Conceptual Integration of Digitalization and Servitization as Means to Introduce the Circular Economy

Abstract

The Circular Economy (CE) can be implemented with different strategies. In this analysis, it is assumed that there is a desire to find a CE introduction strategy that leads to as rapid and environmentally friendly increase of resource-efficiency as possible. It is further assumed that an introduction strategy needs to take full advantage of other resource-efficiency concepts, societal trends, and developments. It is observed that the ongoing Digitalization and Servitization trends have been found to significantly affect each other, and as Digitalization impacts the possibility to make operations more resource-efficient, and Servitization means a change in the business model, it is assumed that those trends affect the incentives and possibilities for companies to develop Circular Solutions (CS) suitable for the CE, and that it is relevant to ask how. The purpose of this is to contribute to the development of a resource-efficiency concept that synthesizes Digitalization and Servitization, to contribute with suggestions on how to efficiently introduce the CE. It is asked; What measures may take advantage of the Digitalization and Servitization trends, and efficiently facilitate introduction of the CE? To find the answer a theory synthesis conceptual approach is used, and it is analyzed how Digitalization and Servitization trends can contribute to increasing resource-efficiency, and what implications these trends may have on a strategy for the development of CS and the introduction of the CE. The findings indicate that companies interested in enacting resource-efficiency measures and being important actors in the future CE, should have their main focus on business models that incentivizes development of CS, rather than on techniques that enables the development of CS. This further indicates that an efficient CE strategy should prioritize policies that give actors responsible for procurement and purchasing, incentives to 'servitize' their purchasing strategy.