Preserving value by optimising the software-hardware interface for medical scanners | Knowledge Hub | Circle Economy Foundation
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Business case
Preserving value by optimising the software-hardware interface for medical scanners
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With the ever-increasing need for capital equipment maintenance, some companies such as Philips rethinks their business by designing for upgradability and software compatibility, hence ensuring advanced maintenance and postponing technical obsolescence.

Problem

As is the case for much capital equipment, technological innovation in magnetic resonance imaging (MRI) technology increasingly focuses on the softwarehardware interface, with the image-processing software becoming more advanced. So, with rising scanner complexity, additional services and maintenance are required

Solution

This has led the Dutch life-science company Philips to pioneer new revenue models with partners. For instance, by entering into full-service partnerships with several hospitals in the UK, Philips provides equipment and services for a period of 10 years at a monthly fee. This business model incentivises Philips to design for upgradability and software compatibility, ensure advanced maintenance and postpone technical obsolescence.

Outcome

Using such a strategy allows for the number of machines required to be minimised and lifespans to be extended, which can increase functional value per unit by at least half the original value.

Additional information

Photo by Tom Claes on Unsplash

Relevant links
Organisations
Philips
Philips
Location
Key elements of the circular economy
Impacts
Industries
Four Flows Framework
Country profiles (Build, Grow, Shift)
Global Circularity Gap Report
Tags

Upgrade

capital equipment

obsolescence

long-lasting good