Resource efficient business models (REBMs) have the ability to transform industries. The need to be more innovative with producing, using and disposing of products is more critical than ever with our diminishing global resources.
Business benefits of REBMs
These innovative solutions will:
- enable more products to be recycled and re-used – steering precious materials and re-useable products away from landfill sites. A much better solution for the environment as well as for businesses.
- decrease costs and increase profits – by enabling more durable products to be produced more cost effectively and offering alternative income streams.
- increase customer loyalty and brand reputation – through offering innovative services post product purchase or by offering alternative purchasing options eg hire/leasing.
- enable industry to be proactive – in resolving the resource crisis and, therefore, avoiding unnecessary regulatory burdens.
- enable businesses to take more control over sourcing and use of raw materials.
- enable businesses and procurers to build stronger relationships across more resilient supply chains.
help to improve B2B relationships and potentially create more opportunities for large businesses to partner with brands.
Becoming truly circular – taking a leap of faith
REBMs play a crucial role in developing a circular economy by helping products to be kept in use for longer, providing alternative purchasing models and by providing convenient methods for re-using and recycling products.
To become truly circular, businesses will need to complete the cycle by making their products entirely of recycled materials and ensuring that products they use or sell are also recycled at the end of their useful life.
The most important thing is to take your first step – implementing a REBM is a great way to start your journey and find more innovative solutions to market challenges.
The new business models can be scaled up for European and global markets.
Become a market transformation leader
It is essential for companies to be more innovative rather than carrying on with ‘business as usual’ and to take action to resolve this global resource crisis. The head-start gained on competitors through early innovation will not last for long as the rest of the market is catching up fast.
There have been several examples of companies that have either failed or lost their edge because of competitors changing the way their market works. It is useful to look at examples of companies that still exist but seem to have lost their leading position or trail-blazing edge in the market.
To assess influences on your business situation it’s helpful to consider the factors acting on it. A simple way to do this is using a ‘Porter’s 5 forces’ model.
We are finding out from the early lessons learnt from our trial projects that it is better to develop well researched and tested REBM’s than to skip a few steps of the process and come to a grinding halt.
Please use this practical REBMs website resource to guide you through your own REBMs journey.