The smart circular economy: A digital-enabled circular strategies framework for manufacturing companies

Fenna Blomsma,Patrick Mikalef,Eivind Kristoffersen,Jingyue Li

doi:10.1016/j.jbusres.2020.07.044

Fenna Blomsma, Patrick Mikalef + Show 2 more

Open Access

https://doi.org/10.1016/j.jbusres.2020.07.044

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Abstract

Digital technologies (DTs), such as the Internet of Things (IoT), big data, and data analytics, are considered essential enablers of the circular economy (CE). However, as both CE and DTs are emerging fields, there exists little systematic guidance on how DTs can be applied to capture the full potential of circular strategies for improving resource efficiency and productivity. Furthermore, there is little insight into the supporting business analytics (BA) capabilities required to accomplish this. To address this gap, this paper conducts a theory- and practice-based review, resulting in the Smart CE framework that supports translating the circular strategies central to the goals of manufacturing companies in contributing the United Nation’s (UN) 12th Sustainable Development Goal, that is, “sustainable consumption and production,” into the BA requirements of DTs. Both scholars and practitioners may find the framework useful to (1) create a common language for aligning activities across the boundaries of disciplines such as information systems and the CE body of knowledge, and (2) identify the gap between the current and entailed BA requirements and identify the strategic initiatives needed to close it. Additionally, the framework is used to organize a database of case examples to identify some best practices related to specific smart circular strategies.

Highlights

The concept of circular economy (CE) has gained momentum among businesses, policymakers, and researchers by virtue of its potential to con tribute to sustainable development (Geissdoerfer, Savaget, Bocken, & Hultink, 2017; Ghisellini, Cialani, & Ulgiati, 2016) through a range of ef ficiency- and productivity-enhancing activities collectively known as cir cular strategies (EMF, 2013)
The Scanner presents a taxonomy of circular strategies based on business processes typically found in the manufacturing context
The literature review on smart circular strategies resulted in 65 included papers (27 from the database search)

Summary

Introduction

The concept of circular economy (CE) has gained momentum among businesses, policymakers, and researchers by virtue of its potential to con tribute to sustainable development (Geissdoerfer, Savaget, Bocken, & Hultink, 2017; Ghisellini, Cialani, & Ulgiati, 2016) through a range of ef ficiency- and productivity-enhancing activities collectively known as cir cular strategies (EMF, 2013). The CE is attributed with the ability to avoid, reduce, and negate value loss and destruction through, for instance, lower emissions, reduced pollution levels, and loss of biodiversity and habitats associated with resource extraction (EMF, 2013; Kumar & Putnam, 2008) For these reasons, CE practices are strongly linked to SDG 12 (responsible consumption and production) and can have an additional bene ficial impact on related goals, such as SDG 6 (clean water and sanitation), SDG 7 (affordable and clean energy), and SDG 15 (life on land) (Schroeder et al, 2019). For the remainder of the paper, we focus leveraging circular strate gies, as opposed to finding new offerings and business models

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