Building a sustainable business model for Novum and market uptake of the technology
Cellulose is a common raw material in electrical insulation components. However, the production of high-quality products is labour-intensive and slow. Scientists are solving these problems by developing new processing solutions in the EU-funded Novum project. Significant improvements will also be made in intensifying resource efficiency and reducing energy consumption and operation costs.
To gain insight into the immediate and more general environmental influences that will impact Novum’s business activates the PESTEL analysis will be used to determine key factors that will impact the re-use of recyclable cellulose. A PESTEL analysis can be used to analyse a business’s current and future environment as part of the strategic management process.
The main findings of the PEST analysis identified that Collectively, the novel processes explored by Novum support the European Union’s Waste Directive goals through its manufacturing efficiencies and the valorisation of waste into a circular business model.
The economic aspect has identified that the increased demand for virgin pulp and its subsequent impact on market prices gives rise to a financial incentive to utilise recycled cellulose. Economic viability of using recyclable cellulose rather than virgin pulp is a potential driver for the use industry. Product pricing and measurement of growth – Lower cost of recycled cellulose versus virgin cellulose or plastics will significantly support competitiveness of price point. Along with an additional cost saving capability through the utilisation of any wastage back into the manufacturing.
A comprehensive exploration of cellulose recyclability and new end-use “opportunities makes cellulose the potential super-material of the future” these factors have helped initiate the development of a business model for the Novum project. Specifically, the manufacturing line – final product as seen below.