Is Economies of Scale Driving Everything as a Service?
Abstract
:1. Introduction
2. The Literature on Xaas
2.1. Advantages of Xaas
2.2. Economies of Scale Linked to Ownership
3. Methodology
- -
- The first criterion is examined by using the search engine “proff.no”. This search engine is linked to the Norwegian government’s official company register, where NACE codes are included as search criteria8. Here, we identify the ten largest employers9 among the limited liability companies registered within each of the 14 NACE codes identified in research step 1 (140 firms in total).
- -
- The second criterion is included by conducting a Google search on any text mentioning <name of firm> and the text <“as a service”>. We count how many qualified matches there are per product category (NACE code). In this article, Google is not used to assess research findings or evaluate specific claims but rather to compare the relative frequency of matches in searches for “as a service” alongside particular firm names. If there is a bias in the data or weights that Google relies on, we would not assume that this would create a systematic bias among the NACE codes in our sample.
The Validity of This Design
4. Results
- -
- energy as a service/Sale of energy as a commodity;
- -
- equipment as a service/Wholesale of machinery, equipment, and supplies;
- -
- tourist guide robots as a service/Sale of maps and brochures.
- high-value products, demanding maintenance;
- allowing real-time monitoring.
- low-value products;
- moderate or no maintenance demand;
- products where real-time monitoring is difficult.
5. Discussion
6. Conclusions
Funding
Data Availability Statement
Conflicts of Interest
Appendix A
Article Numbers | Category XaaS |
---|---|
124 | Additive manufacturing as a service (1) |
102 | Agriculture as a service (1) |
064, 067 | Autonomous vehicle as a service (2) |
047 | Bicycle as a service (1) |
068 | Building energy retrofit as a service (1) |
014 | Cas as a service (1) |
036 | Community as a service (1) |
011 | Cultural heritage as a service (1) |
133 | Customer service as a service (1) |
025 | Data as a service (1) |
057 | Electronic product development as a service (1) |
005, 111 | Energy as a service (2) |
088, 100 | Equipment as a service (2) |
015 | IoT as a service (1) |
001, 007, 012, 017, 018, 019, 021, 028, 038, 040, 048, 050, 051, 052, 053, 063, 065, 070, 073, 075, 076, 090, 092, 098, 099, 108, 110, 117, 130 | Mobility as a service (29) |
030 | Office space as a service (1) |
058 | Public transport as a service (1) |
054 | Recruitment in construction as a service (1) |
129 | Resale as a service (1) |
016 | Retail as a service (1) |
066 | Tourist guide robots as a service (1) |
083 | Under used assets as a service (1) |
089 | Water dispenser as a service (1) |
062 | White goods as a service (1) |
Appendix B
- A full reference to the 137 articles (the 55 articles including the 82 excluded articles) from the Scopus search is available here. Link to the full list of articles: https://docs.google.com/document/d/1LoDBgJZGDo_i3Gwo4nKGY6TmtLpR3oHV/edit, accessed on 5 March 2025.
- Table 3, including a column with the URLs to all the proff.no searches for firms matching the NACE codes here. Link to Table A1, including the column with the URLS to all the proff.no searches: https://docs.google.com/spreadsheets/d/125B68hproDz92adcImJ2Va5j5QQQRvxU/edit?usp=sharing&ouid=116449081030483560202&rtpof=true&sd=true, accessed on 5 March 2025.
- A full reference to the search for <company name> + “as a service” is available here. Link to the overview of all Google searches for firms and “as a service”: https://docs.google.com/spreadsheets/d/1OKjmja3iG385C8RBM5q25zXdp7ciF3Ps/edit?usp=sharing&ouid=116449081030483560202&rtpof=true&sd=true, accessed on 5 March 2025.
