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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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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Business-led approaches to accessing energy in development countries are becoming key factors to sustainable market development. Given the major challenges in this market, companies will blend commercial and donor-funded activities, while simultaneously finding innovative ways to bring renewable energy technologies beyond the energy grid. Collaborative approaches by companies and public actors focused on private sector development seem crucial at this stage to further upscale emerging business models in this market.
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This report describes the Utrecht regio with regard to sustainability and circular business models.
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The traditional energy industry is transitioning from a centralised fossil fuel based industry to a decentralised renewable energy industry for several reasons including climate change, policy, and changing customer needs. Furthermore, renewable sources, such as wind and solar, are intermittent and unpredictable. This has implications for the business models of energy producers, such as increased mismatch between demand and supply, increased price volatility, shift in drivers of value creation. Due to the low marginal cost of production and the intermittent nature of renewables, the price volatility on the electricity markets, in particular the imbalance market, are expected to increase. However, there is potential for market parties operating in the electricity sector to profit from this development by providing flexibility to balance electricity supply and demand. Therefore, new business models are needed that can harness and exploit flexibility in a viable manner. In these business models, flexibility becomes the key driver of value creation.
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Methods to design viable business networks (BNs) treat the concept of viability merely in terms of profitability. Further, the methods are restricted to mono-commodity (a single product or a service) BNs. However, business literature suggests that besides economic value (profit), non-economic values (e.g. lowering CO2 emission) play an important role in making BNs viable. Furthermore, BNs can also be multi-commodity (e.g. electricity, gas, heat). Hence, we aim to develop an method to determine a viable configuration of services for multi-commodity BNs. In addition, the term viability is used in an extended scope to include non-economic values.
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New Dutch agrifood business models are emerging in response to economic, social and ecological pressures: new players arrive, new logistical pathways come to the fore and innovative consumer and farmer relationships – food coöperatives – are forged. How do new business models relate to reconfiguring the Dutch agrifood system? Our research combines future exploration (backcasting) and analysis of new business models. We developed three agrifood transition scenarios with various groups of stakeholders. For each scenario, we then analysed a specific, representative business model to explore the different roles of business models in agrifood transition. Business models in the “Added value in and with the countryside” already exist and occupy a niche in the market. However, a breakthrough of these business models require large-scale institutional and behavioural change. Business models in the “New products, specific markets” exist but are rare. They usually concern high-value specialist products that could result in widespread market change, but might require little institutional change. The “Sustainable production methods” most resembles the current system. Some associated business models become successful, but they have difficulty distinguishing themselves from conventional produce, which raises questions about whether business models are able to drive a transition in this direction. Thus, our results lend credence to the hypothesis that different transition pathways offer specific potential for and requirements of new business models.
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A business model describes how business is carried out; it includes a description of the stakeholders, their roles, value proposition for the stakeholders involved, and the underlying logic of value creation, value exchange, and value capture at an organisational level, and at a network level.
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Paper presented at the International Sustainability Transitions conference 2018 (12-14 june) Manchester, UK. The Dutch agrifood regime is grinding to a halt. International economic pressures force Dutch farmers to further scale up and intensify their businesses, while food scandals and calamities as well as many and varied negative environmental impacts have led to an all-time low societal acceptance of the agrifood regime as well as a host of legislative measures to stifle further growth. Such a situation, in which regime pressures increasingly undermine the regime, represents a strong call for transition of the Dutch agrifood system.At the same time, new business models emerge: new players arrive, new logistical pathways come to the fore and innovative consumer and farmer relationships – food co-operatives – are forged. In a sense, the transition is already under way (cf. Hermans et al., 2010), with new business models forming an important backbone. However, the way forward is still a matter of great uncertainty and controversy: How do new business models relate to reconfiguring the Dutch agrifood system? We explore the hypothesis that different transition pathways put specific demands on the role of new business models. We studied various new business models in the Dutch agrifood system and their relations to three different transition pathways. Our research combines future exploration (backcasting) and analysis of new business models. In this research, we approach this question from two angles. First, we introduce a transition-oriented business model concept, in order to effectively link new business models to transition. Then we shortly touch upon the transition pathway typology introduced by Geels et al. (2016) and describe three different transition pathways for the Dutch agrifood system. We report on XX business models in each of these transition pathways. The paper ends with a discussion of the role of business models for different types of transition pathways.
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In order to achieve more impact and efficiency on the route towards a circular economy, new business models are introduced in the value chain of construction. It is suggested that lease and performance contracts will stimulate producers to improve quality and lifetime of building products, thereby ameliorating use and reuse of products and their materials. This, since these companies know the origin and composition of the materials, and the history of use and service of the products. The advantages seem to be obvious: the user only pays for use and performance of the product e.g. light, energy, vertical transport or protection against water and wind. The producers remain the owners of products and resources, and have the possibility to reuse and recycle materials and products in an efficient manner. This requires that they provide service during the lifetime of the products, and have the obligation to take care of the perfor- mance of their products over a certain period of time.In the Netherlands these circular business models (CBMs) are already implemented at a small scale. The introduction of these models raises some fundamental questions however, which, ideally, need to be addressed before such models are implemented at a larger scale. The aim of this paper is on the one hand to describe some of these business models, and on the other hand to reflect on some fundamental questions that can be raised in relation to a shift of ownership of materials. What may be the consequences of this shift of ownership? What are the risks of agglomeration of building materials by larger companies? Among other things such a shift could potentially influence the diversity and flexibility of choice available for tenants and building owners. It may also limit future possibilities of SME’s in the supply chain of construction. Are there ways to minimize some of these risks if we decide to implement these business models at a large scale?
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