4.2 Objective 2: To investigate the impacts of sustainability and the Circular Economy on business models and innovation.
The impacts of sustainability and the Circular Economy on business models and innovations can undertake a number of impacts.
Firstly, the business model and innovation may be based upon the creation and capture of value which has a wider value proposition for the organisation and its stakeholders (Geissdoerfer et al 2017). This includes the ability to undertake a different business model based upon the use of technological developments such as the Internet of Things (Conner 2015). The Internet of Things provides a business with the opportunity to undertake a higher level of connectivity between itself and its customers which supports improvements in communication and performance (Trott 2017; Conner 2015). One business which is currently using the Internet of Things as part of its business model is Bundles which operates a pay-per-use business model which enables customers to gain access to household goods, such as washing machines (Gilbert 2014). Bundles provides a household good, such as a washing machine, for free and charges its customers for its use which is monitored using the Internet of Things (Gilbert 2014). This business model addresses the concept of sustainability in the following ways:
Provides access to a washing machine which is based upon the use of this, rather than the traditional ownership model. This shift from use-only from ownership addresses sustainability issues such as reducing the level of waste which may be created by the disposal of the machine or the failure of the owner in getting it repaired.
In addition to this, the monitoring and advice as to how the washing machine, or other household good can be used provides better energy use and lowers any potential emissions (Ellen MacArthur Foundation 2015).
Provides a higher level of access to households who may not be able to afford a high specification washing machine due to the initial costs of these. This addresses societal inequalities.
Supports increased levels of sustainability due to the machine being repaired rather than replaced.
This business model addresses the circular economy in the following areas:
Bundles is able to restore and regenerate the household goods and thus the materials and resources of these remain within its business model (Braungart and McDonough 2009).
It also works with other business partners, such as Miele, which have the opportunity to receive household goods which are no longer being used, and to either provide to other households or to reuse the materials in other washing machines (Ellen MacArthur Foundation 2015).
The circular economy model is also supported by Miele washing machines being 100% recyclable or reusable materials and this demonstrates the need for collaboration between business stakeholders (Geissdoerfer et al 2017; Ellen MacArthur Foundation 2015).
4.3 Objective 3: To evaluate the relationship between Sustainability and the Circular Economy
The relationship between Sustainability and the Circular Economy presented a number of different aspects. Firstly, for advocates of the Circular Economy, such as the Ellen MacArthur Foundation, there is the portrayal of a stron
