Zhida Case solution for waste sorting and better future
- 2. Case Overview 1 2 3 In 2014, Zhida Environmental Technology Co. Ltd (ZD) was established to manage Chinese urban household waste. There was a rising problem of solid waste accumulation, illegal dumping environmental degradation and ZD sought to solve these problems. Although they were hailed for their operational standards in the recycling world they have lost their competitive edge due to various reasons. To revitalize the company the CEO, Xinlong Zhu is looking to implement revolutionary technology like Blockchain Technology (BTC). The components and operations of ZD are; Disbursment of credit for residents to participated in sorting and recyclingwaste An internet based waste managemnt platform that coverts waste rewards, fixes waste collection times, online waste sorting, and separate waste collection and transportation Operations spanning eight cities across China and collaborations with MNCs and universatives to further recycling activities
- 3. Three Key issues Zhida Environmental Technology Co. Ltd is facing Declining Competitiveness Operational Challenges External Industry Challenges Stagnant participation, low recycling rates, and increased competition in the recycling industry. Cumbersome waste sorting and reward credit exchange processes. Limited data capture beyond the waste collection stage. Increasing competition from tech- driven recycling startups. Uncertain market prices for reselling collected waste. Difficulty in obtaining financial support.
- 7. RISK AND MITIGATION FACTORS Regulatory Compliance Scalability User Adoption Social Impact Stay informed about regulatory developments, work closely with regulatory bodies, and design blockchain solutions with flexibility to adapt to changing compliance requirements Explore and implement scalability solutions, such as sharding or layer-two scaling solutions. Regularly update and optimize the blockchain infrastructure to handle increasing transaction volumes Conduct awareness campaigns and educational programs to inform stakeholders about the benefits of blockchain in waste management. Provide user-friendly interfaces and incentivize participation. Provide trust among stakeholders, including households, waste management companies, and regulatory authorities, fostering a sense of accountability.
- 8. Alternative 1: Full-scale BTC Implementation Alternative 3: Focus on alternative technologies Alternative 2: Phased BCT pilot programs Alternative Approaches to Implementing BTC
- 9. Alternative 1: Full-scale BTC Implementation Alternative 2: Phased BCT pilot programs Alternative 3: Focus on alternative technologies • High Impact Potential • Scalability • Data-driven insight Pros
- 10. Alternative 1: Full-scale BTC Implementation Alternative 2: Phased BCT pilot programs Alternative 3: Focus on alternative technologies Cons • High upfront costsScalability • Potential technical challenges • User adoption risks
- 11. Alternative 1: Full-scale BTC Implementation Alternative 2: Phased BCT pilot programs Alternative 3: Focus on alternative technologies Pros • Leverage existing technology and expertise • Access funding and resources
- 12. Alternative 1: Full-scale BTC Implementation Alternative 2: Phased BCT pilot programs • Limited impact initially • Slower data collection. Cons Alternative 3: Collaboration with existing BCT platforms:
- 13. Alternative 1: Full-scale BTC Implementation Alternative 2: Phased BCT pilot programs Alternative 3: Collaboration with existing BCT platforms: Pros • Leverage existing technology and expertise, access funding and resources
- 14. Alternative 1: Full-scale BTC Implementation Alternative 2: Phased BCT pilot programs Alternative 3: Collaboration with existing BCT platforms: • Dependence on external partners, potentially less control over BCT features Cons
- 15. Alternative 1: Full-scale BTC Implementation Alternative 3: Focus on alternative technologies Alternative 2: Phased BCT pilot programs
- 16. Phased BCT pilot programs: B-RISE: Blockchain-powered Recycling Integration and Scalable Expansion
- 19. RISK AND MITIGATION FACTORS Regulatory Compliance Scalability User Adoption Social Impact Stay informed about regulatory developments, work closely with regulatory bodies, and design blockchain solutions with flexibility to adapt to changing compliance requirements Explore and implement scalability solutions, such as sharding or layer-two scaling solutions. Regularly update and optimize the blockchain infrastructure to handle increasing transaction volumes Conduct awareness campaigns and educational programs to inform stakeholders about the benefits of blockchain in waste management. Provide user-friendly interfaces and incentivize participation. Provide trust among stakeholders, including households, waste management companies, and regulatory authorities, fostering a sense of accountability.
