Companies face an increasingly complicated challenge that, at the same time, is also an opportunity: to grow and generate value despite environmental problems, and the scarcity and volatility of the supply of raw materials.
Very soon the linear growth model of production, intensive in the use of non-renewable resources, will cease to be profitable, which increases prices and creates uncertainty.
The circular economy is the answer. The circular economy allows growth without depending solely on the use of resources, since it uses advanced technologies and business models based on the principles of longevity, renewal, reuse, repair, updating, remodeling, shared capacity and dematerialization. Companies no longer concentrate their efforts on increasing volumes and reducing costs through greater efficiency in their factories, operations and supply chains, but on trying to rethink their products and services from their design to the value proposition for the client .
The leading companies, aware of this limiting situation, have already adopted models that separate growth from scarce resources, adapting to the circular economy and gaining an advantage over their competitors.
Where to start? Here are five questions that can help CEOs and executives understand the problems they will have to face to enjoy circular advantage in their own organizations:
- Opportunity: What opportunities are there to adopt circular economy models in our value chain and how can we prepare the company?
- Value: What is the real value we bring to clients and how can we use circular business models to rethink the way we offer that value?
- Capacities: How should we improve our operating model and our capabilities to adapt them to a circular business model and the value proposition for the client?
- Technology: What are the most important technological trends (science, engineering and digital technology) for the circular economy and how can they affect the value chain?
- Calendar: When should we start adopting circular economy models to enjoy more options and agility?
To reflect and answer these questions is to start the company of the future.
This post is based on a studyor made by the company Accenture Strategy.
