18 TOPDESK MAGAZINE - SEPTEMBER 2016

THE END OF POSSESSION

Interview with Thomas Rau

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No more lamps, just light. No more office chairs, just

sitting hours. Thomas Rau, architect and co-founder of
Turntoo, believes that the way organizations will handle
their assets in the future is changing gradually. People
are starting to think about paying to use assets rather
than to own them. This leads to smarter products, makes
organizations more flexible and its very cost-effective.
Text: Leo Kranenburg
Turntoo was founded in 2011 by Thomas Rau and Sabine Oberhuber. It aims to promote
knowledge and processes that facilitate the shift from consuming products to using services.
The business model is based on preserving resources. The earth is a self-contained system, says
Rau. This means that we need to be careful how we use resources. Todays economy, however,
is linear. We extract materials from resources, use them to make products, and consume those
products until we eventually dispose of them. This way of life simply isnt sustainable.

Bad business models

Rau indicates the printer on his conference table as an example of where the problem lies. In
the old days, technology was used primarily to create solutions. But these days we create almost
nothing but problems with it. This printer will probably break down within a year or two, even
though it could have been made to last much longer. The reason we dont do that is because
customers wouldnt need to come back to the store to buy a new printer. Revenue for many of
these products relies on them breaking down easily.
And there are more problems, according to Rau: Nowadays we also use products that last
longer than we feel is necessary. Nobody buys a new smartphone because the old one is broken.
By constantly introducing small improvements, we become more and more wasteful.

Make the manufacturer accountable

In response to these problems, Rau has developed a new economic model that revolves around
using rather than owning products. This would mean that in the future, organizations wont
purchase a printer, but simply buy a number of printed pages. The printer itself, along with all
its add-ons and maintenance, remains in the manufacturers possession. This makes it lucrative
for him to make things that can still be of value to him when they are returned. It also creates
an incentive to make products of lasting quality. If he doesnt, maintenance will be costly, eating
into his revenue.

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we ended up working with an architect who

BUYING CONTRACTS INSTEAD OF PRODUCTS

REQUIRES A DIFFERENT SKILLSET

designs roller coasters. The best partner

is always somebody whose revenue lies in
getting you exactly what you need.

Keeping future plans tentative

Recently, Rau has noticed an increase in
support for his views. This is in part due to
the new media, who confront us with the
Besides, if manufacturers remain in possession

these assets, and whether you can do that

limits of the earths resources. This leaves

of their products, the cycle of innovation

depends on your core business. For example,

us two options: either we deny that theres

becomes longer and individual improvements

most of the engines in KLM airplanes arent

a problem, which is what mostly happens

become larger, Rau explains. If Apple were to

owned by the airline itself, but by Rolls Royce.

now, or we acknowledge where we are at this

launch an iPhone 7, a number of older models

Ongoing maintenance of the engines would

point. Fortunately the number of people doing

will be returned to them. In order to get a

interfere too much with KLMs core activities,

the latter is increasing.

sufficient number of phones back, they cant

so they cant carry this responsibility. Thats

launch a new model every year, but instead

why for over ten years, they havent bought

make sure that each new model has plenty

engines, but flying hours.

of improvements.

The end of possession

Different skills
Rau thinks its unlikely that organizations

For users, the shift from product to service

will lose control of their services if they work

means that they will no longer be the victim

with multiple suppliers. He does want to

of manufacturers bad business models, Rau

warn organizations that they need different

thinks. Theyll only pay for the service and no

skills to handle this. Buying contracts instead

longer bear the risks of how that service is

of products doesnt necessarily require

established. Organizations who buy services

different people, but of course it does require

also become more flexible, says Rau. If you

a particular skillset. You cant make that shift

want to buy something now, you purchase

in a matter of days, as product culture and

the service for an unknown period. How long

service culture are complete opposites.

will your purchase work? For how long will

you want to keep using it? If you pay for the
you actually need. You no longer mortgage an

Find out how potential partners

generate revenue

unknown future. This is hugely advantageous,

In order to select the right suppliers,

because you can constantly anticipate

organizations need to find out how potential

changing demands. Moreover, its very cost-

partners generate revenue. Rau explains that

Rau doesnt want to go into predictions for

effective, because you dont have to invest

organizations have been taking on the wrong

the future too much. I dont think anybody

your whole budget at the start.

companies for years. A steel construction

knows what the future holds, which means

was needed for a new building for Alliander,

we cant make decisions that have permanent

a Dutch utility company. Normally you might

consequences. We should only make tentative

go to a steel manufacturer for this, but thats

plans and choose solutions that are organized

In theory, organizations could choose to

a mistake. The steel manufacturers revenue

in such a way that when we are done with

exchange all their material assets for services.

comes from getting people to use as much

them, for example when we no longer need a

However, Rau says that having possessions

steel as possible, which is at odds with what

building, our resources arent depleted. That is

isnt inherently bad. But as an organization,

we needed. By finding out what parties gain

the only way we can remove stumbling blocks

you need to be able to carry responsibility for

revenue from light yet safe constructions,

for future progress.

service only, you can get much closer to what

Core business dependency

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OUR CURRENT WAY OF LIVING SIMPLY

ISNT SUSTAINABLE