Services

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Services

• Services within sustainable development are known
  by many names
• Eco-services
• Eco-efficient services
• Sustainable services
• Product-service systems
• a combination of these

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Sale of Product (Industrial Economy)
Sale of Performance (Service Economy)
Object of a sale is the product
Performance, customer satisfaction, results
Seller liable for manufacturing quality (defects)
Seller liable for quality of performance
(usefulness)
Payment if and when the performance is delivered
(no fun, no money)
Payment for and at transfer of property rights
(POS transaction)
Right liability transferred to buyer
No transfer of rights liability to user

• User Advantages
• Rights to increase in value
• Status symbol as product

• User Advantages
• Flexibility in utilisation
• Cost guarantee per unit
• Zero risk
• Status value as performance

• User Disadvantages
• Zero flexibility in utilisation
• No cost guarantee
• Full risk for operation disposal

• User Disadvantages
• No rights to increase in value

Marketing strategy customer service
Marketing strategy publicity, sponsoring
Notion of value high short term exchange at POS
Notion of value utilisation over the long term
Source Stahel, W (1999) From products to
services, Ecodesign99, Tokyo, Japan
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Types of Services
Eco-Services are either closely related to or
substitute products are generally divided into
three categories

• Product Services
• Use Services
• Results Services

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Product Services

• These offer additional services for the product
  sold such as maintenance, upgrading, repair,
  guarantee product take back to extend its
  useful life
• The customer still owns the physical good
• Enhances the utility that ownership of product
  delivers
• From an environmental perspective these services
  extend the useful life of the product
• Maintenance service for a washing machine over
  time less machines are needed materials
  energy saved
• Provides additional steady income to company with
  clients tied in
• E.g. extended warranty on a washing machine

5
Use Services

• The service provider no longer sells the product,
  but only its use, like leasing, renting, sharing
  , and pooling.
• Ownership of product resides with service
  provider.
• Customer have use of products but maintenance etc
  responsibility of service provider
• Increased eco-efficiency achieved through high
  use intensity of products, results in reduction
  of products needed
• Producers paid per unit of service delivered
  have an economic incentive to reduce resource use
  in production of each unit
• E.g. Car Sharing

6
Results Services

• The purpose is the satisfaction of customer needs
  regardless of the material product.
• This means that the service provider guarantees a
  certain result
• Product is owned run by the supplier so
  incentive to optimise operation and increase
  service life
• How needs are satisfied is irrelevant as long are
  they are satisfied
• Significant reduction in material energy
  consumption per unit of service can be achieved
• E.g. Integrated pest management saves 50
  pesticide costs increase yields

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Source Sherwin, C. (1999) Service Design from
products to services, internal report, Cranfield
University
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Examples of Eco-Services