OUTLOOK Digitalisation Digitalisation has been very much in vogue in recent years and has not spared the machinery industry. Here, this term is understood to mean the increasing use of information technology and connected devices and components to enable the precise monitoring of processes on a production line. The Swedish company Volvo Construction Equipment has embraced digitalisation, integrating a host of sensors into its construction machinery to optimise fuel consumption and truck loading, but also so that it can continually monitor the overall condition of its machinery to prevent breakdowns and facilitate repairs when they become necessary. These innovations reduce part breakages and replacements and therefore consumption of primary raw materials. Digitalisation has huge development potential and can greatly benefit the circular economy, ensuring more efficient use of primary raw materials and a reduction in the quantities used. Selling use rather than ownership Today, many businesses are taking the plunge and changing their business model: selling the use instead of the ownership of their product. There is actually nothing new about this idea. As early as 1962, the British aircraft engine manufacturer Rolls-Royce launched its Power by the hour scheme, a comprehensive service based on flying hours that included the engine and replacement parts, charged at a set hourly fee. Today, Rolls-Royce is again offering this service, which has become the industry norm. This business model serves the interests of both parties, which is that the product functions correctly. It is in the manufacturer’s interests that its product should work properly because this reduces its labour and materials costs, while the customer benefits from the fact that the product functions continuously.
CORINNE GRÄSSLE Circular Economy Project Leader, Engagement Migros
The circular economy is a central element of a sustainable economy because it enables us to produce and consume intelligently while saving resources.
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