Device as a service (DaaS) business model – implications for circular economy

ESG
06/03/2023Article

From owning to using

Climate change requires a fast transformation towards a carbon-conscious economy as well as new consumption and production patterns. XaaS (everything as a service) models contribute to this transformation by creating true value for customers – with less material, waste, and operating costs. Why? Because XaaS models are by definition more demand-driven and customized to the customers’ actual needs, contrary to the traditional linear ‘take-make-dispose’ principle.

Device as a service (DaaS)

As-a-service means selling a value proposition instead of products: in the case of hardware, it means understanding that companies and their employees do not ‘need’ smartphones and laptops as such, but need to stay connected and operational at all times. Long-term value emerges when devices are not simply provided, but maintained and serviced. DaaS providers maintain ownership of the devices and are, thus, incentivized to adopt circular strategies to protect their assets, extending the life cycle of each device. A triad of reusing, refurbishing, and recycling increases its value over its lifespan and, therefore, challenges linear economy production patterns.

Want to keep reading?

Create a web account to get access to more insights

Related news & insights

Digital Reinvention
01/05/2025Article

Financial Innovation Spotlight – April 2025 edition

Here are five standout projects that grabbed our attention, from AXA in France, Maybank in Malaysia, Westpac in Australia, Assurant...

ESG
30/04/2025News

Danske Bank strengthens ESG support for business customers

Danske Bank has announced a new partnership with sustainability software provider Position Green to enhance its ESG (Environmental, Social, and...

Digital Reinvention
18/04/2025Video

AI for ESG: 6 powerful ways data and machine learning are driving sustainable success

Julien Defossé, Worldwide FSI Market Development Lead at AWS, presents the main findings of the report The AI Imperative: Navigating...

Mobility
15/04/2025News

Crédit Agricole Auto Bank and BYD partner to boost electric mobility in France

The deal will provide tailored financing solutions for both private buyers and corporate fleets, supporting the distribution of BYD’s growing...

Insurance
15/04/2025News

AXA France adds domestic violence support to home insurance

The initiative aims to better protect victims of domestic violence by offering immediate help in their time of greatest need.

Digital Reinvention
11/04/2025Video

AI in ESG at ČSAS

David Krameš, AI & Strategy Business Partner at Česká spořitelna (a subsidiary of Erste Group in the Czech Republic), shares...

Digital Reinvention
09/04/2025Interview

Further insights: Strategic frugality reframes cost-saving as a growth tool in finance

We don’t talk much about frugal innovation, an intriguing concept that is proving to be remarkably effective and valuable. It...

07/04/2025News

Westpac joins government trial to help homeowners cut energy costs

Westpac has become the first major Australian bank to partner with the federal government in a new initiative aimed at...