Challenges in circular economy commercialization

New products, services and solutions, which are based on circular economy (CE) business models are facing challenges during their commercialization. To speed up the circular economy business, we need to focus on challenges and catalysts to boost CE business models and to overcome the faced challenges. Digitalization is enabling these new business models and ensuring safe and reliable data flows.

Digitalization as enabler for circular economy business models 

To succeed in CE business models, we need to have the encourage to take an agent to manage the digitalization platforms, if we don´t have knowledge of our own. To enable the change, amongst other things we need to find answers how to split the risks, decrease the uncertainty and ensure the quality of recycled material. For example, financing solutions in investing to technology can be funded by leasing contracts.

Digitalization is not the only answer to solve these challenges. In the early phases of a new product or service creation we need to focus to customer view and value. Commercialization is a learning process and other parallel paths are also ongoing at the same time. To fail fast and then succeed needs modified commercialization decision steps and continuous communication among key stakeholders. The stakeholder group is wide from R&D resources to all the others in commercialization process. Naturally identifying the relevant stakeholders is a crucial factor in the process.

Absorbing new information and taking the step to platform business 

Before commercialization and scaling up digitalization is providing us for example measurements and test possibilities with digital twins. With these we are already familiar, but more understanding and acceptance towards data management handling are needed. Collaborating, sharing and communicating in ecosystems and between the ecosystems are the keys to renew the business environment. We need innovators, leader companies and research institutes in this common challenge. The question is, who will take the leading role of digitalization as an enabler to speed CE business to future? Of course, the challenge is enormous, but the technology is available and we need to act now. The one who takes this platform business can find the treasure in the end of the rainbow.

Tiina Witikkala started as a Project Manager at CLIC Innovation 3rd May, 2021. On her responsibility are projects related to bioeconomy and circular economy, project proposals and other tasks to support our clients. “When I am leading and supporting volunteers in scouting and guiding, I am constantly repeating “Leading is communication and communication is leading.” In the end it is the people who make things happen, no matter is it business or community of volunteers. To share the knowledge and knowhow based on our values, we create more sustainable actions and impact.” I am glad to be part of the sustainable growth at CLIC Innovation.