Linda Sagnier Eckert, Marcel Fassnacht, Daniel Heinz, Sebastian Alamo Alonso and Gerhard Satzger
This study analyzes 48 real-world examples of circular economies to understand how different companies and organizations collaborate to create sustainable value. Using e³-value modeling, the researchers identified common patterns of interaction, creating a framework of eight distinct business constellations. This research provides a practical guide for organizations aiming to transition to a circular economy.
Problem
While the circular economy offers a promising alternative to traditional 'take-make-dispose' models, there is a lack of clear understanding of how the various actors within these systems (like producers, consumers, and recyclers) should interact and exchange value. This ambiguity makes it difficult for businesses to effectively design and implement circular strategies, leading to missed opportunities and inefficiencies.
Outcome
- The study identified eight recurring patterns, or 'constellations,' of collaboration in circular ecosystems, providing clear models for how businesses can work together. - These constellations are grouped into three main dimensions: 1) innovation driven by producers, services, or regulations; 2) optimizing resource efficiency through sharing or redistribution; and 3) recovering and processing end-of-life products and materials. - The research reveals distinct roles that different organizations play (e.g., scavengers, decomposers, producers) and provides strategic blueprints for companies to select partners and define value exchanges to successfully implement circular principles.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: Today, we’re diving into the circular economy. It’s a powerful idea, but how do businesses actually make it work? We’re looking at a fascinating study titled "Actor-Value Constellations in Circular Ecosystems." Host: In essence, the researchers analyzed 48 real-world examples of circular economies to map out how different companies collaborate to create sustainable value, providing a practical guide for organizations ready to make the shift. Host: With me is our expert analyst, Alex Ian Sutherland. Alex, welcome. Expert: Great to be here, Anna. Host: Alex, the idea of a circular economy isn't new, but this study suggests businesses are struggling with the execution. What's the big problem they're facing? Expert: Exactly. The core problem is that the circular economy depends on collaboration. It’s not enough for one company to change its ways; it requires an entire ecosystem of partners—producers, consumers, recyclers, service providers—to work together. Expert: But there's a lack of clarity on how these actors should interact and exchange value. This ambiguity leads to inefficiencies, misaligned incentives, and ultimately, missed opportunities. Businesses know they need to collaborate, but they don't have a clear map for how to do it. Host: So they needed a map. How did the researchers go about creating one? What was their approach? Expert: They took a very practical route. They analyzed 48 successful circular businesses, from fashion to food to electronics. For each one, they used a method called e³-value modeling. Expert: Think of it as creating a detailed flowchart for the business ecosystem. It visually maps out who all the actors are, what they do, and how value—whether it's a physical product, data, or money—flows between them. By comparing these maps, they could spot recurring patterns. Host: And what patterns emerged? What were the key findings from this analysis? Expert: The most significant finding is that these complex interactions aren't random. They fall into eight distinct patterns, which the study calls 'constellations.' These are essentially proven models for collaboration. Expert: These eight constellations are grouped into three overarching dimensions. The first is 'Circularity-driven Innovation,' which is all about designing out waste from the very beginning. Expert: The second is 'Resource Efficiency Optimization.' This focuses on maximizing the use of products that already exist through things like sharing, renting, or resale platforms. Expert: And the third is 'End-of-Life Product and Material Recovery.' This is what we typically think of as recycling—collecting used products and turning them into valuable new materials. Host: Could you give us a quick example to bring one of those constellations to life? Expert: Certainly. In that third dimension, 'End-of-Life Recovery,' there’s a constellation called 'Scavenger-led EOL recovery.' A great example is a company like Mazuma Mobile. Expert: Mazuma acts as the 'scavenger' by buying old mobile phones from consumers. They then partner with 'decomposers'—refurbishing specialists—to restore the phones. Finally, they redistribute the reconditioned phones for resale. It’s a complete loop orchestrated by a central player. Host: That makes it very clear. So, this brings us to the most important question for our listeners. Why do these eight constellations matter for business leaders? How can they use this? Expert: This is the most practical part. These constellations serve as strategic blueprints. A business leader no longer has to guess how to build a circular model; they can look at these eight patterns and see which one fits their goals. Expert: For instance, if your company wants to launch a rental service, you can look at the 'Intermediated Resource Redistribution' constellation. The study shows you the key partners you'll need and how value needs to flow between you, your suppliers, and your customers. Expert: It also highlights the critical role of digital technology. Many of these models, especially those in resource sharing and product take-back, rely on digital platforms for matchmaking, tracking, and data analysis to keep the ecosystem running smoothly. Host: So it’s a framework for both strategy and execution. Alex, thank you for breaking that down for us. Host: To sum up, while the circular economy requires complex collaboration, this study shows it doesn't have to be a mystery. By identifying eight recurring business constellations, it provides a clear roadmap. Host: For business leaders, this research offers practical blueprints to choose the right partners, define winning strategies, and successfully transition to a more sustainable, circular future. Host: A huge thank you to our expert, Alex Ian Sutherland. And thank you for tuning in to A.I.S. Insights.
