1. The Leasing Society …
the end of ownership?
Presentation during Greenweek 2011, Brussels
Rob Blaauboer
Principal Innovation Consultant & Innovation Practice Manager
Logica Business Consulting

2. Times are changing … creating an opportunity
• The innovation pace in Consumer
Electronics is relentless
• Economic Lifecycle is far shorter than
the Technical lifecycle
• Resources are becoming scarce and
more expensive
• Recycling and reuse could be improved
• Consumers are hesitant to buy new
products, e.g. televisions
• There is an Sustainability Paradox
There is an opportunity to create a
new business model in consumer
electronics based on a new
paradigm : the end of ownership
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3. The lease society: a marriage of “eco”s
(ecology and economy)
• Consumers in the leasing society will no longer
own CE devices but rather ‘lease’ them.
• The product based business model will be
replaced with a services based business model
• Design principles of devices will change
• The parameters for the business model depend
on many factors and the devices themselves
• The device or components bideally have a
second(3rd..xth) lease on life.
© Logica 2011. All rights reserved

4. An EXAMPLE in Mobile Telephony
Pays per
From month
Mail delivers
New phone
and old
phone is
mailed
Orders For recycling
Year 0 Year 1 Year 2
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5. Is leasing a misnomer?
For companies, leasing is a way to move capital goods of the balance
sheet and move from capital expenditure to operational expenditure.
Futhermore it will make cost more predicatable since in many cases
the cost is more or less fixed.
There have been (many) tries to introduce leasing for consumers but
with limited succes (as far as we know). Now we focus not only on
economic goals but also on ecological and innovation goals.
Therefore, a new term, verb or brand should be
created that signifies this new paradigm.
© Logica 2011. All rights reserved

6. Is this the end of ownership? And is it a bad thing?
The question is if we need to own something if we are simply using it.
The transistion from product to service is not easy. However we
already see some exiting examples, for instance Spotify.
Spotify offers millions of musics tracks for a fee of $9.95 per month. You do not
own the music, but for the price of less than CD per month, i can listen to all
songs, as much as i like both mobile and PC based. Of course Spotify is an
digital example of a service. They now have 1 million subscribers (a fraction of
the potential) and the number is growing.
Piracy and digitization of music has been a struggle for the industry
but the trend continues (and can’t be stopped) with players like
Spotify and iTunes.
A new generation of consumers is growing up with digital music
rather than CD’s (not to mention LPs or cassettes)
This might be a generation that is open to “lease” CE devices
as well as the music rather than own them.
© Logica 2011. All rights reserved

7. Look for wins for all stakeholders
Consumer Business Environment
Monthly fee Services Business Model Better reuse/recycling
Latest technology, no More and continious contact Better use of
technology junkyard with the clients resources
In order for this idea to become a reality we need to
look for the wins for all stakeholders. Pushing it solely
from the perspective of sustainability might label it as
an idea from those “crazy green” people.
Change evokes resistance, and the CE industry is
powerful. If we are able to let all stakeholders gain, it
improves the chances of becoming successful.
© Logica 2011. All rights reserved

8. Changes to the business model, design principles
and our own way of thinking
The transistion from a product based business model to a services one
is significant. It changes income streams but also offers new
opportunities and new customer contact. New partnerships will likely
be needed to complement current capabilities (e.g. logistics,
refurbishment/ recycling , financing).
The design principles need to take into account the reuse / repurpose
/ recycling concept. The current business model focuses on selling new
devices, not reusing or recycling. Software upgrades or updates are
preferable, snap-in / out components enable consumers to upgrade
and materials should be able to be separated in a simple way.
Consumers need to get used to the idea that ownership is not sacred
and that ‘leasing’ can offer benefits for them and the environment. It
also changes our finances, the upfront investment is replaced with
monthly fees (impact on savings and checking accounts).
© Logica 2011. All rights reserved

9. Talk is good, action is better!
Change happens in small steps and pilots. We need to keep in mind
that the end of ownership is a paradigm shift for all stakeholders.
But we need to take these steps, learn while we are taking them if we
want to see in what form or shape the idea is viable.
The best way forward is a pilot to see if the leasing society could work
and in what form. And of course continue to promote the idea of the
leasing society and its benefits.
Ceterum censeo Carthaginem delendam esse
Marcus Porcius Cato Censorius maior
© Logica 2011. All rights reserved

10. Thank you for your attention
Please contact me if you have any questions or suggestions
Contact details:
Logica
Rob Blaauboer rob.blaauboer@logica.com
Prof. W.H. Keesomlaan 14, 1183 DJ Amstelveen | Nederland
T: +31 20 5033000 | M: +31 6 13832610
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