Lecture 1: Business Model and Co-Evolution
Sustainable Entrepreneurship: Discover and use of economic changes through the creation of
market disequilibria Steer transformation toward the environmentally and socially sustainable state.
……………………………………………………………………………………………………
Emerging Davids: Start-ups → Disruptive and radical innovation → Agile and creative
- Business Behavior
- Not limited by previous mindsets → MORE INNOVATIVE
- Sustainability startups → Value based approach and externalize costs
- Single issue focus
- Niche market → Small and exclusive
Greening Goliaths: Big, Incumbent firms) → incremental innovation die bijdragen aan sustainable
development
- Business Behavior
- Slow to react → But are often able to catch up quickly once they decided to follow
- Charge premium prices → prijs zakt wanneer het schaalt
- Venture Capital funds → to monitor innovating Davids
- Influence the setting of environmental standard
- Try to keep standards fixed rather than encourage continuous improvement
-
Davids Goliaths
Disruptive/ radical innovation Sustainable entrepreneurship Sustainable corporate entrepreneurship
Incremental innovation Bioneers; social bricoleurs Sustainable Management Systems, CSR,
eco-efficiency
Co - evolution
1. Emerging Davids (start-ups)
- Beginnen in Sustainable niche-segment & low market share
- Daarna Scale up operations naar een bigger market share
- → Disruptieve innovatie ( Focus on sustainability)
-
2. Greening Goliaths (gevestigde bedrijven)
- Starten met laag sustainable level & groot marktaandeel
- Process innovation om kosten van verduurzaming reduceren
- Groeien geleidelijk in duurzaamheidsprestatie
Beide trajecten leiden naar Sustainable Transformation of an Industry"
Incremental solutions not enough to maintain critical levels of natural
and social capital → Need Transformational Change
,Co-evolution: Maturity Model
Introduction: Davids pionieren met duurzame producten en Goliaths ignore het
nog
Early Growth: Er komen meer duurzame start-ups en Goliaths beginnen
voorzichtig met "line extensions" → (bijv. biologische variant).
Take-Off: De markt ontploft. Succesvolle David's groeien en worden een
bedreiging en Goliaths proberen de standaarden te bepalen en de markt te
controleren.
Maturity: Duurzaamheid is de norm geworden. Sommige Davids zijn nu zelf
Goliaths geworden en Voor de Goliaths is duurzame innovatie de standaard
werkwijze
- External Costs: Begin → External Cost (zoals milieuvervuiling) High
- Naarmate model vordert naar rechts, worden kosten steeds meer internalized
……………………………………………………………………………………………………
Fairphone - sustainable smartphones ( Davids)
Create positive social and environmental impact from the beginning to the end of a phone’s life cycle
- Social and environmental objectives are at least as important as economic objectives
Disruptive innovation → product design, material sourcing and good working conditions
……………………………………………………………………………………………………………
Traditional Business Model → Resources and capacities omzetten in economic value
- Organizational and financial architecture of business
- 3 Kern Zuilen
1. Value Proposition: belofte die je aan de klant doet → beschrijft welk specifiek
probleem je oplost of welke behoefte je vervult.
a. Product and Service, Customer Segments and Relationships
-
2. Creating customer value: Uitvoering: hoe lever je die belofte daadwerkelijk? Het
gaat om het proces van ontwerp, productie en dienstverlening.
a. key activities, resources, channels, partners and technology
-
3. Capturing economic value: Hoe verdien je er geld mee? Het gaat om het omzetten van de
gecreëerde waarde in omzet en winst.
a. Cost structure & revenue streams.
,Business Models: Hoe firm haar concurrentiestrategie definieert door
1. Design van product of dienst
2. How it charge for it
3. What is costs to produce
4. How it differentiates itself by value proposition
5. How firm integrates its own value chain with other firms in a value network
……………………………………………………………………………………………………………
Sustainable Business Model
Business model innovation → Change by re-conceptualizing of:
1. Purpose of firm
2. Value creating Logic → Ecological and Social Value ( naast financieel)
3. Rethinking Perceptions of Value → Niet alleen financieel maar leveren van bijv langdurig
kwaliteit
Future Sustainable Economy → requires new goals and priorities and future business system that
1. Minimizing consumption
2. Societal and environmental benefits > economic
3. Functionality > product ownership
4. Closed-loop → nothing is allowed to be wasted
Sustainable Business Model → build on Value Proposition: Triple Button Line
1. People → Social Performance
2. Planet → Environmental Performance
3. Profit → Economic Performance
Environment and society as stakeholders → Aswell
Research is necessary
- Transition to sustainable business model → Vereist een beter begrip van hoe duurzame
bedrijfsmodellen kunnen zorgen voor betere sociale en milieuprestaties.
, Sustainable Business Model Archetypes
- Business model archetypes are useful for
- Redesign
- Creating new businesses
- Understanding trends and direction that are creating impact
…………………………………………………………………………………………………
Descriptive groupings → Beschrijvende groepen
- Technisch:
- Sociaal:
- Organisatorisch:
…………………………………………………………………………………………………
Archetypes → Standard solution for sustainability
1. Maximise material productivity and energy efficiency → Meer doen met minder grondstoffen en
energie
-
2. Create value from waste
-
3. Substitute with renewables and natural processes → Hernieuwbare bronnen en natuurlijke
processen
-
4. Deliver functionality rather than ownership
-
5. Adopt a stewardship role → Proactief met alle stakeholders samenwerken voor lange termijn
gezondheid en welzijn.
-
6. Encourage sufficiency → Productie terugdringen
-
7. Re‑purpose the business for society/environment → Sociale en milieuvoordelen boven
winstmaximalisatie
-
8. Develop scale‑up solutions → Duurzame oplossingen op grote schaal uitrollen om maximale
maatschappelijke en milieuvoordelen te behalen.
Sustainable Entrepreneurship: Discover and use of economic changes through the creation of
market disequilibria Steer transformation toward the environmentally and socially sustainable state.
……………………………………………………………………………………………………
Emerging Davids: Start-ups → Disruptive and radical innovation → Agile and creative
- Business Behavior
- Not limited by previous mindsets → MORE INNOVATIVE
- Sustainability startups → Value based approach and externalize costs
- Single issue focus
- Niche market → Small and exclusive
Greening Goliaths: Big, Incumbent firms) → incremental innovation die bijdragen aan sustainable
development
- Business Behavior
- Slow to react → But are often able to catch up quickly once they decided to follow
- Charge premium prices → prijs zakt wanneer het schaalt
- Venture Capital funds → to monitor innovating Davids
- Influence the setting of environmental standard
- Try to keep standards fixed rather than encourage continuous improvement
-
Davids Goliaths
Disruptive/ radical innovation Sustainable entrepreneurship Sustainable corporate entrepreneurship
Incremental innovation Bioneers; social bricoleurs Sustainable Management Systems, CSR,
eco-efficiency
Co - evolution
1. Emerging Davids (start-ups)
- Beginnen in Sustainable niche-segment & low market share
- Daarna Scale up operations naar een bigger market share
- → Disruptieve innovatie ( Focus on sustainability)
-
2. Greening Goliaths (gevestigde bedrijven)
- Starten met laag sustainable level & groot marktaandeel
- Process innovation om kosten van verduurzaming reduceren
- Groeien geleidelijk in duurzaamheidsprestatie
Beide trajecten leiden naar Sustainable Transformation of an Industry"
Incremental solutions not enough to maintain critical levels of natural
and social capital → Need Transformational Change
,Co-evolution: Maturity Model
Introduction: Davids pionieren met duurzame producten en Goliaths ignore het
nog
Early Growth: Er komen meer duurzame start-ups en Goliaths beginnen
voorzichtig met "line extensions" → (bijv. biologische variant).
