Digital Transformation of Circular Business Models

Hi all!

After immense work to complete the internship now it has come to an end. Digital technologies are considered as enablers to transform the businesses. The use of industrial 4.0 technologies is a stepping stone in this transformation. The textile and fashion industry is considered as one of the most unsustainable industries in the globe. Incorporating circularity practices is a solution to overcome the issue. The fashion system is originally considered as a linear model of take, make, and dispose. So this industry with a digital step can be transformed towards circular business models. Due to the prevailing condition of COVID-19 countries are lockdown and people are experiencing social distancing. Therefore the use of digital technologies to enable businesses is need ever than before.

This research is carried out to understand how digitalization enables the transformation of circular business models. Using the literature review approach it is able to identify digitally-enabled elements that can transform the business models towards the circular economy. Among them, reconfiguration of the value proposition of the design plays a major role. This design gives life to many business models. Bring back the materials into the system designs need to be developed incorporating circularity practices with digital technology. Further consumer is identified as the main actor since they are the sellers, suppliers, co-creators, and responsible actors of purchase, use, and dispose of. So consumer engagement via digital channels is important. Towards the roadmap, it is identified the need for collaboration with stakeholders. Further, the research identified the challenges that need to overcome in the process. They are lack of using digital technologies, financial barriers, security issues, consumer awareness, and lack of skills and capabilities.

The topic needs more action research to innovate designs enabled with digital technologies for the circular economy. From this research, I gained vast knowledge on the topic and the practice of conducting literature review research. For the successful completion of the field study, I received support and guidance from my supervisor Olga  Chkanikova. Also, the support and motivation from received from the peers are unforgettable.