Jason Skidmore, Chief Commercial Officer at 3stepIT, considers whether the circular economy will be the ‘next big thing’ for IT resellers.
No one could have missed the publicity about the circular economy in recent years. As sustainability and environmental issues have gained greater prominence in society, and around climate change in particular, the pressure has been building on businesses to reduce their carbon footprint and eliminate the waste they generate.
Although disposing of old IT equipment has previously been an afterthought for most companies, electronic waste is becoming a growing concern, with many businesses looking to partners and sustainable solution providers for help.
Given the sheer volume of corporate e-waste contributing to this global problem, it is cause for concern that, according to our recent research, one-third of businesses in Europe still dump or destroy old IT devices
Research from the UN Global E-waste Monitor has shown 53.6 million metric tonnes of e-waste were generated globally in 2019 – the equivalent of throwing away 1,000 laptops every second. That figure is forecast to grow to 74 metric tonnes by 2030, with the pressure on businesses to act responsibly likely to grow substantially at the same time.
Given the sheer volume of corporate e-waste contributing to this global problem, it is cause for concern that, according to our recent research, one-third of businesses in Europe still dump or destroy old IT devices, with many IT decision-makers still unsure of how to dispose of technology responsibly. But we know their intentions are in the right place and there is a growing market of sustainable products and services to meet this demand.
How resellers can help businesses reduce their e-waste
This is significant from a channel perspective, as many of those businesses are customers. Think of the value that could be added to customer relationships if you could help address those sustainability challenges and become the partner of choice for green IT solutions.
Savvy resellers are keen to move their customer relationships from a single sale or project approach to one that is much more service- and support-based. The adoption of subscription models and cloud-based as-a-service is starting to change the dynamics, and the financing, of the engagement between channel partners and their customers.
There is, for example, a growing trend of and appetite for partners to provide solutions to businesses on an OPEX basis. Sustainability and the circular economy can provide the way into some of these discussions, and here’s how.
IT assets need servicing throughout their lifecycle
There are three simple stages to managing the technology lifecycle: acquire the asset, manage the asset, and then when it’s time, refresh, ensuring old assets are sent to be refurbished and reused, so that the maximum value is extracted from old IT. We call this Technology Lifecycle Management.
How a business acquires and manages IT has a huge impact on how that “asset” is treated at the end of its first lifecycle. By looking at the lifecycle of a device in its entirety, customers start to engage with the principles of the circular economy, eliminating unnecessary waste for their business and for the planet.
Covid-19 has left a significant number of desktop PCs sitting idle in offices across Europe. In fact, almost one-third of desktop PCs have been ‘made redundant’ and left abandoned in office spaces, as European workforces shifted to work from home during the global lockdown.
A more holistic approach also provides opportunities for channel partners to strengthen their relationships with their clients, providing multiple touchpoints instead of single sale opportunities. For example, once IT assets are acquired, it is important that customers manage them effectively. By having an asset management system in place for the customer, there is greater visibility of maintenance and security risks, and more occasions to offer support and provide new solutions to the challenges being faced.
This is also true of the refresh stage. Traditionally, much of the focus has been placed on the new equipment coming in, but what happens to the equipment that needs to be disposed of? This is another opportunity for channel partners, who can support businesses to dispose of old IT assets responsibly and sustainably, while recouping the greatest value from the used IT.
Covid-19 has raised e-waste up the corporate agenda
The issue of asset disposal issue has most recently been brought to the fore by the wholesale adoption of remote working during the pandemic and the dispersal of devices from a single office location to many individual employee’s homes.
Covid-19 has left a significant number of desktop PCs sitting idle in offices across Europe. In fact, almost one-third of desktop PCs have been ‘made redundant’ and left abandoned in office spaces, as European workforces shifted to work from home during the global lockdown.
This redundant business technology represents both an opportunity and risk. It often holds residual value that businesses can use to fund their transition to new, flexible ways of working. But many businesses are failing to recognise this opportunity, and continue to pay asset disposal companies to remove the redundant IT equipment, which could ultimately be at risk of ending up in landfill.
Instead, the leading companies are realising the value they can reclaim from old IT by ensuring it is refurbished and resold by a sustainable IT partner. Resellers can play a key role in helping customers understand the value of old devices, turning the tide against unnecessary waste.
Some larger resellers are already recognising the value of sustainable asset management and developing tools for customers. Channel partners that don’t currently provide these services for customers may find themselves at a disadvantage, especially if not all may be in a position to develop their own tools.
By offering a Technology Lifecycle Management solution, channel partners are able to provide a full service to customers that places sustainability at the core of the process, while providing the opportunity to engage with customers from the beginning of the IT sales process through to the removal of the equipment and its replacement with new technology.
Make no mistake about it, the circular economy is going to be a massive priority for customers in the near future, and as the circular economy takes off, you can’t afford to be left behind.
