Tophill: Optimal Use

The second category, Optimal Use, relates to the in-use phase of a product. Business models in this category seek to optimise the use of the product by providing services or add-ons to extend the lifetime of a product or provide ways to improve productivity of a product. These business models are positioned on top of the Value Hill. A much-explored business model is the product-service-system (PSS) model (Tukker, 2004), where companies create bundles of products and services that are of greater value together than they are alone, and provides business with greater control over their resources.

These PSS models are organised through leasing, renting, pay-per-use or performance-based business models, which allow for the ownership to remain with the service provider. These models have the potential to decouple profit from production and enhance product productivity (Sonerud 2014). Examples of other models in this category are sharing platforms (Lacy en Rutqvist, 2015; Stegeman, 2015) or life extension strategies (Stegeman, 2015).

Example Optimal Use: Bundles

PERFORMANCE-BASED Bundles developed a p ay-per-wash business model that focused on selling packages of washing cycles ('bundles') instead of washing machines.

LIFE-EXTENSION & LESS-INTENSIVE RESOURCE USE By attaching a device to their washing machines the company is able to maintain ownership of the machines while monitoring their usage. Statistics gathered from the machine are displayed on the Wash-App, which provides the customer with insights into the overall cost of doing their laundry, including energy, water and detergent consumption. This not only reduces the costs for the customer, but also extends the life of the machine.