Triple Layered Business Model Canvas Quiz

Sustainable Business Models

• A triple-layered business model canvas adds a triple bottom line approach to sustainability.
• It provides a creative approach to business model innovation.
• It recognizes new dynamics between different levels of the canvas.
• Joyce and Paquin (2016) developed the triple-layered canvas as a tool for designing sustainable business models.

Limits of the Original BMC

• Upward (2013) viewed the original business model canvas as primarily focused on profit.
• Quantifiable elements of the canvas are used to ensure revenues exceed costs.
• The original definition emphasizes value, but it's primarily focused on financial value.

The Triple Bottom Line

• Elkington's (1991) triple bottom line approach adds social and environmental benefits to financial performance indicators.
• Tracking these benefits and impacts promotes more sustainable business practices.
• The Global Reporting Initiative (GRI) uses a standardized list of indicators for measuring the triple bottom line.

Business Model Innovation for Sustainability

• Bocken et al. (2014) define business model innovation that creates/reduces impacts on environment and society.
• The innovation changes value creation and capture strategies within the business model or value proposition of the organization.

Triple Bottom Line Canvas

• This canvas breaks down key aspects of a business, categorized by profit, social impact, and environmental impact.
• Covers Key Partners, Key Activities, and Key Resources (three categories for profit, social & environmental).

Economic Layer- the original BMC

• The core elements of a business model canvas focused on economics, including partners, activities, resources, customer relationship, customer segments, channels, value proposition, costs, and revenue.

Environmental Life Cycle Layer

• This layer analyses the entire life cycle of a product or service.
• Covers, supplies, production, functional value, end-of-life, and use phase.
• Also includes environmental impacts and benefits.

Functional Value

• This describes the focal outputs of a service or product.
• It is quantifiable, either for the service performance or the needs fulfilled.
• Functional value assesses usage in a set time frame, unlike a functional unit.

Materials

• Materials are the physical stocks used to render functional value.
• Manufacturing and service organizations both require material resources.
• The material component directly ties to the environmental impact of the organization.

Production

• This component captures the actions undertaken to create value.
• For manufacturers, this involves transforming raw materials.
• For service providers, this includes running infrastructure, transporting materials, and hosting services.

Supplies and Outsourcing

• This encompasses all necessary material and production activities.
• Core activities are not always directly tied to the supply chain.
• External suppliers can be utilized to handle the non-core material and production parts of a business model.

Distribution

• Distribution is how goods are transported.
• Measures include transport modes, shipping distances, and material weights.
• Packaging and delivery logistics also play a role.

Use Phase

• This component highlights the impact of the client using the product or service.
• It includes the consideration of equipment maintenance, and material/energy utilization during operation.

End-of-Life

• End-of-life is when the consumer stops using a product or service.
• Considerations for repurposing, recycling, and disposal practices for the materials.

Environmental Impacts

• Ecological costs associated with the organization's actions.
• These impacts are measurable through indicators like CO2 emissions, water consumption, and the impact on ecosystems.

Environmental Benefits

• This is the value created through environmental preservation.
• This includes reduction and regeneration of the environment.

Social Stakeholder Layer

• A breakdown of governance structures, societal culture, end-user, employee, and community impacts in organizations.

Social Value

• Creating benefits for stakeholders and society, with an emphasis on societal good.
• It considers a broader context than just purely profit-driven concerns.

Employee

• This focuses on the employees as a critical stakeholder.
• Include details on demographics, salaries, types of employment, training, and development.

Governance

• Organizational structure and policies related to governance practices and stakeholders.
• Includes considerations on ownership structures, hierarchy of authority, and decision-making.

Communities

• How organizations interact and impact communities.
• This includes areas like a headquarters, or facilities in various countries or regions.

Societal Culture

• Identifying how organizations impact society.
• Includes consideration of interactions with non-governmental organizations.

Scale of Outreach

• This component assesses the range and depth of an organization's relationships with stakeholders across different groups.

End Users

• This assesses different users of the product or service.
• This includes consideration of demographics and needs, to provide beneficial and valuable experiences.

Social Impacts

• The social costs of the organization.
• It is related to financial costs and environmental impact.

Social Benefits

• The positive social value and impact that organizations have.
• These benefits are measured across broad indicators.