An exploratory study for product-as-a-service (PaaS) offers development for electrical and electronic equipment

Abstract

Manufacturing enterprises continue to grapple with transforming from their existing business model, which revolves around designing and selling tangible products, to business models centered on providing a blend of products and services. Product-as-a-Service (PaaS) emerges as a business strategy capable of catalyzing the shift toward higher levels of circularity. However, effecting changes in operational methodologies and value delivery mechanisms is imperative, consequently prompting modifications in the core business strategies of these companies. The objective of this study is to discern and categorize prevailing PaaS business models for electrical and electronic equipment (EEE). The Business Model Canvas (BMC) is introduced as a foundational tool to facilitate this transition, emphasizing the central role of the value proposition within the business model. Additionally, the study underscores the importance of robust take-back systems and repairability in PaaS implementation, particularly within the EEE sector. It highlights the need for novel partnerships, redesigned reverse logistics networks, and efficient product assessment methods to facilitate environmentally responsible decisions. Furthermore, the research evaluates the financial implications of PaaS adoption through Life Cycle Costing (LCC), emphasizing its value in predicting and addressing temporary financial complications, thereby ensuring a smoother transition to service-oriented business models.