Digital transformation affects all companies. It changes not only our relationship to technology but also the way we do business. The rapid development of the “As-a-Service” model is a typical example.
In many areas, ownership attractiveness declines as technology evolves. Streaming has replaced the DVD collection. We prefer to pay a rent and take advantage of the latest technologies rather than acquire rapidly obsolete equipment. As part of this logic of financing usage, leasing is gaining ground every day.
What does the concept of “as-a-service” cover?
In an economy dominated by price wars and margin erosion, most companies have to rethink their business models to survive. Some companies have understood this well and are moving towards a more qualitative economic logic, valuing the solution rather than the product.
“We no longer sell lamps but light,” explains François Darsy, marketing manager at Philips Lighting. “We offer a lighting service in the form of a performance contract on reducing energy consumption or failure rate through monitoring building use. This has completely transformed our model. Before, we used to send our products to our customers in the hope of selling them some more very quickly. Today, since the lighting is ours and must operate for as long as possible, we manufacture it in a more modular way so that it can be easily dismantled and repaired or, if necessary, upgraded in a circular process.”
According to an Accenture study, the market is evolving towards a more flexible “aaS” business model that offers flexible, scalable and usage-based services to achieve operational results that meet business requirements: increased revenues and lower costs.
With new combinations of products and services, companies can innovate faster and deepen their customer relationships by offering added value.
Impact of the aaS model on IT department
The aaS logic has a significant impact on the way IT departments operate and must rethink their roles and responsibilities within the company.
IT services must be redefined
In many companies, the IT department is no longer considered an essential component of performance. Some 77% of companies believe that the IT department does not have the skills to adapt to the world of “as-a-service”. And 42% believe that IT takes too long to deploy solutions. (Accenture)
Bypassing the IT department is a risk
In companies, users tend to underestimate the difficulties and risks associated with data service integration. However, IT plays a moderating role, between deploying services and platforms that improve productivity and protecting against partitioning and security threats. (Accenture)
Leasing: an essential partner of the “as-a-service” model
In addition to their technological evolution, companies are changing their approach to financing. Leasing and renting are becoming more and more attractive. The challenge is no longer to plan and get an investment approved, but to define and meet the real needs in terms of equipment and services.
Leasing is perfectly in line with this change in focus: the purpose is no longer to own servers or computers but to finance their use. Indeed, why buy equipment that will quickly become obsolete? It is better to ensure constant access to the best technologies of the moment. Owning the most powerful PC is no longer an end in itself, accessing its performance is!
Moving towards the circular economy
From the economy of use to the circular economy, the transition is quickly made. Optimization of use invariably raises the question of the life span of equipment, ease of repair or management of resources at the end of their life.
In the case of an evolutionary renting, the financial partner, who remains the owner of the rented equipment, is responsible for the optimization of the life cycle of the rented assets.
- Helping the company to maintain its equipment with due care.
- Taking over the rented assets at the end of their life, or even during the term of the contract.
- Ensuring that the equipment is used optimally during and after the rental contract.
- Discarding the goods if no second life is possible.