Short definition of functional service economy
The functional service economy consists in
* replacing the notion of selling a good by a notion of selling the usage of a good,
* which results in the split of the added value and energy and raw material consumption.
It is Michelin that charges the amount of kilometres driven per truck equipped with Michelin tyres instead of selling them, it is Xerox or Lexmark that charges photocopies per unit, instead of selling or renting the machines, it is JC Decaux that rents Vélib’s or Velo’V instead of selling bikes.
* * *
In the Anglo-Saxon world, this economic model is better known as the “PSS, Product Service System” or “Subscription economy“.
For various reasons, see FAQ (soon online), only the “PSS result oriented” and “Subscription economy Type 2 and 4″ correspond to the true Functional service economy.