Showing papers on "Business model published in 2016"

Product design and business model strategies for a circular economy

Abstract: The transition within business from a linear to a circular economy brings with it a range of practical challenges for companies. The following question is addressed: What are the product design and business model strategies for companies that want to move to a circular economy model? This paper develops a framework of strategies to guide designers and business strategists in the move from a linear to a circular economy. Building on Stahel, the terminology of slowing, closing, and narrowing resource loops is introduced. A list of product design strategies, business model strategies, and examples for key decision-makers in businesses is introduced, to facilitate the move to a circular economy. This framework also opens up a future research agenda for the circular economy.

Business Model Generation A Handbook For Visionaries Game Changers And Challengers

Abstract: The book entitled “Business Model Generation: A Handbook for visionaries, game changers and challengers” though written by Osterwalder and Pigneur (2010) was also co-created by 470 practitioners from 45 countries. The book is thus a good example of how a global creative collaboration effort can contribute positively to the business and management literature and subsequently to the advancement of society (Alam and Hoque, 2010; Alam et al., 2010a, b). Consisting of five main chapters (Canvas, Patterns, Design, Strategy and Process) and two additional chapters Outlook and Afterword, “Business Model Generation” should be read by those motivated to “defy outmoded business models and design tomorrow’s enterprises” (front cover). The objectives of the five main chapters in the book are as follows:

Business Models for Sustainability: Origins, Present Research, and Future Avenues

Abstract: While a consensus appears to have evolved among many sustainability researchers and practitioners that sustainable development at the societal level is not very likely without the sustainable development of organizations, the business model as a key initiating component of corporate sustainability has only recently moved into the focus of sustainability management research. Apparently, the usual approaches to sustainable development of philanthropy, corporate social responsibility, and technological process and product innovation are insufficient to create the necessary radical transformation of organizations, industries, and societies toward genuine, substantive sustainable development. More in-depth research is needed on whether both modified and completely new business models can help develop integrative and competitive solutions by either radically reducing negative and/or creating positive external effects for the natural environment and society (cf. Boons & Lüdeke-Freund, 2013; Hansen, Große-Dunker, & Reichwald, 2009; Schaltegger, Lüdeke-Freund, & Hansen, 2012; Stubbs & Cocklin, 2008). One of the first articles in this field was published in Organization & Environment. The Stubbs and Cocklin (2008) article titled “Conceptualizing a ‘Sustainability Business Model” was a seminal study published a few years before the currently emerging wave of academic business model publications. The Stubbs and Cocklin study revealed a set of normative principles of organizational development that together form an “ideal type” of sustainability-oriented business model. These authors pioneered the field of case-based theory building for sustainability-oriented business models, using Interface Inc. and Bendigo Bank as examples of sustainability-driven organizations. Their ideal type comprised different structural and cultural attributes of an organization, such as developing community spirit, investing in employees’ trust and loyalty, and engaging in sustainability assessment and reporting. They also advanced propositions about sustainabilityoriented business models dealing with an organization’s purpose and goals, its performance measurement approach, the need to consider all stakeholders, how nature should be treated, whether the organization’s leaders drive the necessary cultural and structural changes to implement sustainability, and whether a systems-level, as well as a firm-level, perspective should be employed.

Implementation of Circular Economy Business Models by Small and Medium-Sized Enterprises (SMEs): Barriers and Enablers

Abstract: Small and medium-sized enterprises (SMEs) are increasingly aware of the benefits of closing loops and improving resource efficiency, such as saving material costs, creating competitive advantages, and accessing new markets. At the same time, however, various barriers pose challenges to small businesses in their transition to a circular economy, namely a lack of financial resources and lack of technical skills. The aim of this paper is to increase knowledge and understanding about the barriers and enablers experienced by SMEs when implementing circular economy business models. Looking first at the barriers that prevent SMEs from realising the benefits of the circular economy, an investigation is carried out in the form of a literature review and an analysis of a sample of SME case studies that are featured on the GreenEcoNet EU-funded web platform. Several enabling factors that help SMEs adopt circular economy practices are then identified. The paper concludes that although various policy instruments are available to help SMEs incorporate circular economy principles into their business models, several barriers remain. The authors recommend that European and national policies strengthen their focus on greening consumer preferences, market value chains and company cultures, and support the recognition of SMEs’ green business models. This can be achieved through the creation of dedicated marketplaces and communities of practice, for example.