Take-Off: De markt ontploft. Succesvolle David's groeien en worden een
bedreiging en Goliaths proberen de standaarden te bepalen en de markt te
controleren.
Maturity: Duurzaamheid is de norm geworden. Sommige Davids zijn nu zelf
Goliaths geworden en Voor de Goliaths is duurzame innovatie de standaard
werkwijze
- External Costs: Begin → External Cost (zoals milieuvervuiling) High
- Naarmate model vordert naar rechts, worden kosten steeds meer internalized
……………………………………………………………………………………………………
Fairphone - sustainable smartphones ( Davids)
Create positive social and environmental impact from the beginning to the end of a phone’s life cycle
- Social and environmental objectives are at least as important as economic objectives
Disruptive innovation → product design, material sourcing and good working conditions
……………………………………………………………………………………………………………
Traditional Business Model → Resources and capacities omzetten in economic value
- Organizational and financial architecture of business
- 3 Kern Zuilen
1. Value Proposition: belofte die je aan de klant doet → beschrijft welk specifiek
probleem je oplost of welke behoefte je vervult.
a. Product and Service, Customer Segments and Relationships
-
2. Creating customer value: Uitvoering: hoe lever je die belofte daadwerkelijk? Het
gaat om het proces van ontwerp, productie en dienstverlening.
a. key activities, resources, channels, partners and technology
-
3. Capturing economic value: Hoe verdien je er geld mee? Het gaat om het omzetten van de
gecreëerde waarde in omzet en winst.
a. Cost structure & revenue streams.
,Business Models: Hoe firm haar concurrentiestrategie definieert door
1. Design van product of dienst
2. How it charge for it
3. What is costs to produce
4. How it differentiates itself by value proposition
5. How firm integrates its own value chain with other firms in a value network
……………………………………………………………………………………………………………
Sustainable Business Model
Business model innovation → Change by re-conceptualizing of:
1. Purpose of firm
2. Value creating Logic → Ecological and Social Value ( naast financieel)
3. Rethinking Perceptions of Value → Niet alleen financieel maar leveren van bijv langdurig
kwaliteit
Future Sustainable Economy → requires new goals and priorities and future business system that
1. Minimizing consumption
2. Societal and environmental benefits > economic
3. Functionality > product ownership
4. Closed-loop → nothing is allowed to be wasted
Sustainable Business Model → build on Value Proposition: Triple Button Line
1. People → Social Performance
2. Planet → Environmental Performance
3. Profit → Economic Performance
Environment and society as stakeholders → Aswell
Research is necessary
- Transition to sustainable business model → Vereist een beter begrip van hoe duurzame
bedrijfsmodellen kunnen zorgen voor betere sociale en milieuprestaties.
, Sustainable Business Model Archetypes
- Business model archetypes are useful for
- Redesign
- Creating new businesses
- Understanding trends and direction that are creating impact
…………………………………………………………………………………………………
Descriptive groupings → Beschrijvende groepen
- Technisch:
- Sociaal:
- Organisatorisch:
…………………………………………………………………………………………………
Archetypes → Standard solution for sustainability
1. Maximise material productivity and energy efficiency → Meer doen met minder grondstoffen en
energie
-
2. Create value from waste
-
3. Substitute with renewables and natural processes → Hernieuwbare bronnen en natuurlijke
processen
-
4. Deliver functionality rather than ownership
-
5. Adopt a stewardship role → Proactief met alle stakeholders samenwerken voor lange termijn
gezondheid en welzijn.
-
6. Encourage sufficiency → Productie terugdringen
-
7. Re‑purpose the business for society/environment → Sociale en milieuvoordelen boven
winstmaximalisatie
-
8. Develop scale‑up solutions → Duurzame oplossingen op grote schaal uitrollen om maximale
maatschappelijke en milieuvoordelen te behalen.
