Key Strategies for Circular Economy Implementation in Electronics

Products as a service model for electronics

The PAAS model is another effective circular business strategy. Here, the customers can pay a fee to use an electronic product however they cannot own it. For instance, any IT firm could utilize a PAAS model for its computer hardware products & render a monthly subscription fee for its users, that encourages the organization to refurbish as well as remanufacture its products at the point of return.

Owing to the PAAS “fee-based” model, a manufacturer is incentivized to produce products which  incorporate, modularity, product life extension designs & proper treatment at the end of life.

Gazelle is one of the companies which render a platform to buy & sell used electronics. The company refurbishes & resells devices, which helps in giving these products a second life & reducing the need for new products.

Product ownership model

Finally, an organisation could default to the traditional product ownership model to render its customers the complete control over the lifecycle of the product. A manufacturer in this model loses the incentive to produce products which promote PLE as well as DFR principles which are a key tenet of the circular economy.

In this model, an organization can identify phases in the product lifecycle where enhancements can be done in order to extend the implementation of the product. Therefore, organizations in this model can emphasize the recyclability as well as modularity of a product, and help in creating incentives for consumers for returning their products either for refurbishments or resale.

“I am confident that the electronics industry would facilitate sustainable circular economy practices to ensure a sustainable green future for the generations to come,” said Pankaj Mohindroo, Chairman, ICEA.

In short, by leveraging strategic circular economy business models organizations and the electronics industry can address the tsunami of e-waste and firms cannot only capitalize from financial opportunities, but also strengthen value chain relationships, and finally create long-lasting organizational value.