Towards a more Circular Economy: Proposing a framework linking sustainable public procurement and sustainable business models

Abstract: Sustainability aims at addressing environmental and socio-economic issues in the long term. In general, the literature on sustainability has focused mainly on the environmental issues, whereas, more recently, a Circular Economy has been proposed as one of the latest concepts for addressing both the environmental and socio-economic issues. A Circular Economy aims at transforming waste into resources and on bridging production and consumption activities; however, there is still limited research focusing on these aspects. This paper addresses the link between procurement and supply practices, and proposes changing from a traditional public procurement process, based on product-selling business models, to a more service-oriented system. The paper proposes a framework to include technical and non-technical specifications of product/service combinations that improve resource usage efficiency through recovery. The framework also considers socio-cultural specifications and physical and social proximity between the stakeholders in the procurement process. The framework is based on collaboration, which is a vital link between the public procurement process and the development of more sustainable business models, where the experience gained in the collaboration process serves as the bases for suppliers and procurers in improving their contribution to CE, whilst at the same time securing economic benefits for both parties. Although, in this process, the specification setting may take longer, the relationships between procurer and supplier tend to be longer lasting and stronger. This research shows that collaboration between procurers and suppliers throughout the procurement process can lead to reductions in raw material utilisation and waste generation, whilst promoting the development of new, more sustainable, business models.

Business Models for Sustainability A Co-Evolutionary Analysis of Sustainable Entrepreneurship, Innovation, and Transformation

Abstract: The relevance of business models for corporate performance in general and corporate sustainability in particular has been widely acknowledged in the literature while sustainable entrepreneurship re...

Overview of business innovations and research opportunities in blockchain and introduction to the special issue

Abstract: Blockchain has become a new frontier of venture capitals that has attracted the attention of banks, governments, and other business corporations. The recent blockchain related attempts included legal blockchains by Fadada.com and Microsoft and pork tracking blockchains by Walmart and IBM. Blockchain is poised to become the most exciting invention after the Internet; while the latter connects the world to enable new business models based on online business processes, the former will help resolve the trust issue more efficiently via network computing. In this paper, we give an overview on blockchain research and development as well as introduce the papers in this special issue. We show that while blockchain has enabled Bitcoin, the most successful digital currency, its widespread adoption in finance and other business sectors will lead to many business innovations as well as many research opportunities.

Making Global Value Chains Work for Development

Abstract: Economic, technological, and political shifts as well as changing business strategies have driven firms to unbundle production processes and disperse them across countries. Thanks to these changes, developing countries can now increase their participation in global value chains (GVCs) and thus become more competitive in agriculture, manufacturing and services. This is a paradigm shift from the 20th century when countries had to build the entire supply chain domestically to become competitive internationally. For policymakers, the focus is on boosting domestic value added and improving access to resources and technology while advancing development goals. However, participating in global value chains does not automatically improve living standards and social conditions in a country. This requires not only improving the quality and quantity of production factors and redressing market failures, but also engineering equitable distributions of opportunities and outcomes - including employment, wages, work conditions, economic rights, gender equality, economic security, and protecting the environment. The internationalization of production processes helps with very few of these development challenges. Following this perspective, Making Global Value Chains Work for Development offers a strategic framework, analytical tools, and policy options to address this challenge. The book conceptualizes GVCs and makes it easier for policymakers and practitioners to discuss them and their implications for development. It shows why GVCs require fresh thinking; it serves as a repository of analytical tools; and it proposes a strategic framework to guide policymakers in identifying the key objectives of GVC participation and in selecting suitable economic strategies to achieve them.

