New Business Models in These Changing Times
CFO|February 2017

New business models poised to change the way the world transacts have Sugata Sircar, CFO and Country Finance Partner, Greater India Zone, Schneider Electric India excited. In this article, he discusses Circular Economy which can radically change business models in the near future.

What is exciting me the most these days, you ask? Well, we are almost in a renaissance phase in business. The new kinds of business models and value propositions which are showing up are quite stimulating. What’s causing them? Well, what I pay for as a consumer, is changing. I may enjoy a service and not pay for it; an advertiser may pay for it for me, with the hope that I will pay for the advertiser’s product or service some day! Where I paid to buy an expensive product before, I may only pay for a service.

In this context, let me refer to the circular economy. This is a concept of industrial economy where manufacturing, product life cycles and services are designed to yield higher productivity from resources and to generate lower waste.

Circular economy has the potential to radically change business models going forward. The traditional product life cycle starts with elements which go into components which are used to manufacture products. These products are used by a consumer or an entity through its useful life, at the end of which it is scrapped, leading to waste.

The circular economy attempts to elongate product life cycles and increase the number of cycles of a product. In some cases it generates byproducts which yield further value. This brings a number of benefits, the first of which is to significantly raise the yield from the same set of resources. If a product, made of metal, plastic, silicon, is scrapped after one life cycle, most of the elements would go back to the earth after one use, contaminating the soil somewhere or polluting the air on incineration. There can be a different approach to manufacturing, selling and using a product.

Products can be designed in a way that the core elements can be taken back after usage in one life cycle. The products taken back are re-manufactured, retaining the core elements and design. The re-manufactured products can then be put out in the market for another cycle of usage, perhaps in a different segment, at a different price point. So the same elements, with some additional effort, can be used for a longer time through multiple life cycles, increasing their yield and deferring and reducing wastage. There are several examples of this already.

Continue reading your story on the app

Continue reading your story in the magazine

MORE STORIES FROM CFOView All

If I Were Not A CFO...

If I were not a CFO, something else I’d rather be... We set out to find the dream alternate profession that our top CFOs would like to be in. The results were surprising. Find out for yourself and also what other dreams they harbour...

4 mins read
CFO
November - December 2017

...In Armed Forces I Would Be!

...In Armed Forces I Would Be!

1 min read
CFO
November - December 2017

...An Investor In Body & Soul I Would Be!

...An Investor In Body & Soul I Would Be!

2 mins read
CFO
November - December 2017

...A Musician I Would Be!

...A Musician I Would Be!

2 mins read
CFO
November - December 2017

“There is no bubble in The e-commerce space”

The word bubble is cropping up in the industry only because many companies are yet to find a way to profitability, feels Prabhakar Sunder, CFO, Voonik.

3 mins read
CFO
October 2016

New Business Models in These Changing Times

New business models poised to change the way the world transacts have Sugata Sircar, CFO and Country Finance Partner, Greater India Zone, Schneider Electric India excited. In this article, he discusses Circular Economy which can radically change business models in the near future.

5 mins read
CFO
February 2017

India is on a much better footing now

Kunal Kundu, India Economist, Societe Generale, on what makes India a bright spot amid gloomy times and why it can’t afford to be complacent. Excerpts...

2 mins read
CFO
August 2016

Global Round Up

Trump Bans 7 Countries From Entering US, Faces Heat From Across the World.

5 mins read
CFO
February 2017

Budget 2017-18 Tough or Tepid?

The jury is still out on Budget 2017-18 as experts read the fine print. While the government has earned kudos for its continued focus on fiscal consolidation and balanced and broad reform agenda, there are also narratives of discontent. 

10+ mins read
CFO
February 2017

Gaar, by Its Very Nature, Has the Potential of Leading to Uncertainty and Litigation

Jyotsna Sharma, CFO, Sandvik Asia, speaks her mind on crucial issues concerning the finance fraternity in India at the moment.

10 mins read
CFO
February 2017
RELATED STORIES

I take laughter for granted

MAMATA VENKAT looks back over the last year, which has been full of tragedy, and finds the moments of light and laughter that bring joy and celebration to life.

2 mins read
Heartfulness eMagazine
December 2021

Love, Non-violence, and Truth

DR. PRAKASH TYAGI is the Executive Director of Gramin Vikas Vigyan Samiti (GRAVIS), an NGO dedicated to working in impoverished rural regions of India, including the Thar Desert, Rajasthan, Uttarakhand, and Bundelkhand. In part 1 of this interview with KASHISH KALWANI, he speaks about applying the Gandhian principles of love, non-violence, and truth to support communities in need.

6 mins read
Heartfulness eMagazine
December 2021

What Makes a Person Attractive?

DR ICHAK ADIZES shares his experience on what we find attractive in other people, and the importance of humor in relationships.

3 mins read
Heartfulness eMagazine
December 2021

Valve's hotly anticipated Steam Deck handheld delayed until 2022

Supply chain issues strike again

1 min read
PCWorld
December 2021

Lunch, Dinner, and a Loving Baker Dressed in White

By the end of the 1960s, Westerners were traveling to visit the spiritual teacher, Babuji, in India. Among the first were the Danes, who all fell in love with Babuji and were instrumental in bringing the spiritual practices of Heartfulness to the West. One of these pioneers was THOMAS MOGENSEN, who first visited Shahjahanpur in 1971 with his wife and some friends. They filmed their conversations with Babuji, took many photos, and Thomas later wrote two books about these precious experiences. Here is a small vignette from one of his books, written with his signature humor, joy, and tenderness.

4 mins read
Heartfulness eMagazine
December 2021

Tested: Start11 solves Windows 11's worst Start menu and taskbar sins

If you want a Windows 10–style Start menu within Windows 11, then Start11 may be for you.

3 mins read
PCWorld
December 2021

WISDOM FROM MY FATHER

The tempo 1 was ready to depart. It was a short 30-minute journey from Bhatkal to Uppunda, a sleepy village in coastal Karnataka, India. My father, sister, and I were traveling together.

4 mins read
Heartfulness eMagazine
December 2021

Windows 10's November update is a lot smaller than we're used to

With Windows 11 getting all the attention, new features are thin on the ground for Microsoft’s former flagship OS.

1 min read
PCWorld
December 2021

Intel Core i9-12900K: Intel. Is. Back..

Clash of the titans: Core i9-12900K versus Ryzen 9 5950X

10+ mins read
PCWorld
December 2021

Is Nvidia's GeForce Now cloud gaming worth it?

How it works, potential drawbacks, and price

5 mins read
PCWorld
December 2021