DIGITALNA CIRKULARNA EKONOMIJA
DIGITAL CIRCULAR ECONOMY

Author(s): Boris Todorović, Marija Todorović, Zdravko Todorović
Subject(s): Business Economy / Management, Energy and Environmental Studies, Economic policy, Economic development, ICT Information and Communications Technologies
Published by: Finrar d.o.o Banja Luka
Keywords: Circular economy; Digital technologies; Sustainable development; Waste reduction; Recycling; Production processes;
Summary/Abstract: The purposes of the research show that the use of digital technologies can improve the transformation towards a sustainable circular economy and provide good solutions to improve the efficiency of manufacturing companies. It is necessary to make the circular economy digital, and the digital economy circular. The research design represents the influence of the digital circular economy on the creation of value in the business system. The research methods in this study were qualitative and inductive, based on a review of the available literature and in-depth interviews with experts from IT and the production sector in production organizations. The main findings of the research are: 1) the business system is presented through 14 work systems that are interconnected with the research of market needs for products on the market until the end of the product’s use; 2) we divided the business system into five production cycles: design, production, distribution, use and end of use; 3) we have shown direct connections and feedback loops in working systems; 4) we presented the impact of digitization on the business system and individual digital technologies on individual production cycles; 6) we presented the strategy and practice of the circular economy with the aim of creating ecological, economic and social 'value. The limitations of the research refer to the smaller number of companies that we analyzed and the smaller number of interviewed managers. For this reason, the research is not categorized as a case study, but as an interview with experts. Despite this limitation, the results represent an acceptable level of validation, and the information is reliable. Our goal was to show how a circular economy ’based on digitization can be introduced into the business system and launch an initiative focused on material recycling towards new models of sustainable production, consumption and -use. Managers of production organizations who strive to improve the efficiency of their operations by adopting digital technologies with the aim of introducing a circular economy have practical benefits from the research. The originality of the research refers to the creation of a model of the influence of the digital circular economy on the business system, which should encourage the creation of ecological, economic and social 'value. Establishing a digital circular economy requires fundamental changes in the entire value chain from product design and technology to new business models, new ways of preserving natural resources and converting waste into resources, new ways of consumer behavior, new standards, regulations and practices, new ways of education and financing, that is, it is necessary to establish a new economic paradigm based on a digital circular economy. It is important to understand that the implementation of a digital circular economy is a necessary step towards achieving climate goals and increasing the efficiency of resources and energy.

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