Resource challenges are global, and companies keen to remain resilient are adapting their business models to reflect this. Progressive companies are preparing for resource challenges by rethinking the design of their products, reworking the services they offer and building more collaborative relationships with suppliers and consumers.
Office chair manufacturer, Orangebox is one example of a company shifting its business model from linear to circular. In order to offer an improved service, Orangebox began removing used chairs from customers before delivering new sets. The company wanted to disassemble the old chairs to save and reuse materials but found the labour costs involved were overriding any recovered value. In response, Orangebox changed its design priorities so that its chairs could be taken apart and remanufactured more efficiently. The result is a value loop in which Orangebox can profit from its products' end of life.
Similarly, carpet manufacturer, Interface also operates a ReEntry scheme which offers to take its carpet back from its customers, divert it from landfill and repurpose it to extend the lifespan. By selling performance through rental or leasing models as opposed to pushing goods once and forgetting about them, businesses can retain ownership and secure the resources critical to continued production.
While taking back and remanufacturing products is one way of changing a linear business model, another is repurposing by-products that would once have been dismissed as waste. Earlier this year, P&G announced that in the last five years, it had created $1bn in value from waste. En route to its goal of zero waste to landfill, P&G transformed the paper sludge from its toilet paper into low cost roof tiles for homes in Mexico, and turned shaving foam waste into commercial compost for the UK.
Of course, shifting to a more circular business model isn't an easy ride. It requires incentive, imagination and a battle against inertia. To transition to a new way of doing business, a company must take its board and employees into often unexplored territory that demands new understanding, skills, targets and partnerships.
Join the live online chat
The live chat will take place on Wednesday 15 January between 12-1pm GMT and discuss business innovation and value loops, exploring questions like:
• How can businesses innovate when it comes to their relationships with suppliers and customers to make better use of material resources?
• How can different business models discourage the value degradation of used products?
• In what ways are businesses capturing value from residual products through re-use, refurbishment or remanufacturing?
• Do new value loops present an opportunity or a threat to consumption-driven businesses?
The panel
Ramon Arratia, European sustainability director, Interface
Henk de Bruin, global head of sustainability, Philips
Forbes McDougall, corporate waste strategy leader at Procter & Gamble
Markus Zils, Principal, McKinsey & Company
Neil Harris, green technology and innovation manager, Cisco
How to join
The live chat will take place on this page in the comments section from 12pm GMT on Wednesday 15 January. You can submit any questions in advance using the form below, or tweet them to @GuardianSustBiz using #askGSB and we'll put them to the panel on the day.