1 | Based on the description of the concepts in Merriam Webster dictionary and Wikipedia, we may distinguish between three service models: To ”rent” something refers to a customer possessing a good in return for a periodic payment. To “lease” something may cover a rent agreement but is typically used when there are additional conditions to be fulfilled and/or when the customer has an option to purchase the good after a given period. To “license” something is to receive a formal permission—often granted by a public authority—to utilise or control a good for a given period. |
2 | |
3 | The reference; “Right of disposal“ is here understood in the meaning of Merriam Webster; “authority to make use of as one chooses”. |
4 | Business services are also being included a part of the XaaS economy in some texts. Goldman and Sachs describe companies that facilitate outsourcing as “service companies“ [29]. |
5 | The SCOPUS search used the following search string; “(TITLE-ABS-KEY (“economies of scale”) OR TITLE-ABS-KEY (“economy of scale”)) AND (TITLE-ABS-KEY (“everything as a service”) OR TITLE-ABS-KEY (“XaaS”) OR TITLE-ABS-KEY (“servitization”) OR TITLE-ABS-KEY (“product service-system”))”. |
6 | The search string used in Scopus: TITLE-ABS-KEY (“as a service”) AND PUBYEAR > 2020 AND DOCTYPE (ar) AND SUBJAREA (busi) AND NOT TITLE-ABS-KEY (“cloud”) AND NOT TITLE-ABS-KEY (“software”) AND NOT SUBJAREA (comp)). |
7 | The coding of the most dominant NACE code was performed and checked, and confirmed to prevent any mistakes or misunderstandings. Finally, the researcher determined the dominant NACE code/product in each article. |
8 | ”Proff” is a brand for the Norwegian market owned by the Finnish company Enento. Proff relies on several public databases in Norway: https://www.proff.no/info/kilder/ URL (accessed on 5 March 2025)”. |
9 | The number of employees was chosen as a criterion because alternatives such as turnover, or market value, could be linked to funds or accumulated turnover in holding companies with firm names that are not relevant for the debate on management strategies and contract models. |
References
- Fryer, V. The History of SaaS: From Emerging Technology to Ubiquity. Blog Article Posted on bigcommerce.com. 2020. Available online: https://www.bigcommerce.com/blog/history-of-saas/ (accessed on 5 March 2025).
- Verma, P.; Kumar, K. Foundation for XaaS; Book published by the authors who are IT specialist from India. 2016. [Google Scholar]
- Ipacs, D. The History of Cloud Computing: Tracing Its Evolution and Impact. Text Posted on the Website of bluebirdinternational.com. 2023. Available online: https://bluebirdinternational.com/history-of-cloud-computing/ (accessed on 5 March 2025).
- Waters, B. Software as a service: A look at the customer benefits. J. Digit. Asset Manag. 2005, 1, 32–39. [Google Scholar] [CrossRef]
- Chai, W. Software as a Service (SaaS). Text on TechTarget.com. Available online: https://www.techtarget.com/searchcloudcomputing/definition/Software-as-a-Service?vgnextfmt=print (accessed on 10 February 2025).
- Fortune Business Insights. Everything As a Service Market Size. 2023. Available online: https://www.fortunebusinessinsights.com/everything-as-a-service-xaas-market-102096 (accessed on 7 March 2025).
- The Business Research Company. Everything as a Service Market Set to Reach $1660.21 Billion by 2029 with 21% Yearly Growth. Statistics Published on openpr.com. 2025. Available online: https://www.openpr.com/news/3888699/everything-as-a-service-market-set-to-reach-1660-21-billion (accessed on 4 March 2025).
- Linux Information Project (linfo.org). Economies of Scale Definition. Available online: http://www.linfo.org/economies_of_scale.html (accessed on 10 February 2025).
- Baines, T.S.; Lightfoot, H.W.; Evans, S.; Neely, A.; Greenough, R.; Peppard, J.; Roy, R.; Shehab, E.; Braganza, A.; Tiwari, A.; et al. State-of-the-art in product-service systems. Proc. Inst. Mech. Eng. Part B J. Eng. Manuf. 2007, 221, 1543–1552. [Google Scholar] [CrossRef]
- Bertoni, M.; Rondini, A.; Pezzotta, G. A systematic review of value metrics for PSS design. Procedia CIRP 2017, 64, 289–294. [Google Scholar] [CrossRef]
- Van Ostaeyen, J.; Van Horenbeek, A.; Pintelon, L.; Duflou, J.R. A refined typology of product–service systems based on functional hierarchy modeling. J. Clean. Prod. 2013, 51, 261–276. [Google Scholar] [CrossRef]
- Stahel, W.R. The product life factor. In An Inquiry into the Nature of Sustainable Societies: The Role of the Private Sector; Mitchell Prize Papers; Houston Area Research Centre: Houston, TX, USA, 1982. [Google Scholar]
- Stahel, W.R. The Performance Economy, 2nd ed.; Palgrave Macmillan: London, UK, 2010. [Google Scholar]
- Svensson, N.; Funck, E.K. Management control in circular economy. Exploring and theorising the adaptation of management control to circular business models. J. Clean. Prod. 2019, 233, 390–398. [Google Scholar] [CrossRef]
- Generes; Tasker, O. Get Ready for The Product-As-AService Revolution. 2020. Article in Forbes 15 October 2020. Available online: https://www.forbes.com/sites/servicenow/2020/10/15/get-ready-for-the-product-as-a-service-revolution/ (accessed on 10 February 2025).
