There are three major changes are happening in the world today. Individually significant; however, game-changing when combined. These changes are challenging the regular way of doing business and rendering it obsolete. We must change to stay in the game.
Circular Economy is a new business mindset that tackles the challenges incorporating all three major changes. We see executives all over the world wanting to integrate it in the way they work and develop their business – wanting to master this new business mindset and its tools.
So what three major changes are we talking about?
1. Global middle class increases dramatically
Two billion people will be moving into the global middle class in the next 10 years and with the corresponding expected growth, we will experience a tremendous increase in demand for raw materials. The result will have a significant financial impact on companies and overall production costs are likely to rise. As will risks related to security of supply.
2. Awareness of the unsustainable path we are on
The amount of people who now fear the impact of climate change, the impact of plastics in the ocean and other ecosystem and environment related issues is rapidly increasing. The attention to these challenges has almost exploded. Companies are expected to take responsibility and are increasingly seen as either part of the problem or part of the solution. This impacts where people want to work, who they want to partner with and ultimately what brands to support in the marketplace.
3. Exponential development
The exponential growth in computer power continues. The world is no longer only exponential; in some cases, it has become hyper-exponential. As increasingly more areas become digitalised, they start to follow the same potent development trajectory, pushing the speed of change in the marketplace and society. Simply stated the commercial lifetime of an average product becomes shorter, leaving less time to earn money on it. We experience disruptions in business models and complete industries. On top of this, today the half-life of business knowledge is considered only to be 4 years, adding pressure on the individual level as well.
These changes call for a new game plan – a new way of understanding, developing and creating business value. The Circular Economy provides that alternative game plan.
Circular Economy is a way of conducting business that is suited to match the fast-changing world with increasing competition for natural resources and the growing understanding of the need to create a truly sustainable path going forward. It offers the opportunity to find new ways to generate business for your company and even more attractive value propositions for your customers, whilst building a positive environmental footprint and harvesting the corresponding positive brand effect. It equips you with a superior and robust business setup that is both profitable today and is capable of matching and exceeding the expectations of the market place. It puts you in a state of preparedness for the changes that will inevitably come – even the ones we cannot see today.
But where do I start you might think? Right now, we offer support to a small group of CEO’s that know they need to make the change but are unsure what their pathway is. We offer 30 strategy conversations for free where you will gain clarity on the three most important focus areas ready for you to start 2019.