Sustainability Transition, Circularity & Business Model Innovation PDF

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HalcyonTsilaisite448

Uploaded by HalcyonTsilaisite448

Dipartimento di Scienze Economiche e Aziendali 'Marco Fanno'

2024

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business model innovation sustainability transition circular economy business models

Summary

This presentation explores sustainability transitions, focusing on circular business models and their impact on business and society. It covers concepts like circular value proposition, value creation, and delivery activities, and value capture mechanisms. It also details various principles for designing such business models.

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Sustainability transition, circularity and business model October 14th 2024 innovation 1 The business model A business model describes the rationale of how an organization creates, delivers, and captures value. A business model is a conc...

Sustainability transition, circularity and business model October 14th 2024 innovation 1 The business model A business model describes the rationale of how an organization creates, delivers, and captures value. A business model is a conceptual tool containing a set of objects, concepts and their relationships with the objective to express the business logic of a specific firm. Therefore, we must consider which concepts and relationships allow a simplified description and representation of what value is provided to customers, how this is done and with which financial consequences. The Business Model Canvas Sustainable business models Sustainable business models are designed to substantially enhance positive impacts or notably diminish negative impacts on the environment and society 4 Sustainable business models (2) SBM going beyond a purely Business models for business-centric view and sustainability transitions are much wider in scope and considering system-level emphasise industries and impacts, the focus remains society at large with a focus on largely on the level of solving societal needs through single companies and sustainable production and sometimes networks consumption systems 5 Business model innovation driven by sustainability transition 6 Three illustrations of business model driven by sustainability transitions Circular Platform Service- business business oriented model model business model Kalundborg Symbiosis Philips’ “Pay-per-lux” Turo 7 8 Principles of Designing Business Models for Sustainability Transitions 1. Systemic thinking and strategic vision 2. Cross-sector collaboration and partnerships 3. Innovation ecosystems and open innovation for sustainability transitions 4. Long-term financing and revenue models 5. Policy engagement and institutional change 6. Societal engagement and transparency 7. Adaptive leadership and organisational agility 8. Sustainability metrics and impact assessment 8 Circular business model innovation as game changer A circular and sustainable business model: taking a holistic perspective on the way business is done in relation to its stakeholders, explicitly including the society and the natural environment as key stakeholders Business models can be a key driver for sustainability transitions When pursuing a circular business model, the business purpose is focused on circular economy issues, and performance measurement is focused on measuring the impact of the activities 9 Circular business model innovation as game changer (2) A circular business model conceptually brings together the circular value proposition (is it desirable?) value creation and delivery activities to create and deliver this circular value (is it feasible?) and value capture mechanisms to understand how a business might capture financial and other forms of value (is it viable and adding other value?) 10 Circular business model canvas 11 Circular business model «business cases” 12 Slowing the Loop, Sufficiency, and Regeneration 13 Sufficiency vs. Regenerative business models Sufficiency business models ‘aim to Regenerative business models ‘focus on moderate overall resource consumption planetary health and societal wellbeing. by curbing demand through education and They create and deliver value at multiple consumer engagement, making products stakeholder levels—including nature, that last longer and avoiding built-in societies, customers, suppliers and obsolescence, focusing on satisfying partners, shareholders and investors, and “needs” rather than promoting “wants” employees—through activities promoting and fast-fashion, conscious sales and regenerative leadership, co-creative marketing techniques, new revenue models, partnerships with nature, and justice and or innovative technology solutions’ fairness. Capturing value through multi- capital accounting, they aim for a net positive impact across all stakeholder levels’ 14 Collaborative business models and circular ecoystems Collaboration is relevant to achieve Circular ecosystems sustainability/circularity Ecosystems consist of multiple Circular business model innovation is locally, regionally, or globally about exploring and negotiating new distributed entities that are not part organizational boundaries as the of a single organization, involve activities of a company and its value dynamic, collaborative as well as network of suppliers, partners, and competitive relationships stakeholders could drastically change when adding new activities Joint purpose, value proposition 15 An example in the car industry 16

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