Business Modeling (original) (raw)
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Management Dynamics in the Knowledge Economy, 2013
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An approach to business model innovation and design for strategic sustainable development
Journal of Cleaner Production, 2017
Successful business is increasingly about understanding the challenges and opportunities linked to society's transition towards sustainability and, e.g., being able to innovate, design and build business models that are functional in this context. However, current business model innovation and design generally fails to sufficiently embrace the sustainability dimension. Typically, the business case of sustainability is not understood profoundly enough; the planning horizon and system scope are insufficient; the competence to bring together people into systematic ventures towards sustainable business is too low. A unifying framework for sustainability analyses, planning, cross-disciplinary and cross-sector cooperation, and cohesive use of the myriad sustainability tools, methods and concepts has been developed: the Framework for Strategic Sustainable Development (FSSD). Similarly, a generic approach to business model design has been put forward: the Business Model Canvas (BMC). In this paper we explore how the FSSD could inform business model innovation and design by combining it with the BMC and supplementary tools, methods and concepts such as creativity techniques, value network mapping, life-cycle assessment, and product-service systems. The results show that the FSSD-BMC combination can support business model innovation and design for strategic sustainable development, as well as strengthen each supplementary tool, method and concept in its own primary purpose. We apply the combined approach, for the purpose of initial testing and presentation, to a real case of business model evolution. Based on our findings we propose a new approach to business model innovation and design for strategic sustainable development. The new approach facilitates, e.g., business scalability and risk avoidance and clarifies the interplay between classical business model development and strategic sustainability thinking. The new approach highlights the opportunity for novel business model design for future sustainable success.
Introductory Approach to Business Model Design for Strategic Sustainable Development
2013
The interrelated challenges of systematic degradation of ecosystems, social inequalities, financial instability and resource constraints are redefining the overall conditions for business in the twenty-first century. Addressing these challenges both demands and brings great opportunity for innovation. An important but sometimes neglected aspect of innovation is the design or redesign of business models. This has been identified as a greater source of lasting competitive advantage than new products and services per se. The majority of managers among those who say that their company´s sustainability activities have added to profits also say that these activities have led to business model changes. However, integrating business model design and sustainable innovation practices is a relatively underexplored area of research. The aim of this work is to develop an approach to business model design that supports the realization of sustainability-driven strategies. In this thesis, it is arg...
Business Models for Sustainability
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The disruptive nature of many sustainability solutions may be the main barrier to their implementation and dispersal: adopting a business model perspective may help address this problem. Previous literature has explored how organizations can convert their supply chains and customer interfaces toward a sustainability focus, but has generally not considered links to other business model elements—such as value propositions and financial models—in exploring business model transitions. Moreover, the implementation of sustainable solutions often relies on projects being implemented and managed collectively, so that organizations need to adapt their business models to deliver value propositions collectively, a phenomenon that research on business models for sustainability should address. This article addresses these issues by exploring changes in business model elements in detail via an in-depth qualitative study of two French sustainable urban projects— Caserne de Bonne and IssyGrid®. Our...
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A Review of Sustainable Business Models: Past Accomplishments and Future Promises
2020
Sustainable business models have become a prominent feature of organizations in their quest towards sustainability. The current study takes stock of the SBM field through a systematic review of the literature. Drawing on a qualitative content analysis of 104 articles published in the period 2008–2019, the main aim of the article is to analyze (1) the central characteristics of studies within the SBM field to date, and (2) promising avenues for further research by the SBM community. The review shows that SBM research is proliferating but that there is a persistent emphasis on qualitative work based primarily on case studies. Quantitative studies highlighting causalities, correlations, and generalizations remain scarce. Moreover, the SBM field needs to broaden its empirical focus in terms of sectors and countries studied. A systematic analysis of the future research suggestions proposed in extant work points to three main dimensions of a research agenda: (1) broadening the scope and m...
Research on Business Models in their Life Cycle
The paper presents the results of theoretical discussions and research findings in the field of designing sustainable business models that support the creation of value at various stages of the business life cycle. The paper presents selected findings of extensive research into the business models of Polish companies listed on the Warsaw Stock Exchange. Companies which are at various stages of development should build and adapt their business models in order to maintain the ability to create value for stakeholders. Characteristics of business models at the early stages of development are different than at mature stages. The paper highlights the differences in business models in the context of the life cycle of companies and sustainability criteria. The paper presents research findings which show that the company's development can be seen from the point of view of the business model. Research on business models concentrated on identifying the key attributes and the configuration of the business models appropriate for the early stage of development as well as the maturity stage. It was found that the business models of companies at an early stage of the development of companies listed on the Warsaw Stock Exchange are oriented primarily to how the company shapes, delivers, and captures value from the market in order to generate profits for shareholders and increase the value of the company, while the business models of mature companies include the intentions of management used to balance objectives with respect to different groups of stakeholders, and to carefully formulate and implement business objectives with particular attention paid to preserving the sustainability of the business. The assessment of business models from the point of view of the life cycle proves that managers change their approach to configuring business models over time; at some point, they include management intentions aimed at a broader range of goals than merely generating profits. At the early stage, it is important to adapt the business model to the ability to create value for shareholders by actively searching for the optimal configuration of the business model. Here a component approach to making rapid changes in the structure of the business model is essential. The business model of mature companies is based on assumptions ensuring the long-term viability of the business and is holistic in nature. When the company moves from the stage of early development to the maturity stage, business models change in such a way that the assumptions of the Triple Bottom Line concept become increasingly important, as expressed in the joint implementation of Corporate Social Responsibility and Value-Based Management assumptions. At the early stage of development, the business model strengthens the need to create value for shareholders and is not as dependent on strong partnerships with a large number of stakeholders. At the maturity stage, it is important to balance the objectives of all stakeholders and to build long-term relationships with them. As regards relationships with the environment, business models at these two stages are different. The paper presents research on the business models of companies at their early stage of development as well as mature companies, taking into consideration the assumptions of the Sustainable Business Model. Keywords: business model; company value; capital market; balance; a sustainable business model; life cycle of a business model; early stage of company development; maturity stage of company development