Developing circular products and business models requires a holistic perspective on the product life cycle and its context. This contribution introduces a methodology consisting of five phases, categorized into three perspectives, linked by analysis and synthesis activities. This new approach embraces the adaptability of the dynamic product context through the creation of new material and information cycles. Contextual elements, which influence product development yet are not inherent parts of the product, are systematically considered. Moreover, it identifies starting points for the development of new circular product and business model scenarios, which can be also used to systematically discover problem shifts in the impact areas of sustainability. Circularity and sustainability assessments of the product portfolio, the business model, and the context serve as the methodological foundation for deriving requirements in product development. For this purpose, the scenario technique is further developed and integrated into evaluation methods. By assessing technical feasibility in the preliminary concept, requirements and technical constraints are integrated into cycle planning processes. This ensures that holistic circularity considerations are initially addressed. Thereby, the gained context sensitivity provides manufacturing companies with decision-relevant information, allowing them to leverage their potential from an integrated view of products and material/information cycles.