Short answer

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.

Field: Resource Management
Source: Journal of Environmental Management (2023)
Method: Systematic Literature Review (PRISMA approach)
Evidence: Strong effect

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. This resource management research insight is drawn from a 2023 study published in Journal of Environmental Management. Using Systematic literature review (prisma approach), researchers explored how this design variable affects real-world outcomes. The key 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.

Study

Resource ManagementRecentStrong effect

IoT integration can boost circular business models by 20-30% energy savings

Journal of Environmental Management · 2023

Key Findings

01IoT capabilities (monitoring, tracking, optimization, design evolution) significantly enhance CBM performance.
02IoT plays a key role in 'Loop' and 'Optimize' CBM, primarily through tracking and monitoring.
03IoT has the potential to reduce energy consumption in CBM by approximately 20-30% in referenced applications.
04Key challenges include IoT hardware/software energy consumption, interoperability, security, and financial investment.

Application

Design takeaway

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.

Project actions

01Consider how sensors and data can support the lifecycle of your designed product.
02Research the energy consumption of any proposed IoT components.

Method & Evidence

AimTo 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.

MethodSystematic Literature Review (PRISMA approach)

ProcedureThe 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.

ContextCircular Business Models (CBM) and Internet of Things (IoT) integration

Variables

IV["IoT capabilities (monitoring, tracking, optimization, design evolution)"]

DV["Circular Business Model (CBM) performance","Energy saving (percentage)"]

CV["Type of CBM (Loop, Optimize, Virtualize, Exchange, Regenerate)","Specific IoT hardware/software used","Application context"]

Strengths & Limitations

Strengths

+Comprehensive literature review using a recognized methodology (PRISMA).
+Quantification of potential energy savings.

Limitations

The energy savings are estimates from literature; real-world implementation may differ. The cost and complexity of IoT integration can be significant.

Reliability & validity

The reliability of the findings is based on a systematic review of existing literature. Validity is supported by the PRISMA methodology, but the quantitative findings are dependent on the quality and scope of the reviewed studies, with a noted need for more empirical data.

Think critically

To what extent does the energy consumed by IoT devices themselves offset the potential energy savings they enable within a circular business model?

Design Principles

"Leverage IoT for enhanced visibility and control within circular systems to drive resource efficiency and minimize waste."

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.

What This Means for Your Design

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.

How to use in your project

1.Reference this study when discussing how technology can enable circular economy principles in your design project.

Add to My Project

Quick Cite

Paragraph starter

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.

Source

Journal of Environmental Management

Opportunities and risks of internet of things (IoT) technologies for circular business models: A literature review

journal · 2023

View source

Questions About This Research

What does the research say about iot integration can boost circular business models by 20-30% energy savings?: 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. Evidence: Journal of Environmental Management (2023).
Why does "IoT integration can boost circular business models by 20-30% energy savings" matter for design?: 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.
How can designers apply this research?: 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.
What were the main 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.
What research method was used?: Systematic Literature Review (PRISMA approach).
How strong is the evidence?: Evidence strength is rated Strong effect, based on a 2023 journal from Journal of Environmental Management.
What should I do differently in my next project?: 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.
What are the 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.