IoT integration in circular business models faces data and interoperability hurdles

Why It Matters

For designers and engineers, understanding these practical barriers is crucial for developing truly sustainable products and systems. It highlights the need to move beyond theoretical benefits of IoT for circularity and focus on robust data infrastructure and future-proof design principles.

Key Finding

While IoT offers significant potential for circular economy initiatives like product-as-a-service and improved resource tracking, practical implementation is hampered by poor data management and the difficulty of creating future-proof, adaptable IoT hardware.

Key Findings

• IoT can support servitized business models, product tracking, condition monitoring, predictive maintenance, and lifetime estimation.
• Key implementation challenges include a lack of structured data management processes and difficulties in designing IoT products for interoperability and adaptability due to rapid technological advancements.

Research Evidence

Aim: What are the key challenges and opportunities in implementing IoT-enabled circular business models in practice?

Method: Case Study

Procedure: Conducted twelve semi-structured interviews with stakeholders within a company experienced in both IoT and circular economy principles, focusing on LED lighting.

Sample Size: 12 participants

Context: Circular economy business model implementation within a company.

Design Principle

Design for data integrity and technological longevity in IoT-enabled circular systems.

How to Apply

When designing IoT products for circularity, ensure systems are in place for high-quality data collection and analysis, and build in flexibility for future upgrades and integration with other systems.

Limitations

Findings are specific to the LED lighting sector and the interviewed company, potentially limiting generalizability.

Student Guide (IB Design Technology)

Simple Explanation: Using smart technology (IoT) to help the environment by reusing and recycling things is a good idea, but it's hard because managing the data from these devices is tricky, and the technology changes so fast that it's hard to design products that can keep up.

Why This Matters: This research highlights that simply adding technology isn't enough for sustainability; the underlying systems for data and the product's ability to adapt over time are critical for successful circular design.

Critical Thinking: To what extent do the rapid advancements in IoT technology necessitate a shift towards designing for obsolescence rather than longevity in certain circular economy applications?

IA-Ready Paragraph: This research underscores that the successful integration of IoT into circular business models is significantly challenged by the need for robust data management processes and the design of products that can adapt to rapidly evolving technologies. Practical implementation requires careful consideration of these factors beyond the theoretical opportunities presented by IoT.

Project Tips

• When researching circular economy solutions, consider the role of data and technology obsolescence.
• Investigate how companies are currently managing data from smart products in their sustainability efforts.

How to Use in IA

• Reference this study when discussing the practical challenges of implementing technology-driven sustainability strategies.
• Use the findings to justify the importance of data management and future-proofing in your own design project.

Examiner Tips

• Demonstrate an understanding of the practical, real-world challenges in implementing innovative design solutions, not just their theoretical benefits.
• Critically evaluate the role of data infrastructure in the success of sustainable design projects.

Independent Variable: ["Implementation of IoT in circular business models"]

Dependent Variable: ["Opportunities and challenges faced during implementation"]

Controlled Variables: ["Company experience in IoT and CE","Specific product (LED lighting)"]

Strengths

• Provides real-world insights into IoT-enabled circular economy implementation.
• Focuses on practical challenges rather than just theoretical potential.

Critical Questions

• How can companies proactively address the challenge of rapid IoT technology evolution in their circular design strategies?
• What are the most effective methods for ensuring high-quality data collection and analysis in IoT-driven circular systems?

Extended Essay Application

• Investigate the lifecycle impact of IoT devices within a circular economy framework, focusing on data management and upgradeability.
• Develop a prototype system that addresses specific data management challenges for a circular product-as-a-service model.

Source

Opportunities and challenges in IoT-enabled circular business model implementation – A case study · Resources Conservation and Recycling · 2020 · 10.1016/j.resconrec.2020.105047