- Banerjee, P.; Friedrich, R.; Bash, C.; Goldsack, P.; Huberman, B.; Manley, J.; Patel, C.; Ranganathan, P.; Veitch, A. Everything as a service: Powering the new information economy. Computer 2011, 44, 36–43. [Google Scholar] [CrossRef]
- Deloitte. Everything-As-a-Service. Modernising the Core Through a Service Lens; Deloitte University Press: Westlake, TX, USA, 2017; Available online: https://www2.deloitte.com/us/en/insights/focus/tech-trends/2017/everything-as-a-service.html (accessed on 10 February 2025).
- Ryan, S. EaaS, Everything as a Service. Article Published in Medium.com. 2019. Available online: https://medium.com/swlh/eaas-everything-as-a-service-5c12484b0b4e (accessed on 12 February 2025).
- Systemiq. Everything as a service. Report published by Systemiq on behalf of Sun Institute. 2021. Available online: https://www.systemiq.earth/wp-content/uploads/2021/11/XaaS-MainReport.pdf (accessed on 10 February 2025).
- London Printer Rentals. Article on their website: Photocopier Leasing & Photocopier Rental. 2023. Available online: https://www.londonprinterrentals.com/printer-rental-photocopier-leasing/photocopier-leasing-photocopier-rental/ (accessed on 7 March 2025).
- Moore, J. Article on Corporate Website. The Steps of Installing An Entrance Mat. Available online: https://www.thehouseidreamof.com/the-steps-of-installing-an-entrance-mat/ (accessed on 7 December 2024).
- Ong, O. Corporate newsletter. The Top 10 Bottleless Water Cooler Manufacturers In The USA.2021. Available online: https://www.sourcifychina.com/top-water-cooler-manufacturing-compare/ (accessed on 7 March 2025).
- Vries, T. Text Published on Linkedin. Why Tires-as-a-Service will Become More Important (TaaS). 2020. Available online: https://www.linkedin.com/pulse/why-tires-as-a-service-become-more-important-taas-theo-de-vries-1c/ (accessed on 11 March 2025).
- Hunt, K. Text published on Linkedin. Rolls-Royce & Jet Propulsion-As-a-Service. 2015. Available online: https://www.linkedin.com/pulse/rolls-royce-jet-propulsion-as-a-service-kristofer-hunt (accessed on 11 March 2025).
- Jaczynska, E.; Outterson, K.; Mestre-Ferrandiz, J. Business Model Options for Antibiotics: Learning from Other Industries; Public Law Research Paper No. 15-05; Boston University School of Law: Boston, MA, USA, 2015. [Google Scholar]
- Moon, S.; Vieira, M.; Ruiz, A.A.; Navarro, D. New Business Models for Pharmaceutical Research and Development as a Global Public Good: Considerations for the WHO European Region. Oslo Medicines Initiative Technical Report. WHO Regional Office for Europe: Copenhagen, Denmark, 2022. Licence: CC BY-NC-SA 3.0 IGO. Available online: https://repository.graduateinstitute.ch/record/300339?v=pdf (accessed on 4 March 2025).
- Dhebar, A. Preinstalled functionality as a service. Bus. Horiz. 2023, 66, 643–653. [Google Scholar] [CrossRef]
- Forbes Insights. The Big Promise of Everything-As-A-Service: Ongoing Revenue, Smarter Services. 2018. AI Issue 2, Published 21 September 2018. Available online: https://www.forbes.com/sites/insights-intelai/2018/09/21/the-big-promise-of-everything-as-a-service-ongoing-revenue-smarter-services/ (accessed on 5 February 2025).
