The Role of Innovation and Digitalization

2018

Data to Wisdom Project Publications References C limate change and the scarcity of natural resources affect everyone. These issues are the main reasons why discussions of circular economy (CE) as a means to promote sustainability have come to the fore in recent years. According to Sitra 1 , CE has the potential to cut 56% of heavy industry's CO2 emissions in the EU by 2050. OECD 2 and European Parliament 3 have identified CE as an important means for increasing resource efficiency and reducing the use of natural resources. Additional reasons for adopting CE include environmental benefits from the reduced extraction, processing, and disposal of natural resources; reducing the reliance on critical material inputs to mitigate supply risks; and business opportunities in various sectors, such as services, sharing economy, remanufacturing, and secondary material production 2. It is stated that digitalization can contribute significantly in transitioning to a more sustainable CE. It is also said that it could help to close the material loops by providing precise data on the availability, location, and condition of products. One claim is that digitalization could also allow for more efficient processes in business, help reduce surpluses, support longer life for goods, and diminish transaction costs. Thus, digitalization could boost the implementation of CE business models 1Sitra (2018). The circular economy-A powerful force for climate mitigation.

2021

Digital technologies (DTs), such as the internet of things, big data, artificial intelligence or blockchain, are considered as enablers for a more sustainable and circular economy. So far, literature on these topics has mostly focused on specific DTs and sub-areas of sustainable product management (SPM). The aim of this paper is to provide a more comprehensive overview of current and potential examples of DT applications in SPM (e.g., product design/assessment, supply chain management, business models). The collected examples (n=146) were analyzed based on a systematic literature review, using quantitative and qualitative content analysis. Deductive and inductive analyses of the examples revealed the potential of DTs in terms of their useability along the product life cycle, their role as enablers for circular economy strategies and in specific SPM activities. DT application often entails only incremental improvements, e.g., increased efficiency of existing processes, with more radi...

Sustainable Production and Consumption, 2023

There is growing consensus in literature and practice that digital technologies (DTs) can offer a wide range of potentials for implementing a circular economy in companies. However, empirical insights on how the potentials of different DTs are already realized across various industries are lacking. This study addresses this research gap through descriptive, hierarchical cluster and non-parametric analyses (Kruskal-Wallis tests and Spearman rank correlations) of the use of DTs for circular economy and sustainability management based on data collected in a structured telephone survey with 132 sustainability managers and CEOs of Austrian manufacturing companies. The paper shows for the first time the degree and stage of implementation of four key enabling DTs for a sustainable circular economy and 31 specific applications of those DTs across eight different industries. Of the four DTs, Internet of Things (IoT) technology is most widely implemented, followed by big data analytics, artificial intelligence (AI), and blockchain technology. However, their use in sustainability management is still very limited and is currently mainly in pilot phases. Of the 31 applications surveyed, IoT technology is most frequently used for collecting data from production processes, AI for predictive maintenance, big data analytics for demand forecasting, and blockchain technology for tracking product origins. Statistically significant differences were found in the degree of digitalization, in general, and for sustainability management between industries and company sizes. A strong positive correlation between the implementation of digital technologies in general and their use in a sustainability management context indicates synergies and spillover effects. The findings may help to tailor context-specific and purpose-driven strategies that selectively leverage the benefits of different DTs and supporting sustainability management effectively. Further research may identify scalable best practices, optimal enabling conditions, and environmental and social outcomes.

Recent studies advocate that digital technologies are key enabling factors for the introduction of servitized business models. At the same time, these technologies support the implementation of the circular economy (CE) paradigm into businesses. Despite this general agreement, the literature still overlooks how digital technologies enable such a CE transition. To fill the gap, this paper develops a conceptual framework, based on the literature and a case study of a company implementing a usage-focused servitized business model in the household appliance industry. This study focuses on the Internet of Things (IoT), Big Data, and analytics, and identifies eight specific functionalities enabled by such technologies (improving product design, attracting target customers, monitoring and tracking product activity, providing technical support, providing preventive and predictive maintenance, optimizing the product usage, upgrading the product, enhancing renovation and end-of-life activities). By investigating how these functionalities affect three CE value drivers (increasing resource efficiency, extending lifespan, and closing the loop), the conceptual framework developed in this paper advances knowledge about the role of digital technologies as an enabler of the CE within usage-focused business models. Finally, this study shows how digital technologies help overcome the drawback of usage-focused business models for the adoption of CE pointed out by previous literature.

