The March 2017 event featured a talk by business designer Christian Rudolph on service design for the circular economy. Christian runs the consultancy ‘next cycle’ and focusses on resource-intensive business models in his work. Recently, IDEO and the Ellen McArthur Foundation released their Circular Design Guide which introduced more designers to the approach. So it was time for us to discuss the concept’s implications for service designers. Christian has years of experience in consulting industry heavy-weights like Philips and BASF, and helping them transform from linear product-focussed to circular service-oriented businesses. The evening event took take place on Wednesday, March 22nd.

1. Service
Design
Berlin
K K L D / M A R C H 2 2 , 2 0 1 7
Circular
Economy

2. Katrin
Business
Analyst,
CSC
Who is inviting?
Olga
Business
Consultant,
Fuxblau
Mauro
CEO &
Designer,
Boana
Martin
Service
Designer,
UK Gov
Manuel
Service
Designer,
Fuxblau

3. Activities of Service Design Berlin
Service
Design
Drinks
Service
Experience
Camp
The
Service
Gazette

4. Who’s hosting?

5. What’s the agenda?
Input Exercise Mingling

6. Available globally

7. Who’s talking?
Christian Rudolph
Circular Economy expert
and owner of nextcycle
@nxtcycle

8. circular
economy
consulting

9. Afghanistan
Albania
Algeria
Angola
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Belarus
Belgium
Benin
Bhutan
Bolivia
Bosnia and Herzegovina
Botswana
Brazil
Bulgaria
Burkina Faso Cambodia Cameroon
Canada
Chad
Chile
China
Colombia
Congo (Brazzaville)
Congo (Kinshasa)
Costa Rica
Croatia
Cyprus
Czech Republic
Denmark
Dominican Republic
EcuadorEgypt
El Salvador
Estonia
Ethiopia
Finland
France
Gabon
Georgia
Germany
Ghana
Greece
Guatemala
Guinea
Haiti
Honduras
Hungary
India
Indonesia
Iran
Iraq
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Kuwait
Kyrgyzstan
Latvia
Lebanon
Lesotho
Liberia
Libya
Lithuania
Luxembourg
Macedonia
Madagascar
Malawi
Malaysia
Mali
Mauritania
Mauritius
Mexico
Moldova
Mongolia
Montenegro
Morocco
Mozambique
Myanmar
Namibia
Nepal
Netherlands
New Zealand
Nicaragua
Niger
Nigeria
North Cyprus
Norway
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russia
Rwanda
Saudi Arabia
Senegal
Serbia
Sierra Leone
Singapore
Slovakia
Slovenia
Somalia
South Africa
South Korea
Spain
Sri Lanka
Sweden
Switzerland
Syria
Tajikistan
Tanzania
Thailand
Togo
Trinidad and Tobago
Tunisia
Turkey
Turkmenistan
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Uzbekistan
Venezuela
Vietnam
Yemen Zambia
Zimbabwe
0
2
4
6
8
10
12
3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000
EcologicalFootprint:GlobalHectaresperCapita(2012)
UN Happiness Index (2017)
ECOLOGICAL FOOTPRINT VS. UN HAPPINESS INDEX

10. Steve Howard, Head of Sustainability at IKEA
In the West
we have probably hit peak stuff.
We talk about peak oil.
I’d say we’ve hit peak sugar,
peak red meat, peak stuff,
peak furniture.
Quoted from: http://www.independent.co.uk/news/business/news/ikea-boss-says-we-don-t-need-more-furniture-a6819471.html
Image Source: Jeff Pachoud/AFP/Getty Images

11. We see second-hand A380s
as an attractive opportunity.
Willie Walsh, CEO of IAG (British Airways & Iberia)
Quote & Image Source: http://www.fastcoexist.com/3051869/google-is-planning-for-a-zero-waste-circular-economy

12. Recycling & Circular Economy
Why Circular Economy is more
than just Recycling Reloaded
The Internet of Things could become the ‘soul’
that animates objects in the circular economy.
Kenneth Cukier, Data Editor at the Economist & Author of bestseller “Big Data”
Quote Source: Intelligent Assets: Unlocking the circular economy potential, Ellen Mac Arthur Foundation
Image Source: http://www.fastcoexist.com/3051869/google-is-planning-for-a-zero-waste-circular-economy

13. Our goal
is to embed
circular economy
into the fabric of Google.
Kate Brandt, Sustainability Lead at Google
Quoted from: http://www.bloomberg.com/news/articles/2016-01-18/iag-could-lease-used-a380s-as-walsh-says-new-aircraft-too-pricey
Image Source: http://aviationweek.com/site-files/aviationweek.com/files/uploads/2015/05/A380RC_2_Airbus.jpg

