What is Product as a Service?
Leasing a product is the simplest form of the business model commonly known as Product as a Service or PaaS for short. The end-user doesn’t own the product but pays a set amount over the period of time it is used by them. The fundamental characteristic of Product as a Service however isn’t the physical product but that it focuses on providing utility. A well-known example is lighting as a service. If a company wants to illuminate office space it isn’t interested in which light bulbs are used but that they pay the best price for the best end result. It is all about finding the best lighting solution and making sure this solution can be adapted to changing circumstances such as product improvements or new demands by the end-user. A well-designed Product as a Service-offering, therefore, is focussed on service with the product only being a means to an end.
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