Product Life Cycle Extension: The Role of Technology and Data

The Synergy Between Technology and Sustainability in Product Life Cycle Extension

The circular economy, based on resource optimization and reuse rather than linear consumption, is a fundamental goal for companies aiming to reinvent their business models with a sustainable perspective. To fully realize its potential in terms of product life cycle extension, it is essential to leverage advanced solutions and tools that not only extend a product's lifespan but also reconfigure its entire life cycle through practices such as rental, refurbishment, refill, sharing, and recycling.

By analyzing collected data (via smart sensors or IoT technologies), companies can:

• predict and control wear and tear,
• combat obsolescence,
• identify usage opportunities,

The Strategic Importance of Product Life Cycle Extension

Effectively optimizing and extending product lifespans is one of the most pressing strategic challenges for companies embracing the circular economy. Product life cycle extension requires tactical planning at every stage of an object’s journey, from its initial design to the end of its use, encompassing additional steps such as rental, sharing, refill, reuse, refurbishment, and recycling.

Extending a product’s life cycle means prolonging its use and durability, delaying obsolescence and disposal, with significant economic and environmental benefits. Manufacturers continue to generate value from existing products while reducing the costs of designing and producing new ones. Meanwhile, consumers benefit from lower prices and longer-lasting goods. Additionally, the overall environmental impact of production and disposal is minimized.

To achieve this, technology is indispensable.

The Role of Data in Product Life Cycle Extension

In the realm of product life cycle extension, data collection and analysis play a crucial role. Throughout its lifecycle, every product generates valuable insights that, when decoded, provide essential intelligence on:

• Rental and sharing: Usage pattern data can determine when a product could be rented or shared, increasing utility and economic returns. In industrial machinery rental, for instance, SmartIndustry data suggests that cost amortization for lessors occurs within two years, with the third year yielding an average annual ROI of 11%.
• Reuse: life cycle analysis helps identify components that can be reused, reducing waste.
• Refill: Consumption data informs the development of refill stations, enabling consumers to replenish products using the same containers rather than purchasing new ones.
• Refurbishment: predictive wear analysis determines which items can be renewed, extending their useful life before they become obsolete.
• Recycling: end-of-life insights reveal opportunities for material dismantling and recycling.

Five Key Technologies for Effective Product Life Cycle Extension

While data collection and analysis are foundational to product life cycle extension, selecting the right supporting technologies is critical. The five most relevant include:

1. Internet of Things (IoT): monitors real-time usage of smart products, verifying conditions and maintenance levels to facilitate rental and sharing processes.
2. Smart Sensors: detect component wear levels, signaling appropriate moments for maintenance, reuse, or refurbishment before full product replacement is necessary.
3. Artificial Intelligence (AI): predicts optimal moments for refurbishment or component recycling, maximizing resource efficiency.
4. Blockchain: provides secure and transparent documentation of a product’s history, essential for verifying the authenticity and lifecycle of reused or refurbished goods.
5. Big Data Analytics Tools: process and interpret large volumes of data to support informed decisions on reuse, refurbishment, and recycling.

Technology and Data Empowering Product Life Cycle Extension for a Sustainable Future

In an era of increasing environmental responsibility, product life cycle extension emerges as a corporate imperative to be achieved through the right tools. Advanced technologies and precise data analysis serve as essential allies in this journey, enabling companies to continuously review and improve their products' life cycles.

Through the adoption of IoT, AI, and advanced analytics, new business models based on rental and sharing can be implemented, component reuse can be encouraged, and a renewed focus on refill and refurbishment practices can be promoted. This approach not only extends the useful life of goods but also fundamentally reshapes their lifecycle, fostering a more conscious and optimized use of resources.

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