Circular economy is a new form of engaging in the global economy. It is a form that takes into account the 4th industrial revolution, new emerging business trends and environmental needs. It is needless to mention, how with the rapid human development, more and more new technologies and businesses are being founded each day. However, new businesses cannot be founded any longer without taking into account the impact they have on the environment. Uncontrolled resource exploitation in the past century has generated a lot of unsustainable businesses, unmanaged waste and bad habits. This trend cannot be continued. Therefore, to manage and/ or decrease pollution, companies need to engage in some forms of circular economy.
Some benefits of circular economy are:
Shared value helps companies both on a social and financial level. By collaborating with other companies on products and projects, companies share both tangible and intangible resources. That way, shared value is created through exploitation of products and/ or resources.
Data is often labelled as the most important asset in today’s world. Data is always being collected, traded with, analyzed and reproduced. Almost every employment position revolves around some type of data analysis. By properly analyzing data many businesses can be leveraged, while through sharing data many resources can be saved while companies engage in collaboration.
Sometimes in-house expertise is not enough. To be able to innovate, companies need to broaden their pool of expertise. This is often done by including outer parties within the company through outsourcing or licensing.
In the posts to follow we will write more about these three practices specifically. In a separate post we will discuss more about co-creatorship practices and variants, so stay tuned!