INNOVATION September-October 2014

f ea t ures

THE ENGINEER’S ROLE IN A NEW BUSINESS PARADIGM D i s r u p t Y o u r B u s i n e s s B e f o r e Y o u r C o m p e t i t i o n D o e s I t f o r Y o u

Karen Storry, P.Eng. Esther Bérubé, P.Eng.

A tide of change is coming. The global economy is entering an era of resource price fluctuations and scarcity that challenges conventional production models, which are based on taking abundant natural resources and energy to make disposable prod- ucts. It is time for Canadian industry to rethink how we make things or get swept away by the competition. In this time of flux, new approaches to business are emerging. In Jugaad Innovation , researchers Navi Radjou, Jaideep Prabhu and Simone Ahuj present businesses in established and emerging economies that generate profits using limited resources. Businesses in British Columbia and abroad are participating in the zero waste economy using approaches such as cradle-to-cradle design,

biomimicry, regenerative consumption, and the circular economy to design resource-efficient products and systems that offer more value at an affordable price. Through design and innovation, engineers have a key role to play in helping business capitalize on the opportunities of the zero waste economy. How Does This Zero Waste Economy Work? The zero waste economy seeks to rethink the way products and systems are designed to extract as much value as possible out of the resources that are used. Though some waste will always require dis- posal, the circular economy is a way of doing business that minimizes that waste. The circular economy adopts the cradle-to-cradle model of technical and biological nutrient cycles found in nature. With biological nutrients such as food scraps and yard trim- mings, the goal is to divert biodegradable waste from disposal and towards more profitable uses such as food for animals, energy, and soil amendments that are part of the cycle of food and plant production. For the technical nutrients such as metals, plastics, and aggregate, the goal is to keep them in circulation for as long as possible through repair, reuse, remanufacturing, and recycling to maximize their post extraction value. How Big of an Opportunity is the Circular Economy? The Ellen MacArthur Foundation retained McKinsey & Company, a global management consulting firm, to estimate the value of the circular economy. According to the McKinsey study, the circular economy could be worth US$1 trillion to the global economy. Increasing demand from a growing middle class in emerging econ- omies, less expendable income in traditional consumer markets,

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