Step into the Era of Circular Economy

Circular economy focuses on the entire application lifecycle management to minimize waste and make the most of resources. Unlike traditional linear models, circular economy encourages a closed-loop system where resources are reused, recycled, and regenerated. This means redesigning business models to eliminate waste throughout the life cycle of products, from raw material extraction to disposal and recycling.  

Circular economy has profound implications for internal and external processes across all disciplines of a business. It aims to minimize resource usage and waste production by slowing down, reducing, and closing energy and material loops. This encompasses the reuse, repair, remanufacturing, recycling, and recovery of materials while integrating principles of lifecycle management and energy and sustainability.  

A central aspect of circular economy is the redesign of business models to maximize customer lifecycle and avoid critical resource depletion. Companies need to establish sustainable partnerships and implement processes, such as disassembly and remanufacturing, to reclaim strategically scarce materials. By incorporating information lifecycle management, businesses can enhance transparency and ensure a seamless flow of data regarding material reuse.  

Current transformation programs primarily focus on these value-adding processes, while the significant impacts on other business processes are often overlooked. An example is the increasing demand for supply chain transparency driven by higher recycling rates. Businesses are challenged to optimize information flows from source to disposal and implement systems to track and analyze recycled materials. This underscores that a comprehensive information strategy extends beyond the optimization of the value chain and is essential for successful transformation.  

To bridge the gaps in the transition to a circular economy, supporting processes must address issues that provide essential inputs for value-adding processes. This includes developing customized data strategies, implementing digital platforms, and adapting evaluation models for circular solutions.  Sustainable Development Goals (SDGs) are integral in guiding these adaptations and ensuring alignment with global sustainability objectives. 

In leadership and control, core processes also need to be adapted to integrate the principles of circular economy. This involves incorporating customers, recyclers, and suppliers into corporate communication and developing specific risk strategies that align with eco-friendly and sustainability-driven approaches.  

Overall, the circular economy has profound impacts on supporting and leading processes that must be considered during the transformation. Only through a holistic view and integration of all these aspects – such as life cycle assessment, environment and sustainability, and innovation – can the true value of the circular economy be realized, going beyond mere value creation and influencing the entire business ecosystem.  

At Siemens Advanta, in alignment with Siemens Industry Business, we take a holistic approach to sustainability and sustainable development that extends beyond traditional value-adding processes. We develop innovative strategies and business models that optimize operations for resource efficiency while implementing advanced digital solutions and data analysis. Our comprehensive consulting services span numerous sectors, empowering clients to embrace a sustainable future through the circular economy and driving transformative change across the entire business ecosystem. Our commitment is to redefine sustainability by integrating it seamlessly into every facet of enterprise operations, ensuring a sustainable and eco-friendly future.