Circularity Platforms - will Europe lead?

Un Espresso per favore!?

It is Friday and I am glad you take a sip of Ecosystem inspiration.

After the whole week in Spain?#shoptalkeurope?I want to share my observations directly from people in dialogue with us. I will not cover the official presentations and talks...

1| Thank you for 611 Subscribers.

Highly appreciated. Keep sharing with friends, colleagues, former peers and people that could benefit.?Please help us crack 1.000! Together.

2| Circularity Platforms - will Europe lead?

The Green Deal creates a lot of pressure, which most SMEs are not even aware of. There are and will be painful process, sourcing, supply chain and reporting implications. But also a lot of innovation on the back of it.

Best European consumers which are also European employees and entrepreneurs have a chance to benefit on a futureproof we all have to play in.

Here a first reflection from this year's #thentwksummit23 which just ended 2.5 hours ago in beautiful #Barcelona.

In the air did not get access to latest picks!

Grazias to the #dreamteam of #theNTWK Marina Planas , Anna Noakes Schulze , Marta Agrech , Catherine Schoendorff ???? , @bety soca, Milja van 't Noordende , @katrin maikova

Dear Europe! you should take advantage of this great community! More businesses have to joint 2024!

Platform experts in the community include leading Sameer Singh , Sangeet Paul Choudary , Peter C. Evans, PhD , Geoff Parker , Marshall Van Alstyne , Daniel Trabucchi , and many more. AND a great mix of enterprise and start up players as well as UNECE Mikael Román

Waste + Information = Resource

The quote "Waste + Information = Resource" is commonly associated with the concept of the circular economy. It emphasizes the idea that by leveraging information and innovative approaches, waste can be transformed into valuable resources. The specific origin of this quote or formula is unclear, as it is a simplified expression of the principles behind the circular economy, which has been promoted by various organizations, thought leaders, and researchers.

In German language we even have something more beautiful which is hard to translate. Allow me to share the evolution of language - thinking - and thus action. (saw this in the slides of Fleur Boos as well).

Reframing Garbage

Pending the source, only about 10% of resources are in circular economy. The rest does not get back into the flow.

• "Müll Sammlung" = waste collection

This is what we have done in the past. Our garbage was considered waste and also called this way.

• "Wertstoff Sammlung" = Recyclable collection

Not the word "Wert" = "Value"

• "Werte" = "Values"

So, in a nutshell a lot of appreciation and monetary potential of those materials.

The Turbo = Green Deal

"Thanks to our commitments (ESG goals) we are also "pushed" to really act on it and even swallow large tickets"

It is clear that this is not easy, but when you talk to Top Management they also say that at the end this is positive, because ALL stakeholders hold each other accountable to that and make things happen.

Here are the intended impact areas beyond sustainability of the European Green Deal:

• Economic Growth: The European Green Deal aims to stimulate economic growth and create new job opportunities by promoting sustainable industries, innovation, and investment in clean technologies.
• Social Justice: It focuses on ensuring a just transition, aiming to minimize the social and economic impacts on vulnerable communities and workers during the transition to a sustainable economy.
• Health and Well-being: The deal recognizes the link between environmental factors and public health, aiming to improve air and water quality, reduce pollution, and promote healthier and more sustainable lifestyles.
• Technological Leadership: It aims to position Europe as a global leader in sustainable technologies and innovation, fostering competitiveness and attracting investment in clean energy, transport, and digital solutions.
• Global Influence: The European Green Deal seeks to exert global influence by advocating for international cooperation, setting ambitious climate goals, and promoting sustainable practices worldwide.
• Resilience and Security: By reducing dependence on fossil fuels and promoting energy efficiency, the deal aims to enhance energy security, reduce geopolitical risks, and increase resilience to climate-related disruptions.

One of the areas we clearly see positive impact is on global influence. During the-NTWK summit start ups, scale ups, enterprises and NGOs, supernational organisations like #UNECE shared their approaches. Europe is not poor on ideas and some very interesting big bets, that start getting traction.

We as consumers as critical enablers

It is clearly visible that our engagement in the field is high. Especially with the next 2 generations, the kids of today's leaders. Areas that had a lot of participation at the NTWK were:

• Health directly linked to the quality of food, which is linked to food waste and quality and access to resources in agriculture | agritech)
• Mobility directly linked to Co2 and scarce resources which Europe does not have
• Energy directly linked to mobility and living

Ultimately it is about our behaviours both in terms of buying - usage - end of life behaviours. It would be too easy to only ask us to think and act differently.

Frameworks for behvioural change

Some frameworks that can help drive behavioral change among customers in the context of circularity:

1. Nudge Theory: This behavioral economics concept suggests that small changes in the way choices are presented can influence people's decisions. By designing choice architectures that make circular options more visible, attractive, and convenient, customers are more likely to adopt circular behaviors.

Making visible what we do with our acts allows customers step by step make trade-off decision.

2. Social Norms: Leveraging social norms involves highlighting the behavior of individuals or groups who already engage in circular practices to encourage others to follow suit. By showcasing positive role models and emphasizing the collective impact of adopting circular behaviors, customers can be motivated to change their own behavior.

Show us what can be done and that it is critical to more and more | only by e.g. plastics from recycled sources. Add emotion of the sea pulsation and concerns of doctors and science of microplastic - then you can accelerate!

3. Gamification: Applying game-like elements, such as challenges, rewards, and competitions, can engage customers and make circular behaviors more enjoyable and rewarding. Gamification techniques can be used in digital platforms, apps, or loyalty programs to incentivize and motivate customers to participate in circular activities.

