Business model innovation for growth and resilience - …€¦ · Business model innovation for...
20
Business model innovation for growth and resilience © The Carbon Trust
Transcript of Business model innovation for growth and resilience - …€¦ · Business model innovation for...
Business model innovation for growth and resilience
© The Carbon Trust
© The Carbon Trust
Current business models face multiple challenges
Material input costs
Security of supply
Changing usage patterns
Regulation
Competition
Materials
extraction &
production
Component
manufacture
Final product
manufacture
Use &
consumption
(B2B / B2C)
Disposal
© The Carbon Trust
Innovation can mitigate these and unlock significant new sources of value
New ways to better
serve customers;
new markets
Maintaining end-of-
life value & circular
resource use
Reduced dependency
on virgin materials;
control over supply
Materials
extraction &
production
Component
manufacture
Final product
manufacture
Use &
consumption
(B2B / B2C)
Disposal
© The Carbon Trust
Customer relationships
Revenue streams
Channels Customers3. Value
proposition
Core capabilities
Cost structure
1. Operating model 2. Revenue model
Suppliers & partners
Operations & activities
To maximise impact, companies should explore how areas of their business model can be adapted or changed
Adapted from Alexander Osterwalder’s Business Model Canvas
© The Carbon Trust
Examining risks and opportunities reveals new ways to add value, grow revenues, and improve competitiveness
Can we reduce our customers’ total cost of
ownership?
Value proposition
Operating model
Revenue model
Are we exposed to significant risk of
material supply or price volatility?
Can we capture more value through
different delivery and pricing models?
Can we help our customers grow more sustainably?
Can we enter new markets or disrupt
existing ones?
Can we fundamentally change our resource
cost position?
© The Carbon Trust
Value proposition
Operating model
Revenue model
Example business model innovations
Rental and ‘on-demand’ subscription models
Refurbishing and reselling
Remanufacturing
Collaborative consumption & peer-to-peer sharing
Product service systems
A
CB
DF
E
Closed-loop material recycling
Click on letters to see examples
© The Carbon Trust
Innovation can yield a number of benefits
Higher revenues per customer
More customer touch-points, and closer/longer relationships
Higher margins
Reduced cost of goods sold
Mitigated risks
Supply chain resilience and control
New sources of growth
New markets and customer segments
© The Carbon Trust
› Resource waste & risk exposure
› Customer insights
› Market and industry trends
We can help you at each stage of your journey
› Develop call to action
› Engage internal & external stakeholders
› Generate options
› Define business case
› Design solutions / prototype
› Pilot new approaches
› Establish partnerships
› Iterate design
› Develop business plan
› Implement change
› Learn and improve
› Resource efficiency diagnostic
› Market insights
› Visioning and strategy
› Innovation process
› Business case development
› Design partnerships
› Developing consortia and partnerships
› Technology incubation
› Programme management
› Supply chain innovation
› Funding & investment
Understand Mobilise Create ExecuteTest
Learn
Iterate
KEY
AC
TIV
ITIE
SC
AR
BO
N T
RU
ST S
UP
PO
RT
© The Carbon Trust
Extended
enterprise /
value chain
Corporate /
internal
Incremental Breakthrough
Impact
Sco
pe
Business model
innovation
Sourcing &
supplier dev’t
Mfg. / process
innovation
Operational
efficiency
Proposition
development &
market entry
Supply chain
optimisation
Our services and capabilities span the full range of strategy and operational improvement
© The Carbon Trust
Case study: Dyson sustainable design
We helped Dyson design carbon emissions out of its innovative Dyson Airblade, making it one of the most energy efficient hand dryers in the world. Read more
Case study: BT Net Good
The pioneering carbon abatement methodology behind BT’s Net Good programme was reviewed, refined and endorsed by the Carbon Trust and Camanoe Associates (researchers from MIT). Read more
Case study: Coca-Cola consumer engagement
Ground-breaking project tested whether providing environmental information to consumers can help encourage sustainable consumption habits. Read more
Case study: Kingfisher
Working with the Carbon Trust since 2008 to put carbon management and green growth at the heart of its business strategy. Read more
© The Carbon Trust
Case study: JCB product innovation
Uncovering the potential for product innovation, giving JCB an improved proposition: reduced cost of ownership for customer; increased re-sale value; and superior environmental credentials
Case study: Whitbread sustainable business growth
Identifying new opportunities for sustainable growth in the business.
Read more
Case study: GE Ecomagination
Working with GE to identify and evaluate early stage companies, then incubate and invest in those with the most potential.
Read more
© The Carbon Trust
Reports
Opportunities in a resource constrained world: How business is rising to the challenge Download
Our Viewpoints
Business model innovation and strategies for sustainable growth Read
Net Possible: how can a business succeed in giving back more than it takes? Read
Adapt or die – our sustainable future lies inside business Read
How businesses are sleepwalking into a resource crunch Read
Optimising the Value Chain: survival of the fittest Read
Why Big Data will have a big impact on sustainability Read
© The Carbon Trust
click to go back
Rental and ‘on-demand’ subscription models
© The Carbon Trust
Refurbishing and reselling
Retailer
click to go back
click for example
© The Carbon Trust
Example: electronics industry
click to go back
© The Carbon Trust
Remanufacturing
click to go back
© The Carbon Trust
Closed loop material recycling
click to go back
© The Carbon Trust
Collaborative consumption, sharing economy, and peer-to-peer models
click to go back
© The Carbon Trust
Product service systems
› Managed
service
› Pay-per-use
› Performance
-based
click to go back
