Service-based business models known as Product-as-a-Service (PaaS) is said to be an essential part of the transition of building a circular economy. Despite the well documented value-creating potential, the development is within companies is slow and the risk of failure interprets to be high. Stena recycling and Cradlenet started a project in the beginning of the year with the purpose to accelerate companies ability to adapt and switch to PaaS. Axfoundation is part of the project’s expert group and welcomes the project’s recently released report. Practical strategies and a methodology of how companies can overcome the most common obstacles found in the transition to PaaS is presented in the report.
“As a do-tank we believe it is essential for a sustainable development to move from talking to innovative, circular and collaborative doing. This knowledge packed report is a good support for this shift. It raises awareness on how to overcome barriers identified with PaaS but foremost it works as a handbook on circular business strategies, guiding companies in practice. In short, a much needed report that inspires action.” – Hanna Skoog, program director circular ekonomi.
The project is financed by the European Regional Development Fund through the Agency for Growth, and targets small and medium-sized companies with good conditions for implementing business models centered around PaaS. The report identifies nine key challenges that make the transition to PaaS difficult. The categories of challenges move across several areas such as customer acceptance, operational and capability related costs, and financial risk. For each challenge, the report provides examples of practical and business-centric actions to address them.