Digital Product Passport (3): Business Model Challenge or Why Digital Product Passports Must Generate Value

The increasing need for data exchange has been widely discussed. Significant differences exist between services offered to private users (B2C) and the needs of commercial users (B2B). In the B2C sector, dominant providers like Facebook, LinkedIn, and TikTok have emerged. These platforms primarily offer “free” services that are paid for by using personal data for advertising or through additional paid services.

In the B2B world, the situation is completely different. The data used here generally represents valuable company expertise and has considerable value for the company. In addition, “industrial” data is structured in a far less standardised way than B2C data. The very way in which data is recorded can therefore represent proprietary knowledge. But here too, the need for data exchange is increasing, driven by factors such as automation, sustainability, regulations and much more.

Typically, data exchange involves effort for the data provider and benefits for the data recipient. Given that data in the B2B sector is highly valuable to companies, the question arises: How can a functional ecosystem be created where all participants derive value?

Several approaches can address this, such as:

• Enhancing the utility of manufactured products through data. Products can self-manage, associated services can be offered, and their lifecycle can be tracked.
• Increasing manufacturing efficiency by passing on necessary data for subsequent processes, thereby reducing the effort required for data provision along the value chain.
• Developing system solutions that integrate data from other manufacturers, enabling the creation of proprietary, data-driven business models.

We support you in developing and implementing your business model with digital product passports and look forward to addressing your challenges.
Sustainably, for your success!