- Goldman Sachs. The Everything-as-a-Service Economy. Report (92 pages) Published by The Goldman Sachs Group, Inc. 2018. Available online: https://knowen-production.s3.amazonaws.com/uploads/attachment/file/5276/Global%2BMarkets%2BInstitute_%2BThe%2BEverything-as-a-Service%2BEconomy%2B.pdf (accessed on 3 October 2024).
- Lin, G.; Fu, D.; Zhu, J.; Dasmalchi, G. Cloud computing: IT as a service. IT Prof. 2009, 11, 10–13. [Google Scholar]
- Benlian, A.; Hess, T. Opportunities and Risks of Software-as-a-Service: Findings from a Survey of IT Executives. Decis. Support Syst. 2011, 52, 232–246. [Google Scholar] [CrossRef]
- Janssen, M.; Joha, A. Challenges for Adopting Cloud-Based Software as a Service (saas) in the Public Sector. ECIS 2011 Proceedings. 80. 2011. Available online: https://aisel.aisnet.org/ecis2011/80/ (accessed on 5 March 2025).
- Vandermerwe, S.; Rada, J. Servitization of business: Adding value by adding services. Eur. Manag. J. 1988, 6, 314–324. [Google Scholar] [CrossRef]
- Neely, A.; Benedettini, O.; Visnjic, I. The servitisation of manufacturing: Further evidence. In Proceedings of the 18th European Operations Management Association Conference, Cambridge UK, July 2011; Volume 1. [Google Scholar]
- Raddats, C.; Kowalkowski, C.; Benedettini, O.; Burton, J.; Gebauer, H. Servitisation: A contemporary thematic review of four major research streams. Ind. Mark. Manag. 2019, 83, 207–223. [Google Scholar] [CrossRef]
- Han, J.; Heshmati, A.; Rashidghalam, M. Circular economy business models with a focus on servitisation. Sustainability 2020, 12, 8799. [Google Scholar] [CrossRef]
- Rabetino, R.; Kohtamäki, M.; Gebauer, H. Strategy map of servitisation. Int. J. Prod. Econ. 2017, 192, 144–156. [Google Scholar] [CrossRef]
- Krancher, O.; Luther, P.; Jost, M. Key affordances of platform-as-a-service: Self-organisation and continuous feedback. J. Manag. Inf. Syst. 2018, 35, 776–812. [Google Scholar] [CrossRef]
- Goldhar, J.D.; Jelinek, M. Plan for economies of scope. Harv. Bus. Rev. 1983, 61, 141–148. [Google Scholar]
- Pine, B.J., II. Mass Customisation: The New Frontier in Business Competition. Harvard Business School Press: Boston, MA, USA, 1993. [Google Scholar]
- Pine, B.J.; Victor, B.; Boynton, A.C. Making mass customisation work. Harv. Bus. Rev. 1993, 71, 108–111. [Google Scholar]
- Chui, M.; Manyika, J.; Miremadi, M. Where machines could replace humans-and where they can’t (yet). McKinsey Q. July 2016. [Google Scholar]
- Cognite, A.S. The Digital Twin: The Evolution of a Key Concept of Industry 4.0. Blog Article. Available online: https://www.cognite.com/en/blog/digital-twin-evolution-1 (accessed on 5 February 2025).
