmans

CIRCULAR DESIGN CLASS

September 8th 2016

CIRCULAR BUSINESS MODELS

1. Classic long-life model

2. Hybrid model

3. Gap exploiter

• Repair service

• 2nd hand trader

• Recovery provider

4. Access model

5. Performance model

Product

Dienst

1. The classic long-life modelPrimary revenue stream from sales of high-grade products with a long useful life.


1. The classic long-life modelPrimary revenue stream from sales of high-grade products with a long useful life.

Long lifespan of the productToday, Miele is the only manufacturer in the industry that designs and tests all appliances for 20 years product life.

Service and repairWith the Service Certificate and Exclusive Care Service, Miele provides preventive maintenance and cleaning services.

Using efficient appliances longer makes sense. The case has been argued for replacing older appliances with new, more efficient appliances before the end of their life for environmental considerations. However, it makes less sense with modern Miele appliances. Naturally, the company still continues to develop more energy-efficient appliances and is also working on new ways to cut costs.


2. The hybrid modelCombination of a durable product and short-lived consumables. Primary revenue stream generated from repeat sales of dedicated consumables, like soap and detergent cartriges.o Long lasting product (low price)o Replacement parts (to guarantee quality / performance)


2. The hybrid modelCombination of a durable product and short-lived consumables. Primary revenue stream generated from repeat sales of dedicated consumables, like soap and detergent cartriges.

Important: Make the additional consumables also circular!

Océ - Toner PealsOcé TonerPearls – are converted into gel, which then can be applied to any type of paper. The first product based on this technique is the Colorwave 600. For this printer GBO has designed and engineered the cartridges.• No ozone emissions / No odor• Minimal waste disposal• Toner waste is completely non-toxic and solid and can be disposed

of as part of regular office waste• No system contamination by "powder“ or ink


3. The gap-exploiter model - repairExploits ‘lifetime value gaps’ or leftover value in product systems. Main revenue stream from selling products, parts and services based on the mixed product life of components.

o Repair and maintenance serviceso Extends the working life cycle of products and

components by repairing or upgrading


3. The gap-exploiter model – 2nd hand market

Exploits ‘lifetime value gaps’ or leftover value in product systems. Main revenue stream from selling products, parts and services based on the mixed product life of components.

o Using the ‘left-over’ life-span of another producto Refurbishes and maintains used products and re-sells

them


TweedehandsLundiaTweedehandsLundia.nl is onafhankelijk van Lundia en legt zich toe op de opslag, distributie, hergebruik en recycling van (houten) stellingkasten en gerelateerde items middels drie afhaalmagazijnen, vanwaar de Lundia-onderdelen worden gerestaureerd, geschikt gemaakt voor hergebruik en deze via internet worden verkocht.

3. The gap-exploiter model - recoveryExploits ‘lifetime value gaps’ or leftover value in product systems. Main revenue stream from selling products, parts and services based on the mixed product life of components.

o Recovery provider: Provides take-back systems and collection services to recover useful resources out of disposed products or bi-products


4. The access modelProvides product access rather than ownership. Main revenue stream from payments for product access.

o Sharing, renting and pooling in stead of owningo Considerations: affordability, freedom, identity/status,

time, accessibility


4. The access modelProvides product access rather than ownership. Main revenue stream from payments for product access.

Floow2Sharing Marketplace for Business Equipment and Services• Most popular: car, meeting room, MRI, communication specialist,

truck, aerial platform, designer


5. The performance model Delivers product performance rather than the product itself. Primary revenue stream from payments for performance delivered.o Products that are in use for what they do, rather than for

what they areo Provider owns and maintains the producto Clients pays for functionality (pay per use)


PHILIPS – Pay per Lux“I told Philips, ‘I’m not interested in the product, just the performance. I want to buy light, and nothing else.” Thomas Rau

5. The performance model Delivers product performance rather than the product itself. Primary revenue stream from payments for performance delivered.

Rolls Royce – Power by the Hour• Total Cost of Ownership


Clustering the result of existing research has led to the identification of six design strategies for circular product design:

1. Design for Product Attachment and Trust

2. Design for Product Durability

3. Design for Standardization & Compatibility

4. Design for Ease of maintenance and Repair

5. Design for Upgradability & Adaptability

6. Design for Dis- and Reassembly

CIRCULAR DESIGN STRATEGIES

Product

Component

1. Design for Product Attachment and TrustCreating products that will be loved, liked or trusted longer.o User develops a bond with the product

Examples:• Do Create (Droog Design)• Expensive watches• Teddy Bears


2. Design for Product DurabilityDeveloping products that can take wear and tear without breaking down.o Defining optimum product reliabilityo Product’s durability should match its economic and stylistic

lifespan

Example:• Toyota Hillux


Top Gear: “Killing a Toyota”

3. Design for Standardization & CompatibilityCreating products with parts or interfaces that fit other products as well.o Tension between setting standards and personal customization

Example:• Damen Shipyards

Bad example:• Adaptor mobile phones


4. Design for Ease of maintenance and RepairEnabling products to be maintained in tip-top condition.o Maintenance and repair are divided among: OEM, Gap exploiting service

providers and userso Repair by users is often not allowed for technical products


5. Design for Upgradability & AdaptabilityAllowing for future expansion and modificationo Incorporate possibilities to change or upgrade the producto Digital technology develops very fast


6. Design for Dis- and ReassemblyEnsuring products and parts can be separated and reassembled easily.o Disassembly is a classic requirement for sustainability o Reassembly with components (new, upgraded or from other

products)

Examples:• Herman Miller - Mira chair• Timberland - Earthkeepers


CIRCOThe matching game

THE MATCHING GAME

Warming up: Match one (or more) Circular Business Models and Design Strategies to the cases.

Exercise 1: Redesign your own Business Model

a) Redesign your Value Proposition for each of the five Circular Business Models (5 x 10 minutes!)

b) Which Circular Business Model fits best to your Case? (10 minutes)

Result: Present your CIRCULAR BUSINESS MODEL on the wall.


Exercise 2: Redesign your product for the Circular Business Model, using different Circular Design Strategies

a) Redesign your product / service using several Circular Design Strategies.

b) Combine several solutions in one or two concepts that fit best to your Case?

Result: Present your CIRCULAR DESIGN on the wall


CIRCO DEELNEMERSpresentaties

CIRCO Community• Grote waarde kruisbestuiving, contact met peers

• Inspiratie uit cases, tools, leerervaring

• Uitgewisseld in community• Events in 2016

• DDW in Oktober• Online interactie en content

• Linked-in groep NLCirculair• Circulairondernemen.nl• Facebook

• CE Best Practise

DRINKS!