A circular economy is an economic system aimed at minimizing waste and making the most of resources. This regenerative approach is in contrast to the traditional linear economy, which has a ‘take, make, dispose of’ model of production. To achieve models that are economically and environmentally sustainable, the circular economy focuses on areas such as design thinking, systems thinking, product life extension, and recycling.
The argument is that circular business models can be as profitable as linear models, allowing us to keep enjoying similar products and services. How is this applicable to Digital Transformations? Simple. Business Processes that are redesigned, rethought and moreover optimized for a shared power societal paradigm.
The redefining of business processes is the crux of a “Traditional” digital transformation, but more forward-thinking organizations are looking at the circular economy model as a way forward. Applying Leadership PQ (political intelligence’ or ‘PQ’ – a skill that equips them to build collaborative enterprises with governments and non-profit organizations) and Emotional Intelligence in this new horizon, building on the structures that focus on long-term impacts versus short-term gains will not only pay off in cost containment but increase profitability, as well as consumer sentiment.
From a Digital Business Transformation consulting perspective, this is only a thought snack for the organizations that are about to venture into a large scale transformation to better inform themselves, analyze and implement according to what will best suit their needs and the needs of their customers. In this paradigm, AI and the likes are also to be considered within this scope, however, that’s a whole other discussion in of itself.
In the end, a digital business transformation is about embracing complex change and adding real value to the stakeholders. It all depends in the end on the worldview of the individual organizations in order to move forward correctly.