- Halleberg, D.; Martinac, I. Indoor Climate as a Service: A digitalised approach to building performance management. In IOP Conference Series: Earth and Environmental Science; IOP Publishing: Bristol, UK, 2020; Volume 588, p. 032013. [Google Scholar]
- Sousa, B.; Arieiro, M.; Pereira, V.; Correia, J.; Lourenço, N.; Cruz, T. ELEGANT: Security of Critical Infrastructures with Digital Twins. IEEE Access 2021, 9, 107574–107588. [Google Scholar] [CrossRef]
- Kunz, W.H.; Wirtz, J. AI in Customer Service—A Service Revolution in the Making. In Artificial Intelligence in Customer Service: Next Frontier for the Global World; Sheth, J., Jain, V., Mogaji, E., Ambika, A., Eds.; McMillan: Basingstoke, UK, 2023. [Google Scholar]
- Ardagna, C.A.; Damiani, E.; Frati, F.; Rebeccani, D.; Ughetti, M. Scalability patterns for platform-as-a-service. In Proceedings of the 2012 IEEE Fifth International Conference on Cloud Computing, Honolulu, HI, USA, 24–29 June 2012; pp. 718–725. [Google Scholar]
- Manvi, S.S.; Shyam, G.K. Resource management for Infrastructure as a Service (IaaS) in cloud computing: A survey. J. Netw. Comput. Appl. 2014, 41, 424–440. [Google Scholar] [CrossRef]
- Tsai, W.; Bai, X.; Huang, Y. Software-as-a-service (SaaS): Perspectives and challenges. Sci. China Inf. Sci. 2014, 57, 1–15. [Google Scholar] [CrossRef]
- Migliorato, L. Beyond the Asset: The Future of the Product as a Service. Article Published by LeasingLife.com. 2018. Available online: https://www.dllgroup.com/us/en-us/-/media/Project/Dll/United-States/Images/New-Blogs/Product-as-a-service-new-normal-for-equipment-manufacturers/2018LeasingLifeAprilEditionProductasaService.pdf (accessed on 5 February 2025).
- Ellen Macarthur Foundation 2013. Towards the Circular Economy. Report. Available online: https://www.ellenmacarthurfoundation.org/assets/downloads/publications/Ellen-MacArthur-Foundation-Towards-the-Circular-Economy-vol.1.pdf (accessed on 5 February 2025).
- Schulze, G. Growth Within: A Circular Economy Vision for a Competitive Europe. Published in Ellen MacArthur. Foundation and the McKinsey Center for Business and Environment, 1–22. 2016. Available online: https://www.ellenmacarthurfoundation.org/assets/downloads/publications/EllenMacArthurFoundation_Growth-Within_July15.pdf (accessed on 9 February 2025).
- Aboulamer, A. Adopting a circular business model improves market equity value. Thunderbird Int. Bus. Rev. 2017, 60, 765–769. [Google Scholar] [CrossRef]
- Baumgartner, R.J.; Rauter, R. Strategic perspectives of corporate sustainability management to develop a sustainable organisation. J. Clean. Prod. 2017, 140, 81–92. [Google Scholar] [CrossRef]
- Lacy, P.; Rutqvist, J. Waste to Wealth: The Circular Economy Advantage; Palgrave Macmillan: London, UK, 2015; Volume 91. [Google Scholar]
- Vermunt, D.A.; Negro, S.O.; Verweij, P.A.; Kuppens, D.V.; Hekkert, M.P. Exploring barriers to implementing different circular business models. J. Clean. Prod. 2019, 222, 891–902. [Google Scholar] [CrossRef]
- Chen, S.L.; Chen, Y.Y.; Hsu, C. A new approach to integrate internet-of-things and software-as-a-service model for logistic systems: A case study. Sensors 2014, 14, 6144–6164. [Google Scholar] [CrossRef] [PubMed]
- Iqbal, R.; Butt, T.A. Safe farming as a service of blockchain-based supply chain management for improved transparency. Clust. Comput. 2020, 23, 2139–2150. [Google Scholar] [CrossRef]
- Perzanowski, A.; Schultz, J. The end of Ownership: Personal Property in the Digital Economy; MIT Press: Cambridge, MA, USA, 2016. [Google Scholar]
- Celli, M. Determinants of Economies of Scale in Large Businesses—A Survey on UE Listed Firms. Am. J. Ind. Bus. Manag. 2013, 3, 255–261. [Google Scholar] [CrossRef]
- Stigler, G.J. The economies of scale. J. Law Econ. 1958, 1, 54–71. [Google Scholar] [CrossRef]
- Silberston, A. Economies of scale in theory and practice. Econ. J. 1972, 82, 369–391. [Google Scholar] [CrossRef]
- Junius, K. Economies of Scale: A Survey of the Empirical Literature; Kiel Working Paper No. 813; Nova Science Publishers Inc.: Hauppauge, NY, USA, 1997. [Google Scholar]
- Büchi, G.; Cugno, M.; Castagnoli, R. Economies of Scale and Network Economies in Industry 4.0. Symphonya Emerg. Issues Manag. 2018, 2, 66–76. [Google Scholar] [CrossRef]
- Azcarate-Aguerre, J.F.; Conci, M.; Zils, M.; Hopkinson, P.; Klein, T. Building energy retrofit-as-a-service: A Total Value of Ownership assessment methodology to support whole life-cycle building circularity and decarbonisation. Constr. Manag. Econ. 2022, 40, 676–689. [Google Scholar] [CrossRef]
- Davis, M.; Coony, R.; Gould, S.; Daly, A. Guidelines for Life Cycle Cost Analysis; Stanford University: Stanford, CA, USA, 2005. [Google Scholar]
- Cooper, T. The durability of consumer durables. Bus. Strategy Environ. 1994, 3, 23–30. [Google Scholar] [CrossRef]
- Waldman, M. Durable goods theory for real world markets. J. Econ. Perspect. 2003, 17, 131–154. [Google Scholar] [CrossRef]
- Ingham, Sean. “Public Good”. Encyclopedia Britannica. 2018. Available online: https://www.britannica.com/topic/public-good-economics (accessed on 5 February 2025).
- McCollough, J. The effect of income growth on the mix of purchases between disposable goods and reusable goods. Int. J. Consum. Stud. 2007, 31, 213–219. [Google Scholar] [CrossRef]
- C8oase, R.H. The Nature of the Firm/Coase Ronald H. Economics 1937, 4, 386–405. [Google Scholar]
- Baumol, W.J. On taxation and the control of externalities. Am. Econ. Rev. 1972, 62, 307–322. [Google Scholar]
- Williamson, O.E. The Economic Institutions of Capitalism; The Free Press: New York, NY, USA, 1985. [Google Scholar]
- Canback, S.; Samouel, P.; Price, D. Do diseconomies of scale impact firm size and performance? A theoretical and empirical overview. ICFAI J. Manag. Econ. 2006, 4, 27–70. [Google Scholar]
- Rao, V. Economies of Scale, Economies of Scope. Published on Ribbonfarm.com. 2012. Available online: https://www.ribbonfarm.com/2012/10/15/economies-of-scale-economies-of-scope/ (accessed on 5 February 2025).
- Deloitte Insights. Enterprise IT: Thriving in Disruptive Times with Cloud and As-a-Service. Deloitte Everything as a Service Study, 2021 ed. Available online: https://www2.deloitte.com/us/en/insights/industry/technology/enterprise-it-as-a-service.html (accessed on 5 February 2025).
- Fogliatto, F.S.; Da Silveira, G.J.; Borenstein, D. The mass scustomisation decade: An updated review of the literature. Int. J. Prod. Econ. 2012, 138, 14–25. [Google Scholar] [CrossRef]
- Choudary, S.P. An introduction to interaction-first businesses. In Platform Scale: How an Emerging Business Model Helps Startups Build Large Empires with Minimum Investment; Chourday, S.P., Ed.; Platform Thinking Labs: Singapore, 2015. [Google Scholar]
- Taneja, H. & Maney, K; The end of scale. MIT Sloan Manag. Rev. 2018, 59, 67–72. [Google Scholar]
- Beltrametti, L.; Gasparre, A. Industrial 3D printing in Italy. Int. J. Manuf. Technol. Manag. 2018, 32, 43–64. [Google Scholar] [CrossRef]
- Manavalan, E.; Jayakrishna, K. A review of Internet of Things (IoT) embedded sustainable supply chain for industry 4.0 requirements. Comput. Ind. Eng. 2019, 127, 925–953. [Google Scholar] [CrossRef]
- Haldi, J.; Whitcomb, D. Economies of scale in industrial plants. J. Political Econ. 1967, 75 Pt 1, 373–385. [Google Scholar] [CrossRef]
- Chandler, A.D. The visible hand. The Managerial Revolution in American Business; The Belknap Press of Harvard University Press: Cambridge, MA, USA, 1977. [Google Scholar]
- Van Alstyne, M.W.; Parker, G.G.; Choudary, S.P. Pipelines, platforms, and the new rules of strategy. Harv. Bus. Rev. 2016, 94, 54–62. [Google Scholar]
- Srnicek, N. Platform Capitalism; Polity Press: Cambridge, UK, 2017. [Google Scholar]
- Montes, J.O.; Olleros, F.X. Microfactories and the new economies of scale and scope. J. Manuf. Technol. Manag. 2019, 31, 72–90. [Google Scholar] [CrossRef]
- Baumers, M.; Dickens, P.; Tuck, C.; Hague, R. The cost of additive manufacturing: Machine productivity, economies of scale and technology-push. Technol. Forecast. Soc. Change 2016, 102, 193–201. [Google Scholar] [CrossRef]
Advantages of Everything as a Service (Xaas) in the Literature | ||
---|---|---|
Advantages | AuthorsI | |
1 | Improves customers’ expense model | Stahel [12], Lin et al. [30], Benlian & Hess [31], Janssen & Joha [32] |
2 | XaaS is well adapted to servitization, which may boost sales | Vandermerwe & Rada [33], Neely et al., [34], Forbes Insights [28], Raddats et al. [35], Han et al. [36], Systemiq, [19] |
