Digitalisation as an Enabler of Circular Economy
Open accessAbstract
Digitalisation can boost the transformation towards a more sustainable circular economy. It can help closing the material loops by providing accurate information on the availability, location and condition of products. Digitalisation also enables more efficient processes in companies, helps minimise waste, promotes longer life for products and minimises the transaction costs. Thus, digitalisation boosts the circular economy business models by helping to close the loop, slow the material loop and narrow the loop with increased resource efficiency. However, there are still many challenges to be solved in order to gain the desired benefits and gaps hindering digital technology-aided circular business models implementation. The existing literature that discusses the opportunities and challenges of digitalisation is still very limited, and therefore, our exploratory and qualitative study seeks to clarify these perspectives. There is a significant research gap in understanding those challenges and finding solutions to them. In our study, we identified challenges related to adopting novel business models, data collection and management, collaboration and competence requirements. The virtualization of products and processes, collaboration with stakeholders and utilising digitalization were highlighted to be major opportunities in adopting CE-based business models.
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Antikainen et al. and Pagoropoulous et al. acknowledge the emergent role of digital technologies in the circular economy and the gap in integrated research, but fail to suggest reasons for this gap.
“Other authors such as Antikainen et al., (2018) [56] and Pagoropoulous et al., (2017) [57] acknowledge the emergent role of digital technologies in the circular economy and the gap in integrated research, but fail to suggest reasons for this gap of research.”
From Digitisation and the Circular Economy: A Review of Current Research and Future Trends (2018) · cites this paper as [56]
The concepts of Industry 4.0 can enable the CE by building visibility and intelligence into products and assets, such as real-time condition, location, and availability of assets.
“The concepts of I4.0 can enable the CE by building visibility and intelligence into products and assets, such as the real-time condition, location, and availability of assets [56].”
From Digitisation and the Circular Economy: A Review of Current Research and Future Trends (2018) · cites this paper as [56]
Integration of digital intelligence within CE approaches can potentially provide opportunities to distribute knowledge, structure, ownership and different levels of customization, but this has largely been unexplored in available CE research.
“While integration of digital intelligence within CE approaches can potentially provide opportunities to distribute knowledge, structure, ownership and different levels of customization [56], this has largely being unexplored in available CE research.”
From Digitisation and the Circular Economy: A Review of Current Research and Future Trends (2018) · cites this paper as [56]
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- Authors
- Antikainen, M., Uusitalo, T., & Kivikytö-Reponen, P.
- Affiliations
- VTT Technical Research Centre of Finland (FI)
- Corresponding author
- Antikainen, Maria
- Venue
- Procedia CIRP
- Publisher
- Elsevier BV
- Published
- 2018
- Volume
- 73
- Pages
- 45-49
- ISSN
- 2212-8271 (ISSN-L)
- OpenAlex
- W2811211880
- Cited by
- 532
- References
- 24
- Citations by year
- 2026: 82 · 2025: 76 · 2024: 76 · 2023: 101 · 2022: 76 · 2021: 75 · 2020: 29 · 2019: 14 · 2018: 3
- FWCI
- 50.55
- Type
- journal article
- Language
- en
- Open access
- diamond
- doi.org
- Licence
- Locations
- Procedia CIRP (publishedVersion, cc-by-nc-nd)
- Funders
- Academy of Finland (303453)
- Strategic Research Council (303453)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Sustainable Supply Chain Management
- Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Digital Innovation in Industries
- Physical Sciences › Engineering › Industrial and Manufacturing Engineering › Digital Transformation in Industry
- Keywords
- digitalization, circular economy, circular business models, resource efficiency, waste reduction, product durability, transaction costs, data collection and management, stakeholder collaboration, competency requirements, digital technology adoption
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