979-8-3503-1335-2/23/$31.00 ©2023 IEEE
Effective usage of Big Data analytics in
Circular Economy
Dr. Katerina Beta
College of Business and Law
Coventry University
Coventry, United Kingdom
ad8832@coventry.ac.uk
T.D.B Weerasinghe
Chartered Computer Engineer
Senior Member - IEEE
Perth, Australia
tharindu.weerasinghe@gmail.com
Sakthi Shalini Nagaraj
Supply chain management
School of Engineering, Environment
and Computing, Coventry University
Coventry, United Kingdom
ae1750@coventry.ac.uk
Amalsha Amaratunge
MBA - Artificial Intelligence
Coventry University
Coventry, United Kingdom)
Amaratunga@uni.coventry.ac.uk
Abstract—Circular Economy (CE) is a much-discussed
topic among the contemporary academia and industry with the
emerging threats of the scarcity of global natural resources and
monetary capabilities of small and medium scale industries
around the globe. With the fifth industrial revolution, which
we refer to it as the Industry5.0, the phenomena in the likes of
sustainability, human-centric and resilience are in the
forefront. Thus, it is obvious that the Circular Economy plays
a vital role in the Industry5.0 framework. As it pivots around
AI and other emerging technologies it is important to know
how we can effectively use Big Data analytics to get the best out
of Circular Economy. In this research we have focused on the
initial steps of recognizing the key facts that Big Data analytics
can be used effectively in Circular Economy in the aspect of the
Supply Chain focusing on a systematic literature review
through the use of several case studies and journals and using a
qualitative approach.
Keywords—Circular Economy, Big Data, Big Data In
Circular Economy
I. INTRODUCTION AND LITERATURE
Industry 5.0 which has already began being effected by
most organizations focuses on the triple bottom line of
sustainability to every business operation model alongside
the implementation of Industry 4.0 technologies, like, Inter
of Things (IoT) and Big Data. Big Data can be regarded as
data sets that are hard to be processed using traditional data
processing techniques. Digitalization of supply chain is often
recognised by researchers recently as the effective way to
overcome the sustainability challenges. Implementing
circularity in business operations is aimed as part of the
sustainability goals established by the United Nations [1].
Several studies focus on the role of Industry 4.0 technologies
in Supply chain management and several others focus more
onto the achievement of circular economy in particular [2].
Yuan and Pan [3] have identified how digital technologies
can positively impact the supply chain risk management,
while also mitigating the negative effect of supply chain
integration for circular economy. The practical strategies on
how the digital technologies can be implemented
successfully have also been explored by Nayal [1]. However,
Agnusdei et al. [4] have emphasized on how these
technologies can be obstacles in wider implementation of
themselves in circular business model. Given the
heterogeneous characteristics of these digital technologies,
and the circular business models where they will be
implemented, the choice and suitability of the digital
technologies become quiet challenging for businesses. Nobre
and Tavares [5] proved a disconnection between important
industrial initiatives and the scientific researches available on
the context of application of IoT and big data to achieve
circular economy.
There are very limited studies that highlight the
importance and benefits/capabilities of any selective
technology. The objective of this study will be to evaluate
the role of big data among other technologies as well as to
discover its capabilities in achieving circularity in digitalized
supply chains. The study requires knowledge on the level of
awareness, expectations and readiness among the business
stakeholders in incorporating big data analytics, while also
understanding the capabilities of big data within the context
of circular economy for supply chains. This is planned to be
achieved using secondary data (a systematic literature
review).
Circular Economy (CE) is an economic system that
substitutes reducing, alternatively reusing, recycling, and
recovering materials in production/distribution and
consumption processes for the "end-of-life" idea [6].
Regenerative, restorative, and sustainable economic actions
are central to the CE paradigm [7]. The secret is to make the
most of the available resources while still adding value to
end-of-life products. There has always been a need to
identify different external influences that have an impact on
business operations and overall functioning because every
firm must operate in accordance with its external
environment. As a result, various stakeholders will need to
take a supportive and cooperative posture towards a change
in the fundamental approach to business operations [8]. The
problem of sustainability must be addressed together, and CE
cannot be properly implemented in isolation. Businesses all
over the world are focused on the CE to save resources,
become sustainable, and boost financial performance in order
to fulfil the interests of all value chain stakeholders [9].
Traditional production methods rely on a linear economy, in
which product parts are wasted at the end of their useful lives
[10]. Contrary to the linear economy, the CE involves
creating material loops to reuse, remanufacture, or recycle
parts and materials from old items to make new ones [11].
The CE material loops reduce waste by reusing outdated
components from used goods, which saves natural resources
and rare virgin raw materials [12]. Therefore, the combined