Table 2

Management actions to build experimentation capability for a circular economy

InstitutionsStrategyOperations
Acknowledge the need for radical change to achieve sustainabilityDevelop an organizational vision and goals for a circular economyEngage passionate and dedicated people focussed on circular economy
Define KPIs and conduct environmental impact analysis across the product portfolio
Provide top-level management support for the transitionDefine roles and responsibilities focussed on circular economy innovation
Provide a mandate, budget and incentives for experimentation
Overcome the linear economy legacyDevelop new organizational capabilities, structures, and routinesDevelop new internal structures and routines
Build on own capabilities such as procurement, refurbishing, and (reverse) logistics to allow for circular flows
Raise awareness and knowledge of circular economy, sustainability, and experimentation methods across the organization
Build intra- and inter-organizational collaborationsForm cross-disciplinary internal teams focussed on experimentation
Source complementary capabilities from partners (e.g., logistics, repair, local or digital infrastructure)
Scan for relevant legislationAnalyse environmental legislation in different countriesPrioritise products and services most affected by environmental legislation
Prioritise experiments with lowest legal barriers
Build legal frameworks for new business modelsInform teams about legal issues with new business models
Focus on new markets and offerings
Sense changing market preferencesExplore customer
demand for more sustainable offerings
Communicate customer and sustainability benefits
Adopt a customer-centric mindset while designing new business models
Attend to new service expectations of customersPay more attention to customer relationship management
Leverage existing capabilities
Drive digital transformationCreate a digital infrastructure for experimentationBuild digital capabilities for online testing
Get access to data to be able to experiment
Review ethical and legal aspects of digital experimentationComply with data privacy laws
Train for ethical customer testing of new business models

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