Service

The service approach offers a system of ongoing support for users, and interaction points that create an overall experience designed for ease of use. This approach is about reconfiguring systems so the user experiences a new relationship to an organisation, transaction or product. This model is based around providing new kinds of value for the consumer, ie a fun, worry-free or money-saving experience. In some cases the service model removes the need for outright ownership or consumption, allowing for a new kind of sharing economy. For example, the recent rise of car sharing, enabled by technology and mobile platforms. Sometimes known as transmaterialisation, this is the process of providing the benefits of a physical product, using a service. The service might be a virtual replacement such as digital music, or a more efficient way of using a physical product, such as public transport or power tool sharing.

Services can play an enabling role for other circular economy strategies, such as design for reuse. It might be a consumer facing service allowing people to refill food and drinks containers, or a business-to-business service allowing organisations to collect their distributed packaging or products. This focus on great customer interactions through simple and intuitive touchpoints incentivises uptake beyond just the niche.

Strategies such as design for disassembly are also hard to deliver without taking a supportive service approach. If an organisation goes to the trouble of designing an item specifically so it is easy to take apart, which might require more upfront investment in design and material costs, they need to ensure there are systems in place to enable that lifecycle. This is where a service approach becomes a systems approach. Considering a holistic viewpoint and supporting the weak links in the system will allow the whole thing to operate with more resilience.

Pros:

  • Can reduce use of resources by replacing physical assets with services
  • Can provide access for disadvantaged or less well connected users, and can encourage community through sharing
  • Services for reuse can unlock tied-up material value
  • By considering a product or interaction as part of a system we have more chance of closing loops
  • Cons:

  • Some user markets or products are unsuitable for this approach
  • Could drive consumerism as barriers such as price and access are reduced
  • Services for reuse could increase material footprint if they require significant resources to make them resusable
  • May require complex networks to co-ordinate or deliver

  • Examples:

    Think about how they’ve employed the service strategy. How much do you think these examples contribute to the circular economy?

  • Xerox the copier and printer company pioneered a new service model with its product lease and asset recovery operations in the 1980s. The company removed old machines from the waste stream and reused component parts to upgrade existing machines. The system encouraged design for durability and allowed customers to avoid the problems of maintaining and upgrading machines.
  • Schindler make 70% of their revenue by leasing ‘vertical transportation services’ rather than selling (or leasing) elevators and escalators. They focus on supplying the functionality and a full repair and maintenance service. Schindler’s products are more efficient and reliable by leasing their services, so they can capture the associated operational savings.
  • Design for Demand
    Novelis Forum For The Future
    Index

    Who We Are and What We Do

    Novelis and Forum for the Future share a commitment to sustainability. Novelis is working for long-term systemic change in how we produce and transform materials and is partnering with Forum for the Future to support and encourage wider adoption of circularity.

    NOVELIS

    Novelis Inc. is the global leader in aluminium rolled products and the world’s largest recycler of aluminium, delivering unique solutions for the most demanding global applications, such as beverage cans, automobiles, architecture and consumer electronics. In 2014 Novelis opened the world’s largest cutting-edge aluminium recycling facility in Nachterstedt, Germany.

    FORUM FOR THE FUTURE

    Forum is an independent non-profit organisation that works globally with business, government and others to solve complex sustainability challenges. We believe it is critical to transform the key systems we rely on to shape a brighter future and innovate for long-term success.

    Thanks also go to a number of contributors and interviewees including Jaguar Land Rover, The Agency of Design, Ellen MacArthur Foundation, GKN Land Systems, Knowledge Transfer Network and Julian Allwood, professor of engineering and the environment at Cambridge University.

    NOVELIS

    Novelis Inc. is the global leader in aluminium rolled products and the world’s largest recycler of aluminium, delivering unique solutions for the most demanding global applications, such as beverage cans, automobiles, architecture and consumer electronics. In 2014 Novelis opened the world’s largest cutting-edge aluminium recycling facility in Nachterstedt, Germany.

    FORUM FOR THE FUTURE

    Forum is an independent non-profit organisation that works globally with business, government and others to solve complex sustainability challenges. We believe it is critical to transform the key systems we rely on to shape a brighter future and innovate for long-term success.