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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High-tech horticulture production methods (such as vertical farming, hydroponics and other related technology possibilities), combined with evolving market side possibilities (consumer’s willingness to pay for variety, food safety and security), are opening new ways to create and deliver value. In this paper we present four emerging business models and attempt to understand the conditions under which each business model is able to create positive market value and sustained business advantage. The first of these four models is the case of a vertically integrated production to retail operation. The second model is the case of a production model with assured retail/distribution side commitment. The third model deals with a marketing/branding driven production model with differentiated market positioning. Finally, the forth is a production model with direct delivery to the end-consumer based upon the leveraging of wide spread digital technology in the consumer market. To demonstrate these four business models, we analyze practical case studies and analyze their market approach and impact. Using this analysis, we create a framework that enables entrepreneurs and businesses to adopt a business model that matches their capabilities with market opportunities.
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Recent economic crises, environmental problems and social challenges have urged us to drastically change our consumption and production patterns and transform organisations to contribute to socio-technical transitions that positively impact these challenges. Therefore, sustainable development and the transition towards a circular economy are gaining increased attention from academics and are being widely adopted by national and local governments, companies and other organisations and institutions. Since the implementation of more sustainable solutions lags behind expectations and technological possibilities, scholars and practitioners are increasingly seeing sustainable business model innovation as the key pathway to show the value potential of new sustainable technology and stress the importance of integrating the interests of multiple stakeholders and their economic, environmental and social value goals in the business model’s development. However, there is limited research that elucidates which stakeholders are actively involved, how they interact and what the effect is on the collaborative business modelling process for sustainability. This thesis addresses this research gap by building on the notion of business models as boundary-spanning activity-systems and studies stakeholder interaction from the level of a focal firm, as well as from the level of cross-sector actors collaborating in innovation ecosystems. Through four independent studies, three empirical studies and a design science study, this thesis aims to provide a better understanding of how stakeholder interaction affects collaborative business modelling for sustainability.The first study (Chapter 2) took a process perspective on interaction with network ties from the perspective of a focal firm. Based on two case studies of SMEs successfully introducing sustainable technology in the market, value shaping was identified as the operative mechanism describing the relation between networking and business modelling, from ideation to growth of the business. A stage model with five successive forms of value shaping describes how, in each stage, interaction with network ties help firms to clarify the types of economic, environmental and social value that a sustainable technology can deliver and who possible beneficiaries are. In return, changes in the business model clarify what other network ties are needed, demonstrating how the boundary-spanning function of business models spurs firms to expand and strengthen the value network.The second study (Chapter 3) focused on the commercialisation stage, in which a cognitive change in the manager’s mind was found during the development of a sustainable business model. Based on three empirical cases of business model innovations for sustainability, the study explored how stakeholder interaction may trigger and support managerial cognitive change and hence business model innovation. The findings suggest that the influence of stakeholders on the manager’s understanding of the business runs via three interrelated shaping processes: market approach shaping, product and/or service offering shaping and credibility shaping. In these shaping processes, new or latent stakeholders are found to have a bigger impact than existing ones. A research agenda is presented to further unravel the role of stakeholders affecting managerial cognition around business model innovation for sustainability.The third study (Chapter 4) examined innovation ecosystems’ processes of developing a collaborative business model for sustainability. Based on a study of four sustainably innovative cross-sector collaborations, this chapter studied how innovation ecosystems resolve the tensions that emerge from the collaborating actors’ divergent goals and interests. This study finds that innovation ecosystems engage in a process of valuing value that helps the actors to manage the tensions and find a balance of environmental, social and economic value creation and capture that satisfies all involved actors. The findings reveal that valuing value occurs in two different patterns – collective orchestration and continuous search – that open up a research agenda that can shed further light on the conditions that need to be in place in order for an innovation ecosystem to develop effective sustainable business models. The final study (Chapter 5) used a design science approach, developing a tool for innovation ecosystems’ actors to manage the degree to which stakeholders are involved throughout the process of collaborative business modelling for sustainability. The resulting ‘degree of engagement diagram’ and accompanying stepwise approach makes it possible to identify stakeholders from six