A transition from a linear economy to a more sustainable and circular economy requires different business models. In this chapter, we provide you with an introduction to the nature and logic of business models. In essence, a business model is a description of how value creation between parties or partners is organized, at a particular moment, in a specific context, and given available resources. Conventional business modelling approaches have several weaknesses---the main point of criticism being their focus on creating financial value. With the Business Model Template (BMT), we try to resolve most of these criticisms. To do so we introduce three archetypal business models: the platform, community, and circular economy business models. This chapter provides an overview on how, over three stages and ten building blocks that together make up the Business Model Template, these archetypal business models will be used.
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We give a refinement of the well known business model canvas by Osterwalder and Pigneur by splitting the basic blocks into further subblocks to reduce confusion and increase its expressive power. The splitting is used in an online tool which in addition comes with a set of questions to further structure the business modelling process and help doing thought experiments.
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The viability of novel network-level circular business models (CBMs) is debated heavily. Many companies are hesitant to implement CBMs in their daily practice, because of the various roles, stakes and opinions and the resulting uncertainties. Testing novel CBMs prior to implementation is needed. Some scholars have used digital simulation models to test elements of business models, but this this has not yet been done systematically for CBMs. To address this knowledge gap, this paper presents a systematic iterative method to explore and improve CBMs prior to actual implementation by means of agent-based modelling and simulation. An agent-based model (ABM) was co-created with case study participants in three Industrial Symbiosis networks. The ABM was used to simulate and explore the viability effects of two CBMs in different scenarios. The simulation results show which CBM in combination with which scenario led to the highest network survival rate and highest value captured. In addition, we were able to explore the influence of design options and establish a design that is correlated to the highest CBM viability. Based on these findings, concrete proposals were made to further improve the CBM design, from company level to network level. This study thus contributes to the development of systematic CBM experimentation methods. The novel approach provided in this work shows that agent-based modelling and simulation is a powerful method to study and improve circular business models prior to implementation.
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Pressure on natural resources, unsustainable production and consumption, inequality and a growing global population lie at the base of the big challenges that people face. This chapter investigates how businesses can take responsibility in dealing with these challenges by means of frugal business model innovation. The notion of ‘frugal innovation’ was first introduced in the context of emerging markets, giving non-affluent customers opportunities to consume affordable products and services suited to their needs. Business modelling with a frugal mindset opens up a path that provides significant value while minimizing the use of resources such as energy, capital and time. Business models require intentional design if they are to deliver aspired sustainability impacts. Diminish or simplify resources can be described as the means to remove or reduce features, resources, required activities and/or waste streams. Decompose can be described as the removal of resources from the commercial value proposition and replacing them with resources the user/consumer already can access or uses. This is an Accepted Manuscript of a book chapter published by Routledge/CRC Press in Circular Economy : Challenges and Opportunities for Ethical and Sustainable Business on 2021, available online: https://doi.org/10.4324/9780367816650
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Het business model canvas is het afgelopen decennium populair geworden voor de ontwikkeling van organisaties en om ondernemerschap te faciliteren. Het model is ook in het hoger onderwijs populair als methode om te leren ondernemen. De populariteit neemt niet weg dat er vragen zijn over de effectiviteit van business modelling en de wijze waarop de aanpak het beste ingezet kan worden. In dit artikel brengen we deze ontwikkelingen samen door te laten zien hoe business modelling op vier verschillende manieren gebruikt kan worden voor het faciliteren van lerend ondernemerschap en het creëren van een lerende onderneming.
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This paper seeks to make a contribution to business model experimentation for sustainability by putting forward a relatively simple tool. This tool calculates the financial and sustainability impact based on the SDG’s of a newly proposed business model (BM). BM experimentation is described by Bocken et al. (2019) as an iterative-multi-actor experimentation process. At the final experimentation phases some form of sustainability measurement will be necessary in order to validate if the new proposed business model will be achieving the aims set in the project. Despite the plethora of tools, research indicates that tools that fit needs and expectations are scarce, lack the specific focus on sustainable BM innovation, or may be too complex and demanding in terms of time commitment (Bocken, Strupeit, Whalen, & Nußholz, 2019a). In this abstract we address this gap, or current inability of calculating the financial and sustainability effect of a proposed sustainable BM in an integrated, time effective manner. By offering a practical tool that allows for this calculation, we aim to answer the research question; “How can the expected financial and sustainability impact of BMs be forecasted within the framework of BM experimentation?
