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On several occasions we have mentioned that the technology to handle Digital Product Passport (DPP) data has the potential to support added services, creating new opportunities "in the future". "Your creativity is the limit."
Well, the future is fast approaching apparently. Even before the implementation of DPP (end of 2027) we are already working with customers on such opportunities to add value and revenue potential through added services powered by the DPP infrastructure.
Ancillary Data and Track & Trace in Combination for Improved Life Cycle Management
We're talking about a type of added value relevant for many different products and industries.
It's based on two pillars:
The DPP platform handling other data types and formats than just what is required for DPP
The identification designed for DPP can be used to identify items also for other purposes
While the main purpose of DPP is to provide environmental data when considering a purchase, we're rather looking here at following items throughout their span of life, record "life events", manage service, maintenance, and track changes of ownership.
A Product Journey
Some products, often technical, require some kind of activation to start using them, similar to entering a software license key to be able to start using a software. Consumers are e already accustomed to doing so to get smartphones and smart watches to work, for example.
With a scan of the DPP QR code, this concept can be expanded to any type of physical product. "Scan at first use to activate warranty, service record etc". The QR code would carry identification details for the item at hand, some of it through the DPP data, and some through supplementary data or other types of digital content. Add your details and the item is recognised as yours in the system. Maybe it could make it more difficult to sell stolen items, who knows?
Thereafter, the QR code could be rescanned whenever there's a relevant event in the life of the product, to report it into the life cycle record of the product, either by the owner/user or by a service provider making repairs or scheduled maintenance.
Possible examples
Taking the example of a car, you could think of this as a digital record of service and ownership, with added information like repairs done, when tires were changed, borders crossed, or whatever you may think of.
For other products, there may be a maximum number of cycles the item is allowed to be used, maybe for reasons of hygiene or the risk of material fatigue. As you approach that maximum, you're alerted to it reaching its' end of life.
Finally, the QR code will guide you on recycling or responsible disposal.
New Revenue Opportunities
How much is such a process worth?
As a competitive advantage in the market?
As a paid add-on service to existing products?
By making it easy for customers to say Yes, as second hand value increases by means of the improved record of provenance and life events?
Or, in case of a need for recall, you would most probably be able to make it pinpointed, to a lesser number of easily identifiable items.
That depends on your industry and which product we're talking about, of course. But we're confident you too see the potential.
Changing Business Models and Market Dynamics?
We see the potential of such life cycle management services of:
Tighter relationship between manufacturers and providers of services for those products. Such a system ties them closer together through data. It might get more difficult for an independent provider of services, at least if you're not allowed to connect to the "digital service book" or the "digital provenance book".
Shift to leasing models, subscriptions or similar ways of paying for the use of a product rather than for the physical product itself you pay for access and use of the product. This way of tighter monitoring of the use and life events throughout the life of a product might turn out to be a basis for new business models offering access and use of products rather than ownership.
What do you think?
Which new business opportunities do you see?
Maybe reach out to us to discuss it and check out the viability of your idea?
Image by Maartje van Caspel on iStock
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