Transition to a Circular Ecosystem in 6 steps

Learn how to create value through the circular ecosystem in 6 steps

Published by Bridge Ecosystem I Written by Aline Faria — Researcher at FEA/USP

Business ecosystems have a strong link to innovation. In this sense, we highlight those who seek these precepts to transform their competitive advantage in order to contribute (also) to the environment. The environmental issues of our planet are already dated, and different types of actors in our contemporary society express themselves and act in accordance with these concerns.

Thus, business ecosystems can also be — and many are — developed in ways that contribute to a shift from a linear to a circular economy . That is, products (or parts of them) returning to the production chain, rather than simply being discarded. However, the transition presents challenges for many corporations. This change may involve changes in the business model itself, in the product (for example, adding some feature that enables the mentioned return) and even in rules or laws of that country or region.

Thinking more strictly at the level of the firm and its circular ecosystem, there is a plan with actions that can facilitate the transformation or creation of a business model so that the ecosystem can fulfill the objective of circularity.

In addition to the classic reduce (use less material and energy), slow down (use longer) and recycle (reuse products or parts of them), the Ellen MacArthur Foundation and McKinsey have developed a framework that goes a little further. In this framework, each action presents great business opportunities for circular ecosystems . It is important to remember that, here, the interaction and interdependence between its actors is of crucial importance. More specifically for the transition to (or creation of) a circular ecosystem, the forces of the actors are united so that, in fact, opportunities can be perceived and taken advantage of by working together. Thus, actors can jointlycreate value for the end consumer through its circular ecosystem .

Below, we put this framework with each of the 6 phases.

Source: Adapted from Foundation (2015)

1. regenerate

A wide range of actions to protect and improve the planet’s biocapacity. Here, we have a move away from limited fossil sources, towards clean energies. This involves land reclamation as well as ecosystem restoration or protection. Returning biological resources to nature, such as through composting, also falls into this category.

Want to know about the other steps to implement the circular economy strategy? Then check out the full article here.

Be sure to also check out the successful case of the startup Yattó with Suvinil and how they developed a Reverse Logistics and Circular Economy plan .

This is a production carried out by Bridge Ecosystem , a Joint Lab between USP and 100 Open Startups, which aims to generate new methodologies and tools for managing innovation ecosystems.

The initiative was created with the aim of generating methodologies and tools for managing innovation and entrepreneurship in the context of ecosystems and came in response to the manifestation of open innovation managers who pointed out that the practice of innovation could no longer be explained so well by theories, models and traditional concepts.

The management of innovation ecosystems is an essential topic for open innovation. Therefore, every month, the Bridge Ecosystem has a guaranteed space at the Open Innovation Week | Oiweek , the main meeting of actors in the innovation ecosystem to exchange knowledge, co-create solutions and generate business opportunities.

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