BUSINESS MODELS
PRODUCTION-ORIENTED
Traditional Product-oriented business model, focussed on producing a product.
RESULT-ORIENTED
The Result-oriented or "Product as a Service model" is one of the most basic concepts for a circular business model. Examples of this type of circular business model include car rental companies and print shops. Instead of selling the product, the company retains ownership of the product, and the customer pays the company to use the product for a defined period of time. It sells a performance based service rather than a product. With this model the owner manages the product while it’s used and is in charge of maintenance, reuse, remanufacture and recycling of the product.
USER-ORIENTED
A Sharing Platform is a form of service compensation in which the owner sells access to underutilized assets to USERS. The primary difference between this model and leasing models is that the typical period of usage for sharing is usually much shorter, and the number of customers using the product or asset is much greater.
RESSOURCE RECOVERY
The Resource Recovery business model utilizes technological innovations and advancements to recover and reuse resource outputs. A real world example is recycling plant material, food scraps or paper products through biological composting processes. The resulting material can then be used as mulch or compost, and the waste gases, such as methane, can be captured and transformed into electricity or heat. Companies that adopt this model can reduce or eliminate waste of byproducts and maximize the value they are extracting from their resources. This model accomplishes this goal by reprocessing waste materials into new resources that can be used again once or many times.
CIRCULAR SUPPLIES
The Circular Supplies business model works by eliminating materials that are derived from virgin resources and replacing them with bio-based, renewable or recovered materials. An example of a circular supply model is converting agricultural residue like baled corn cobs, husks, leaves or stalks and converting them into bio ethanol, a renewable fuel. This model is especially relevant for companies dealing with scarce commodities, because reusing existing resources reduces their dependence on new, virgin resources.
PRODUCT LIFE EXTENSION
The goal of Product Life Extension is to lengthen the time that a product can be used. A real world example of how the life of a product can be extended is the practice of remanufacturing heavy equipment components to be used again, as if it were a new product. By returning end of life components to good as new condition, companies have increased the value we extract from the resources that went into creating them. Every time a consumer throws away a product, we are losing the majority of the energy and resources that went into its production, as well as any value that might be gained from it in the future. Product Life Extension means saving, maintaining, repairing, remanufacturing, improving or remarketing a product whenever it is possible. The goal is to avoid dumping goods into landfills.