5. Electrolux

Problem

Experimenting a washing machine freely at the disposal of all residents of the Isle of Gotland (Sweden) with a payment by wash cycle to find out if this model could be expanded to the entire washing machine market.

 

Solution

To establish a partnership with the local electricity supplier because smart electricity meters enable to count the number of cycles.

 

Results

The idea was perverse by the fact that Electrolux lost the control of the market, the electricity supplier decided they could do the same with another manufacturer.

 

Key points

Functional service economics must enable great customer control; the new service must enhance product performance; innovation must change customer attitude, in favor of the manufacturer; there must be a dematerialization to generate a new added value.

Electrolux committed the error of neglecting this aspect.

 

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