Strongly sustainable business models v1.2ss
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Antony Upward, CMC [email protected] @aupward #SSBMG
Strongly Sustainable Business Models
An Introduction for CMC-Canada’s Energy & Climate Change SIG
April 23, 2013
Lots of speaker notes,
Lots of speaker notes, including references
including references
Builds on many slides Builds on many slides
download and view download and view
in slide show mode in slide show mode
for improved for improved
comprehensioncomprehension
2
TopicsThe Big Problem: What do you mean by sustainability– Generally and in Business
Designing businesses– Profit-First and Strongly Sustainable
Introducing the Strongly Sustainable Business Model Canvas– Comparison to (Profit-First) Business Model Canvas
Next Steps to Bring the Canvas to the World– How can you help?
Contact details, references, copyright
A
B
C
D
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Assume hope all you who enter here Vaclav Havel
4
Experiment to Gain Experience
5
Why are we here? What’s the
meaning of all this?
No idea… but I want us to keep going for a long time… just like
we are now… what’s a word for that?
The BIG Problem
“Sustainability”
… and how will you measure your
“sustainability”?
… and who will benefit, for how long and at what
cost?
So tell me… what is it exactlyexactly you want to sustain?
Don’t forget nature is alwaysalways changing… it isn’t
static
…and what we value is alwaysalways changing… that
isn’t static either!
Oh heck. I thought this sustainability stuff was going to be simple. I think
I’ll take a nap…zzzzz
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Maximization of wealth creation so we can afford the public good
What’s What’s Your Your
ResponseResponse
What do you want to sustain?
• For whom? • For how long? • How much will it cost? (p.26)
?“The possibility that human and other life will flourish on this planet forever.” (p.6)
Our Current Our Current Collective Collective ResponseResponse
So we’re on the same page...
NotNot trying to convince you!
My Personal My Personal ResponseResponse
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Goals Need Strategies…
…so Strategies are designed!
Design is the process of “changing existing conditions into preferred ones” – Herbert A. Simon, 1969
“Business people don’t just need to understand designers better.
They need to bebe designers” – Roger Martin, 2006
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Design brief for business…
…its been a huge success!(although clearly not perfect and there are alternatives)
“There is one and only one social responsibility of business – to increase
its profits within the rules of the game” – Milton
Friedman, 1962
generate the wealth to do good …
9
…The unintended consequences #1• Put Billions of Kg of toxic materials into the
air, water and soil every year• Produce materials so dangerous as to
require constant vigilance by future generations
• Place gigantic amounts of waste, irretrievably in holes all over the planet
• Slowly poison people and ecosystems, limited only by thousands of complex regulations
• Create economic prosperity by reducing the number of people with valued work
• Create prosperity by digging up or cutting down natural resources then burying or burning them
• Erode the diversity of species and cultural practices with unknown consequences
McDonough & Braungart, 2002 p.18
10
“The earth is full”….and there is no planet BPaul Guilding
http://www.ted.com/talks/paul_gilding_the_earth_is_full.html
…Evidence of the consequences Download to see the
Download to see the details of the works
details of the works shown on the next 7
shown on the next 7 slides; References are
slides; References are in notes in notes THISTHIS slide slide
11
“The earth is full”….and there is no planet BPaul Guilding
…Evidence of the consequences
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“The earth is full”….and there is no planet BPaul Guilding
…Evidence of the consequences
Human Development vs. Ecological
Footprint
13
“The earth is full”….and there is no planet BPaul Guilding
…Evidence of the consequences
Human Development vs. Ecological
Footprint
14
“The earth is full”….and there is no planet BPaul Guilding
…Evidence of the consequences
Human Development vs. Ecological
Footprint
15
“The earth is full”….and there is no planet BPaul Guilding
…Evidence of the consequences
Human Development vs. Ecological
Footprint
16
“The earth is full”….and there is no planet BPaul Guilding
…Evidence of the consequences
Human Development vs. Ecological
Footprint
17
…The unintended consequences #2
60% of firms in the manufacturing and service sectors in 6 of the larger OECD countries ceasecease to exist within 7 years of founding (p.14, Figure VIII.5)
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Alternative Design Briefs for Business
Confidence not uncertainty and distrust
Reduce speed of diversity lossErodes the diversity of species and cultural practices with unknown consequences
Happiness not fearDigs up and cut down lessCreates prosperity by digging up or cutting down natural resources then burying or burning them
Enduring and resilience, not failing unexpectedly
Focused on creating greater economic prosperity not human flourishing
Creates wealth by reducing the number of people with valued work
Positively contributes, not does less damage
Increases number, complexity and stringency of regulation
Slowly poisons people and ecosystems, limited only by thousands of complex regulations
Flourishing by being not languishing by having
Produces smaller amounts of useless / irretrievable waste
Places gigantic amounts of waste, irretrievably in holes all over the planet
Everyone and everything forever not just me now
Produces less while living in fearProduces materials so dangerous as to require vigilance for generations
Abundance not limitsReleases less toxic materials while ignoring long term impacts
Put’s Billions of Kg of toxic materials into the air, water and soil every year
… creates possibilities for:Design a business that is financially profitable and…
NewNew: “Flourishing” “Strong Sustainable” “Eco-effectiveness”
EmergingEmerging: “CSR” “Weak Sustainability”“Eco-efficiency”
Current:Current:“Profit-first”
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So…How do you design a business?
