Abstract
This study explores the transformative potential of the Component-as-a-Service (CaaS) business model for electrical and electronic equipment (EEE), emphasizing the shift from traditional sales-centric models to circular, use-oriented models. Central to this approach is the value retention through component lifecycle management. The research integrates Design for X (DfX) principles with comprehensive design guidelines to facilitate the implementation of CaaS, ensuring sustainability and enhanced circularity in product usage. The methodology includes a detailed examination of existing CaaS offerings, leveraging the Business Model Canvas to elucidate key elements such as value propositions, customer relationships, and revenue streams. Additionally, the Circular Business Model Canvas highlights essential activities like take-back systems, non-destructive disassembly, and refurbishment operations that underpin sustainable practices. Critical to this study is the focus on critical raw materials (CRMs), highlighting the role of CaaS in fostering resilience within CRM supply chains by enabling multiple use cycles and optimizing resource utilization. This research underscores CaaS’s capacity to mitigate e-waste, promote resource efficiency, and enhance customer value, positioning it as a pivotal strategy in the evolution of business models within the electronics industry. The findings aim to guide OEMs and other stakeholders in adopting more sustainable and resilient operational frameworks.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Tukker, A.: Product services for a resource-efficient and circular economy – a review. J. Clean. Prod. 97, 76–91 (2015). https://doi.org/10.1016/j.jclepro.2013.11.049
Hidalgo-Crespo, J., Riel, A., Vogt Duberg, J., Bunodiere, A., Golinska-Dawson, P.: An exploratory study for product-as-a-service (PaaS) offers development for electrical and electronic equipment. Procedia CIRP (2024)
BSH Home Appliances Group. Looking to a Sustainable Future of Business with BlueMovement (2021). Retrieved February 12, 2024, from https://stories.bsh-group.com/en_DE/article/looking-to-a-sustainable-future-of-business-with-bluemovement-43571
Electrolux Group. Launch new subscription-based business model to promote circular economy (2022). Retrieved February 12, 2024, from https://stories.bsh-group.com/en_DE/article/looking-to-a-sustainable-future-of-business-with-bluemovement-43571
Hidalgo-Crespo, J., Riel, A., Zwolinski, P., Wandji, C., Amaya-Rivas, J.L.: Measuring the level of acceptance from the population of guayas province for different paas models: the case of the washing machine. Procedia CIRP 116, 462–467 (2023)
Hidalgo-Crespo, J., Riel, A.: Towards user-centric design guidelines for PaaS systems: the case of home appliances. Commun. Comput. Inf. Sci. 1890, 186–195 (2023). https://doi.org/10.1007/978-3-031-42307-9_14
van Loon, P., Van Wassenhove, L.N.: Transition to the circular economy: the story of four case companies. Int. J. Prod. Res. 58(11), 1748907 (2020). https://doi.org/10.1080/00207543.2020
Diaz, A., Schöggl, J.-P., Reyes, T., Baumgartner, R.J.: Sustainable product development in a circular economy: implications for products, actors, decision-making support and lifecycle information management. Sustain. Prod. Consumption 26, 1031–1045 (2021). https://doi.org/10.1016/j.spc.2020.12.044
Diaz, A., Reyes, T., Baumgartner, R.J.: Implementing circular economy strategies during product development. Resour. Conserv. Recycl. 184, 106344 (2022). https://doi.org/10.1016/j.resconrec.2022.106344
Hidalgo-Crespo, J., Riel, A., Vogt Duberg, J., Bunodiere, A., Golinska-Dawson, P.: An exploratory study for product-as-a-service (PaaS) offers development for electrical and electronic equipment. To be published in Procedia CIRP (2024)
