Solutions against biodiversity loss and the climate crisis may change our current ownership models
Borrowing and renting instead of owning can free you from the need to storage and maintenance of goods. For companies, the product as a service model brings new value and environmental benefits through reduced production. The guide created in the PaaS Pilots – Product as a Service Pilots – project provides guidance for companies for a transition towards circular economy.
A product as a service (PaaS) business model offers customers an alternative for owning. By renting and borrowing products, the company transfers the right to use the product to its customers, but the product and its materials stay in the possession of the company. This way, the product is likely to get more uses during its’ lifetime than with just a single owner.
A PaaS model gives the company the opportunity to manage its own materials, when the products are finally returned from the customer to the company. Comprehensive management of materials can increase the number of uses of individual products, and lead to decrease the demand on raw materials, as well as enable efficient reuse, waste sorting and recycling.
Pure Waste Textiles and Image Wear were piloting casual wear and work wear as a service concepts during spring 2022, as part of the PaaS Pilots project implemented by Turku University of Applied Sciences, LAB University of Applied Sciences and VTT. Based on the information gathered from the pilots, a guide for developing service models was produced to help other companies. The experiment produced vital data for the companies on enabling the new business model to function, and both companies will continue to develop their services also in the future. The guide, that has just been published in English, will also be published in Finnish in the fall of 2022. The guide is designed for the use of all kinds of companies in various sectors.
The new way of owning brings peace of mind
Consumers are more interested in the environmental impact of their consumption than before, and a change can also be seen in the attitude towards ownership. Different clothing rental companies allow you to update your wardrobe without the risk of impulse purchases, or you can use a shared bicycle or electric scooter to get around.
A PaaS model makes it possible for customers to use products exactly when needed, without large investments. A new way of owning brings peace of mind to customers. There is no need to worry about the product’s end-lifecycle, because the service provider handles the recycling on behalf of the customer.
In a market increasingly focused on the circular economy, switching onto PaaS models can bring companies new business and new opportunities for success. The model could be used even more broadly, in various fields and companies of different size, than it currently is.
Download the Guide for developing Product as a Service business here.
The PaaS Pilots – Product as a Service Pilots project funded by Sitra involved Turku University of Applied Sciences, LAB University of Applied Sciences and VTT Technical Research Centre of Finland.
The news was previously published on the website of Turku University of Applied Sciences.