Knowledge as a Circular Resource: Integrating Information Exchange and Circular Business Models for Product-life Extension

The change from a linear to a circular business model requires the development of new services integrating information exchange and product usage to prolong product life through maintenance and repair. Information exchange has been identified as important for promoting circular economy, and this study draws on empirical data from a two case studies to demonstrate which kind of information supports maintenance and repair, and how the information exchange can be facilitated. Case company A offered maintenance of white goods (e.g., washing machine) as a subscription service where reminders and maintenance guides were emailed monthly to customers. Company B offered virtually guided repairs of white goods. The study finds that sharing information on what and when to do something facilitates end-users to participate in maintenance and learn about maintenance; more than half of the company A questioned customers reported that they learnt from guides and were involved in maintenance due to guides and reminders. For repair the problem description and possible solutions is information that must be exchanged, and a simple voice and video call can facilitate repairs that prolong product life with a minimum cost for the end-user. Both types of information exchange are facilitated by simple-tech solutions relying on known and cheap technology (e.g., email service, video call, and text-messaging). The findings of the study suggest that the development of circular business models does not always require expensive high-tech solutions to integrate information flow with product flow and usage, and companies are recommended to experiment with designing solutions based on known technology.