3 | Systems for customer and product feedback are easier to implement | Rabetino-et-al. [37], Krancher et al. [38] |
4 | Mass customisation is easier to implement. | Goldhar & Jelinek [39], Pine [40], Pine et al. [41] |
5 | XaaS is well adapted for implementing machine learning and AI | Chui et al. [42], Cognite [43], Halleberg & Martinac [44], Sousa et al. [45], Kunz & Wirtz [46] |
6 | Increasing flexibility and reducing risks | Stahel [13], Ardagna et al.Ardagna et al. [47], Manvi & Shyam [48], Tsai et al. [49] |
7 | The suppliers have an incentive to produce higher-quality products | Banerjee et al. [16], Deloitte [17], Migliorato, L. [50], Forbes Insights [28] |
8 | More time-efficient use of products | Ellen Macarthur Foundation [51], Schulze [52], Aboulamer [53] |
9 | Incentives for prolonging the life-cycle of products | Ellen Macarthur Foundation [51], Aboulamer [53], Baumgartner & Rauter [54], Lacy & Rutqvist [55], Vermunt et al., [56]. |
The Five Elements of Total Value of Ownership (TVO) |
---|
|
|
|
|
|
NACE Codes, XaaS Categories, Dominant Product, and Firms Ranked After the Number of Hits for the String “as a Service” | |||||
---|---|---|---|---|---|
NACE Codes https://nacev2.com covered by the 55 articles | NACE Code Heading | Category of XaaS Based on Article Content * | Descriptor of the Most Dominant Product Covered by the Articles | Ten Largest Norwegian Employers Within Each NACE-Code Covered by the Articles ** | Hits of “as a Service” *** |
62.02 | Computer consultancy activities | IOT as a service (1) | Sale of IOT devices | Sopra Steria, DNV, Atea, Capgemini Norge, Tietoevry, Accenture, Advania Norge, Experis, Omega 365 Consulting, Bekk Consulting | 162 |
49.3 | Other passenger land transport | Mobility as a service (29)/Public transport as a service (1) | Sale of equipment supporting bus services | Vy Buss, Tide Buss, Unibuss, Connect Buss, Nobina, Boreal AS, Sporveien, Minibuss24-7, LL Setesdal Bilruter, Nordlandsbuss | 86 |
28.99 | Manufacture of other special-purpose machinery n.e.c. | Customer service as a service (1) | Sale of robots for customer service | Scale Aquaculture, Goodtech, Tronrud Engineering, Tomra, Sørskår Mekaniske Verksted, Lilaas, Mustad Autoline, Energy X AS, Maskon, Norwater | 49 |
35.1 | Electric power generation, transmission, and distribution | Energy as a service (2) | Sale of energy as a commodity | Statkraft AS, Elvia, BKK, Hafslund AS, A/S Norske Shell, Lede AS, Hydro Energi, Linja AS, Lnett, Glitre nett | 30 |
45.1 | Sale of motor vehicles | Mobility as a service (29)/Autonomous vehicle as a service (2)/Car as a service (1)/Underused assets as a service (1) | Retail sale of cars | Tesla Norway, Norsk Scania, Bilia Norge, Bertel O Steen, Møller Bil, Birger N Haug, Bavaria Norge, Volvo Norge, Wist Last & Buss, Hurtigruten | 25 |
47.54 | Retail sale of electrical household appliances in specialised stores | White goods as a service (1)/Water dispenser as a service (1)/Electronic product development as a service (1) | Retail sale of white goods, water dispensers, and electronic devices | Power Norge, Miele, HG Handel, Odd Ingebrigtsen, Elkjøp, Porsgrunn Retail, Åkra Elektriske, Bø Installasjon, Brødr Jacobsen Handel, Thunheim Retail | 22 |
