**1.1 Service**

In some countries, the economy is already dominated by services rather than products. Recognition that customers want the functions that products deliver but do not necessarily want to own the product is the primary driver behind this trend. Customers receive all the upside of being able to perform the jobs they wish to get done (mobility, communication, eating, laundry, learning, managing their finances, etc), without all of the downside of initial capital outlay, maintenance, or eventual replacement of the products required to deliver the required functions. This product-to-service shift represents a vital step towards a more sustainable society.

Prior to their shift to a 'power-by-the-hour' functional sales model, for example, the jet-engine industry had a strong imperative to make engines that required frequent overhaul and replacement. When customers receive 'free' engines that they only pay for when they are being used, however, the engine manufacturers quickly recognised a strong incentive to design engines that lasted a lot longer and required less maintenance. Such transitions, in many cases, only become possible thanks to the benefits attributable to digital technologies…