14. What’s a Circular Economy?
Definition
product
factory
service
provider
user
resource
facility
resource
waste
design
fo
r
longevity
design
for
ser
vice
designfor
re-use
designfor
material
r
ecovery
User(s)
Product Manufacturer
Service Provider
Waste
Raw Material
Suppliers
Product
Definition
A circular economy aims to be restorative
by design. At the core, the objective is to
move away from the “take, make, waste”
linear system by designing, using and
optimising product-service-systems and
business models for multiple cycles of
disassembly and reuse before
conventional recycling.
Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle

15. product
factory
service
provider
user
resource
facility
resource
waste
design
fo
r
longevity
design
for
ser
vice
designfor
re-use
designfor
material
r
ecovery
User
Product Manufacturer
Service Provider
Waste
Raw Material
Suppliers
Product
Enabling
Technologies
Reverse
Logistics
Product
Design
Product as
a Service
Refurbish
Remanufacture
Share,
Repair, Reuse
Recycle
Building Blocks Business Models
Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle

16. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
VALUE
DESTRUCTION
parts
manufacturer
product
manufacturer
service
provider
usermaterial
manufacturing
landfill or
incineration
Value creation & destruction in linear economics
goods/product/material-dominant logic
MATERIAL ENERGY LABOUR
VALUE
CREATION

17. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
MATERIAL ENERGY LABOUR
parts
manufacturer
product
manufacturer
service
provider
user(s)material
manufacturing
landfill or
incineration
MATERIAL
VALUE
CREATION
Value creation & preservation in circular economics
service/performance/user-dominant logic
Value Preservation
UserValueCreation
USER VALUE
CREATION

18. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
MATERIAL ENERGY LABOUR
parts
manufacturer
product
manufacturer
service
provider
user(s)material
manufacturing
landfill or
incineration
Value creation & preservation in circular economics
service/performance/user-dominant logic
Value Preservation
UserValueCreation
CIRCULAR ECONOMY DOMAIN
optimised for use
LINEAR ECONOMY DOMAIN
optimised for selling stuff
CIRCULAR ECONOMY DOMAIN
optimised for use

19. product
factory
service
provider
user
resource
facility
resource
waste
design
fo
r
longevity
design
for
ser
vice
designfor
re-use
designfor
material
r
ecovery
User
Product Manufacturer
Service Provider
Waste
Raw Material
Suppliers
Product
Enabling
Technologies
Reverse
Logistics
Product
Design
Product as
a Service
Refurbish
Remanufacture
Share,
Repair, Reuse
Recycle
Building Blocks Business Models
Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle

20. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
Product Design
CE Building Blocks
product
factory
service
provider
user
resource
facility
resource
waste
design
fo
r
longevity
design
for
ser
vice
designfor
re-use
designfor
material
r
ecovery
User
Product Manufacturer
Service Provider
Waste
Raw Materials
Suppliers
Product
Design
Splosh
Fairphone

21. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
Enabling Technologies
CE Building Blocks
product
factory
service
provider
user
resource
facility
resource
waste
design
fo
r
longevity
design
for
ser
vice
designfor
re-use
designfor
material
r
ecovery
User
Product Manufacturer
Service Provider
Waste
Raw Materials
Suppliers
Product
Enabling
Technologies
MyScio
Provenance Blockchain

22. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
Reverse Logistics
CE Building Blocks
product
factory
service
provider
user
resource
facility
resource
waste
design
fo
r
longevity
design
for
ser
vice
designfor
re-use
designfor
material
r
ecovery
User
Product Manufacturer
Service Provider
Waste
Raw Materials
Suppliers
Product
Reverse
Logistics
Rubicon Global
I:CO Take Back System

23. product
factory
service
provider
user
resource
facility
resource
waste
design
fo
r
longevity
design
for
ser
vice
designfor
re-use
designfor
material
r
ecovery
User
Product Manufacturer
Service Provider
Waste
Raw Material
Suppliers
Product
Enabling
Technologies
Reverse
Logistics
Product
Design
Product as
a Service
Refurbish
Remanufacture
Share,
Repair, Reuse
Recycle
Building Blocks Business Models
Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle

24. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
Share, Repair, Reuse
CE Business Models
User
Product Manufacturer
Service Provider
Waste
Raw Material
Suppliers
Product
iFixit Repair Manuals

25. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
Share, Repair, Reuse
User
Product Manufacturer
Service Provider
Waste
Raw Material
Suppliers
Product
Nudie Jeans
CE Business Models

26. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
Product as a Service
User
Product Manufacturer
Service Provider
Waste
Raw Material
Suppliers
Product
Vigga
CE Business Models

27. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
Product as a Service
User
Product Manufacturer
Service Provider
Waste
Raw Material
Suppliers
Product
Philips Light Leasing
CE Business Models

28. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
Refurbish, Remanufacture
User
Product Manufacturer
Service Provider
Waste
Raw Material
Suppliers
Product
Caterpillar Reman
CE Business Models

29. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
Refurbish, Remanufacture
User
Product Manufacturer
Service Provider
Waste
Raw Material
Suppliers
Product
Braiform
CE Business Models

30. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
Recycle
User
Product Manufacturer
Service Provider
Waste
Raw Material
Suppliers
Product
Epson PaperLab
CE Business Models

31. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
Recycle
User
Product Manufacturer
Service Provider
Waste
Raw Material
Suppliers
Product
Apple Liam
CE Business Models

32. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
MATERIAL ENERGY LABOUR
parts
manufacturer
product
manufacturer
service
provider
user(s)material
manufacturing
landfill or
incineration
Value creation & preservation in circular economics
service/performance/user-dominant logic
Value Preservation
UserValueCreation
CIRCULAR ECONOMY DOMAIN
optimised for use
LINEAR ECONOMY DOMAIN
optimised for selling stuff
CIRCULAR ECONOMY DOMAIN
optimised for use

33. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
CE Enabler User XUser 1OEM
Value
Proposition
Value
Creation
Value
Preservation
Material
Input
EoL
Waste
SELLS/LEASES REPAIRS/UPGRADES REPAIRS/UPGRADES
TAKES BACK APPLIES APPLIES
Circular product-service-systems
Systemic Flowchart
CIRCULARITY AS
DESIGN CONSTRAINT
optimising products for use
DIFFERENTIATING
USER 1 FROM USER X
REVERSE LOGISTICS
EXPERIENCE
finding the value (re)proposition designing reverse value chains

34. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
CE Enabler User XUser 1OEM
Value
Proposition
Value
Creation
Value
Preservation
Material
Input
EoL
Waste
SELLS/LEASES REPAIRS/UPGRADES REPAIRS/UPGRADES
TAKES BACK APPLIES APPLIES
Circular product-service-systems
Systemic Flowchart
CIRCULARITY AS
DESIGN CONSTRAINT
optimising products for use
DIFFERENTIATING
USER 1 FROM USER X
REVERSE LOGISTICS
EXPERIENCE
finding the value (re)proposition designing reverse value chains

35. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
CE Enabler User XUser 1OEM
Value
Proposition
Value
Creation
Value
Preservation
Material
Input
EoL
Waste
SELLS/LEASES REPAIRS/UPGRADES REPAIRS/UPGRADES
TAKES BACK APPLIES APPLIES
Circular product-service-systems
Systemic Flowchart
CIRCULARITY AS
DESIGN CONSTRAINT
optimising products for use
DIFFERENTIATING
USER 1 FROM USER X
REVERSE LOGISTICS
EXPERIENCE
finding the value (re)proposition designing reverse value chains

36. Service Design Drinks Berlin, 2017. Christian Rudolph. Twitter: @nxtcycle
CE Enabler User XUser 1OEM
Value
Proposition
Value
Creation
Value
Preservation
Material
Input
EoL
Waste
SELLS/LEASES REPAIRS/UPGRADES REPAIRS/UPGRADES
TAKES BACK APPLIES APPLIES
Circular product-service-systems
Systemic Flowchart
CIRCULARITY AS
DESIGN CONSTRAINT
optimising products for use
DIFFERENTIATING
USER 1 FROM USER X
REVERSE LOGISTICS
EXPERIENCE
finding the value (re)proposition designing reverse value chains

37. Thanks!
@nxtcycle
rudolph@nextcycle.de
www.nextcycle.de

38. What is your favorite circular product or service?
Try to deconstruct it with the following prototype of a pitch template for circular business models
Help me testing a Beta with this
Quick Exercise

39. Circular Elevator Pitch
For
who want
that
by
Instead of
we
is a
User
Profile
User
Need(s)
Market
Category
Circular
Strategy
Enabling Service/
Technology
Take-Make-
Waste Option
Concept
Name
.
.
,
repair, reuse,
remanufacture,
recycle
Value Creation/
Preservation

40. Circular Elevator Pitch
For
who want
that
by
Instead of
we
is a
User
Profile
User
Need(s)
Market
Category
Circular
Strategy
Enabling Service/
Technology
Take-Make-
Waste Option
Value Creation/
Preservation
Concept
Name
.
.
,
repair, reuse,
remanufacture,
recycle
prosuming tech-lovers
to have power over their mobile phone lifecycle
ifixit
let’s users repair their phones
giving access to curated repair manuals and providing repair tools
letting mobile phones go to waste when broken
enable users to prolong the lifecycle of their products
repair manual database

41. Backup

43. Next Drinks: 12 April with LEGO Serious Play

44. See you soon!
servicedesignberlin.de
@nxtcycle
@SD_Berlin
fb.com/servicedesignberlin