A Conceptual Framework for Circular Design

Abstract: Design has been recognised in the literature as a catalyst to move away from the traditional model of take-make-dispose to achieve a more restorative, regenerative and circular economy. As such, for a circular economy to thrive, products need to be designed for closed loops, as well as be adapted to generate revenues. This should not only be at the point of purchase, but also during use, and be supported by low-cost return chains and reprocessing structures, as well as effective policy and regulation. To date, most academic and grey literature on the circular economy has focused primarily on the development of new business models, with some of the latter studies addressing design strategies for a circular economy, specifically in the area of resource cycles and design for product life extension. However, these studies primarily consider a limited spectrum of the technical and biological cycles where materials are recovered and restored and nutrients (e.g., materials, energy, water) are regenerated. This provides little guidance or clarity for designers wishing to design for new circular business models in practice. As such, this paper aims to address this gap by systematically analysing previous literature on Design for Sustainability (DfX) (e.g., design for resource conservation, design for slowing resource loops and whole systems design) and links these approaches to the current literature on circular business models. A conceptual framework is developed for circular economy design strategies. From this conceptual framework, recommendations are made to enable designers to fully consider the holistic implications for design within a circular economy.

A Framework for Sustainable Circular Business Model Innovation

Abstract: The circular economy concept is a novel economic model aiming to foster sustainable economic growth, boost global competitiveness, and generate new jobs. In order to make the circular economy mainstream, radical and systemic innovation is needed. Currently, a majority of the business modelling tools and methods lack at least some of the identified and needed elements for innovating business models in a circular economy. In this article, we build a framework for sustainable circular business model innovation by adding important perspectives: recognizing trends and drivers at the ecosystem level; understanding value to partners and stakeholders within a business; and evaluating the impact of sustainability and circularity. We present the results of a case study with a startup company, which was designed to test the framework and provide a concrete example of its usage and future development needs. Sustainability is not a luxury; it is a basic human right.

Business Models for Sustainability From a System Dynamics Perspective

Abstract: To achieve sustainability, a firm has to transform its entire business logic. A business model for sustainability (BMfS) aims at creating value for various stakeholders and the natural environment....

Capturing value from big data – a taxonomy of data-driven business models used by start-up firms

Abstract: Purpose The purpose of this paper is to derive a taxonomy of business models used by start-up firms that rely on data as a key resource for business, namely data-driven business models (DDBMs). By providing a framework to systematically analyse DDBMs, the study provides an introduction to DDBM as a field of study. Design/methodology/approach To develop the taxonomy of DDBMs, business model descriptions of 100 randomly chosen start-up firms were coded using a DDBM framework derived from literature, comprising six dimensions with 35 features. Subsequent application of clustering algorithms produced six different types of DDBM, validated by case studies from the study’s sample. Findings The taxonomy derived from the research consists of six different types of DDBM among start-ups. These types are characterised by a subset of six of nine clustering variables from the DDBM framework. Practical implications A major contribution of the paper is the designed framework, which stimulates thinking about the nature and future of DDBMs. The proposed taxonomy will help organisations to position their activities in the current DDBM landscape. Moreover, framework and taxonomy may lead to a DDBM design toolbox. Originality/value This paper develops a basis for understanding how start-ups build business models capture value from data as a key resource, adding a business perspective to the discussion of big data. By offering the scientific community a specific framework of business model features and a subsequent taxonomy, the paper provides reference points and serves as a foundation for future studies of DDBMs.

How the industrial internet of things changes business models in different manufacturing industries

Abstract: The Industrial Internet of Things (IIoT) poses large impacts on business models (BM) of established manufacturing companies within several industries. Thus, this paper aims at analyzing the influence of the IIoT on these BMs with particular respect to differences and similarities dependent on varying industry sectors. For this purpose, we employ an exploratory multiple case study approach based on semi-structured expert interviews in 69 manufacturing companies from the five most important German industries. Owing the lack of previous research, our study contributes to the current state of management literature by revealing the following valuable insights with regard to industry-specific BM changes: The machine and plant engineering companies are mainly facing changing workforce qualifications, the electrical engineering and information and communication technology companies are particularly concerned with the importance of novel key partner networks, and automotive suppliers predominantly exploit IIoT-inherent benefits in terms of an increasing cost efficiency.

