Light as a Service as enabler for Remanufacturing by Anton Brummelhuis from Philips Lighting
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During the Circular Economy Seminar at ReMaTec 2015 Philips discussed their new market strategy for offering lighting as a service instead of selling lighting equipment, which opens the way for remanufacturing of the leased equipment.
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Light as a Service as enabler for Remanufacturing by Anton Brummelhuis from Philips Lighting
- 1. Anton Brummelhuis Light as a Service as enabler for Remanufacturing
- 2. Philips Ligh8ng Customer Segments 26% 11% 29% 5% 20% 6% 2% 1% Retail Entertainment Healthcare Homes Offices Outdoor Industry Hospitality Philips Ligh8ng: Our Business • 37,000+ people employed worldwide in 60 countries • €6.9 Billion sales: ~ 75% is B2B, ~ 37% is LED, 72% is Green Products Ir. Anton Brummelhuis MBA, Sr. Director Sustainability, Philips Ligh>ng • 28 years of Philips experience in industrial and business management, business crea8on and sustainability • Sustainable Business Development: energy efficient ligh8ng, societal innova8on and circular economy
- 3. Our Vision: We strive to make the world healthier and more sustainable through innova8on Source: Ecological Footprint Atlas 2009 UN Human Development Index = life expectancy + education level + purchasing power Societal Innova8on Circular Innova8on 3
- 4. 4 The Linear Economy is ending.. Take Make Dispose 3 planets 150% price increase 2.2billion tons waste
- 5. Enablers Business models Design Collabora8on Reverse logis8cs The Circular Economy is rising.. Cycles 5
- 6. • Preserve added value of labor and capital costs of assets via ownership • Mone8ze as long as possible at highest value, ideally as service • Cascade assets down via remanufacturing towards recycling C r e a t e v a l u e Preserve value Philips Circular Innova8on
- 7. 7 Business models Design Collabora8on Reverse logis8cs Philips Circular Innova8on
- 8. 8 Design for Recycling – Slimstyle case Crushing results:
- 9. 9 Schiphol, Cofely, Turntoo and Philips have entered into a collabora8on for Light-‐as-‐a-‐ Service in the terminal buildings at Amsterdam Airport Schiphol. • 3700 LED fixtures • Schiphol pays for the light it uses • Philips remains owner of the installa8on • 50% reduc8on in electricity consump8on • Fixtures op8mized for Circular Economy • Philips and Cofely responsible for the performance and re-‐use and recycling • Real-‐8me performance management Jos Nijhuis, CEO Schiphol: "It is Schiphol's ambi8on to become one of the most sustainable airports in the world. With this innova8ve, out-‐of-‐the-‐box solu8on, we set a new standard that matches the ambi8on level of the airport." Philips LaaS: Schiphol case
- 10. Managed services at hospital level Refurbished medical equipment Spare parts recovery for servicing medical assets Service Refurbish Parts harves8ng Recycle Light as a Service Refurbished ligh8ng equipment Designed for easy recycling Use of recycled content in new products Spare parts business for ligh8ng assets Progress on value preserva8on
- 11. 11 Thank You! For more informa>on: www.philips.com/circulareconomy Or contact: anton.brummelhuis@philips.com
Editor's Notes
- Vision; HDI; Footprint and related innovation directions
- 3 planets: Natural capital equivalent of human consumption by 2050 (WWF) 150%: Commodity price increase between 2002 and 2010 (McKinsey) by 2025, we will be producing over 2.2 billion tonnes of waste per year. (World Bank, 2012)
- CE is an economy that is restorative by design and aims to decouple economic growth from the use of natural resources. CE aims for: 1) 100% renewable energy, 2) waste = food 3) new business models enabling upcycling 4 cycles; 4 enablers > 1 trillion: Global potential of $1 trillion a year in net material savings alone by 2025
- Implementing circular economy building blocks like Light-as-a-Service (as new business model), circular economy design rules, new ecosystem of partners and reversed logistics is a new art of doing business and requires new competences, resources, tools and dedication. We see this transition as a long journey we want to go with our stakeholders. In the area of product design we are experimenting with different ways to design our products for a circular economy, extending the lifetime of our products through modular design and backwards compatibility. For example, we have created a scorecard to assess the circularity of lighting products. Our products are measured on ease of maintenance, upgradability, modularity, ease of disassembly and ease of recycling.