The idea of access versus ownership is nothing new. More important, Philips retains control of its products, making it easier to reclaim valuable materials, while maintaining an ongoing customer relationship. In so doing, customers save money by paying only for the light they use, while ditching the hassle of burnt-out bulb replacement and disposal as well as navigating system upgrades. The most popular example that analysts, academics and industry experts point to is Philips Lighting’s shift from selling light bulbs to offering lighting-as-a-service. The root of circular business model innovation, as far as I can tell, comes largely from applying simple proven solutions in new contexts. There’s great buzz around "business model innovation" when it comes to how companies will transition towards circularity. This article is drawn from the Circular Weekly newsletter from GreenBiz, running Fridays.
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