Sol salinas managing director, accenture digital - mobility, global lead, accenture smart cities10/18/2023 ![]() As leading NGOs, private foundations, public donor agencies, governments and the private sector come together to bridge commerce and community, they are rethinking how to drive sustainable impact at scale with market-based approaches. Companies are approaching issues once deemed “philanthropic” as strategic to drive important environmental, social and governance agendas. The marginal value created through circular solutions outweighs the potential revenue loss from vehicle sales as the industry shifts to a higher vehicle utilization model.Helping clients create strategies to drive sustainable impact at scale.ĭisruptive business models reliant on multi-sector collaboration are the new normal. And once a value chain is circular, many business cases, including “as-a-service”, repair or remanufacturing, generally benefit from improved vehicle mileage and the alignment of initiatives. Cost improvements in advanced recycling technologies, vehicle end-of-life treatment and material processing could generate drastically higher revenues than in today’s models and reduce sourcing costs for low carbon materials. with “as-a-service” models), companies can drastically improve the circularity business case.įor example, modular vehicle design is a cost in production, but enables profits 1.5-4x its costs in repair, as well as 2-5x in end-of-life recycling and material processing. By accounting for these interdependencies and finding new revenue mechanisms (e.g. For example, sourcing of recycled materials depends on vehicle recycling, which in turn is impacted by design choices. ![]() ![]() Costs and revenues of circularity initiatives are often spread between value chain players and are interdependent with other initiatives. Automotive companies can create value potential from circularity by taking a new perspective in their business case in order to optimize the full vehicle life cycle across the value chain. ![]()
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