Manufacturing companies have traditionally focused their efforts on designing, developing and producing physical products for the market. Today, for various reasons, manufacturers are integrating more services into their products, and some are now even selling their products as a service. This innovation strategy changes manufacturers’ business model from selling products (e.g. cars) to selling a service (e.g. mobility). Rather than the ownership of a product, the value to customers is based on the access, use or performance of the products through services - in this way often better addressing the customer’s needs. In this document, the term “Product-as-a-Service” is used, but this phenomenon is also known under other terms such as servitization, product-service systems (PSS), functional sales, integrated solutions, performance-based logistics, dematerialization, etc.
This document is a short note introducing the concept of “Product-as-a-Service”; its current state within the transport and mobility sector; and, a first analysis of the challenges of accelerating the uptake of Product-as-a-Service business models.