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BUSINESS MODEL INNOVATIONSUSTAINABILITY
Strategies to Rewire Business
1. Business models & innovation
2. Sustainability
3. Innovation for the Large Firm
4. Case Study
5. What’s Next?
What is a busines model?
1
“the way in which a company makes money.” —Investopedia
“the fundamental structures for how companies create, deliver and capture value.”
—Osterwalder and Pigneur
Many existing business models are predicated on the assumption that vital, non-financial resources are in unlimited supply.
Business model innovation is key to meeting human needs within planetary
limits.
“involving a novel form of exchange at some point along a company’s value chain.”
—SustainAbility
Busines Model Innovation for Sustainability
2
Customers — SunEdison
Supply Chain — SABMiller
Employee — Ocean Spray
Community — 2degrees
Industry — Starbucks
Closed-Loop Production Physical to VirtualProduce on DemandRematerializationBuy One, Give One Cooperative OwnershipInclusive SourcingBuilding a MarketplaceDifferential PricingMicrofinanceMicro-FranchiseCrowdfunding FreemiumInnovative Product FinancingPay for Success
Subscription ModelAlternative MarketplaceBehavior ChangeProduct as a ServiceShared Resource
Business model innovations by company size
SME (-1,000 employees) Large (+1,000 employees)Global Fortune 500
Innovation for the Fortune 500 Firm
3
Any risk manager or foresight strategist that looks five, ten or twenty years into the future will see that many business models that are financially successful today are going to be at risk tomorrow.
— Rising commodity prices
— Changing consumer demographics
— Increasing competitive pressure
— Dwindling security of supply
The Role of Company Culture
• Deflate Hierarchies
• Comfort with Failure
• Collaboration Within and Beyond
• Supportive Leadership
Actions of Internal Innovators
• Act Like an Entrepreneur
• Map Your Model
• Focus on Value
• Mine the Network Effect
• Align Metrics
Case study: Closed-loop aluminum production
4
Largest Global Seller—Rolled Aluminum
External ConditionsResource Scarcity•Price Volatility•Climate Change•Increasing Competition
Company CultureEntrepreneurial Culture•Senior Leadership
Action of Internal InnovatorsInternal & Exernal Collaboration•Align Metrics
Additional Elements at PlayClear Business Case•Time of Transition
Busines Model Innovations for Sustainability
Closed Loop – Main business strategy
Bottom-of-the-Pyramid – Part of supply chain
What’s Next?
5
Model Behavior II: Strategies to Rewire Business
•June 4th
•SustainAbility.com
•@EarthofFoxes