Circular Economy has been usually indicated as a promising approach to promote economic development and sustainability. Despite this general agreement, the Circular Economy paradigm is still little adopted by companies, as they need to face several challenges. In this context, Product-Service Systems (PSS) Business Models play a major role, as they have been proposed as an opportunity for promoting sustainability. Today, digital technologies are seen as a key factor to enable PSS, allowing at the same time the introduction of Circular Economy into companies. However, little attention has been set on how new digital technologies can overcome in practice the main Circular Economy challenges. To fill this gap, this paper explores such a role through a case study of a company who leverages Internet of Things, Big Data and Analytics in the provision of its PSS Business Model. Based on the findings of the empirical investigation, the role that the selected digital technologies play in overcoming the Circular Economy challenges is presented and discussed

2022

The digital age we live in offers companies many opportunities to jointly advance sustainability and competitiveness. New digital technologies can, in fact, support the incorporation of circular economy principles into businesses, enabling new business models and facilitating the redesign of products and value chains. Despite this considerable potential, the convergence between the circular economy and these technologies is still underinvestigated. By reviewing the literature, this paper aims to provide a definition and a conceptual framework, which systematize the smart circular economy paradigm as an industrial system that uses digital technologies during the product life-cycle phases to implement circular strategies and practices aimed at value creation. Following this conceptualization, the classical, underlying circular economy principle, ‘waste equals food’, is reshaped into an equation more fitting for the digital age—that is to say, ‘waste + data = resource’. Lastly, this paper provides promising research directions to further develop this field. To advance knowledge on the smart circular economy paradigm, researchers and practitioners are advised to: (i) develop research from exploratory and descriptive to confirmatory and prescriptive purposes, relying on a wide spectrum of research methodologies; (ii) move the focus from single organizations to the entire ecosystem and value chain of stakeholders; (iii) combine different enabling digital technologies to leverage their synergistic potential; and (iv) assess the environmental impact of digital technologies to prevent potential rebound effects.

IEEE ICTMOD Conference - 2023, 2023

Circular Economy (CE) is a much-discussed topic among the contemporary academia and industry with the emerging threats of the scarcity of global natural resources and monetary capabilities of small and medium scale industries around the globe. With the fifth industrial revolution, which we refer to it as the Industry5.0, the phenomena in the likes of sustainability, human-centric and resilience are in the forefront. Thus, it is obvious that the Circular Economy plays a vital role in the Industry5.0 framework. As it pivots around AI and other emerging technologies it is important to know how we can effectively use Big Data analytics to get the best out of Circular Economy. In this research we have focused on the initial steps of recognizing the key facts that Big Data analytics can be used effectively in Circular Economy in the aspect of the Supply Chain focusing on a systematic literature review through the use of several case studies and journals and using a qualitative approach. Keywords—Circular Economy, Big Data, Big Data In Circular Economy

Lecture notes in networks and systems, 2020

Manufacturers are called to cope with always more complex challenges. Among all, the reduced amount of resources available in our planet forecasts a dramatic future scenario. Circular Economy (CE) is one of the most promising strategies. In view of the increasing interest in both Lean Thinking and CE, a first systematic literature review (SLR) has been performed to investigate the interlink between these two concepts. It unveiled common grounds and gaps, as the limited number of studies dealing with knowledge management (KM). Considering the new value obtained by knowledge, a second SLR has been conducted to study the application of KM as support for CE. Researchers explored KM application on all the three levels of CE paradigm (micro, meso and macro), almost ever highlighting the strategic role of technological systems to exploit data management under a circular perspective. Directions for future researches are proposed as main contribution of this paper.

Serbian Journal of Engineering Management, 2021

The circular economic model management in business organizations around the world depends on the emergence of innovations in technology, organizational forms and business models. The level of circularity of a business organization largely depends on the development of digital technologies. In a real dynamic business environment, digital technologies can be applied to capture the full potential of circular strategies for improving resource efficiency and productivity. By applying digital technology in business organizations, it is possible to monitor the process of transition of a linear economic model to a circular economic model. Therefore, this paper aims to review developed digital tools, which can be used to monitor the circular economy at the level of a business organization, in order to improve the decision-making process in the analyzed area.

Tech-business analytics, by its actionable insights, operational optimisation, and promotion of innovation throughout the value chain, essentially plays a critical role in helping organisations make the shift to a Circular Economy. Through the utilisation of data analytics, enterprises may adopt sustainable methodologies, reduce wastage, and generate enduring benefits for both the environment and society. Design/Methodology/Approach: Organisations may capitalise on new chances for innovation, efficiency, and sustainability while generating long-term value for the environment and society by embracing a methodical and integrated approach to digital business analytics in the Circular Economy. Findings/Result: Findings/Result: Throughout the history of the sector, the paper examines the ways in which digital business analytics have been employed to manage the circular economy's growth. Originality/Value: A description of the ways in which tech business analytics, in the context of the circular economy, vary from traditional business analytics. It also covers thirty newly published research proposals linked to Tech Business Analytics in circular economy and contains a general design that may be used for technical purposes.