Sustainable Innovation


Why buy ? Leasing is the future !

Customers want no hassle, no upfront costs, up-to-date and high quality products. Products As A Service’ (PAAS) become increasingly popular and respond to some of these needs.

What is a ‘Product As A Service ? PAAS is a creative derivation of the ICT word  ‘Software As A Service’.  Instead of becoming the owner of a new product or service,  you just rent and ‘pay as you go’. Take for instance Salesforce.com : an online CRM system paid on a monthly base.

PAAS can be found in all industries : Take the machines you can find at the office : copy, coca cola and coffee machines can be rented instead of buying the equipment representing substantial CAPEX. Dresses, costumes, shoes can be rented for special occasions. Michelins offers tyre-services to its lorry transportation customers, taking care of the tyres and the maintenance whilst customers pay for the transported kilometers. Property developers rent instead of sell their office and retail properties. Philips pilots a new ‘pay per lux’ service : customer like the architect agency of Thomas Rau profit from up-to-date high quality LED lighting without the hassle of installation and maintenance. 

Customer advantages of PAAS are numerous : No need to pay high upfront costs : just pay as you go. No need repair the product yourself : just ask the owner. No hassle to get the latest version : the supplier will take care of. And if you do not use the product any more  : the supplier will come and take it back.  

Environmental advantages of PAAS are obvious : By optimising the use of high-quality products, they can be kept operational for a longer period of time. In this model, suppliers and customers extend the lifetime of products, use less separate products and create a smaller environmental footprint.

In the ideal situation the supplier takes back the product and closes the product life cycle by using components as raw materials for new products – just as The Van Gansewinkel Group demonstrates.

– Thanks to Mirjam Kibbeling for our exchanges –

Advertisements

5 Comments so far
Leave a comment

completely agree with this concept
car leasing is mostly relevant when it comes with non use of this product : do you know that a car stay more than 80% parked !
so lease and re lease your car;)

Comment by moraud

This post triggered a memory about an article I read in Wired Magazine… eventually found it: http://www.wired.com/magazine/2010/11/st_essay_ownership/ and the article it refers to: http://www.wired.com/magazine/2010/08/st_thompson_property/
Unlike PAAS, this is about sharing consumer goods without supplier involvement. Different concept, but it raises similar questions about ownership of a lot of things we take for granted.

Comment by kclavel

@moraud : Yes – cars are one of the best examples

@kclavel : Thnx for the interesting link in Wired. Yes indeed ownership can also be shared between consumers.

The next trend is Pay As You Throw : Pay-as-you-throw (PAYT) incentive-based schemes may increase by 12.2% the ratio of sorted to total waste according to findings of researchers in Italy : http://ht.ly/4jMpF

Comment by thegreentake

Would you ever consider renting a suitcase for your travel ? You call a service who brings you the suitcase, you pack it , they send it to your destination. We are considering conceiving products that way, your comments are welcme !Catherine

Comment by Catherine De Bleeker

A great idea ! Suitcases are used that often .. Notably the very large ones .. Why not rent them ?! Could be offered as an extra service for long distance travels for instance!

Comment by thegreentake




Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s



%d bloggers like this: