Business models, business strategy and innovation david j. Business model innovation has seen a recent surge in academic research and business practice. Business models that can amortise the higher capital costs of sustainable innovation over. The implications of sustainable development for airport. In summary, the concept of sbm innovation encompasses the challenge of innovating developing and implementing new solutions for products, processes, marketing andor organization, in order to improve corporate sustainability performance firms contribution to global sustainable development, that is embedded in firms core business model. However, research suggests that many business model innovations fail. A business model for sustainability helps describing, analyzing, managing, and communicating i a companys sustainable value proposition to its customers, and all other stakeholders, ii how it creates and delivers this value, iii and how it captures economic value while maintaining or regenerating natural, social, and economic. Responsible and sustainable business model innovation in the textile industry. Considering the sustainable development goals, the innovative business models have brought a competitive advantage to improve the sustainability. However little is known about the successful adoption of sustainable business models sbms. Sustainable competitive advantage through business model innovation. Model behavior explores the role and practice of business model innovation in the context of sustainability. Keywords business model innovation circular economy sustainability sustainable business corporate responsibility open access. But all the talk has yet to yield many real businessmodel changes.
As well as conducting worldleading research, graeme also has a passion for science communication and engagement with nonacademic audiences. Restart sustainable business model innovation springerlink. The topic of this paper, sustainable business models in the agri food. Sustainable innovation management oxford handbooks. Entrepreneurship, innovation, and sustainable business. The promise of businessmodel innovation has long captivated the sustainability field, generating plenty of hype. Sustainable businessinnovation wikibooks, open books for. By contrast, the next phase of business sustainability, what we call market transformation, is founded on a model of business transforming the market. Towards a unified perspective for creation of sustainable business models article pdf available in business strategy and the environment april. Digitalization is revolutionizing the way business is conducted within industrial value chains through the use of internet of things iot technologies, intensive data exchange and predictive analytics. The trends spawning the next wave of sustainable business models. Implications for product and service design as well as for business model. The final section outlines a research agenda for sustainable business informed by the perspectives and frameworks put forward in this book. A case study of how a business model is modified when a corporation commits to bringing a sustainability innovation to market.
Corporate responsibility or sustainability is therefore a prominent feature of the business and society. Feb 12, 2014 model behavior explores the role and practice of business model innovation in the context of sustainability. This books point of departure was that three major trends drive this need for continuous business model innovation. Most organizations can be placed somewhere in between. Graeme has expertise in a number of fields, not least in the environmental impacts of aviation specifically carbon and noise, sustainable business model innovation and the circular economy. Performance metrics for sustainable business models the sustainability of a system can be measured as its lasting impact on the social, cultural and natural environment. A conceptual framework regarding sustainabilityoriented innovation. The designimplementation gap in sustainable business model innovation. Taking the business model as point of departure, this open access book explores. Innovation and sustainable business models in the fashion. The sustainable business case book open textbook library. In the final part of the course, the emphasis is placed on how to innovate existing. But all the talk has yet to yield many real business model changes.
Moreover, long range planning published a special issue on latest business model research 2010, vol. Business models that can amortise the higher capital costs of sustainable innovation over the lifecycle of the product can help bridge the gap. Through a confrontation of the literature on both topics we find that research on sustainable innovation has tended to neglect the way in which firms need to combine a value proposition, the organization of the upstream and downstream value chain, and a financial model, in. Towards a unified perspective for creation of sustainable business models. Sustainable business models institute for manufacturing. Explore why collective efforts matter and how business can be a catalyst for systemlevel change in the face of significant global issues, such. Sustainability free fulltext sustainable business models. The opening chapter managing sustainable business in a global context can be used as a preparatory. It suggests that the problem of innovation management is deeply related to the way in which a firm manages its external relationships and that the analysis of innovation management needs to be seen as being embedded in a network of relationships related to regulatory and social. The aim of this paper is to advance research on sustainable innovation by adopting a business model perspective. Responsible and sustainable business model innovation in. Pigneur, business model canvas 2005 sustainable business archetypes ifm roadmapping tool sustainable value analysis tool business transformation tool. Entrepreneurship, innovation, and transformation, we propose the following definition.
Creating sustainable growth through business model innovation 3 copyright 2017 temasek management services pte ltd, all rights reserved. An overview of sustainable business models for innovation in. However, technological application on its own is not enough. As a result, many companies miss out on inexpensive ways to radically.
We do this through a combination of agendasetting research and consultancy services, which you can learn more about in the sidebar opposite and below. Business model innovation guardian sustainable business. This part of the course introduces the business model framework, the three components. Case studies and summary of findings 21 danone group 22 interface inc. This chapter examines the concept of sustainable innovation management as it applies to business enterprises. Restart sustainable business model innovation econstor. The implications of sustainable development for airport duty.
