Beyond Ownership: Business models for sustainable, smart appliances

Research overview

What factors the drive consumer adoption of digitally enabled products?

This project, from InterAct funded researchers, has investigated the assumption that a lack of consumer demand lies behind manufacturers’ underinvestment in Industrial Digital Technology. It focused on domestic washing machines as a widespread product that could be ripe for innovation, and which is under pressure to improve its environmental performance.

The findings suggest that consumer resistance to digital features stems from a lack of clear perceived benefits. While manufacturers focus on promoting the technological features of their products as a competitive advantage, customers value outcomes and experience offered. Moreover, customers expressed a dislike for refurbished washing machines and scepticism about alternative revenue models as potentially exploitative. Demonstrating value for money and cultivating trust are major challenges.

For manufacturers, the key recommendation is to place the customer’s experience and expected outcomes (e.g. peace of mind and clean clothes on demand) at the heart of their innovation, rather than emphasise product features.

Technology should be harnessed to support delivery of such outcomes and may be enabled through business model innovation. For example, assured maintenance leading to peace of mind can be delivered through a combination of digital technology (condition monitoring, predictive analytics etc) and business model innovation (shared ownership, access-based service etc).

You can find out more about the project, it’s findings and the team’s recommendations in the full report below.

This research was conducted by Ahmad Beltagui (Aston Business School), Ana Isabel Canhoto, Daniela Castillo, Amireza Alizamani (University of Sussex – Business School), Ramin Behbehani (Brunel Business School) Niraj Kumar (Essex Business School), Maren Schnieder (Anglia Ruskin University). This work was supported by the UKRI Made Smarter Innovation Challenge and the Economic and Social Research Council via InterAct [Grant Reference ES/W007231/1].

For further discussions or to propose potential applications/collaborations, please contact Ana Canhoto or Ahmad Beltagui.