cross-sector stakeholder groups that represent economic, social and environmental aspects of sustainable value and visualise their roles. By discriminating between four concentric and permeable circles of engagement, the tool integrates different degrees of involvement of stakeholders and enables users of the DoE diagram to accommodate changes that may occur in the evolving business model and its context. The tool enables innovation ecosystems’ actors to keep the collaboration manageable during the development of a joint and viable sustainable business model. Overall, this thesis extends the understanding of the dynamics of collaborative business modelling for sustainability and the role of stakeholder interaction therein. The research makes three key contributions to the sustainable business model innovation literature. First, it extends the literature by exploring the interplay between stakeholder interaction and business modelling over time. It establishes that stakeholder interaction and business modelling have a reciprocal relationship and contributes with two frameworks – value shaping and valuing value – that explain this reciprocal relationship for firms and innovation ecosystems. Second, the thesis unravels the micro-processes and mechanisms that elucidate how stakeholder interaction actually influences the direction into which the sustainable business model develops. Third, this thesis enriches the scholarly understanding of stakeholder interaction by identifying the main contributors to business model innovation for sustainability, by differentiating between stakeholders and their roles and by providing a tool that accommodates this. The research contributes to practice by offering practitioners useful insights on how they can increase, improve and effectuate stakeholder interaction in order to develop viable business models for sustainability and hence contribute to the desired socio-technical transitions.
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This Whitepaper presents the essence of research into existing and emerging circular business models (CBMs). This results in the identification of seven basic types of CBM, divided into three groups that together form a classification. This Whitepaper consists of three parts.▪ The first part discusses the background and explains the circular economy (CE), the connection with sustainability, business models and an overview of circular business models.▪ In the second part, an overview is given of the developed classification of CBM, and each basic type is described based on its characteristics. This has resulted in seven knowledge maps. Finally, the last two, more future-oriented models are further explained and illustrated.▪ The third part looks back briefly at the reliability of the classification made and then at the aspects of change management in working on and with a CBM.
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The QuickScan CBM (Circular Business Model) offers an approach to develop a circular business model. It focuses primarily on the manufacturing industry, even though it can be used in other sectors. It consists of three parts: (1) an introduction with an explanation of backgrounds and central concepts, (2) knowledge maps of seven business models that together form a classification and (3) the actual QuickScan.An interactive application can be found at Business Model Lab. This last version is bilingual (Dutch and English). Regardless of the version, it can be used to develop a new CBM or adapt an existing business model based on a qualitative approach. The starting point is that better design and organisation of a CBM contributes to the transformation and transition towards a sustainable and circular economy.
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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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This report describes the Utrecht regio with regard to sustainability and circular business models.
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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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This upper-level Open Access textbook aims to educate students and professionals on how to develop business models that have a positive impact on people, society, and the social and ecological environment. It explores a different view of how to organize value creation, from a focus on an almost exclusively monetary value creation to one that creates positive impact through multiple values.The book offers students and entrepreneurs a structured approach based through the Business Model Template (BMT). It consists of three stages and ten building blocks to facilitate the development of a business model. Users, be they students or practitioners, need to choose from one of the three offered business model archetypes, namely the platform, community, or circular business models. Each archetype offers a dedicated logic for vale creation. The book can be used to develop a business model from scratch (turning an idea into a working prototype) or to transform an existing business model into one of the three archetypes. Throughout the book extra sources, links to relevant online video clips, assignments and literature are offered to facilitate the development process.This book will be of interest to students studying the development of business models, sustainable management, innovation, and value creation. It will also be of interest executives, and professionals such as consultants or social entrepreneurs seeking further education.
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The shift towards a more sustainable circular economy will require innovations. While SMEs can contribute to this development, financing innovations within SMEs is difficult. Various authors have not ed moreover that the concept of the circular economy has further increased the complexity of investment decisions concerning sustainable innovations, due to the multiple value creation and new business models involved . On the other hand
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