How digitalization turns circularity from the abstract into reality
As industries are confronted with the limits of the take-make-waste model, circularity is emerging as a defining strategy for the future. This was the focus of my recent conversation on the Talking Digital Industries podcast. A circular economic model promotes the reuse and recycling of resources to boost efficiency and minimize environmental impact. With host Alex Chavez and my fellow speaker, Katja Grimme, a sustainability analyst at IDC, we discussed why circularity is attractive and accelerating, where it stands today and how we see it evolving in the coming years.
According to data from IDC, many businesses recognize the promise of circularity despite its adoption still being somewhat limited. As Katja shares in the episode, 44 percent of respondents from a survey of 500 businesses in the EMEA region do not have a circularity strategy or integrated circularity practices in place. Meanwhile, nearly half of these businesses plan to continue their investments, while the other half intends to increase.
While the value of circularity is clear from both a sustainability and a profitability angle, it also is incredibly complex to implement. This presents a unique opportunity for businesses to find the right experts and tools to manage this complexity. Only by combining the real and digital worlds can businesses integrate every stage of the product and production lifecycle to create dynamic feedback loops where insights from later stages can inform earlier decisions. The result is products that are designed for endless cycles of reuse, recovery and reintegration rather than single use.
Why circularity is gaining momentum
Linear models that currently dominate economies are inefficient. Circularity addresses these issues by planning a closed loop of key materials from the very start of the ideation process. As discussed in the podcast, businesses can attain multiple benefits from this kind of approach, including:
- Cutting costs that would otherwise be used to procure materials.
- Bolstering the resilience of businesses against unpredictability in supply chains.
- Better preparing companies for future environmental and sustainability regulations.
Bridging the execution gap
Of course, transitioning to circular models does have its challenges. Circularity needs to integrate numerous resources and processes across product design, operations, supply chains, and more. These introduce new requirements as well, such as planning for the collection of products, monitoring their performance and refurbishing them for a second life.
It is critical for companies to understand these needs from the beginning, and digitalization is key to addressing them. Simulation can test new products designed for reusability in a digital environment before building them physically. This enables quicker creation and optimization of sustainable products while cutting costs and reducing resources. Additionally, technologies like industrial artificial intelligence (AI) can help manage data, requirements and complexity associated with circular models, streamlining workflows and accelerating time to market.
By leveraging the power of digitalization and AI, businesses can be better prepared to enact new circular models in the real world.
Circularity in action today
Future-forward companies have started to implement these solutions today. US-based company Haddy uses robotic additive manufacturing that reuses materials to create new, custom furniture. After partnering with Siemens, Haddy created digital workflows that automate, track, and optimize its manufacturing processes, enabling them to produce sustainable furniture at scale while saving 50 to 75 percent of their raw materials.
Polipak, a Polish manufacturer of polyethylene plastic bags, foil sheets, and household packaging, wanted to increase the use of circular materials in an existing factory while decreasing the amount of material already used. By implementing advanced planning and scheduling systems and integrating all systems for a seamless flow of data, they increased the use of recycled plastic from 30 to 90 percent while enhancing production efficiency and flexibility.
Circularity offers the opportunity to build more sustainable products from the start while bolstering both resource efficiency and resilience. A digital-first approach is key to mastering the complexity that comes with it. The right technologies are enabling businesses today to increase circularity in their products and processes and are key to ensuring competitiveness in the future.
Remember to listen to the episode on Talking Digital Industries for our full conversation on circularity in industry.
Siemens Digital Industries Software helps organizations of all sizes digitally transform using software, hardware and services from the Siemens Xcelerator business platform. Siemens’ software and the comprehensive digital twin enable companies to optimize their design, engineering and manufacturing processes to turn today’s ideas into the sustainable products of the future. From chips to entire systems, from product to process, across all industries. Siemens Digital Industries Software – Accelerating transformation.
