Upstream Advisory I Performance

Product as a Service

Change Better. We support companies to structurally improve their business…

Amidst the pandemic something interesting is happening. It represents a window of opportunity to reflect, reimagine and rethink sustainability. We should take ownership of our planet and drive circular economy; eliminate over consumption and waste. Why buy and own while you can pay for usage? What is your game plan? Based on our experience, we share key elements to develop a winning Go2Market proposition with “Product as a Service”.

1) This is a business model that allows customers to pay a regular fee for the usage of a capital good with service element without ownership (examples; pay per use, rental, lease).

2) Purpose –Why should you transform from product offering to Product as a Service? You will sell more with higher margins and stronger brand loyalty from your customers.

3) Define your (Go2Market) strategy and policies.

4) Invest in people and digitalisation to accelerate sales and drive installed base management.

5) Optimise your logistics work process, incl. end of contract returns, remarketing and replacement.

6) Do not invest in inventory or asset base. Appoint a financing business partner. Set extended producer responsibility and offload credit risk.

7) Work closely together to train your salesforce, develop marketing and promotions, quotation tools and set standard residual values.

8) This business model enables a circular economy without over consumption and minimizes waste.

…with our head in the sky and feet in the mud