Instead of waiting for a market shift to create incentives for sustainable practices, companies are creating those shifts to. Today we are going to look on tips how to make it work. Rethinking the business purpose sustainability into the core of the business taking a longer term and systemwide perspective on value rather than short term gain broader range of stakeholders. Innovative and sustainable business models in the fashion. Sustainable business models ifm open day 2015 steve evans 14052015. However, what exactly is meant by innovation in a sustainability context is not very clear. The global textile industry offers huge potentials regarding the transformation towards sustainability. Each part is introduced by setting out the key concepts and challenges. Business model innovation in the context of sustainable. This book provides a comprehensive exploration into the identification and development of sustainable business models as well as their implementation, management and evaluation. Larsons flat world knowledge book, sustainability, innovation, and entrepreneurship, examines the wave of innovation spreading across the world today as entrepreneurial individuals and organizations incorporate concern for ecological, human health, social equity, and community prosperity into product design, operations, strategy, and supply.
More recently, the research on this realm has grown rapidly, with diverse research activity covering a wide range of application areas. Business model innovation in the context of sustainable development. Success in implementing sustainable business practices relies on entrepreneurship the act of starting a new business or revitalizing the business activities of an existing, mature organization. Teece whenever a business enterprise is established, it either explicitly or implicitly employs a particular business model that describes the design or architecture of the value creation, delivery, and capture mechanisms it employs. A process model for sustainable business model innovation. Strategies and drivers of sustainable business model innovation.
Creating sustainable growth through business model innovation 7. Reviewing literature on digitalization, business model. Read while you wait get immediate ebook access when you order a print. Creating sustainable growth through business model innovation 3. Designing and innovating sustainable business models.
Sep 02, 20 the promise of business model innovation has long captivated the sustainability field, generating plenty of hype. Sustainable business strategy illustrates how businesses can thrive and grow while simultaneously solving some of the worlds biggest challengesand how you, as an individual, can make a difference. The chapters in this book examine and analyze existing and new approaches towards sustainable business models and showcase the implementation of sustainable business through both quantitative and qualitative studies, including several case studies and many practical examples. Innovation is a wellstudied area of business behaviour, and is increasingly seen as a crucial element in the private sectors responses to the challenges of sustainability. The entire book can be used as a course book for an executive education module per part, a few case studies can be selected.
Sustainable business models innovation, implementation and. The introductory chapters also describe key concepts, analytical frameworks, and contextual information relevant for the understanding of business sustainability. However, many business model innovations fail patel, 2015. Sustainability offers guidance to large companies and innovators within those firms to harness the power of business model innovation to help create a more sustainable future. The handbook of sustainable innovation maps the multiple lineages of research and understanding that constitute academic work on how technological change relates to sustainable practices of production and consumption. Sustainable competitive advantage through business model. A systematic approach to innovating business models can help identify new. Innovation 15 sustainable innovation 16 the framework for this research project 17 research design 18 chapter 2. Sustainable business models innovation, implementation.
Business model innovation is typically an ad hoc process, lacking any framework for exploring opportunities. Changes to business models are recognised as a fundamental approach to realise innovations for sustainability. Sustainability, innovation, and entrepreneurship open. November 3, 2009 about bsr a leader in corporate responsibility since 1992, bsr works with its global network of more than 250 member companies to develop sustainable business strategies and solutions. The first part of the sustainable business case book, chapter 1 through chapter 3, introduces students to the meaning of sustainability, and the practice of sustainable business. Handbook of sustainable innovation edited by frank boons and andrew mcmeekin the handbook of sustainable innovation maps the multiple lineages of research and understanding that constitute academic work on how technological change relates to sustainable practices of production and consumption. Last week i have talked about the subscription business model with many examples.
Business models for sustainable innovation what the literature rev eals so far as a holistic and system i c concept baden fuller and morgan, 2010, a business model. A series of case studies of new business models that promote sustainability 11 august 2015. Examining the links between sustainable development, innovation strategy and the business model, this thoughtprovoking and timely book uses insightful case studies from mature and developing markets to demonstrate how sustainability needs to be at the core of every organizations strategy and. Inspiring leaders 31 responsible leaders 31 embedding sustainability values 34 engaging senior executives 35 chapter 4.
Conventionally, businesses focus on their offerings for growth. This has serious economic implications for companies chesbrough, 2007 and. Bsr sustainable business models 3 using environmental criteria with your suppliers is a wellestablished means for creating niche goods such as organic foods, forest stewardship council fsc paper and wood products, and oceanfriendly fish marine stewardship council or msc. We have argued that in the future, companies will have to redesign their business models more often.
Most would agree that the concept of sustainable business has hit the. Sustainable innovation strategy creating value in a. Pdf the capability to rapidly and successfully move into new business models is an important source of sustainable competitive advantage. State of the art and steps towards a research agenda article pdf available in journal of cleaner production 45. Corporate social responsibility and sustainable business. Finally, there is a technoeconomic trend encompassing various technological innovations, enabling improved sustainability in fashion. But the increasingly unpredictable business environment is making them irrelevant in the. Sustainable business models principles, promise, and. Business models for sustainability many sustainable innovations make economic sense over the whole lifecycle, but high capital costs deter early adoption. Sustainable businessinnovation wikibooks, open books. With everincreasing pressure on organisations to respond to societal change and improve competition through sustainable business model innovation sbmi, this book. During the past two decades of ecommerce growth, the concept of a business model has become increasingly popular. Project selection and management project selection is critical.