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The European Commission aims for a full circular economy (CE), an economy that aims to reuse all resources in 2050. CE is a promising way to increase welfare and wellbeing while decreasing environmental footprints. Industrial symbiosis, in which companies exchange residuals for resource efficiency, is essential to the circular transition. However, many companies are hesitant to implement business models for industrial symbiosis because of the various roles, stakes, opinions, and resulting uncertainties for business continuity.This dissertation supports researchers, professionals, and students in understanding and shaping circular business models for industrial symbiosis networks through collaborative modelling and simulation methods. Three theoretical perspectives, design science research, complex adaptive socio-technical systems, and circular business model innovation, shed light on designing business models for industrial symbiosis. A serious game and agent-based models were developed in multiple case studies with researchers, practitioners, and students. These were then used to design circular business models and explore their efficacy under uncertain conditions, such as various behavioural intentions of potential partners in diverse natural and societal contexts.This thesis advances business model design and experimentation by integrated simulation of social and technical aspects of industrial symbiosis. Furthermore, the research shows how simulations facilitate learning processes in designing circular business models. Ultimately, the thesis equips researchers, practitioners, and students with knowledge, tools, and methods to shape a circular economy.
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The main question in this PhD thesis is: How can Business Rules Management be configured and valued in organizations? A BRM problem space framework is proposed, existing of service systems, as a solution to the BRM problems. In total 94 vendor documents and approximately 32 hours of semi-structured interviews were analyzed. This analysis revealed nine individual service systems, in casu elicitation, design, verification, validation, deployment, execution, monitor, audit, and version. In the second part of this dissertation, BRM is positioned in relation to BPM (Business Process Management) by means of a literature study. An extension study was conducted: a qualitative study on a list of business rules formulated by a consulting organization based on the Committee of Sponsoring Organizations of the Treadway Commission risk framework. (from the summary of the Thesis p. 165)
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Purpose: To facilitate the design of viable business models by proposing a novel business model design framework for viability. Design: A design science research method is adopted to develop a business model design framework for viability. The business model design framework for viability is demonstrated by using it to design a business model for an energy enterprise. The aforementioned framework is validated in theory by using expert opinion. Findings: It is difficult to design viable business models because of the changing market conditions, and competing interests of stakeholders in a business ecosystem setting. Although the literature on business models provides guidance on designing viable business models, the languages (business model ontologies) used to design business models largely ignore such guidelines. Therefore, we propose a business model design framework for viability to overcome the identified shortcomings. The theoretical validation of the business model design framework for viability indicates that it is able to successfully bridge the identified shortcomings, and it is able to facilitate the design of viable business models. Moreover, the validation of the framework in practice is currently underway. Originality / value: Several business model ontologies are used to conceptualise and evaluate business models. However, their rote application will not lead to viable business models, because they largely ignore vital design elements, such as design principles, configuration techniques, business rules, design choices, and assumptions. Therefore, we propose and validate a novel business model design framework for viability that overcomes the aforementioned shortcomings.
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Author supplied Business rules play a critical role in an organization’s daily activities. With the increased use of business rules (solutions) the interest in modelling guidelines that address the manageability of business rules has increased as well. However, current research on modelling guidelines is mainly based on a theoretical view of modifications that can occur to a business rule set. Research on actual modifications that occur in practice is limited. The goal of this study is to identify modifications that can occur to a business rule set and underlying business rules. To accomplish this goal we conducted a grounded theory study on 229 rules set, as applied from March 2006 till June 2014, by the National Health Service. In total 3495 modifications have been analysed from which we defined eleven modification categories that can occur to a business rule set. The classification provides a framework for the analysis and design of business rules management architectures.
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