From Linear to Circular Economy: 4 Pillars for a Successful Transition

Transitioning from a linear to a circular economy means rethinking the way products and services are developed and managed throughout their entire lifecycle, following a paradigm focused on sustainability and waste reduction. This transformation from linear models is therefore epochal, as it involves not only production processes but also the underlying business models, which must be able to properly combine sustainability and profit.

Marking a departure from the linear model, the circular economy is based on several pillars, including:

• maximizing the lifecycle of products;
• reducing energy consumption and the related environmental impact;
• servitization, or promoting the service economy over mere product sales;
• creating increasingly smart and connected products;
• establishing a virtuous cycle of continuous recycling and renewal of components and materials, aimed at reducing material waste.

All of this is fundamentally unfamiliar to traditional consumption models and highlights the need for a transition (from linear to circular economy), which is not only essential for generating sustainable economic growth but also rather complex to implement successfully.

From Linear to Circular Economy and the Role of Digital

We believe that evolving towards a circular and sustainable economic model requires a clear vision, a well-defined strategy, and appropriate tools. For this reason, at Avvale, we handle circular transformation comprehensively, helping companies evolve not only through essential technological support but also through a strategic approach and a tailored roadmap supporting significant and lasting changes.

We believe that digital, combined with a strategic vision, is the fundamental enabler of circular transformation. In a circular paradigm, users and products are connected, ecosystems are hyper-collaborative and data-driven by definition, systems are natively integrated and based on cutting-edge technologies. Technological modernization is an essential requirement for any company attentive to sustainability as well as profit.

Fully leveraging the power of digital also means:

• making products and services intelligent and connected;
• bringing all internal and external stakeholders closer together;
• making processes transparent and efficient;
• adopting modern paradigms of hyper-automation of business processes, whose application goes beyond routine activities;
• making strategic and operational decisions based on data;
• leveraging advanced technologies and models such as AR/VR, computer vision, and digital twins (also) to reduce waste.

As a driver of modernization, efficiency, and agility, digital thus has a dual value: it creates an immediate competitive advantage and correctly guides companies in their circular transformation journeys.

Enabling Technologies for Circular Transformation

Here are some of the services we consider key to achieving a circular transition by modernizing business models and optimizing companies' operational aspects.

1. Cloud, the Ultimate Enabler

Today, it is almost impossible to achieve pervasive transformation in terms of sustainability without the support of the cloud. Migrating to the cloud is an essential step to meet the flexibility, agility, and innovation requirements demanded by the markets. At the same time, it offers the opportunity to optimize the allocation of IT resources, thus reducing waste and consumption, fostering internal and external collaboration, quickly accessing cutting-edge technologies, and accelerating the transition to a data-driven company.
We do not limit our activity to simple cloud migration; we aim to enable companies to fully exploit the potential of the cloud, creating a precise balance between competitiveness, agility, and sustainability in all its forms.

2. The Centrality of Data and Analytics

Data analysis and valorization play a central role in enabling effective and optimized management of the company and the entire ecosystem in which it operates.
Firstly, acquiring data means gaining visibility into all processes, thereby immediately identifying waste and inefficiencies at all levels, both internal and within supply chains. With the support of data, it is possible to monitor and track materials, obtain information about products (or from products) to extend their lifecycle and promote component recycling, make predictive assessments, understand consumer preferences, personalize relationships, and provide increasingly customized services to ensure loyalty.

3. Technology Transformation Services

Our technology transformation services are at the heart of the paths with which we modernize companies with a view to interconnection, automation, and efficiency reduction.
We support companies in choosing and implementing the most modern and advanced business platforms, develop bespoke solutions that leverage the benefits of the cloud-native paradigm, guide hyper-automation through a mix of innovative technologies, and support business evolution by managing application integration, aware that hyper-collaboration represents a competitive advantage for the entire ecosystem.

4. Technology Governance Services

Our technology governance services not only relieve companies from the complexity of technological management but also ensure that IT ecosystems support business evolution in a sustainable, continuous, and scalable way, without resource waste and inefficiencies. This applies to infrastructures, whether cloud or on-premise, as well as to the applications that drive the business, for which we boast specific skills, tools, and experiences in the field of Application Lifecycle Management (ALM).

Transform your business with Avvale