Internalization Of Control Processes Over The Product Life Cycle

Companies that follow this approach retain products ownership and lease products to their customers; in fact these manufacturers are proposing a radical change in their mission by choosing to sell, no longer products, but value of utilization. This strategy would move the focus of manufacturers' activities from the production of products to the provision of services, whose efficiency would reinforce the links between producers and their customers.

By offering services instead of products, manufacturers would provide solutions that fit the clients' requirements. This change of perspective - from the customer's point of view - would shift the focus from the value of products to the value of their utilization. Furthermore, customers would have the possibility of choosing the most updated technology available for any products. As a result, manufacturers would have a vested interest in ensuring the highest possible efficiency of products and the utilization of products would be more intense.

Maintenance operations and selective resource recovery of components and faulty products is easier in this approach, because manufacturers control the product efficiency during the phase of use, maximizing the opportunities to keep products operating longer and for second or third lives, subject to reconditioning and performance upgrades.

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