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and…What is a business design?
• Business Plan• Strategy• Vision• Mission• Business Model• Value Statement• Simulation• Prototype
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www.businessmodelgeneration.com
Business Model Canvas Explained
Watch this ~2 minute video at https://www.youtube.com/watch?v=QoAOzMTLP5s
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3. Channels
But…does this help to design a sustainable business?
1. Customer Segments
2. Value Propositions
4. Customer Relationships
5. Revenue Streams
7. Key Resources
6. Key Activities
9. Cost Structure
8. Key Partners
What’s Missing?Why?
24
Lots about money, and the people you financially
transact with…
…(almost) nothing about everyone and everything else
25 But what if…
26
Passing Benefit Corporation Legislation
How do you efficiently How do you efficiently design a business to design a business to
reliably consistently and reliably consistently and effectively enable effectively enable
sustainability?sustainability?
27
Understand the Natural and Social Science of Sustainability
Asked what are the gaps in Osterwalder’s PhD Ontology of Profit-First Businesses, based on the science
Designed an Ontology of Strongly Sustainable Business Models
Created the Strongly Sustainable Business Model Canvas, a visual design tool, powered by my Ontology, and tested it
1. Against standards of sustainable business2. Formally with 7 experts and 2 case study companies3. Informally with dozens of others:
Business people, professors, students
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Understand the Natural and Social Science of Sustainability
Asked what are the gaps in Osterwalder’s PhD Ontology of Profit-First Businesses, based on the science
Designed an Ontology of Strongly Sustainable Business Models
Upward, A. (2013, Forthcoming). Towards an Ontology and Canvas for Strongly Sustainable
Business Models: A Systemic Design Science Exploration. (Masters of Environmental Studies / Graduate Diploma in Business + Environment, York University, Faculty of Environmental
Studies and Schulich School of Business), 1-889 (i-xx). doi:http://hdl.handle.net/10315/20777
Created the Strongly Sustainable Business Model Canvas, a visual design tool, powered by my Ontology, and tested it
1. Against standards of sustainable business2. Formally with 7 experts and 2 case study companies3. Informally with dozens of others:
Business people, professors, students
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Real Context of Business
Context: Environment (Physical / Chemical / Biological)
(Monetary)
All Organizations
Context:Financial Economy
(Social/Technology) Context:
Society
© Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions
30
Revising Definitions…
A description of how an organization defines and achieves success over time.
A Business ModelA Business Model: the logic for an organization’s existence: who it does it for, to and with; what it does now and the future; how, where and with what does it do it; and how it defines and measures its success.
“A Business Model describes the rationale of how an organization creates, delivers and captures value [in monetary terms]”
Value isValue is the perception by a human or non-human actor of a need being met; measured inaesthetic, psychological, physiological, utilitarian and / or monetary terms.
From
To
Value is created when needs are met via satisfiers that align with the recipients world-view, and destroyed when they don’t
Necessary, but not Sufficient
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Useful Perspectives
Who does a firm do it to, for and with?
What does a firm do now and in the future?
How, where and with what does the firm do it?
How does a firm define and measure success (in Environmental, Social & Monetary units)?
© Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions
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Context: Environment (Physical / Chemical / Biological)
(Social/Technology)
(Monetary)
All Organizations
Context:Society
Real Context & Perspectives on Business
Financial EconomyContext:
© Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions
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…Fl
atten
ed
© Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions
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Stro
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Que
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s V1.032
© Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions
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Stro
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Bu
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© Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions
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Tim
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Comparing Profit-First & Strongly Sustainable Business Model Canvases V1.031
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Reaction So Far?(From Confidential Expert Respondents)
“I really liked is that it really makes you makes you
thinkthink about things that you would never
consider before”Management Consultant “You've ratcheted it upYou've ratcheted it up to the
next degree of specificity and made sure that it is truly about
sustainable businesses. Whereas the current [tools] that I’ve seen,honestly could be applied to any
kind of business”Sustainable Business NGO
“The power of this thing is it’s really the first to take the first to take the social aspect and the the social aspect and the
biophysical into biophysical into considerationconsideration. And I
haven’t seen that that any other business model
That would take that into consideration”
Business Architect / Professor / Consultant
“This is an impressive body of work”
Management Consultant
“I like the tool and think it provides a great way to analyze a company”
Leader Eco-Industrial Park
“It’s about timeIt’s about time somebody did something like
this”Author / Consultant
“I recognize this firm.” “This gets the zeitgeist of This gets the zeitgeist of
who we arewho we are, which is great” (Reacting to his business
described using the Canvas)CTO Small Manufacturer
“If I was starting abrand new business, a
significant business today, I would use thisI would use this business model to help me define
and develop a pure detailed business plan”
Management Consultant
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Make it “better, better, faster, faster,
strongerstronger” ?
Learning by Using / Testing Testing
it out some it out some moremore?
But What About…?(Ideas from All Respondents)
A better way to introduce and summarize the
canvas
A methodologymethodology for designing great
sustainable business models?
An “app” so I can do this on my tablet with my
clients?
A communitycommunity of people using and
improving it?
Ensuring the design principles align with the emerging “Gold
Standard” for Sustainable Business?
Training / Workshops for
Social / Environmental
Entrepreneurs ?
A Consulting Service that uses the Canvas
to Diagnose and Improve the
Sustainability of Business?
The design principlesdesign principles to help me come up with
great answers to the 14 questions?
How about some more examples and
case studiescase studies?
40
What’s Next?
Can I Use It Now?
How Can I Help?
41
Design Principles for the Next Steps• Be the Change
– Focus on Small / Medium Business (they can change more easily)
• Existing and Start-ups– Think Local, Reach Global– Transparency– Creative Commons Licensing
• Crowd Funded– Committed Individuals– Organizations
• Build a Community– Collaborative
• writing / testing / governance– Spread the word– Learn by Doing & from Each Other
• Continuous Improvement• Have fun!
42
Not your typical business “book” • Due Summer 2014
“Book” is Focus for Crowd-Funding• Sufficient Funding Gate
~Sept 2013
• “app”• Community Revenue Opportunities via
– Training Service “Toolkit”– Consulting Service “Toolkit”
• Full alignment with emerging “Gold Standard” for Sustainable Business
• Best Practices• More Case Studies
Now
Later
43
Table of Contents
44
Current Activities• Develop Business Model using canvas• Identify Core Writing Team (3-5)
• Collaborative platform (for Fund Raising & Writing)
• Develop Learning Map• “Soft Launch” activities• Applied for SSHRC Funding
– Methodology development• Start 3 trials / case studies
– More in the pipeline
Want to use the Canvas Now? Ask me!
Based on Mutual Sharing / NDA
Agreement
45
Collaborator / FunderCollaborator / FunderValue PropositionValue Proposition
read content first &
exclusively
use the canvas in your own business
now!
try it out – be a case
study
interact with Strongly
Sustainable Business Thought Leaders
influence writing team
& the community
share your experience, gain from
others
demonstrate your thought leadership to your peers
exclusive webinarsearly access to improvements
preferred access to subsequent training &
consulting revenue opportunities
your name / organization logo in book
credits
discount on final book price
be a part of
the change
we need to
flourishbe a part of something BIGBIG: a global strongly sustainable business
community
have Fun!
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Survey: How Much…(The complete survey will be available on-line in May 2013 – see www.SSBMG.com)
• would you pay? – You participate in the community– Your name appears in credits of
‘book’ to be published in 2014
$100 $200 $250 $300 $400 Other _______ Double price
every time 100 people join
• would your organization pay? – 3 colleagues can participate– Names and organization logo,
website URL appear in credits of ‘book’ to be published in 2014
$2,000$4,000$6,000$10,000Other _______
Donate services in kind to the project
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www.SSBMG.com• About the Strongly Sustainable Business
Model Canvas ~3 minute Audio Visual Overview
• About the research project– 300 words– 1 page– 4 page deeper dive
• Blogs– blog.SSBMG.com– slab.ocad.ca/blogs/antony-upward
– http://www.facebook.com/StronglySustainableBusinessModels
– @aupward #SSBMG
http://blog.SSBMG.com
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Copyright
• All images used under applicable creative commons licences – see notes on each page
© Antony Upward / Edward James Consulting Ltd., 2013. Some rights reserved. – Permissions available at www.EdwardJames.biz
/Permissions – This work is licensed under a
Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.
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