The Circular Economy in the Digital Age - A Reference Model for Manufacturing Companies

Abstract

The climate crisis demands for actions at organisational level to mitigate the negative environmental effects of human activities. A paradigmatic shift from the dominant, linear economic model to the Circular Economy and sustainable production and consumption systems is deemed necessary. Established manufacturing organisations could engage in business model innovation in accordance with circularity principles. Nevertheless, multiple barriers limit their adoption. In this context, Industry 4.0 technologies can play an important role in fostering this transformation. In the present thesis, results from a Structured Literature Review and a Reference Model are going to be presented to assess the impact of Industry 4.0 technologies on the transition towards circular business models. The insights deriving from the findings of this study could improve understanding of potential methods to exploit the beneficial effects of the integration of Industry 4.0 potentialities and CE in business models of manufacturing organisations. From this research, it is possible to conclude that these devices and systems demonstrate critical potentialities in this process. Academic papers have outlined their contribution in fostering predictive analytics, tracking and monitoring of product lifecycle as well as improving design and customer relationships, with an impact on business model dimensions. The practice-oriented framework proposed provides practical instructions for managers for the implementation of circular business models enabled by Industry 4.0 technologies. Furthermore, capabilities in ecosystem coordination, collaboration with value chain partners, suppliers and customers as well as institutions and policymakers are considered crucial for a successful transition to sustainable business processes and practices.