The New Asset Management: Implicationsof Servitization in Circular Economy

Abstract

The circular economy, or reduce, reuse, recycle, is gaining ground andis supported by many governments, with consequences for businesses. Inasset management, the change in the economy paradigm must be drivenby a new formula focusing on asset resilience, productivity rates, and assetintegrity, while minimizing waste. In the circular economy, spares and brokencomponents acquire an importance not considered in linear economies wheredisposal was common. The circular economy uses technologies such asIoT and understands the whole supply chain as connected. This impliesinformation sharing that is not typical of production environments, and itoffers new opportunities, such as: joint maintenance optimization of supplychain actors, maintenance as a service for all actors, and increased supplychain efficiency. In a circular economy, maintenance providers must considerenvironmental compatibility, energy efficiency, and human health and safety.