The Circular Value Navigator: A Tool for Identifying and Transforming Linear Practices in the Circular Economy

The transition to a circular economy (CE) presents a significant challenge for firms, especially in the initial stages, where cognitive barriers can hinder the identification of linear practices and the development of circular solutions. One key approach to supporting business model innovation has been the use of visualization tools. While several tools facilitate circular innovation, most remain primarily descriptive or evaluative and do not bridge the gap between diagnosing linear practices and designing circular value propositions. This paper addresses this gap by introducing a conceptual tool—the ‘Circular Value Navigator’—designed to support managers in the early stages of CE transformation. The tool aims to facilitate a systemic process for identifying problems rooted in the dominant linear economy and converting them into actionable CE opportunities. Therefore, it supports the development of circular value propositions. The proposed tool integrates three core dimensions: Value Uncaptured, Innovation Perspectives, and Circularity Strategies. By systematically exploring the interplay among these dimensions, the tool helps users identify and map circularity hotspots and pathways for improvement. This research contributes to the literature on cognitive tools in the circular economy field by offering a framework that enhances managers’ abilities in systemic thinking, problem reframing, and the strategic design of circular business models—ultimately aiming to accelerate the adoption of sustainable practices.