MO.3.E || Life Cycle Metrics in Sustainable Finance and Business
Salminen, Vesa; Ruohomaa, Heikki
The circular economy is an economic theory and business model in which material is reused in new products. When looking at the circular economy as a business model, it is seen as a whole, where the realization of the circular economy is profitable at all stages of the value chain and for all companies involved. For this reason, the development of a circular economy is central to the comprehensive development of the business ecosystem to create new value chains. The importance of logistics is also emphasized by the fact that efficient logistics is big cost factor but it enables the collection of recycling streams from a wider area, which in turn enables a more even material flow and higher recycling streams to be utilized profitably. In order for a circular economy to be a profitable business, its development should be viewed primarily from the perspective of profitable business ecosystems, where the influence of digitalization and digital ecosystems are maximized. In such development work, logistics nodes (logistics areas) can act as natural environments and drivers of pilot and innovation ecosystems. During this research various existing circular economy concepts, technology solutions and the utilization of ecosystem theory in this framework have been analyzed. These have been combined into an overall model of the circular economy value network. On the basis of this, it has been decided to present a model for the development of the value network, which will lead to ecosystem business utilizing the digitalization and platform solution of the circular economy. The aim of this article is to present a developed model for creating a value network efficiency that allows for a whole network of circular economy and industrial symbiosis between the parties and thus a profitable business for all parties.