Building the Foundation of Product-as-a-Service
Description
Running a Product-as-a-Service Business includes refurbishing products. It is not only a process in itself. It can also be another business model in itself.
Philips created a symbiotic relationship between PaaS and Refurbishment. PaaS returns are refurbished and sold as refurbished products. And many more products that are not available as subscriptions can be bought as refurbished.
In this episode, Boris Romero and Vincent van Lamoen from Philips give us insights into the refurbishment process, customer communication and the differences between the subscription and refurbishment propositions.
This episode is the fourth in the series PaaS Decoded, 16 conversations about the fine details of product-as-a-service.
People
Boris Romero, New Business Venture Lead, Personal Health, Philips
Vincent van Lamoen, Finance Director Personal Care, Philips
Patrick Hypscher, Co-Founder of Green PO, Expert in Sustainable Business Models
Chapters
00:00 Intro
03:39 The overview of Philips products offered as refurbished and as-a-service
08:44 Offering new or refurbished products as subscription
10:32 Giving information about the quality of refurbished products
13:00 Changing product design based on refurbishment requirements
13:37 Replacing hygienic components
14:06 Consumer research predicted different results than actual customer behavior
14:59 The refurbishment process in detail
19:00 Always meeting the legal requirements
21:30 Communicating about Refurbishment to Customers
28:44 Refurbishment is contributing to the triple bottom line
30:23 Refurbishment sells on its own, Subscriptions not necessarily
31:44 Reducing decision time with subscription options
32:33 Refurbishment and subscriptions require endurance and an end-to-end view
34:41 Customers and regulators will create more demand
37:15 Invitation to share and learn with others
About Philips (from website):
Royal Philips of the Netherlands is a leading health technology company focused on improving people’s health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. The company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care.
Further Links:
Breast Pump Rental Shop (The Netherlands): https://www.philips.nl/c-e/mo/rental-breast-pump.html
Refurbished Shop (The Netherlands): https://www.philips.nl/c-e/shop/ho/household-refurbished-shop.html#
Refurbished Shop (Germany):
https://www.philips.de/c-e/shop/de-generalueberholt.html
Refurbished Shop (UK):
https://www.philips.co.uk/c-e/shop/ho/household-refurbished-shop.html
Press Release: Philips takes home Cannes Lions Creative Business Transformation – Sustainable Commerce – Grand Prix award for Better than New campaign https://www.philips.com/a-w/about/news/archive/standard/news/articles/2024/philips-takes-home-cannes-lions-creative-business-transformation-sustainable-commerce-frand-prix-award-for-better-than-new-campaign.html
Philips Better Than New Full Campaign Video https://www.youtube.com/watch?v=M8h_Op0qCw0
Transcript
See episode page for the full transcript https://circularity.fm/philips-operating-communicating-refurbishment-successfully/
