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Developing PSS strategies

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Once you have a foundational understanding of PSS and circularity, the next step is to experiment and further develop your PSS concepts. This section provides tools, platforms, and handbooks designed to help you build a robust PSS strategy. Key areas include evaluating risks, comparing solutions, and initiating pilot projects to test your ideas in practice. Like the tools in the previous chapter, many of these resources also offer additional insights to deepen your understanding of PSS concepts.

ResCoM – Resource Conservative Manufacturing

The ResCoM platform integrates 11 software applications, descriptive tools, and methods that guide decision-making in closed-loop manufacturing. One key feature is the Circular Pathfinder, designed to help users identify the most relevant ResCoM tools for their specific product pathways. While the platform is primarily focused on manufacturers, many of the tools are also highly beneficial for PSS providers involved in distribution, retail, or reselling products.
Key tools on the ResCoM platform include:
  • Multiple Lifecycle Product Design Tool: This ideation tool uses the Modular Function Deployment (MFD) method to plan for multiple product lifecycles, identifying modular interfaces and standardisation to support extended product use.
  • Circular Calculator: An assessment tool that allows designers to evaluate how their strategic decisions affect the circularity of resource flows and the potential value capture of a PSS. It provides visual representations of mass and value flows based on reuse, remanufacturing, or recycling scenarios, enabling the exploration of different design solutions.
  • Economic and Environmental Performance Tools: Tools such as the multi-method simulation tool, multiple product lifecycle management tool, and the MI: BoM Analyzer (Eco Audit Reports) provide detailed overviews of the business model’s economic and environmental performance. The MI: BoM Analyzer also assesses regulatory and supply chain risks associated with circular scenarios.
For Nordic PSS providers, regulatory and financial risks can pose significant challenges, particularly in developing new products and services. ResCoM helps mitigate these risks through early assessments, including evaluating regulatory uncertainty. 
Additionally, ResCoM features an interactive game, ‘Lease or Buy’, which helps users explore different business models, revenue streams, and risks associated with ownership. This game particularly benefits new PSS providers, offering insights into the uncertainties in designing a successful business model.
The platform also includes relevant publications and case studies that provide additional insights into PSS models, making ResCoM a comprehensive resource for any business looking to adopt or refine closed-loop manufacturing and circular economy practices.

USEFUL FOR
Evaluating risks related to product manufacturing, business design, and environmental performance. It also supports informed decision-making and the comparison of sustainable solutions.

TARGET GROUP
Manufacturing companies and their value chain collaborators to make the transition to CE.
DEVELOPED BY
KTH, Fraunhofer, TUDelft, Insead, Ideal & Co, Eurostep, Granta, Bugaboo, Gorenje, Loewe, Tedrive Steering, the Ellen Macarthur Foundation.
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ready2LOOP

Ready2LOOP is an online platform developed to help manufacturing companies and their value chains transition to a circular economy (CE). While originally developed for manufacturers, the platform is versatile and can be used by any business. Its goal is to enhance industry competitiveness by supporting the transition to CE across the entire value chain.
The platform resulted from a three-year project in which the ready2LOOP consortium collaborated with multiple companies to define, develop, and implement initiatives that improved their transition to CE. Insights from these collaborations were used to create the Transition Paths tools available on the platform.
Ready2LOOP offers three main tools for businesses looking to develop or enhance their PSS strategies:
  • MECO Analysis Tool: Screens products for environmental impact.
  • Readiness Workshop Toolkit: Helps businesses identify and prioritise key areas for transitioning by assessing readiness dimensions.
  • Circular Strategy Scanner: Provides an overview of circular economy strategies to inform decision-making.
In addition to these free tools, the platform offers 21 exclusive tools for registered members, such as the Circular Economy Sustainability Screening Tool, the Recirculation Strategy Decision Tree, and the Business Eco-system Mapping Tool. These tools are particularly useful for PSS providers seeking to collaborate with new partners or enhance existing partnerships.
Ready2LOOP also features five tool databases that provide an extensive overview of relevant resources for PSS providers and other businesses offering circular products or services. Accessing these additional tools requires creating a profile on the website.

USEFUL FOR
Assessing a company’s readiness for transitioning to a circular economy, identifying strategic opportunities, prioritising key areas of focus, and planning the implementation of circular actions.

TARGET GROUP
Support manufacturing companies and their value chains to make the transition to CE.
DEVELOPED BY
The Technical University of Denmark in consortium with other Nordic partners.
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A snapshot of the MECO tool template from the ready2LOOP platform.

The Circular Toolbox

The Circular Toolbox is a comprehensive and educational, step-by-step guide designed primarily for apparel brands to plan and execute a rental pilot in 10 months. It is a versatile resource which offers a range of valuable resources, such as podcasts, workshop sheets, interview guides, educational slides, and templates. Although tailored for the apparel sector, the resources in the toolbox can easily be adapted to pilot projects in other industries. The Circular Toolbox was developed as part of the Circle Textiles Programme, the first sector programme by Circle Economy, launched in 2014. The guide is organised into five modules, each focusing on critical aspects of piloting a rental business model:
  • Getting started: This step provides foundational knowledge on circular business models, archetypes, and impact potential. It includes exercises and tools to ensure a shared understanding of Circular Economy and resources to identify relevant business models and their application in the market. Furthermore, team building, scoping intended outcomes with management and establishing company goals are also aspects supported by the tools provided in this module.
  • Understanding the customer and the market: Here, tools assist in mapping, clustering, and analysing customer and market data for rental business models. This module offers “dos and don’ts” from established businesses, methods for identifying customer needs, and framing challenges as opportunities for new ideas. All the resources focus on helping you translate valuable customer and market insight into value propositions for your business model. 

