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Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012
Green Business Model Innovation focuses on innovation in business models that decrease environmental impact. It includes life-cycle models like green supply chain management and take-back management, as well as functional sales models like selling a product's function as a service. Companies are embracing it due to rising resource prices, regulation, demanding customers, and investors. Case studies show positive financial and environmental results. Policies can promote it through funding, infrastructure development, and certification. Tools are also needed to help all companies work with green business model innovation.
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Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012
- 1. Green Business ModelInnovation Nordic Innovation Forum 24 May 2012 Tanja Bisgaard
- 2. Overview • What isGreen Business Model Innovation (GBMI) • Why are companies embracing it • Companies working with GBMI – case examples • Preliminary results of working with GBMI • Policies to promote GBMI and first ideas 3
- 3. The project August 2011– August 2012 4
- 4. What is Green BusinessModel Innovation
- 5. Green Business ModelInnovation • Innovation in the business model that results in decreased environmental impact • Not necessarily cleantech/ greentech • Some of them are not necessarily new… • We have looked at 2 types: – Life-cycle models Product focused – Functional sales/ Product Service Systems Service focused 6
- 6. Life-cycle models • GreenSupply Chain Management • Take-back Management • Cradle to Cradle • Industrial Symbiosis 7
- 7. Functional sales • Sellingthe function of a product as a service • ESCO/MASCO/WASCO • CMS • DBFO 8
- 8. Business models When it is “business as usual” Resource Design & Sales & Use Disposal extraction Production Distribution 9
- 9. Life-cycle models When it is Green Business Model Innovation Green Supply Chain Industrial Resources Management Symbiosis Take-back Design & Management Disposal Cradle to Production Cradle Sales & Use Distribution 10
- 10. Functional sales When itis Green Business Model Innovation Resources Design & Disposal Production DBFO Sales & Use Distribution 11 ESCO, CMS
- 11. Why are companiesembracing Green Business Model Innovation
- 12. Increase in resourceprices 13
- 13. Stricter regulation • E.g.EU eco design 14
- 14. Demanding customers - butprice is important 15
- 15. Sensible investors 16 Source: Harvard Business School, September 2011
- 16. Implications • Challenges =innovation opportunities • Competitive advantage for Nordic companies? – High quality – High standard of living – Embedded in our culture/ mindset 17
- 17. Companies working with GreenBusiness Model Innovation
- 18. Case examples • 40case interviews from our work • Companies in the Nordic countries as well as international 19
- 19. Case Functional sales: Volvo Aero 20
- 20. Case GSCM: IKEAIWAY 21
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- 23. Characteristics/ results of working with Green Business Model Innovation from the case interviews
- 24. Characteristics: # employees 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 1 to 10 11 to 50 51-250 251-1000 1000+ NA 25 Source: Project interviews
- 25. Skills/ competencies 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 26 Source: Project interviews
- 26. Financial results after the introduction of GBMI 80% 70% 60% 50% 40% 30% 20% 10% 0% The company estimates Not able to measure/have The company estimates The company has reached positive financial results not measured yet negative financial results break-even 27 Source: Project interviews
- 27. Environmental results • 100%of companies report positive environmental results; e.g. – Reduced amount of new raw materials – Reduced CO2 emissions – Reduced energy consumption – Reduced waste – Reduced amount of toxins 28 Source: Project interviews
- 28. Policies to promote GreenBusiness Model Innovation
- 29. Policies at ageneral level • The Danish Business Innovation Fund 30
- 30. Policies at businessmodel level Lifecycle models Business Model Existing policy Policy ideas Green supply chain None found Support for R&D of new management materials Take-back None found Establish new management infrastructure for recycling Cradle to Cradle C2C network, EU Transparent EU National waste management certification of products plan, NL Waste and resource action program (WRAP), UK Industrial Symbiosis Kalundborg Industrial symbiosis program, DK National industrial symbiosis program (NISP), UK 31
- 31. Policies at businessmodel level Functional sales models Business Model Existing policy Policy ideas ESCO/ Federal Energy Management Broaden scope to cover MASCO/WASCO Program, US e.g. reduction of waste Green Deal, UK ESCO Light, DK CMS REACH, EU DBFO Private Finance Initiative, UK 32
- 32. Tools for companies •There are some things policy cannot help with – some changes companies must manage on their own • To help them get started – tool box • So then can all companies work with Green Business Model Innovation? 33
- 33. Thank you More information can be found at www. foranet.dk Contact: [email protected]
- 34. Thank you More information can be found at www. foranet.dk Contact: [email protected]