Play as school classes, teams and organisation. Put up challenges and see how you do. The NTWKers will do a challenge for 3 weeks. E.g. Experiencing eating no | less meat, ride with bikes etc.

4. Education and Awareness: Raising awareness about the benefits of circularity, environmental impacts of linear consumption, and the role individuals can play in driving change is crucial. Educational campaigns, workshops, and community initiatives can inform customers about circular practices and empower them to make more sustainable choices.

While setting up new buildings collecting material data and the like is easy, for old buildings this is really hard. They will have to find core interactions on "simpler", less critical materials first and have a hyperlocal component to avoid footprint impact. The tech layer can scale.

This MVP-like approach is still searching for partners to really step by step create impact. Without partnering this idea will not come to fruition although it has great opportunities. Hubert Rhomberg . I am connecting you to this as in new construction ecosystem and your execution on #CREE is further advanced!

Educating builders how to design and build differently will be a critical enabler. Without community led approach this will be very hard!

The parent company is already in construction ecosystem. Family owned. They educate through printing CO2 of consumption on B2B and B2C invoices is already educating!

5. Incentives and Rewards: Providing tangible incentives or rewards for adopting circular behaviors can be effective in driving customer engagement. This can include discounts, loyalty points, or exclusive access to products or services that align with circular principles, encouraging customers to choose circular options over traditional alternatives.

Nothing to be added both the refurbished "cheaper" products and incentivised purchase of new products while exchanging existing phones with high incentives are great examples.

Bigger business ecosystems - Bigger impact

While all ideas in the start up ecosystem are important to illustrate to us all - it can be done. The impact is too little too slow. Hence, it will be the combination of different enterprises and sectors to make a huge impact.

#CatenaX is a prime example. While Europe still has a 16x challenge to reach fair share with platforms, this is a prime example how it could be done.

I do not go into all details, as I want to bring a deep dive in one of the following editions.

What it does: Data Ecosystem for manufacturing first with automotive. Expanding into further areas of manufacturing X...

• Gaia X base layer
• Association with tier 1 and 2 - low barrier participation
• Backed by regulatory requirements*
• Service layer for Continuity X

What is different now:

1. Government funding in stages

2. Big corp CEOs back it with resource (not only money but more importantly people)

3. Go Global - scale as mandate! (expansion beyond Germany, i.e. France, Japan and also US)

4. Community

Let's dig into points 3 and 4

ad 3. Ecosystem Competition

In an ecosystem economy competition moves just two levels up from individual company competition and sector competition. So, it is no wonder, that Japan is also in the making of "their" ecosystem:

The Catena-X data network, which is currently being set up, is intended to make supply chains more transparent by having as many suppliers as possible share data there. But in order to protect the trade secrets of Japanese suppliers, the Japanese government is now setting up its own national network (source: Automobilwoche)

So what?!

On one hand all need to be part of this in Europe given legislation. AND on the back of it all will benefit in a circular context.

Why would you sell "Wertstoffe" when you can get your hand on it and thrive on higher margins of services business.

So, on the back of legislation Business Model Innovation can and will happen!

There are clear advantage of doing it together:

The challenge is the transition from the old system to the new: There are Trillion USD gaps to be bridged financially. Especially #CFOs and #Shareholders will need a strong heart. We are sure, that we will be able to sort this out with new financial and blockchain vehicles that will enable and foster the transition, even in private public incentives.

ad 4. Community

We are not yet part of Catena X but we are eager to. What we can judge from the outside, there is a passionate community that is hungry, united by a vision and guided by key people that go the extra mile.

On top there are new "enemies". Not only on the horizon but right in front in "our" garden: #Tesla and the #China manufacturers. A natural reaction that happens is to stand together and forget old rivalries. This is what change is all about!

3D:

• Dissatisfaction - a "bad" status quo
• Destination - a new vision
• Display - show not tell

Thank you for the insights and the open discussion: Stephan Fester

I will ask my friend and our #ChiefStrategyOfficer Peter C. Evans, PhD to invite you Maria Christina Bienek and Frank Goeller to the #MITPlatformSummit in July.

A potential win-win-win: CatenaX goes US, Summit = Circularity

Circularity at #Philips

A great example with a framework available is Philips:

In a circular economy, value is created with minimum resources, products and materials are kept at maximum value throughout their product lifecycle, waste is eliminated, and natural systems are regenerated. At Philips, we do this through innovative service models, product take-back, refurbishment and parts recovery, and smart digital solutions, among others.?

Those maps typically look like that. The illustrate the complexity on one hand. On the other hand they provide clarity on where to get started. And most importantly get started.

• They indicate the access points to partnering and the need to standardise definitions and provide data to connect the ecosystem - so data is in reality the new fuel.
• They outline the business model innovation opportunities.
• They show the user centricity and our role in the ecosystem as consumers.
• They proof that recycling is not always the first step to go to.

So, will Europe lead circularity?

YES!

• If we want to and work together now!
• If European leaders are more fit in #Ecosystemstrategy and #platformbusinessmodel and create an #ecosystemmindset

Going full circle together - faster!

Did you like your?#EcosystemEspresso?!

Please share with your network and a?#like?to make this visible to more people...?

If not - please help make it better with?#feedback.?What are you interested in, share here with a post in the comments.

AND come back next week!

Ciao and Happy Weekend!

Alex