USEFUL FOR
Facilitating the introduction of rental schemes into new or existing business practices and preparing and launching pilot programmes.

TARGET GROUP
Apparel branches, wanting to implement PSS solutions; gaining knowledge on implementation of pilot.
DEVELOPED BY
Cicle Foundation.
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  • Prototyping your concept: This step guides the creation and testing of prototypes using a “Customer Journey Tool” and “Prototype Canvas”. The focus is on getting you to test and validate your concepts and ideas as early as possible, inexpensively. This entails engaging with feedback from your customers before you move on. 
  • Fine-tuning your business model: After this module, you’ll have a clear blueprint of your resale or rental model, helping you identify the partnerships, decisions, and steps needed for a successful pilot launch. It will also help you assess if your model is financially viable, customer-friendly, and positively impacts people and the planet. Importantly, for PSS solutions, tools focused on challenges and opportunities when creating meaningful partnerships can be found in this module. 
  • Piloting your business model: This final step provides tools for storytelling (“Get To By” or “Letter from a fan” tool), billboard design, and setting objectives, key results, and initiatives. This last module contains a bonus podcast episode with examples of how other companies have benefitted from their circular innovation process. It includes advice on what to avoid and focus on in your pilot execution. After this module, you will have concretised time horizons and scaling for your pilot launch. 
Each step includes time estimates and clear guidance on whether exercises are meant for the core or extended team, making integrating these activities into everyday workflows easier. Some modules also include recommended reading to better understand the core principles and concepts used.
The toolbox is designed for brands, consultants, professors, and students. To access the resources, users must create an account on the platform to access the tools.

ATTC 2 toolbox  

The ATTC 2 Managerial Toolbox provides a broad range of methods designed to diagnose and facilitate organisational change and business model innovation toward circularity within organisations and business ecosystems. The toolbox combines theoretical research and practical managerial insights to offer theoretically robust and easy-to-use tools, making them ideal for driving organisational transformation toward more sustainable practices.
The toolbox’s primary aim is to help organisations break free from the “management of unsustainability” lock-in and transition towards more sustainable configurations. It shifts the focus from merely “doing things better” to fundamentally “doing better things.”
The toolbox includes:
  • 15 diagnostic methods to assess readiness for change and identify areas that need improvement.
  • 9 methods for facilitating organisational change, which can be applied by organisations themselves or external facilitators.
  • 9 methods for creating and developing business ecosystems, intended for ecosystem leaders. 
The selection and application of tools should be carefully planned and adapted to the organisation’s specific needs. Ideally, this process is supported by change management experts who can help identify the root causes of unsustainable practices and recommend a tailored combination of methods to address these issues effectively.

USEFUL FOR
Assessing readiness for organisational change, identifying necessary changes, and facilitating business model innovation toward circularity.

TARGET GROUP
Organisations/management profesionals moving towards circular business models.
DEVELOPED BY
Rise Research Institutes of Sweden

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A navigation chart (from ATTC 2, p. 12) guiding the reader to the relevant chapter.

Circular X tools

The Circular X tools, developed as part of an ambitious 6.5-year research project focused on experimenting with circular service business models, are funded by the European Research Council (ERC), which supports top researchers globally. The platform provides a range of resources to help businesses adopt circular strategies. Among the ten tools currently available, five are especially relevant for PSS providers or businesses exploring PSS opportunities:
  • Business for sufficiency database: This tool showcases publicly available data from organisations promoting sustainable consumption practices. A common challenge faced by PSS providers in the Nordics is the lack of market readiness and the persistence of traditional ownership patterns. The database provides real-world examples of companies tackling these issues through initiatives like awareness-raising, product life extension services, repair support, and personalised production. It serves as a source of inspiration for developing strategies aimed at circular business actions.
  • Boundary tool: This process template is designed to help businesses engage in multi-stakeholder collaboration to enhance circular practices and foster innovation. Many Nordic PSS providers need to establish new partnerships for their solutions, and this tool facilitates the partnership selection process by focusing on complementarities and mismatches in stakeholder relationships, competencies, and activities. The template is structured as an activity wheel with five key steps, helping businesses navigate the complexities of partnership building.
  • Circular rebound tool: This tool helps business innovators reduce the environmental impact of circular business models by addressing rebound effects. It’s designed for business designers, entrepreneurs, and consultants developing circular products or business ideas. If you’re working on a circular product or model, this tool can help you ensure that your solution truly reduces environmental impact. If you’re not actively working on a circular project, the tool can still be valuable for learning through role-playing with a case study.
  • The Circular Experimentation Workbench: The Miro templates aim to help entrepreneurs and innovators rethink and refine their business models for the circular economy. It’s particularly useful for identifying low-cost, resource-efficient ideas to start experimenting with. Whether you’re part of a startup or a larger business, this tool is great for teams with diverse backgrounds – like marketing, design, engineering, or product development – and encourages collaboration to drive innovation.
  • Circular Business Model Pilot Plan: This poster tool helps you turn circular business ideas into action by guiding you through the execution of a small-scale pilot. It’s designed as a planning tool to engage stakeholders to balance economic, environmental, and social value. It pushes you to focus on practical, immediate steps using available resources.
These tools and others developed as part of the Circular X project provide valuable resources for organisations aiming to transition towards more sustainable and circular business models.

USEFUL FOR
Getting inspired through case descriptions from 150 companies, podcasts, academic publications, and annual reports. Getting insights into circular business model design, service providing and circular transitions.

TARGET GROUP
All types of PSS, in before, during and after the development of a PSS solution.
DEVELOPED BY
The Circular X Project, funded by ERC
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