IoT integration can boost circular business models by 20-30% energy savings
Category: Resource Management · Effect: Strong effect · Year: 2023
Internet of Things (IoT) technologies offer significant potential to enhance circular business models (CBM) by enabling capabilities like monitoring, tracking, and optimization, leading to substantial energy savings.
Design Takeaway
Integrate IoT strategically into product design to enable circularity, focusing on data collection for optimization and resource tracking, while being mindful of the energy footprint of the IoT components themselves.
Why It Matters
For designers and engineers, understanding how IoT can be leveraged within CBM is crucial for developing products and systems that are not only functional but also environmentally responsible. This insight highlights a pathway to achieving tangible sustainability goals through technological integration.
Key Finding
IoT technologies can significantly improve circular business models by enabling better tracking and monitoring, potentially reducing energy use by up to 30%, but implementation faces hurdles like energy consumption of IoT devices themselves, security, and cost.
Key Findings
- IoT capabilities (monitoring, tracking, optimization, design evolution) significantly enhance CBM performance.
- IoT plays a key role in 'Loop' and 'Optimize' CBM, primarily through tracking and monitoring.
- IoT has the potential to reduce energy consumption in CBM by approximately 20-30% in referenced applications.
- Key challenges include IoT hardware/software energy consumption, interoperability, security, and financial investment.
Research Evidence
Aim: To explore the opportunities and risks associated with integrating Internet of Things (IoT) technologies into circular business models (CBM) and to quantify the potential impact on energy savings.
Method: Systematic Literature Review (PRISMA approach)
Procedure: The study systematically reviewed existing literature to identify IoT capabilities relevant to CBM, analyzed their contribution to various circular strategies (6 Rs), assessed quantitative impacts on energy saving, and identified challenges for implementation.
Context: Circular Business Models (CBM) and Internet of Things (IoT) integration
Design Principle
Leverage IoT for enhanced visibility and control within circular systems to drive resource efficiency and minimize waste.
How to Apply
When designing products for a service or leasing model, incorporate sensors and connectivity to monitor product usage, condition, and location, feeding this data back into design and maintenance processes.
Limitations
The review highlights a need for more quantitative case studies, particularly for 'Virtualize', 'Exchange', and 'Regenerate' CBM. The energy savings are based on referenced applications and may vary.
Student Guide (IB Design Technology)
Simple Explanation: Using smart devices (IoT) can make 'reuse' and 'repair' business models work better by helping companies track products and see how they're used, which can save energy.
Why This Matters: This research shows how technology can directly support environmental goals in design, making your projects more impactful and relevant to current industry needs.
Critical Thinking: To what extent does the energy consumed by IoT devices themselves offset the potential energy savings they enable within a circular business model?
IA-Ready Paragraph: The integration of Internet of Things (IoT) technologies presents a significant opportunity to enhance the performance of circular business models (CBM), with potential energy savings estimated between 20-30% in various applications. By enabling capabilities such as real-time monitoring, tracking, and optimization, IoT facilitates more efficient resource management and product lifecycle extension, aligning with the principles of the circular economy. However, designers must also consider the inherent energy consumption, security, and interoperability challenges associated with IoT hardware and software to ensure that the implementation truly contributes to sustainability goals.
Project Tips
- Consider how sensors and data can support the lifecycle of your designed product.
- Research the energy consumption of any proposed IoT components.
How to Use in IA
- Reference this study when discussing how technology can enable circular economy principles in your design project.
Examiner Tips
- Demonstrate an understanding of how digital technologies can be integrated to achieve sustainability targets.
Independent Variable: ["IoT capabilities (monitoring, tracking, optimization, design evolution)"]
Dependent Variable: ["Circular Business Model (CBM) performance","Energy saving (percentage)"]
Controlled Variables: ["Type of CBM (Loop, Optimize, Virtualize, Exchange, Regenerate)","Specific IoT hardware/software used","Application context"]
Strengths
- Comprehensive literature review using a recognized methodology (PRISMA).
- Quantification of potential energy savings.
Critical Questions
- How can the energy footprint of IoT devices be minimized in CBM applications?
- What are the most effective strategies for ensuring interoperability and security in IoT-enabled CBM?
Extended Essay Application
- An Extended Essay could investigate the specific energy trade-offs of implementing IoT in a particular circular product design, comparing different sensor technologies and data transmission methods.
Source
Opportunities and risks of internet of things (IoT) technologies for circular business models: A literature review · Journal of Environmental Management · 2023 · 10.1016/j.jenvman.2023.117662