Life as a lease

A fundamental change of paradigm is shifting the focus from ownership towards usage and sharing.


Artti Aurasmaa

Artti Aurasmaa

Senior Advisor at Korvenpoika Oy
Artti Aurasmaa is Senior advisor at Korvenpoika Oy. His mission is to revolutionize the way organizations acquire IT. He is also a passionate advocate of open, transparent and honest business culture.
Artti Aurasmaa

Latest posts by Artti Aurasmaa (see all)

Introduction from Executive Producer JO DAVIS
Limited natural resources require changes in how we consume and produce assets, how need to move from disposable to renewable, from single use to re-use and from owning to sharing and how a  properly developed and executed asset finance solution is a key part of a more sustainable economic model, argues Artti Aurasmaa, CEO of 3 Step IT. Part of the Catalysts: innovation in leasing and asset finance series.

Who should be interested in this?

All professionals involved in leasing and asset finance, industry commentators, and marketing and communications professionals.

 

Life as a Lease

Leasing – Catalyst of Change

The magnitude and frequency of change are increasing. Yesterday is history, and today’s world won’t exist tomorrow. Globalization and digitization are not only changing the global balance of power but also the fundamentals of Western values. Our social networks have become global and we no longer value our lives through what we possess, but what we experience and what our opinions are. This fundamental change of paradigm is shifting the focus from ownership towards usage and sharing. This provides an enormous opportunity for the leasing industry to be the advocate and catalyst of change.

From Ownership to Usage

Globalization has resulted in dramatic economic growth and demands from developing countries for improved quality of living.  Limited natural resources require changes in our how we consume and produce assets. We need to move from disposable to renewable, from single use to re-use and from owning to sharing. Yet the fall of communist and socialist systems have proven that a joint ownership does not work. Only financial interest would make sure that assets are looked after properly. So, a properly developed and executed asset finance solution is a key part of a more sustainable economic model.

Internet of Devices

The rapid expansion of mobile internet is soon going to reach the next remarkable milestone as ”Internet of Devices” (IOD) becomes reality.  Tens of billions of assets – including most of the light bulbs on the planet – are going to be connected to the internet. This development opens up enormous opportunities for tracking and managing assets. When these new capabilities are combined with dynamic and transparent asset finance solutions, a solid foundation for a new ownership model is possible.

Re-use and Sharing

The new model of ownership emphasises durability and re-usability. Assets can be shared or re-used depending on the asset category and the type of usage. Users of the assets are released from the burden of ownership, and the financiers of the assets can manage and track the assets globally 24/7. Full transparency and control provide a real-time valuation for each asset, providing a the potential for owners of fixed assets to leverage their current ownership. We as consumers or businesses no longer need to own a multitude of assets that we use only occasionally. For example, our most valuable purchases, such as cars, do not need to be compromises to fit many different purposes: instead we have an access to use the type of assets we need at any given time or place – and we could even use our existing possessions to finance this.

Less is More

This model of ownership embraces high quality durable assets. It moves us from low quality disposable assets to high quality brands, which last longer. It allows the asset finance industry to be part of the entire lifecycle from cradle to grave. This change significantly improves the quality of life globally – by producing less, we have access to more.

CC BY 4.0 Life as a lease by Artti Aurasmaa is licensed under a Creative Commons Attribution 4.0 International License.