Developing and implementing circular economy business models in the information and communication technology (ICT) sector

The service sector has the potential to play an instrumental role in the shift towards circular economy due to its strategic position between manufacturers and end-users. However, there is a paucity of supporting methodologies and real-life applications to demonstrate how service-based companies can implement circular economy principles in daily business practice. This paper addresses this gap by analysing the potential of service-oriented companies in the information and communication technology (ICT) sector to build and implement circular economy business models. This is demonstrated through an application of the Backcasting and Eco-design for the Circular Economy (BECE) framework in an ICT firm. BECE, previously developed by the authors and demonstrated for product-oriented applications, has been developed further here for applications in the service sector. By shifting the focus from a product-oriented approach to a user-centred eco-design, the paper shows how ICT firms can identify, evaluate and prioritise a number of sustainable business model innovations for circular economy. The two most promising business model innovations are explored strategically with the aim to design circular economy models consistent with the company’s priorities of customer satisfaction and profitability. The research findings confirm that ICT companies have the ability to actively support the deployment of a circular economy in the service sector. Importantly, small organisations can play a fundamental role if provided with macro-level support to overcome company-level barriers. Finally, the BECE framework is shown to be a valuable resource to explore, analyse and guide the implementation of circular economy opportunities in service-based