In our previous post, Pandemics: Path towards Innovation? we attempted providing a broad view of how COVID-19 could bring about a change in the way businesses operate. The concept of Circular Business Model is relatively new, in applications.
Panic buying during a crisis isn’t uncommon but the anticipated timing, on the businesses’ side, is however overestimated. A circular business model isn’t meant to focus only on environmental sustainability but on the sustainability of every stakeholder. Consider it more like art — you plan it well and work on it collectively, you get a masterpiece. Masterpieces are classics that can stand the test of time.
It didn’t even take a week for the shelves of large retail chains to go empty — which is a display of pace, in retail. However, early anticipation of such a crisis could’ve made it smooth for the customers to change their habits. In this post, we intend to implement an Integrated Information Mechanism which will form the basis of further discussion on creating the masterpiece.
Conventional Information Chain
To keep things simple and leave some space for further discussion, the information chain is designed with 4 key stakeholders — raw material suppliers, company, distribution channels, and the customer.
The major problem with the conventional model is the predictability of consumption. As with any great piece of art, the elements must complement each other while retaining their individual identity. The lack of backward integration of information makes it difficult to predict the procurement, production, and distribution mechanism.
Integrated Information Chain
The advantage of backward integration is the enhancement of predictability quotient. In an industry where the goods move twice the pace of their production, the ability to predict future consumption would provide a competitive advantage by reducing the wastes.
The diagram is self-explanatory. However, we would like to provide a headstart for further discussion — what will be the most effective way to integrate various stakeholders?
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Originally published at https://www.rejigez.com on April 4, 2020.
