Circular Business Models

Mats Larsson has worked for 20 years as a business consultant and is the founder of the Global Energy Transformation Institute. He is an expert in business strategy, innovations and entrepreneurship, and has worked extensively both with large companies and individual entrepreneurs in several technology and business areas. Most recently he has worked with large scale energy systems transformation.

1. Mankind vs. Reality. 10 The Science of Problem Solving. 11 References. 12 Part One Business and Organizational Aspects of Circular Economies. 13 2. Development as a Process of Organization.. 13 The Organization of a Circular Economy. 15 A Development Over a Century. 17 References. 19 3. The Authors Journey. 20 Earlier Thoughts on Sustainability, Circular Economy, and Transformation.. 21 Sustainability. 21 Circular Economy. 22 Technology Development, Business Transformation, and Peak Oil 23 References. 23 4. The Circular Economy and Business Challenges. 25 Understanding Innovation and Business Development 26 Imminent Threats. 28 Crossing the Chasm from Idealistic to Demanding Customers. 30 Carbon Dioxide and Global Warming vs. Resource Depletion.. 31 The Experience Curve. 32 References. 33 5. Complexity The Tightly Woven Fabric of Society. 34 Complexity in Modern Society. 34 The Increasing Specialization in the Linear Economy. 36 Increasing Specialization of the Circular Economy. 37 References. 38 6. Could Resource Shortages Cause Problems?. 39 Complex Development 41 A Development in Steps. 42 Driving Change. 46 A Collaborative Effort 46 A Systems Perspective. 47 References. 47 7. Multiple Helix Collaboration for the Development of a Circular Economy. 48 A Multipe-Helix Innovation System.. 48 The Role of Governments. 49 Research and Training. 51 Non-Government Organizations. 52 Civic Society and the General Public. 53 Company and Public Sector Procurement 54 References. 55 8. Managing Change. 56 Change Management 58 Examples of Roles. 60 Early Phases of Transformation.. 60 The Savings Paradox. 61 Dismantling Obsolete Systems. 63 Mind-Set and Behaviour Change. 64 Leading Through Change. 64 The Resource Based View of Business Strategy. 66 References. 68 Part Two Challenges by industry and business sector 69 9. Local Production and Distribution Systems. 69 The Current Situation.. 70 Transformation to Local Production and Distribution Systems. 70 The Development of Local Markets. 71 Efficient Systems for Local Production.. 72 Local Value Chains. 73 Local Food Production.. 73 Volume Growth.. 74 Secondary Qualities. 76 The Role of Large Firms. 77 Customers Form Industries. 78 Steps to Change. 78 Step 1: Local Stand-Alone Concepts. 79 Step 2: Local Production and Distribution Concepts. 79 Step 3: Integrated Local Value Chains. 80 Step 4: Volume Competition.. 81 Step 5: Local and Circular Concepts Dominate. 81 Disruptive Aspects of Change. 81 From Global to Local Production and Distribution.. 82 Procurement Strategies. 82 A New Focus. 83 Opportunities for Local Production Offered by Digitalization.. 84 Changing Customer Preferences. 85 Step 1: Indifferent Majority. 86 Step 2: Emerging Preferences. 86 Step 3: Widespread Adoption and Volume Growth.. 86 Step 4: Circular Majority. 87 Step 5: Preferences for Local and Circular Concepts Dominate. 87 References. 87 10. Sharing and Extended Use. 88 The Present Situation.. 88 Sharing Models. 88 Growth Opportunities and Patterns of Use. 90 The Product as a Service. 92 Inexpensive Alternatives. 92 Potential Growth Areas. 92 Integration.. 92 Flow.. 92 High Value. 93 Genuinely Circular?. 93 Steps to Change. 94 Step 1: Pilot Sharing Models. 95 Step 2: More Customers Prioritize Sharing. 95 Step 3: Sharing becomes the new normal 96 Aspects of Disruptive Change. 96 Extended Use. 97 Services Targeted at Consumers. 97 Business-to-Business. 99 Steps to Product Life Extension.. 100 Step 1 Occasional Extended Use. 101 Step 2: Behaviour Change and Systems in Place. 101 Step 3: Extended Use Becomes a Priority. 102 Step 4: Extended Use Becomes the Norm.. 103 Aspects of Disruptive Change. 103 References. 103 11. Standardization and modularization.. 104 The Development and Growth of Lean Pr