Josefina Sallén’s Post

What are some of the potential upsides from shifting toward a usership business model? 📔 In the attached research piece, "Business Darwinism", I've boxed in 10 potential business related upsides of shifting from ownership to usership (from a multitude of perspectives), including higher recurring revenues and lower volatility, increased addressable market, lower asset risks, higher company valuation, as well as improved innovation abilities, customer retention capacity, new finance models, transparency, and ultimately lower carbon emissions. Usership represents a paradigm shift for product-selling companies, and those who do not partake could be the historical examples in the future – of classic business Darwinism. Because – those who embrace change, usually win the game. Link: https://lnkd.in/dWBj4x9s Link to listen: 🎧 https://lnkd.in/dXcd3TB6 Below are the 10 potential upsides, distilled: 👇 1️⃣ Recurring revenues is enabled, which is a holy grail for investors, improving stability and consequently lifting company valuations. 2️⃣ A new value delivery model, ability to add new revenue streams and collaborate, supported by digitalization and autonomous solutions (as well as improved innovation abilities). 3️⃣ Stronger focus on customer retention (vs customer acquisition) – with more focus on customer churn, loyalty, and lifetime values (consequently improving problem solving discovery). 4️⃣ When customers are recurring users of a product, instead of one-time buyers, the way you operate and evaluate a company changes, with new recurring metrics (more impact than upside). 5️⃣ Raised efficiency and utilization both within factories and in entire supply chains. 6️⃣ Asset-lightness with a lean balance sheet and higher return on capital employed (ROCE), as the shift from capex to opex is supercharged. 7️⃣ New seamless ways to finance business activity, if novel financial innovations proliferate (third-party ownership). 8️⃣ Less material inputs used when regenerative materials replace depletive materials (closer, instead of faraway manufacturing) and new type of balance sheet forming. 9️⃣ The ability (and soon mandate) to report on circularity to increase substantially, and lead to new ways to calculate taxation based on carbon emissions. 🦄 Lastly, a potential Trojan horse for a regenerative economy. Entrepreneurs, small, and large companies can all be part of building a regenerative backbone infrastructure – and the first Smart industrial revolution (for the climate). ____ Link to full report (Regenerate the Economic Machine): https://lnkd.in/dFVB4CfX Feel free to share and add your own thoughts. #usership #circulareconomy #circularity