Samuel W. Short

A value mapping tool for sustainable business modelling

This paper builds on work undertaken on SustainValue, a European Commissions 7th Framework Programme (FP7/2007-2013). The authors gratefully acknowledge the support of the European Commission, and the contribution of the academic and industrial partners on this project in developing and testing the ideas presented herein.

Value mapping for sustainable business thinking

Pressures on business to operate sustainably are increasing. This requires companies to adopt a systemic approach that seeks to integrate consideration of the three dimensions of sustainability – social, environmental, and economic – in a manner that generates shared value creation for all stakeholders including the environment and society. This is referred to as sustainable business thinking. The business model concept offers a framework for system-level innovation for sustainability and provides the conceptual linkage with the activities of the firm such as design, production, supply chains, partnerships, and distribution channels. A value mapping tool has been presented in the literature to assist in sustainable business model innovation. This study explores the use of value mapping for broader sustainable business thinking, by reflection on its use in workshop settings. A range of new applications is identified which is expected to be of interest to business practitioners, policy makers, and academic researchers.

From refining sugar to growing tomatoes: industrial ecology and business model evolution.

This article seeks to advance the understanding of the relationship between industrial ecology (IE) and business model innovation for sustainability as a means and driver of new value creation and competitive advantage by expanding the understanding of industrial symbiosis (IS) and internal symbiosis. This is explored through the case study of British Sugar, which, at the time of writing, is the UKs largest sugar producer by market share. Over the past three decades, the company has systematically sought opportunities to turn waste streams and emissions from their core production processes into useful and positive inputs to new product lines. Their core business is still sugar, but the business model has evolved to offer a broad range of additional synergistic and profitable product lines, including animal feed, electricity, tomatoes, and bioethanol. The research explores the temporal dimension of dynamic business model innovation, framing it in the context of a continuous evolutionary process rather than a discrete design activity. The case will be of interest as an additional contribution to the growing literature on IS; in offering an approach for linking the themes of IE literature and sustainable business model innovation more concretely in research and practice; and, by presenting the case as an evolutionary innovation process, the article furthers the emerging literature on business model innovation for sustainability.

Embedding Sustainability in Business Modelling through Multi-stakeholder Value Innovation

This paper investigates how businesses might create balanced social, environmental and economic value through integrating sustainability more fully into the core of their business. For this purpose a more systematic approach to business model innovation for sustainability is required. A novel value mapping tool is proposed to help firms create value propositions better suited for sustainability. The tool adopts a multiple stakeholder view of value, a network rather than firm centric perspective, and introduces a novel way of conceptualizing value that specifically introduces value destroyed and value missed, in addition to traditional terms of the core value proposition, and new opportunities for value creation and capture. This will support business modelling for sustainability.

Business Modelling for Sustainable Manufacturing

The paper proposes a business modelling process for manufacturing firms to assist them in integrating sustainability into their business model. The process consists of four steps. Expected outputs and questions, driving the analysis and decisions carried along the process, are also included in each step. The proposal is grounded on the state of the art review and a state of practice review done through six exploratory case studies.

Sustainable Business Models: Theoretical Reflections

Nidumolu et al. (Harvard Bus Rev, September: 57–64, 2009) argue that sustainability is becoming increasingly essential for long-term success of companies. Those that do not rethink the business models around sustainability will limit long-term ability to create competitive advantage. Economic sustainability is a prerequisite for any viable business model, as without this there cannot be longevity for the business. While this is generally conceptualised as a requirement for growth and profitability, this need not necessarily be the case—there is a growing body of literature around the subjects of steady-state economics and not-for-profit social enterprises. Beyond economic sustainability, the need for environmental and social sustainability is increasingly recognised. Companies are attempting to address this within the framework of existing business models and exploring business model innovations.

Practice Review of Business Models for Sustainability

This chapter elaborates on the five cases investigated to explore the current industrial practice in sustainability, business models and modelling, business model innovation, and stakeholders. The cases include Riversimple and CLAAS from the Sustain Value project consortium and four other external companies. For confidentiality purpose, the names of the external companies and the interviewees at the six companies have not been revealed. The interviews were conducted based on semi-structured questionnaire. Brief overview of the case is provided. This is followed by an overall summary of findings and gaps, focusing on the company perspective on sustainability, business model and modelling, business model innovation and stakeholders in the value network.

Business Models and Business Modelling: State of the Art

Sustainability is increasingly recognised as a pressing problem facing the modern world. Climate change, resource depletion, social responsibilities of companies—working conditions and practices, community relations, increasing inequality, and persistent poverty and health issues in many parts of the developing world and other growing environmental and social problems illustrate the unsustainable nature of production and consumption across the world. These challenges that shape the mainstream thinking on sustainability require strategic and operational changes to businesses.The following sections will elaborate on the business model and value literature, in particular business model innovation, business modelling frameworks, stakeholders and value network followed by a discussion.

An Industrial Case: Riversimple

Riversimple is a UK based start-up company whose purpose is ‘to systematically pursue the elimination of environmental impact of personal transport’.

Toolset for Sustainable Business Modelling

A sustainable business modelling (SBM) process and toolset needs to—embed sustainability ethos and initiatives into the business purpose and value network activities, integrate a broader multistakeholder view on generating environmental, social and economic value, identify and develop collaborations between the stakeholders to eliminate negative environmental and social impacts, and be appropriate for use by companies and practitioners.