Hidalgo-Crespo, J., Riel, A., Golinska-Dawson, P., Peeters, J.R., Werner-Lewandowska, K., Duflou, J.R.: Facilitating circularity: challenges and design guidelines of Product-as-a-Service (PaaS) business model offers for electrical and electronic equipment. To be published in Procedia CIRP (2024)
Pisano, A., Saba, M., Baldovino, J.A.: A critical review of NIO’s business model. World Electr. Veh. J. 14(9), 251 (2023). https://doi.org/10.3390/wevj14090251
Indiran, L., Lei, J., Baskaran, S., Yaacob, T.Z., Abdul Kohar, U.H., Amat Senin, A.: Disruptive Innovation: A Case Study of BYD’s Business Model Canvas. International Journal of Academic Research in Business and Social Sciences, 13(9). Human Resources Management Academic Research Society (HRMARS) (2023). https://doi.org/10.6007/ijarbss/v13-i9/17822
Renault. Renault features production version of ZOE, Twizy EV at Geneva. Green Car Congress (2023). http://www.greencarcongress.com/2012/03/zoe-20120309.html
Helander, H., Ljunggren, M.: Battery as a service: analysing multiple reuse and recycling loops. Resour. Conserv. Recycl. 197, 107091 (2023). https://doi.org/10.1016/j.resconrec.2023.107091
Davis, M.J.M., Hiralal, P.: Batteries as a service: a new look at electricity peak demand management for houses in the UK. Procedia Eng. 145, 1448–1455 (2016). https://doi.org/10.1016/j.proeng.2016.04.182
The circular canvas for business models. Circulab academy (2023). https://circulab.academy/circular-economy-tools/circular-canvas-business-models/
Frenzel, M., Kullik, J., Reuter, M.A., Gutzmer, J.: Raw material ‘criticality’ Sense or nonsense? J. Phys. D Appl. Phys. 50(12), 123002 (2017). https://doi.org/10.1088/1361-6463/aa5b64
Golinska, P., Kawa, A.: Recovery Network arrangements-the WEEE case. Information Technologies in Environmental Engineering. Environmental Science and Engineering, 3 (2012)
Gaustad, G., Krystofik, M., Bustamante, M., Badami, K.: Circular economy strategies for mitigating critical material supply issues. Resour. Conserv. Recycl. 135, 24–33 (2018)
Lewicka, E., Guzik, K., Galos, K.: On the possibilities of critical raw materials production from the EU’s primary sources. Resources 10(5), 5 (2021). https://doi.org/10.3390/resources10050050
Cecilia Arredondo-Soto, K., et al.: Design and repair strategies based on product-service system and remanufacturing for value preservation. Sustainability 14(14), 8560 (2022). https://doi.org/10.3390/su14148560
Pries-Heie, J., Johansen, J., Messnarz, R.: SPI Manifesto (2010). https://conference.eurospi.net/images/eurospi/spi_manifesto.pdf
Acknowledgment
This research has been supported by the SCANDERE (Scaling up a circular economy business model by new design, leaner remanufacturing, and automated material recycling technologies) project granted from the ERA-MIN3 program under grant number 101003575 and funded by the project partner countries’ national funding agencies. This particular initiative has been co-funded by the French ADEME (Ecologic Transition Agency) under contract number 2202D0103. Poznan University of Technology was financially supported by NCBR, National Centre for Research and Development, Poland (No. ERA-MIN3/1/SCANDERE/4/2022). KU Leuven acknowledges the support for Fonds Wetenschappelijk Onderzoek (FWO) – Vlaanderen/Research Foundation – Flanders (project G0G6121N).
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Hidalgo-Crespo, J., Riel, A., Golinska-Dawson, P., Bunodiere, A., Duflou, J.R. (2024). Component-as-a-Service for Electrical and Electronic Equipment: Business Model, Circularity, and Design Implications. In: Yilmaz, M., Clarke, P., Riel, A., Messnarz, R., Greiner, C., Peisl, T. (eds) Systems, Software and Services Process Improvement. EuroSPI 2024. Communications in Computer and Information Science, vol 2180. Springer, Cham. https://doi.org/10.1007/978-3-031-71142-8_5
Download citation
DOI: https://doi.org/10.1007/978-3-031-71142-8_5
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-71141-1
Online ISBN: 978-3-031-71142-8
eBook Packages: Computer ScienceComputer Science (R0)