22.29 | Manufacture of other plastic products | Additive manufacturing as a service (1) | Sale of 3d Printing equipment | Poly Har, Nofi Tromsø, Gyli Plast, Grønneviken, Partner Plast, Strukturplast, Plasto, Beform Fredrikstad, AS Om be plast, Sign Production | 19 |
01.6 | Support activities for agriculture and post-harvest crop activities | Agriculture as a service (1) | Sale of planning equipment for farmers | Landbrukstjenester Nordvest, Animalia, Telemark Frukthageservice, Rimkus, Park & Anlegg Alta, Standal, Hundeskolen veiviseren, Østfold Gress, Anicura, Levanger Drift og Montasje | 17 |
46.6 | Wholesale of other machinery, equipment, and supplies | Equipment as a service/Data as a service (1)/Recruitment in construction as a service (1) | Wholesale of machinery, equipment, and supplies | Ahlsell, Yara Norge, Pon Equipment, Siemens AS, Wartsila Norway, Schneider Electric Norge, Onninen, Solar Norge, Toyota Material Handling Norway, Hitachi Energy Norway | 14 |
47.52 | Retail sale of hardware, paints, and glass in specialised stores | Underused assets as a service (1)/Building energy retrofit-as-a-service (1)/Office space as a service (1)/Community as a service (1) | Installation of equipment for ventilation, heating, and air conditioning for buildings and interior design | Optimera AS, Biltema Norge, Løvenskiold Handel, Jula Norge, E.A. Smith, Mestergruppen Byggevare, Jernia Detalj, Megaflis, Gausdal Landhandleri, Neumann Bygg | 8 |
47.64 | Retail sale of sporting equipment in specialised stores | Mobility as a service (29) | Retail sale of bicycles and scooters | XXL Sport, Sport Holding, Norrøna Retail, Løplabbet, E-Wheels Norge, Bergans Retail, Bull Ski & Kajakk, Vonin Refa, Platou Sport, Torshov Sport | 1 |
58.11 | Book publishing | Tourist guide robots as a service (1) | Sale of maps and brochures | Cappelen Damm AS, Gyldendal AS, Aschehoug AS, Akademika AS, Vigmostad & Bjørke, Bonnier Norsk Forlag, Kagge forlag, Sandviks AS, Hermon Forlag, Davvi Girji | 1 |
47.65 | Retail sale of games and toys in specialised stores | Cultural heritage as a service (1) | Sale of tools for art conservation | Sprell Butikk, Lekekassen, Gustav Pedersen AS, Extra Leker, Toys AS, Riktige Leker, Nortoy, Thomas Leker, Oslo Sentrum Leker, Festmagasinet Standard | 0 |
47.71 | Retail sale of clothing in specialised stores | Retail as a service (1)/Resale as a service (1) | Retail sale of apparel | H&M, Voice Norge, Cubus, Nor Tekstil, Dressmann, Kappahl, Lindex, Bestseller, Retail Management AS, Bik Bok | 0 |
Disclaimer/Publisher’s Note: The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of MDPI and/or the editor(s). MDPI and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content. |
© 2025 by the author. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).
Share and Cite
Laudal, T. Is Economies of Scale Driving Everything as a Service? Systems 2025, 13, 356. https://doi.org/10.3390/systems13050356
Laudal T. Is Economies of Scale Driving Everything as a Service? Systems. 2025; 13(5):356. https://doi.org/10.3390/systems13050356
Chicago/Turabian StyleLaudal, Thomas. 2025. "Is Economies of Scale Driving Everything as a Service?" Systems 13, no. 5: 356. https://doi.org/10.3390/systems13050356
APA StyleLaudal, T. (2025). Is Economies of Scale Driving Everything as a Service? Systems, 13(5), 356. https://doi.org/10.3390/systems13050356