- 20. Adaptation of B-RISE • Select pilot areas with CAC’s collaboration to gain incentives and government partnerships. • Prioritize core functionality. • Utilizing Existing Infrastructure Phased Implementation • Automate Task by utilizing BCT Data • Optimize Logistics • Leverage Data for funding. Operational Efficiency • Volunteer Programs. • Community based incentives. • Leveraging more on youth interest. Customer Engagement
- 21. Phased Implementation Cyber Space Administration of China has selected 15 pilot zones and identified several areas to carry out the innovation of blockchain project. These pilot zones include: • Major cities of Beijing and Shanghai. • Guangzhou and Chengdu in the southern Guangdong and Sichuan provinces. • 164 entities, including hospitals, universities and companies such as SAIC-GM-Wuling Automobile Co., China National Offshore Oil Corp, Beijing Gas Group Co. and Industrial and Commercial Bank of China Ltd were selected to carry out blockchain pilot projects. Select pilot areas to initially start the project
- 22. Phased Implementation Collaboration with CAC Financial Benefits: • Subsidies and Tax break. • Preferential Treatment in licensing permit. • Investment Funds. Nonfinancial Benefits: • Market access and exclusive contracts • Data Access • Public Recognition Possible conditions and obligations: • Must comply with CAC’s regulations and policies. • Provide backdoor access to the system, raising further privacy concerns. • Cooperate with government survilience Competitive Advantage as first mover
- 23. Phased Implementation Prioritize core functionality Focus initially on essential features like Waste sorting Data Collection Basic Reward Gradually Adding more features as we get more fund
- 24. Phased Implementation Utilizing Existing Infrastructure: Zhida’s existing infrastructure is one of its major strength. • The Digital Platform(HUI System) • Userbase • Communication Channel
- 25. • Select pilot areas with CAC’s collaboration to gain incentives and government partnerships. • Prioritize core functionality. • Utilizing Existing Infrastructure Phased Implementation • Automate Task by utilizing BCT Data • Optimize Logistics • Leverage Data for funding. Operational Efficiency • Volunteer Programs. • Community based incentives. • Leveraging more on youth interest. Customer Engagement Adaptation of B-RISE
- 26. • Select pilot areas with CAC’s collaboration to gain incentives and government partnerships. • Prioritize core functionality. • Utilizing Existing Infrastructure Phased Implementation • Automate Task by utilizing BCT Data • Optimize Logistics • Leverage Data for funding. Operational Efficiency • Volunteer Programs. • Community based incentives. • Leveraging more on youth interest. Customer Engagement Adaptation of B-RISE
- 27. Operational Efficiency Implementing BCT features will enable automating routine tasks like data recording, reward distribution, and communication with users, which will reduce manpower cost. Analyze BCT Data Effectively: Automate Task Utilize data generated by the system to identify areas for cost optimization, streamline workflows, and tailor incentives to maximize impact per unit cost. Optimize Logistics Utilize BCT data to optimize collection routes, reduce fuel consumption, and improve overall operational efficiency.
- 28. • Select pilot areas with CAC’s collaboration to gain incentives and government partnerships. • Prioritize core functionality. • Utilizing Existing Infrastructure Phased Implementation • Automate Task by utilizing BCT Data • Optimize Logistics • Leverage Data for funding. Operational Efficiency • Volunteer Programs. • Community based incentives. • Leveraging more on youth interest. Customer Acquisition Adaptation of B-RISE
- 29. • Select pilot areas with CAC’s collaboration to gain incentives and government partnerships. • Prioritize core functionality. • Utilizing Existing Infrastructure Phased Implementation • Automate Task by utilizing BCT Data • Optimize Logistics • Leverage Data for funding. Operational Efficiency • Volunteer Programs. • Community based incentives. • Leveraging more on youth interest. Customer Acquisition Adaptation of B-RISE
- 30. Customer Acquisition Design reward structures that incentivize collective recycling efforts and allowing customers peer-to-peer point sharing . Leaderboard showcasing top contributor to recycle waste Volunteer Program: Community Based Incentives Volunteer opportunity for partner university students for BCT implementation who wants further study in this subject area. Involvement: Education campaign, Data Collection. Community Engagement: Strong Sense of Belongingness and Achievement
- 31. Customer Acquisition Engaging Live Streaming: • Leverage the immense influence of live streaming platforms among Chinese youth. • Partner up with different e commerce page and social media influencers. • Enable customers to use their credits to get discounts on their product. • Utilize live streaming for recycling demonstration, live Q&A and shout-outs to top local community. Youth Engagement in Sustainable Recycling: There were around 379 million content creators on Kuaishou with 44.2% female and 55.8% male. 76% were under the age of 35. In the first quarter of 2022
- 32. Customer Acquisition Dedicated Youth Ambassador: Criteria that are considered • Environmental consciousness • Youth appeal and influence • Positive image and reputation Youth Engagement in Sustainable Recycling: Zhou Dongyu
- 33. Customer Acquisition Partner up with webcomics: • Tap into the massive webcomic readership in China (500+ million!). • Collaborate with popular platforms like Tencent Comics, Kuaikan Comics, and Bilibili Comics. • Collaborating with writers, develop engaging webcomic series promoting responsible recycling. • Let customers use recycle rewards to get discounts on these webcomic apps. Youth Engagement in Sustainable Recycling: In 2018, Kuaikan Comics had 45.51 million monthly active users, while Tencent Animation had 13.79 million.
- 34. Customer Acquisition Call to Action: • Join the Green Wave! Download the app, start recycling, and become a sustainability champion. • Customers can scan the qr code and based on the type product they can see the recycle journey of the product which will increase more transparency. • Top Individual contributor and Local community contributor will be given shout out on the app and by the Youth ambassador on social medias. Youth Engagement in Sustainable Recycling: