Circular Economy becomes crucial for business success

The numbers speak for themselves: only 11,8 % of European resources are recycled. At the same time, economic prosperity is based more than ever on linear resource consumption, and individual aspects such as plastic packaging waste are on alarming upward trends.

In his opening speech, Markus Kühert from the Wuppertal Institute showed that there is still a long way to go to achieve a circular economy, but at the same time proposed a solution:

Real transformation through double decoupling: material possessions from natural consumption and quality of life from material possessions. The goal is, therefore, a circular economy with high-quality closed loops, enabled by new business models and a new value proposition: better quality of life with less strain on natural resources and ecosystems - or vice versa: value creation without costly resource extraction.

The crucial question is no longer whether a circular economy is necessary but how it can be implemented in profitable business models.

Design as a strategic lever

Numerous case studies demonstrate that thoughtful design is the most powerful lever for resource and energy efficiency while creating new business opportunities.

Katie Morgenroth, Head of Sustainable Design at Google, illustrated this with two examples. On the one hand, the Google Home Mini was refreshed, focusing solely on optimizing materials and resource efficiency rather than redesigning the outer shell. On the other hand, the Google Nest thermostat achieves high energy efficiency gains during the use phase thanks to self-learning algorithms that create customized heating routines. Another particularly interesting question was how a product or packaging could be designed to encourage sustainable user behaviour. Katie cited the packaging of Google products as an example, which clearly communicates that it is made of paper through its appearance and feel, making it easier for customers to dispose of it correctly.

Steffen Erath, Head of Innovation & Sustainability at Hansgrohe, presented the Green Vision – Beyond Water, an impressive example of how good design can promote sufficiency and simultaneously elevate the user experience. The bathroom concept takes wellness to a new level while saving 90% water. Through user-centred design and the insight that wellness, unlike hygiene, can also be achieved without water, the Lightdome has developed new approaches to fulfilling the need for relaxation.

These projects show what is possible when planetary thinking is the starting point for product innovation. The change in perspective leads to the development of exciting new value propositions that make sustainable solutions desirable.

From circular flagships to business scaling

VEPA, a manufacturer of circular office furniture, demonstrates how reuse, refurbishment, and remanufacturing can be implemented in a commercially viable way. What is particularly exciting is that, besides its furniture, the company also refurbishes furniture from other manufacturers to furnish offices. Architect Margit Sichrovsky also showed that circular construction is possible through the 1:1 reuse of materials in existing buildings. With renewable electricity and heat supply, the climate-positive operation is realistic. However, she also spoke about how digitizing existing buildings and mapping installed resources is key to solving the biggest challenge for circular construction—material sourcing. She concluded the day by perfectly capturing the future of construction with the quote, “Abreißen ist over (Demolition is over)”.

Intuity – expertise for your circular product roadmap

Over the past few years, Intuity has built up in-depth know-how and expertise in sustainable innovation and circular product strategy, establishing itself as a leading expert in this field. I want to briefly present two projects in this context: One project that addresses the challenge of digitizing existing assets is the Bikepass, which we are developing in collaboration with Focus Bikes. The digital solution not only facilitates maintenance and repair but also actively promotes the reuse of bicycles. Users gain transparency about the life cycle, maintenance history, and possible upgrades. Retailers and manufacturers can gain new touchpoints for service and returns.

The Bikepass shows that the circular economy is more than an abstract concept. It can be translated into concrete, scalable applications – user-centred, pragmatic, data-driven, and commercially relevant.

Strategic clarity for circular business models

To support the implementation of circularity principles in product development, we have developed practical guidelines in a current project on behalf of Umwelttechnik BW. The guidelines aim to establish a common understanding within product teams and initiate a transformation of the corporate culture by creating appropriate roles and raising awareness of aspects of the circular economy and the team’s sphere of influence and action. In addition, the aim is to gain practical experience through initial pilot projects for corresponding products and business models. Our approach combines systems thinking, design expertise, and business strategy. We work in interdisciplinary teams with product managers, developers, designers, and decision-makers – with a clear goal: To identify, test, and scale the potential for circular products and services together with them.

János Adelsberger, Sustainable Design Engineer

„Circularity scales where products, business models, organizations, and value chains interact holistically.”

Are you ready to take the next step in your strategy toward genuine circular economy business models?