Report and Toolbox

Product-as-a-Service in the circular economy: the nine critical challenges and how to fix them

A circular transition requires a massive, systemic transformation in how we make, use, and reuse products and materials. Service-based business models, or Product-as-a-Service (PaaS), have the potential to create more economic value than linear ownership-based business models. This is why PaaS has a key importance for the transition.

The purpose of this report is to propose a methodology for small and medium enterprises (SMEs) to plan, test, launch and operate PaaS-based business models more effectively. The report identifies nine key challenges that inhibit the transition to service-based business models. For each challenge, the report provides examples of methods and actions to solve the problems. In addition, we have refined and summarized these methods and actions in a toolbox with guides and templates that are included in the download below.

The report and the methodology are part of the project Service-based business models – transitioning to PaaS in practice by Cradlenet in collaboration with Stena Circular Consulting (a part of Stena Recycling AB) 2022–2023. The aim of the project is to improve the conditions for small and medium-sized companies to plan, try and implement service-based business models. The project is financed by The Swedish Agency for Economic and Regional Growth and the European Regional Development Fund (ERDF).

To access the report and toolbox, please fill in the form below.