Business Transformation and the Circular Economy: PHILIPS

“Light as a service” is one of Philips’ primary circular economy initiatives. This business represents a shift away from selling a product (light fixtures) to providing a service (lighting solutions) as a response to a clear customer need. Customers find it easier to fund operational rather than capital expenditures, while Philips can stay on top of the latest customer needs, learn about customer usage patterns, and extend replacement cycles to longer periods. While the focus is currently on warehousing applications, the company plans to expand this service to other applications such as office and retail.