With a Product as a Service business model, new and existing companies can be innovative in the way they do business, as well as environmentally responsible at the same time.
No longer do consumers want to own, store and maintain items, regardless of whether they are tools, office or household appliances, cars etc...
As Accenture points out in their Journal of High-Performance Business : Product longevity, reusability and sharing are no longer seen as cannibalisation risks, but instead, as drivers of revenue and reduced costs.
Do consumers want the things itself – the car, the lightbulb, the handbag? Or the benefits it brings? With Product as a Service business model, products are used by one or more customers through a lease or pay-for-use arrangements. This approach turns the incentive for product durability and upgrading upside down, shifting companies’ focus from volume to performance.
High Tech giant Philips, wanting to reduce waste from lightbulbs while at the same time changing to a more profitable business model, offers lighting as a series of services – advisory services (evaluation of existing systems), project services (creation and implementation of new solutions) and lifecycle services (guarantee of maintenance and performance).
Simapro states in their article Five Ways to Circular Economy : Xerox long ago realised that companies did not need copiers, they needed copies. This meant that companies no longer had to care whether they got a new machine or a refurnished machine. The refurbishment of used machines on a large scale, led to significant cost savings and big benefits for the environment.
The Circular Phone
Using Fairphone as a leading example, a unique interdisciplinary consortium was able to break through the financing pitfall surrounding the circular business model and shares a legal Circular Service Contract and a financial cash flow tool to support Product-as-a-Service models.
These are but a few examples of how companies are innovating their models to succeed in the new economy. But in order to do so, they need a robust enterprise grade platform for managing the assets upon which they build their business. One that provides an understanding of the usage data, maintenance requirements, real time location as well as vital information about their customers. This is where we come in!
At SmartUse.Global in collaboration with myTurn pbc, we have the technology to support the transition to a Product as a Service model. Providing robust reporting with data on what assets you have, their life-cycle management and maintenance solutions and more. We work with our customers to develop concepts and features needed for everyone to succeed in the new economy. Contact us at email@example.com to learn more.