A New Logic of Value.
For years, we’ve measured the value of a product by ownership. Buy, accumulate, replace. But in the evolved circular economy—what we now call Circular Economy 2.0—a new paradigm is emerging: value lies in use, not in ownership.
This vision is called servitization: the shift from selling a product to offering the service it provides. Instead of selling a washing machine, a company can offer laundry as a service. Instead of selling a lightbulb, it can offer illumination. A radical shift that revolutionizes business models and supply chains.
Why It’s Strategic Today
In a world of increasing resource scarcity, rising impact awareness, and growing demand for transparency, servitization offers a scalable and concrete solution. It allows companies to:
- maintain control over product life cycles;
- generate recurring revenue;
- optimize reuse and maintenance;
- design with durability and efficiency in mind.
Real-World Examples of Servitization
- Wework has transformed the concept of office space by offering workspaces as a service. Clients don’t buy infrastructure—they access flexible spaces and shared services.
- Washing machines by subscription: some companies now offer domestic washing machines via pay-per-use or monthly subscriptions, including maintenance and upgrades.
3 Levers to Embrace Servitization
- Design for longevity and reuse: every product must be designed with long-term use in mind.
- Long-term customer relationship: shifting from a single transaction to an ongoing relationship.
- Enabling technologies: IoT, sensors, blockchain, and digital platforms are key to monitoring usage, maintenance, and performance.
Servitization = Competitive Advantage
Companies adopting servitized models can:
- credibly differentiate in the market;
- build customer loyalty by offering ongoing value;
- reduce waste and boost resilience;
- align with increasingly strict regulations.
Are You Ready to Make the Leap? The shift from product to service is not just a technical change—it’s a matter of positioning. A leadership choice.
Servitization is one of the most promising ways to turn sustainability into competitive advantage. If you’re wondering where to start, the answer is simple: begin by asking yourself “What need am I really meeting?”