Business model Myths in the Circular Economy

JEN VAN DER MEER - REASON STREET | PARSONS @JENVANDERMEER

HI I’M JEN

ORIGINAL TALK IDEA:▸ Is there such a thing as a circular economy business model?

▸ How we think and conceive of business, revenue, and value creation shapes the core decisions that drive a business.

▸ When we borrow models from previous industries, we have to be wary of the hidden levers that may prohibit more equitable outcomes.

▸ Subscription, renting, 2-sided marketplace, pay-per-use, advertising and other popular business models will be compared for the potential to realize a circular economy.

THINGS CHANGED.

THINGS CHANGED.

SO LET’S REDIRECT▸ Is there such a thing as a circular economy business model?

▸ How we think and conceive of business, revenue, and value creation shapes the core decisions that drive a business.

▸ When we borrow models from previous industries, we have to be wary of the hidden levers that may prohibit more equitable outcomes.

▸ Subscription, renting, 2-sided marketplace, pay-per-use, advertising and other popular business models will be compared for the potential to realize a circular economy.

LET’S TALK ABOUT THIS:▸ Equitable outcomes.

▸ Ray Anderson.

▸ Circular economy. Business model myths.

▸ People-centered capitalism.

▸ Business model innovation as the strongest tool for survival and resilience

CONVERSATION WITH RAY

Ray Anderson: 1934 – 2011

“It’s not just about your company. You have to take the whole industry, your partners with you.”

“We need to provide better value to our customers, better work experiences to our employees. It can’t be about scarcity. It can’t be grim.”

- Ray Anderson

“Once you become an environmentalist, you won’t quit.”

Don’t Quit Don’t Quit

MYTH 1: Circular business models are by nature disruptive

Circular business models Enabling business models

MYTH 2: Circular models are always better for the environment

REDUCE

REUSE

RECYCLE

PAPER, WARM AIR DRYER JET DRYER?

PREVENT

BIN

MYTH 3: Circular business models make life better for people

Where are the people????

Where is the justice?

Where is the joy?

Business models are for people

Business models are for people

KENNETH BOULDING

1966

Business model innovation in 5 hard steps

Business model innovation in 5 hard steps

1. Define your vision.

1. Define your vision.

2. Include People

3. Search for the starter model that launches your vision

4. Get out of the building.

Whom do you want to serve?

What problem do you see?

ALWAYS START WITH THE CUSTOMER:

Customer Segments

Customer Relationships

Value PropositionKey ActivitiesPartners

Key Resources Customer Channels

RevenuesCosts

Source: Strategyzer Osterwalder, Pigneur

Whom are you here to serve?

ALWAYS START WITH THE CUSTOMER:

Get out of the building

ALWAYS START WITH THE CUSTOMER:

Customer Segments

Customer Relationships

Value Proposition

Customer Channels

Source: Strategyzer Osterwalder, Pigneur

VALUE?

What problem do you see?

5. Business model validation = ask for help

Ask for helpGET OUT OF THE BUILDING

Customer Segments

Customer Relationships

Value PropositionKey ActivitiesPartners

Key Resources

Customer Channels

RevenuesCosts

Source: Strategyzer Osterwalder, Pigneur

GET TO VALUE PROPOSITION FIT

TEST YOUR PROPOSITION WITH CUSTOMERS

Validate with customers

Customer Segments

Customer Relationships

Value PropositionKey ActivitiesPartners

Key Resources

Customer Channels

RevenuesCosts

Source: Strategyzer Osterwalder, Pigneur

AND THE REST OF THE BUSINESS MODEL WILL FOLLOW

Build your network

1. Define your vision 2. Add people 3. Find your starter

business model 4. Get out of the

building 5. Ask for help

Thank you. Thank you.

@JENVANDERMEERREASONSTREET.CO