A Review and Evaluation of Circular Business Model Innovation Tools

Abstract

The circular economy has been heralded as a potential driver for sustainable development by business, academia, and policymakers. In a future circular economy, new business models are needed that slow, close and narrow resource loops to address key resource and climate challenges. After a phase of excitement and inspiration, an operationalization phase needs to start to ensure the best possible implementation and transition towards a circular economy. This operationalization phase will involve the development of products, processes and business models that significantly lower the negative impact on the environment, reduce waste and resource pressures and, rather, create a positive impact on society and environment. This paper focuses on the circular business model lens as a comprehensive way of addressing business innovation. Within this evolving circular economy operationalization phase, several tools, approaches and methods are emerging that could support circular business model innovation. This paper seeks to create a comprehensive tools overview through a literature and practice review. It provides structure to the emerging range of tools, methods and approaches, and, based on this, a guideline for future tool development. Finally, it gives an overview of opportunities and gaps as well as a future agenda for research and practice.

A Tool to Analyze, Ideate and Develop Circular Innovation Ecosystems

“…This has led to some findings on how to improve circular oriented innovation tools. Previous research has emphasized, for example, the need to define clear learning outcomes and goals for a tool, define its intended user group, and to incorporate 'circularity checks' [27,167]. We add three findings to this to provide further guidance for future tool development:…”

“…As a theoretical contribution, this study adds an ecosystem perspective to the existing tools and approaches that have focused on products and business models [26,27,166,167]. It thereby proposes an analytical approach for firms to better understand the systemic nature of circularity.…”

“…The intended user groups include entrepreneurs, innovation managers, business managers, and designers who want to innovate towards a circular economy. The tool should contain guidance on how it can be used, be adaptable to different contexts [27], easy to use, haptic and playful. To fulfill this, we decided to base the tool on the use of cards.…”

Systematic framework to assess social impacts of sharing platforms: Synthesising literature and stakeholder perspectives to arrive at a framework and practice-oriented tool

“…However, while many tools have been created by academia and industry, there is little evidence to suggest these tools are put to use [171]. Research suggests that these tools are often not adapted to meet the specific needs and expectations of companies [172,173], and tools may remain unused because they are too complex, too demanding of time and resources, or too context specific [172,174]. Finally, tools that have not involved key stakeholders in their development may miss key insights detracting from their relevance [175].…”

A Multi-Criteria Evaluation Method of Product-Level Circularity Strategies

“…Bocken et al (2019) [79] have reviewed such available tools and new ones are being developed, e.g., Bloosma et al (2020)[59].…”