MultiNET LTD has developed, in 25 years of activity, an integrated business system to extend the life of IT products, thus having a strong competitive advantage
Specialized in technological solutions for soft & hardware in the NW of Romania since 1994, MultiNET LTD has the motto "To your appetite for communication through Multimedia & Networking”, that is still valid after 25 years of good practice in IT&C.
The rapid IT changes and the IT trends evolution lead to higher costs and over consumption, influencing in a negative way the responsible and sustainable behavior in IT sector.
In order to extend the life cycle of IT products, MultiNet has developed an integrated business model for maintaining on market the obsolete products (morally or physically outdated), by maintaining their functional parameters and adding new values of use. The used IT products are reintroduced into functional circuit by applying 4xR: Repair (current repairs), Reuse, Remanufacturing (capital repairs) & Recycling (Dismantling - reuse of spare parts, WEEE). Also, from used IT products, MultiNet creates new, adjacent or complementary products and services. The IT products life is extended by integrating new processing boards in used PCs; upgrading memories, processors, HDD/SSD; reselling old equipment from businesses to individual clients etc.
The clients are legal persons and individuals: users of mature technologies, not adapted to new hard-soft technologies; customers with special technological needs, with mature IT equipment; suppliers/producers interested in a better reputation regarding the reliability and maintenance of products.
Financing depends on duration of process for IT product-life extension, 4xR phases and also on initial data on IT product: degree of wear, use, etc. Resources needed for an efficient operating system are approx.10 persons and approx. 100,000 EUR for location/equipment/training, know how.
Evidence of success
- Over 1000 products/year included in 4xR cycles: about 25,000 products in 25 years of activity
- Financial efficiency: Turnovers of about 100,000 Euro/year, Profit Rate about 5%
- 5-10 jobs created and maintained
- Increasing customers’ number for 4xR products influenced the increasing of commercial clientele
- Promoting of products/brands with high reliability and stable providing of spare parts, training, know-how
- Zero waste EEE, the existing ones being sent to specialized collectors
Since 1994, MultiNet has worked to find balance between old & new technologies and to build strong & mixt teams: seniors (old technologies experts) & young people (new technologists). The company has developed niches for SMEs and an appropriate organizational culture: openness, flexibility, mobility
Potential for learning or transfer
The integrated business model developed in 25 years, by MultiNET LTD, to extend the life cycle of IT products using the 4xR methods, can be applied in all regions, because the IT sector is the main factor of globalization. Some of IT companies from certain locations (large cities) have favorable context to apply a single business model, but in cities with less than 200,000 inhabitants, the IT companies must apply combined or integrated models.
The use of circular economy principles in IT sector could be extended, thus contributing to a larger valorization of IT materials and WEEE management, increasing the cooperation at local/regional/national level with IT suppliers and waste collectors and developing the organizational culture for sustainability.