The smart circular economy: A digital-enabled circular strategies framework for manufacturing companies

TLDR

Digital technologies such as IoT, big data, and analytics are essential enablers of the circular economy, yet guidance on applying them to enhance resource efficiency and the required business analytics capabilities remains scarce. The study aims to develop a Smart CE framework that translates circular strategies into the business analytics requirements of digital technologies to support manufacturing companies’ contribution to the UN 12th SDG. The authors conduct a theory‑ and practice‑based review to produce the Smart CE framework that maps circular strategies to the business analytics requirements of digital technologies. The framework provides a common language for aligning information systems and circular‑economy activities, identifies gaps in business‑analytics requirements and strategic initiatives to close them, and catalogs case examples and best practices for specific smart circular strategies.

Abstract

Digital technologies (DTs), such as the Internet of Things (IoT), big data, and data analytics, are considered essential enablers of the circular economy (CE). However, as both CE and DTs are emerging fields, there exists little systematic guidance on how DTs can be applied to capture the full potential of circular strategies for improving resource efficiency and productivity. Furthermore, there is little insight into the supporting business analytics (BA) capabilities required to accomplish this. To address this gap, this paper conducts a theory- and practice-based review, resulting in the Smart CE framework that supports translating the circular strategies central to the goals of manufacturing companies in contributing the United Nation’s (UN) 12th Sustainable Development Goal, that is, “sustainable consumption and production,” into the BA requirements of DTs. Both scholars and practitioners may find the framework useful to (1) create a common language for aligning activities across the boundaries of disciplines such as information systems and the CE body of knowledge, and (2) identify the gap between the current and entailed BA requirements and identify the strategic initiatives needed to close it. Additionally, the framework is used to organize a database of case examples to identify some best practices related to specific smart circular strategies.