Enabling circular economy with software: A multi-level approach to benefits, requirements and barriers

Abstract

Digital and software-based solutions have been identified as key enablers of circular economy, a recently emerged phenomenon that promises more sustainable business through better systemic material efficiency. Opportunities reside on multiple implementation levels. For example, optimizing resource use within processes, engaging in business models enabled by software development, sharing information to optimize resource use on a network level, and creating infrastructures that support systemic tracking and optimization of resource usage. This conceptual paper contributes to both circular economy and information systems research by identifying the most prolific technologies underlying software-based solutions enabling circular economy. Furthermore, this paper discusses requirements and barriers for successful implementation of identified solutions residing on each of the application, network, and infrastructure levels, providing a framework for researchers analyzing digital solutions and software business in the context of circular economy, and for practitioners seeking to leverage the potential of digital technologies for their customers.