Towards a sufficiency-driven business model : Experiences and opportunities

Abstract: Business model innovation is an important lever for change to tackle pressing sustainability issues. In this paper, ‘sufficiency’ is proposed as a driver of business model innovation for sustainability. Sufficiency-driven business models seek to moderate overall resource consumption by curbing demand through education and consumer engagement, making products that last longer and avoiding built-in obsolescence, focusing on satisfying ‘needs’ rather than promoting ‘wants’ and fast-fashion, conscious sales and marketing techniques, new revenue models, or innovative technology solutions. This paper uses a case study approach to investigate how companies might use sufficiency as a driver for innovation and asserts that there can be a good business case for sufficiency. Business models of exemplar cases are analysed and insights are gained that will contribute to future research, policy makers and businesses interested in exploring sufficiency.

The Rise of the Platform Enterprise: A Global Survey

Abstract: The new CGE report, The Rise of the Platform Enterprise: A Global Survey, presents the results of a year-long research project in which leading scholars and experts from Africa, China, Europe, India and the U.S. collaborated to conduct the first comprehensive survey of major public and privately owned platform companies. Through highly efficient matching of different users and/or harnessing large ecosystems of complementary technologies products or services, companies with platform business models have grown dramatically in size and scale over the past decade. The research identified 176 platform companies worldwide with a market valuation of US$1 billion or more. Some platform companies have become household names, such as Amazon, Alibaba or Uber, but there are many others of significant size and scale that hail from different areas of the world that are less known.

Three stage maturity model in SME’s toward industry 4.0

Abstract: Purpose: To address the challenges regarding the concept of Industry 4.0 and the diversification methodology and based on the strategic guidance towards Industry 4.0, we propose a process model as a guiding framework for Industry 4.0 collaborative diversification vision, strategy and action building. In this paper we suggest a stage process model to guide and train companies to identify new opportunities for diversification within Industry 4.0. Systematically carrying out the stages will take a company to their individual specific vision and collaborative vision between different companies in the Industry 4.0 scenario. Design/methodology/approach: This new collaborative diversification methodology involves industry within the pilot program; from the diversification and capacity assessment analysis of the company`s profile, skills and technologies that dominates, to identify the diversification opportunity map and its business modeling within the Industry 4.0 paradigm. Findings: The application of maturity models to the Industry 4.0 may help organizations to integrate this methodology into their culture. Results show a real need for guided support in developing a company-specific Industry 4.0 vision and specific project planning. Originality/value: Industry 4.0 promotes a vision where recent developments in information technology are expected to enable entirely new forms of cooperative engineering and manufacturing. The vision of industry 4.0 describes a whole new approach to business operations, and especially the production industries. To address the challenges regarding the concept of Industry 4.0 and the diversification methodology discussed above, and based on the strategic guidance towards Industry 4.0, we propose a unique process model as a guiding framework for Industry 4.0 collaborative diversification vision, strategy and action building.

Journeying Toward Business Models for Sustainability A Conceptual Model Found Inside the Black Box of Organisational Transformation

Abstract: Scholars increasingly recognise that business contributions to sustainable development are founded in new business models. However, most research in this field remains conceptual and offers a rather static view of a complex and dynamic reality. This article contributes to understanding how new business models for sustainability are fashioned through the interactions between individuals and groups inside and outside companies. Based on two case studies, our findings show that three elements contributed to the path of transformation toward business models for sustainability: building networks and collaborative practices for learning and action around a new vision, the deployment of new concepts drawn from outside the company, and elaborating an implementation structure within a reconfigured network. Our findings reveal the complexity of the process, which went through four subprocesses: identifying, translating, embedding, and sharing. Our results also highlight the importance of considering value destructi...