Business Models for a Circular Economy (1/2)

David Peck interviews Professor Arnold Tukker of the Leiden University Institute of Environmental Sciences (CML). In the first video, Professor Tukker describes how companies can move from a “sell more, sell faster” model to a business model that emphasises selling services instead of products.

We can distinguish three different categories of product-service business models:

  • Product-oriented: the business model is geared towards sales of products. Some extra services are added, for instance a maintenance contract.
  • Use-oriented: The product still plays a central role. It is owned by a provider and is made available to a client. This is also referred to as an “access” model.
  • Result-oriented: The client and provider agree on a result. There is no pre-determined product involved. This is also referred to as a “performance” model.