325
• MPS – Managed Print Services (printers) – Printing is offered to enterprise and
small businesses as a service. Through a variety of fi nancing or lend/lease business offerings, customers can choose their level of involvement with the management of devices. HP today has nearly 1 million devices managed as a service,
and the average age of the ‘printer in management’ is 5–7 years. At printer endof- service, approximately 75 % of those printers are refurbished and remarketed
to other customers. The remainder are determined unusable in their whole state,
therefore go for recycling by certifi ed providers, thus providing potential feedstock into other closed loop material streams.
• HP subscription services (computers) – Launched in June 2014, this product
offering meets the needs of small and medium businesses that need to scale their
computing capabilities very quickly and have less desire to own products. A
formal program has started now with several HP channel partners (resellers) who
will sell bundles of hardware and services under a lease from HP Financial
Services. Started in the UK, France and Spain, it is too early to show detailed
results, however early feedback from customers and reseller partners is very
positive. This is a good example of where business benefi ts from a circular product service model, customers are satisfi ed and the profi t margins secure the longterm sustainability of the business model.
• Instant Ink – Inkjet printer ink supplies are managed for home users to address
the recognised ‘pain points’ of (1) Ink availability (running out at the crucial
moment), and (2) Ink cost. Through internet-connected printers, HP’s Instant ink
service allows customers to pay for only the ink they need to print, on a monthly
basis. Ink is re-supplied automatically to the home via the national postal service.
There is no contract and no get-out fee. Cartridge recycling is offered as part of
the service. There are further opportunities to close material loops from consumer printers, HP will be exploring this in the future. By enabling this business
model for users, HP’s product designers can reduce material consumption by
45–65 % over traditional supplies purchase models.
The above programs briefl y describe some of the device-as-a-service models that
HP currently offers to the market. The success factors in these programs are as
follows:
• The service must be what the customer wants.
• Products offered must not be perceived to be of lower value than outright purchased goods.
• The service must be easy (and fun) to use.
• Closing material/product loops to prolong product lives is key.
• The business model must be profi table for the company in order to facilitate
further innovation to eliminate waste.
Connected technology is also key to the ease of use and rapid dissemination of
such service models for durable goods such as IT products. HP service and repair
businesses are using such technology to manage capital assets in customer premises. With ‘Visual Remote Guidance – Integrated with Google Glass ™’, HP has
17 Multinational Corporations and the Circular Economy: How Hewlett Packard…
• MPS – Managed Print Services (printers) – Printing is offered to enterprise and
small businesses as a service. Through a variety of fi nancing or lend/lease business offerings, customers can choose their level of involvement with the management of devices. HP today has nearly 1 million devices managed as a service,
and the average age of the ‘printer in management’ is 5–7 years. At printer endof- service, approximately 75 % of those printers are refurbished and remarketed
to other customers. The remainder are determined unusable in their whole state,
therefore go for recycling by certifi ed providers, thus providing potential feedstock into other closed loop material streams.
• HP subscription services (computers) – Launched in June 2014, this product
offering meets the needs of small and medium businesses that need to scale their
computing capabilities very quickly and have less desire to own products. A
formal program has started now with several HP channel partners (resellers) who
will sell bundles of hardware and services under a lease from HP Financial
Services. Started in the UK, France and Spain, it is too early to show detailed
results, however early feedback from customers and reseller partners is very
positive. This is a good example of where business benefi ts from a circular product service model, customers are satisfi ed and the profi t margins secure the longterm sustainability of the business model.
• Instant Ink – Inkjet printer ink supplies are managed for home users to address
the recognised ‘pain points’ of (1) Ink availability (running out at the crucial
moment), and (2) Ink cost. Through internet-connected printers, HP’s Instant ink
service allows customers to pay for only the ink they need to print, on a monthly
basis. Ink is re-supplied automatically to the home via the national postal service.
There is no contract and no get-out fee. Cartridge recycling is offered as part of
the service. There are further opportunities to close material loops from consumer printers, HP will be exploring this in the future. By enabling this business
model for users, HP’s product designers can reduce material consumption by
45–65 % over traditional supplies purchase models.
The above programs briefl y describe some of the device-as-a-service models that
HP currently offers to the market. The success factors in these programs are as
follows:
• The service must be what the customer wants.
• Products offered must not be perceived to be of lower value than outright purchased goods.
• The service must be easy (and fun) to use.
• Closing material/product loops to prolong product lives is key.
• The business model must be profi table for the company in order to facilitate
further innovation to eliminate waste.
Connected technology is also key to the ease of use and rapid dissemination of
such service models for durable goods such as IT products. HP service and repair
businesses are using such technology to manage capital assets in customer premises. With ‘Visual Remote Guidance – Integrated with Google Glass ™’, HP has
17 Multinational Corporations and the Circular Economy: How Hewlett Packard…