Fighting short-term prints with a digital circular economy approach
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When times are difficult, the instinct of many managers to squeeze existing assets: making platforms more with less, reducing the total ownership costs and extracting value through cuts.
One study showed that 76% of CFOs said that challenging market environments increase pressure on them to stimulate cost efficiency and achieve profit goals in the short term. These cutbacks can include financing for long -term priorities; The same study showed that 50% of finance Leaders wanted to achieve goals in the short term by reducing investments in areas such as the environment, social and administration (ESG).
It is the kind of approach that originated from a playbook that was used in a large economic decline, and in many ways it feels a bit outdated; For example, emerging sustainability initiatives were some of the first cuts in 2008.
The companies that follow this approach reduce the impact that it can have on maintaining competitiveness in medium and longer term. Although it is easier to agree on a tactic that has previously generated the desired results, it can mainly work in the short term commend Contributingly respond. This in turn limits their ability to lead the competition.
Finally, there is only so much that can be cut.
But what if there was an alternative that could not only get more from existing investments, but would also offer a basis for future innovation?
CEO of Digital Product Agency for future platforms.
Turn to the circular economy for inspiration
This alternative is embedded in the circular economy. It is about a shift in mindset and approach that focuses on building expandable, modular and low-waste digital platforms that evolve, instead of ripping and replacing the 18 months.
The well from the circular economy and combines a dedication to sustainability with innovation and smarter design Principles for creating new value. It is a clear shift of planned aging; Instead, the focus is on creating products and services that embody a long service life.
The circular economy is already strongly based on technology to make its activities possible.
Companies such as Rheyon and too good to offer digital market places to connect people with resources with people with surplus means.
Rhapper was originally set up to link scientists to under -utilized laboratory equipment and consumables and helped organizations to recapture $ 4.1 million in value in the past year.
To go too well, restaurants and retailers can sell unwanted food to consumers. An app enables customers to browse plots of Surplus, while a B2B platform food companies helps to follow, manage and distribute their goods.
Then there are those companies that take the principles of the circular economy and embed them in digital products.
Modular consumer electronics that can be repaired, which do not struggle when new updates are pushed to them and as a result take much longer than the industrial averages. Fairphone, in the Netherlands, is such a manufacturer, producing smartphones And headphone They combine recycled materials with extensive warranty and repair packages.
Digital Circular Economy Investments In Product Levens Cycli
These approaches are also not limited to companies that are treated in physical assets. Inspired by the principles of the circular economy, product teams can reduce technical debts, increase lifespan and lower costs, without endangering speed and performance.
This is feasible with a strategy that is biased for modularity, human centered design and a focus on releasing minimal sweet products (MLP) on minimal viable products (MVP), with constant itteration. It is about integrating circularity and long -term fitness in everything a team develops.
In particular, that includes:
- Investing to prevent downstream waste: a well-structured discovery phase prevents over-engineering and shortens both the delivery time and the long-term complexity.
- Investment of the day one embedded: nobody can predict what the future will bring, but where possible efforts must be made to the future -proof. The use of open APIs and scalable frameworks makes growth possible without expensive refactoring later.
- Becoming modular, not monolithic: design in interchangeable modules ensures targeted upgrades and reduces the need for full rebuilding, extending the life of each component.
- Use smaller, cross-functional squadrons to remain lean and focused: small teams reduce coordination overhead, accelerate decision-making and avoiding layering in unnecessary processes or technology.
- Combine tailor-made and ready-made: Cloud-Native and low-code platforms offer speed and savings, without sacrificing reliability, and can be expanded with adapted tools for specific use cases.
- Treat sustainability as a design restriction: limitations of fuel creativity, which can lead to fantastic design solutions. Challenging teams to think about what the lowest waste path is, according to value in every phase of the product life cycle, helps the decision -making that will reduce carbon and costs.
Lean and focus on vast and wasting
In essence, sustainability is about optimizing resources, without waste. That is what the implementation of digital circular economy makes approaches; They are a constant process to use what is available to extract the maximum value, with little to no waste. It is sustainability that pays itself.
This includes looking at the teams that develop products and services. Large teams with multiple layers can feel safe, but they can also be blown up, over-engineering because of it. Smaller teams can reduce time-to-value, surplus stripping and supply modular builds that are easier to expand, maintain and evolve.
Klein does not mean; It removes the chance of becoming unfore, vast and wasting.
Fighting economic pressure with principles of digital circular economy
There is no doubt that managers are confronted with considerable economic pressure. The tendency will be to cut, but there is a risk of waste and, more importantly, losing competitive advantage in both the middle and long term.
Instead, there is a possibility to reformulate the situation, to do more with less, but in a way that does not sacrifice future objectives.
Turning to the digital circular economy means unlocking opportunities with products and services that really extract any ounce value. By doing this, companies will not only secure their future, but they will be better set up to achieve a form of growth, so that they and companies can be both profitable and sustainable.
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