Traditional models for our economy command us to “take, make, and waste” in business. In fact, this linear model leads to huge detriments for society, business, and the planet as resources are indiscriminately consumed and tossed out without a thought.

A circular economy, however, aims to eliminate waste and decrease the consumption of resources. The goal of this economy is to keep resources in the system as long as possible, extracting continual value and regenerating materials at the end of each cycle. The process improves productivity and creates a closed, renewable system.

Circular economies are all around us. Cycles of weather and natural ecosystems all incorporate elements of making, using, reusing, remaking, and recycling. Just as this brings tremendous benefits to populations and conditions on Earth, a circular model for IT asset recovery offers significant advantages. Explore the circular model of IT asset recovery and learn how to cultivate sustainability through your practices.

What is the “Circular Economy”?

Like any system model, the term "circular economy” is meant to represent a particular way of looking at things with certain rules and principles. The circular economy model presents an alternative to the linear understanding of resources in which assets reach extinction before value has been totally diminished. For instance, one principle from the circular model is that assets and resources should be further processed and incorporated in order to draw maximum value.

Putting this in practice for the IT profession means maintaining, refurbishing, and upgrading resources to increase their lifetime value, giving them another moment to appear in our circular cycle. Selling assets second hand and refurbishing them for purchase also falls within the circular model - it draws resources (profits) into your business through “old” sources of energy.

Over the last few years, many IT asset recovery firms have entered the global economy to promote a circular approach to disposition as a way to boost ROI for clients. However, the benefits of a circular economy are manifold. A sustainable world does not mean loss of quality, experience, or revenue; rather, the circular model lays the ground for increased profitability and enjoyment.

IT Asset Recovery and True Sustainability

The purpose of the Circular Economy model is to upgrade our practices and improve our ability to bring about benefits with fewer costs. The materials that can be recycled are rejuvenated, those that can be reused return to their function, and salvageable products are refurbished responsibly. True sustainability means paying attention to how your resources “cycle” naturally, intervening where necessary to increase efficiency.

This is where your IT asset recovery programs shine. Many providers will recycle, refurbish, and remarket the equipment that has reached the supposed end of its lifecycle for your organization. This means that you can avoid complicated steps for equipment disposal, and resources that seem to have lost their utility can still generate revenues.

For example, a company doing an upgrade of its equipment might take thousands of servers out of service. This company could choose to work with a traditional, linear provider, but often they will have no idea where to identify value. Whereas a recycler and provider who thinks circularly can hope to minimize risk and refurbish to extend equipment life, while recycling or reusing equipment that can’t be refurbished.

The vendor might even encourage the sales team to realize the demand for refurbished servers. The company can then send its thousands of units to an asset recovery vendor for refurbishment and remarketing. If the units are able to be marketed and sold even slightly above their value, this could mean thousands of dollars for thousands of servers. They would demonstrate true IT sustainability.

Without affecting compliance or security, sustainable asset recovery partners are able to establish relationships with recyclers to ensure all assets are handled properly according to the appropriate regulations. They handle decommissioning, dismantling, and destruction with an expertise that only neglects asset value when benefits no longer beat their cost.

The Future of the Circular Economic Model for IT

Companies are increasingly finding that the industrial process of taking, making, and disposing is causing stress on their organizations, concern for their customers, and damage to the environment. Rather than treat resources as finite with a finite lifespan, the circular model takes insights from the systems that exist in every corner of the natural world. Prominent thinkers in many industries are thinking about how to incorporate more regenerative processes to ease resource steps and bring benefits to all stakeholders.

As the call for active sustainability practices among consumers grows every year, the use of a circular model grows in importance. Multinational corporations, Fortune 500 companies, and small businesses must all do their due diligence in plotting out their strategy for incorporating an economy that continually produces value out of traditionally trashed resources. The outlook is that more customers and regulators will demand this approach in new and novel ways.

If your company is forward-thinking, it will embrace the circular model because it not only leads to increased revenue for your organization, but also promotes your organization as a conscious brand. Like in many industries, you will play a role in identifying sustainability alternatives that can help your bottom line and save the planet. It’s a win-win for companies and customers, and a socially and environmentally responsible approach to doing the business of IT.

How Dataknox.io Can Evolve Your Recovery Process

Dataknox brings industry certification and experience to the process of recycling, reusing, refurbishing, and rejuvenating assets for regenerative profit. As you transition to the cloud and look for alternatives to managing your existing data centers yourself, you can benefit from working with an IT asset recovery partner who fulfills the needs of your hardware and data with high, sustainable standards.

Discover how we can help improve your organization s ability to create value continually for retired and used resources. Learn more about the thought process and professional practices of Dataknox.io