RELEVANCE OF TOOLS
The tools, templates, and guides outlined here provide valuable insights for developing, implementing, and refining circular business models, such as PSS solutions. However, during the PSS in the Nordics project, it became evident that despite their usefulness, only a few stakeholders were familiar with these resources. The Circular Design Guide was the most recognised, yet even this was known to fewer than 20% of the stakeholders consulted, which included PSS providers, researchers, public authorities, and business associations.
As part of the consultation, stakeholders highlighted key functions they desired and needed in tools, guides, and templates related to PSS. Many of these desired functions overlap with features already covered by the resources discussed in the preceding sections.
- Emission Calculation Tools (e.g., Klimakompasset, Ready2loop,ResCoM)
- Customer Experience and Value Creation Templates (e.g., Circular Design Guide, Circular Toolbox, Lean Service Creation Handbook, Guide for Developing Product as a Service Business, Nordic Circular Economy Playbook Toolkit, PROTEUS PSS Tool Book, CIRCit Norden)
- Organisational Transformation Guidance (e.g., Lean Service Creation Handbook, PROTEUS PSS Tool Book, ATTC 2 Toolbox)
- Revenue Stream Calculations (e.g., Nordic Circular Economy Playbook Toolkit)
Gaps in available tools
Some essential functions are still missing, particularly calculation tools that are frequently requested to help companies implement PSS solutions more efficiently and validate environmental marketing claims. These desired functions include:
- Internal Rate of Return (IRR)
- Return on Investment (ROI)
- Net Present Value (NPV)
- Social Impacts
- Environmental assessments of reused products (partially covered by ResCoM)
Most of these calculation tools require a deep understanding of economic and environmental theory and can be costly. Economic functions such as IRR, ROI, and NPV are essential for designing efficient business models, while social and environmental impact assessments help optimise business outcomes and support marketing efforts.
Although some environmental impact assessment tools exist, none specialise in evaluating circulated products in a PSS model. PSS providers have expressed a need for templates that assist with these calculations.
Additionally, PSS providers request guidance and templates to help with:
- Financial comparison of PSS and product-sales models
- Accounting standards for PSS, especially for CFOs
- LCA and environmental assessments for PSS
- Guidance for procurers on PSS procurement
- Value promises to consumers
- Standard contracts for PSS models
These tool gaps primarily relate to the economic and environmental aspects of PSS models. Companies often struggle to determine the PSS’s impact and communicate this to consumers, highlighting the need for better tools and resources.
Improved dissemination and standardisation
Despite government efforts to address environmental assessments in the Nordics, consultations with PSS providers reveal that these standards and approaches are not effectively reaching businesses. This is particularly problematic given the increasing requirements for environmental marketing documentation, which is crucial for consumer communication.
Additionally, PSS providers face challenges due to the lack of standard solutions, such as contracts specific to PSS models. This creates inefficiencies in business processes and consumer communication, forcing PSS providers to “reinvent the wheel” to operate effectively. The need for guidance on best practices, legislation, and financial measures relevant to PSS models further underscores this issue.
Stakeholders noted a general lack of information on:
- Comparative regulatory frameworks and financial measures across the Nordics, EU, and other countries
- Pitfalls and ‘do-nots’ in circular business practices
- Best practice examples from companies, including consumer perspectives
- Comparable environmental benefits of different business model configurations
- The actual benefits (environmental and economic) and pitfalls of PSS
Conclusion
The consultations with stakeholders have revealed significant gaps in the tools and guidance available for companies working with PSS, especially in areas like economic and environmental calculations and social impact assessments. While many resources already exist, there is a clear need for specialised tools that offer deeper insights into the economic and environmental implications of PSS models, both for internal decision-making and external communication with consumers.
To fully support businesses in adopting and refining PSS models, these tools, templates, and guides must not only be developed but also effectively disseminated to PSS providers. This dissemination is crucial for helping companies navigate regulatory complexities, improve transparency in consumer communications, and accelerate the shift towards sustainable business practices.
By adressing these gaps, businesses will be better equipped to transition smoothly to circular business models, unlocking the full potential of PSS in delivering both environmental and economic benefits.