Circular Transformation of Industries 2025

Cisco has a public goal to incorporate circular design principles in 100% of its new products and packaging by FY2025. To reach this ambitious goal, the company has employed a broad set of tactics to engage stakeholders and foster buy-in across functions and levels to accelerate implementation. Cisco has developed a scoring methodology that enables the company to track progress against the goal and to recognize employees for innovation. Additionally, over 7,000 employees had completed circular design training as of fiscal 2024 and the company has established a broad feedback mechanism to engage employees in the evolution of the circular design programme. Target strategically Systematically identify the individual customers and customer segments that are most likely to value lifespan extension solutions. Clarify service offerings across the product life cycle through an encompassing customer engagement strategy tailored to their needs. Clearly demonstrate the value of second-life products (for example, quantifying lower costs, saved emissions or performance improvements) and build trust in product quality.B Agilent, a global provider of instruments, software, services and consumables for laboratories, also taps into new profit pools by selling refurbished laboratory equipment to price-sensitive customers (for example, academia and start-ups) or customers who don’t need/want the latest product generation. The company achieved a 25% year-on-year increase in refurbished product sales, as it focused on building trust among customers by offering the same warranties for their refurbished products as for new products and investing in substantial quality controls. Rockwell Automation engages customers in its repair solution with a sustainability calculator that can be accessed via the customer portal. This allows customers to track the CO2, energy and waste savings of their repairs as compared to purchase of new products. It creates additional demand as customers can use data generated from the sustainability calculator in their own sustainability reports. Enhance connectivity across a product’s life Lifespan extension solutions depend on the ability to track and monitor used products, requiring businesses to leverage data and technology in innovative ways. Locating used products remains a key challenge that can be overcome by utilizing data and technology across the value chain. In addition, data connectivity is critical to monitor sold products in real time, from how they are used to the state of wear and tear.Internet of Things (IoT) applications help identify the right time for lifespan extension measures, helping to preserve assets at their maximum value for the longest possible time. The interplay between circular solutions and IoT can also generate positive feedback loops as businesses leverage insights from usage and other data to improve product design, performance and durability.C The luxury lifestyle company Ralph Lauren has collaborated with the World Economic Forum and select members to pilot its digital product identification system that will allow resellers to validate product authenticity quickly via a QR (quick response) code, increasing the desirability of reuse while preserving brand identity and enhancing the customer experience in the second-hand market. Circular Transformation of Industries: Unlocking Economic Value 17