Topics In Demand
Notification
New

No notification found.

Digital Engineering's Role in Shaping the Circular Economy
Digital Engineering's Role in Shaping the Circular Economy

30

0

Authored by: Sandeep Raje, Associate Vice President of Delivery - Xoriant

Environmental, social, and governance (ESG) concerns and sustainability have become crucial to the success of contemporary businesses. In today’s eco-conscious landscape, merely producing high-quality products is insufficient. Both customers and regulatory authorities are increasingly advocating for a circular economy, which focuses on prolonging the lifecycle of products, thereby minimizing greenhouse gas emissions and protecting the environment.

The Emergence of the Circular Economy

Global economies depend heavily on material usage, which, according to McKinsey, accounts for approximately one-third of total global CO2 emissions. This significant impact has brought circularity to the forefront as businesses strive to reduce emissions and waste. By 2030, the circular economy could potentially cut greenhouse gas emissions by 70%. The benefits of adopting a circular economy include:

  • Enhancing product design to extend usability and value.
  • Reusing, recycling, and refurbishing products to lessen reliance on natural resources.
  • Minimizing product waste, leading to lower greenhouse gas emissions.
  • Reducing the need for new raw materials, thus decreasing pollution.

The Role of Digital Engineering

Digital engineering provides a comprehensive solution for establishing a circular economy, from product design to end-of-life management. Companies aiming to achieve their ESG objectives can implement digital engineering strategies to develop digital-ready products using advanced technology stacks. Utilizing cloud computing, artificial intelligence, and data analytics, organizations can work towards a carbon-neutral future.

Modern technologies, user-centered experiences, and full-stack development expertise are converging to make the circular economy achievable. Here are several ways digital engineering drives the transformation towards a circular economy:

  1. Product Modernization: Leveraging the latest technology stacks enables organizations to create next-generation, carbon-neutral products. For instance, shifting from high-maintenance, energy-intensive systems to cloud platforms can optimize energy consumption. Low-code/no-code solutions can also facilitate the reuse of components, reducing costs and energy use while accelerating product development.

  2. Analytics: Advanced analytics and automation provide businesses with crucial insights into their sustainability efforts and environmental impact. Robust reporting allows companies to track progress towards sustainability goals and make data-driven decisions to enhance their initiatives.

  3. Automation: Automation plays a key role in reducing energy emissions. In a circular economy, automation can monitor materials throughout their lifecycle, ensuring efficient reuse. In recycling facilities, automated systems can improve safety and precision by identifying and sorting waste, optimizing waste-to-energy conversion.

  4. Artificial Intelligence: AI and machine learning help organizations swiftly achieve and scale their climate goals. From reducing packaging to enabling energy-efficient operations, AI can significantly transform ESG efforts. AI can streamline UX design, identify energy-intensive systems, and provide real-time demand insights to reduce waste and minimize excess inventory.

  5. Digital Twins: Digital twins allow organizations to create virtual 3D representations of physical assets, helping to reduce energy consumption and waste. These dynamic virtual replicas integrate real-world data from IoT sensors, enterprise systems, and other operations, enabling meticulous monitoring, simulation, and optimization of performance, energy use, and waste management.

A Practical Example

A leading chemical supplier in the automotive industry aimed to meet critical ESG goals and comply with EU battery passport regulations. Recycling battery components, given their hazardous nature, posed significant challenges. To develop an effective recycling method for lithium-ion battery components and promote sustainability, Xoriant created a comprehensive digital solution for sustainable battery management and compliance. This enabled the supplier to improve carbon footprint reporting, enhance data integrity, and streamline the recycling process, ultimately achieving faster time-to-market, regulatory compliance, and operational efficiency.

In a Nutshell

Sustainability is now a cornerstone of the business world. As stakeholders increasingly prioritize ESG and carbon-neutral goals, enterprises are leveraging technological innovations to achieve these objectives. Among the key technologies are low-code/no-code platforms, analytics, automation, AI, and digital twins, all of which support the development of a circular economy.

About Author:

Sandeep Raje is the Associate Vice President of Delivery at Xoriant. He has extensive experience in financial services and product engineering as a results-oriented and high-energy global business and technology leader. With a proven track record in delivering complex, multi-tower transformation programs, Sandeep employs a hands-on approach to drive strategy, architecture, and implementation of innovative and cost-effective solutions. He has experience managing large portfolio budgets with meticulous attention to detail.

 


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


Xoriant is a Silicon Valley-headquartered digital product engineering, software development, and technology services firm with offices in the USA,UK, Ireland, Mexico, Canada and Asia. From startups to the Fortune 100, we deliver innovative solutions, accelerating time to market and ensuring our clients' competitiveness in industries like BFSI, High Tech, Healthcare, Manufacturing and Retail. Across all our technology focus areas-digital product engineering, DevOps, cloud, infrastructure, and security, big data and analytics, data engineering, management and governance -every solution we develop benefits from our product engineering pedigree. It also includes successful methodologies, framework components, and accelerators for rapidly solving important client challenges. For 30 years and counting, we have taken great pride in our long-lasting, deep relationships with our clients.

© Copyright nasscom. All Rights Reserved.