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Antony Upward, MES, CMC* antony@EdwardJames.biz @aupward #SSBMGssBusinessModelTV

* Masters of Environmental Studies in Business Model Design and Sustainability; Certified Management Consultant

About the Strongly Sustainable

Business Model CanvasIntroducing a Better Visual Tool to

Design Better BusinessesYorkU Schulich School of Business

SB-OMIS6700 - Mgt of New Technology Prof. David Johnston, November 20, 2013

Builds on many Builds on many slides; download and

slides; download and view in slide show view in slide show mode for improved

mode for improved comprehensioncomprehension

Hidden slides Hidden slides with additional

with additional info!info!

Speaker Speaker Notes &Notes &

Refs.Refs.

• To view and download the slides, including speakers notes and references, see the link below the video

• To skip the background to focus on the description of the Strongly Sustainable, Business Model Canvas jump to ~8 minutes 30 seconds

But…

Today…

Unintended consequences for

Missed innovation

opportunities

Increasing risks

=Do Good & Do Well

Why are Better Businesses Better?

Less RiskMore Innovation

So…How do you design a better business?

Previous Best Practice• Have Idea+ Get Money+ Hard Work+ Hope + Luck

Not…• Efficient• Effective• Reliable

Lots about money, and the people you financially

transact with…

…(almost) nothing about everyone and everything else

9 © Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions

Introducing…The Strongly Sustainable Business Model Canvas

V1.031

The Profit-First Business Model Canvas: 9 Questions to be Profitable

Example of a Profit-First Business Model: Montreux Jazz Festival

3. Channels3. Channels

But…does this help to design a better business?

1. Customer Segments1. Customer Segments

2. Value Propositions2. Value Propositions

4. Customer Relationships4. Customer Relationships

5. Revenue Streams5. Revenue Streams

7. Key Resources7. Key Resources

6. Key Activities6. Key Activities

9. Cost Structure9. Cost Structure

8. Key Partners8. Key Partners

What’s Missing?

1. Revise Definitions…

A description of how an organization defines and achieves success over time.

A Business ModelA Business Model: the logic for an organization’s existence: who it does it for, to and with; what it does now and the future; how, where and with what does it do it; and how it defines and measures its success.

“A Business Model describes the rationale of how an organization creates, delivers and captures value [in monetary terms]”

Value isValue is the perception by a human or non-human actor of a need being met; measured inaesthetic, psychological, physiological, utilitarian and / or monetary terms.

Value is created when needs are met via satisfiers that align with the recipients world-view, and destroyed when they don’t

Necessary, but not Sufficient

2. Add Real Context of Business

Context: Environment (Physical / Chemical / Biological)

(Monetary)

A Business

(Social/Technology) Context:

Society

Context:Financial Economy

“Just” Being Profitable is Not Simple

“And that, in simple terms, is how you start a profitable small business”

2. Customer

4.Learning& Growth

3. Internal Processes

1. Financial

3. Add Useful Perspectives

Perspectives on a business from the profit-first Balanced Scorecard

4.Learning& Growth

3. Internal Processes

1. Financial

3. Add Useful Perspectives

Who does a firm do it to, for and with?

What does a firm do now and in the future?

How, where and with what does the firm do it?

How does a firm define and measure success (in Environmental, Social & Monetary units)?

Context: Environment (Physical / Chemical / Biological)

(Social/Technology)

(Monetary)

All Organizations in a Business Model

Context:Society

4. Relate Real Context & Perspectives to Business Models

Financial EconomyContext:

A Business

4. Contexts & Perspectives

Profit-First Canvas• Missing: any conception

of the boundary between the focal firm, the other organizations in a business model, the economy, society and the environment

Strongly Sustainable Canvas• Firm boundary clearly

indicated. • Economic, social and

environmental sources and sinks of all components of a business model can be identified – materials, energy, services, actors, etc.

Hidden SlideHidden Slide

5. Adjust and Add Missing Detail• Nothing deleted from profit-first canvas

• Any profitable business model can, indeed, must still be describable• All 9 questions remain, but extended and modified

• Adjustments and additions recognize business drivers of ‘unintended consequences’ and ‘externalities’ in profit-first approach

• Allows for systematic identification of risks and opportunities missed by profit-first canvas

– Adjustments generalize profit-first ideas – Additions bring new ideas required to design better

businesses

See “Thesis Working Paper #2: Strongly Sustainable Business Model Canvas – Summary Comparison to Business Model Canvas” for more detail. Available to First Explorers (see end of presentation for details).

The Strongly Sustainable Business Model Canvas: 14 Questions to Do Good & Do Well

5a. Stakeholder Perspective

Firm boundary

Environmental, social &

economic contexts

Pool of all potential

stakeholders

The fundamental needs of the

actors

Desired relationships

with all stakeholders

All chosenstakeholders

Who does a firm do it to, for and with?

Value proposition delivery channels

for all stakeholders

5a. Stakeholder Perspective

Profit-First Canvas• Missing:

– All your possible customers and all other possible stakeholders

– The fundamental needs of all your stakeholders

• How can you design great value propositions without this?

Strongly Sustainable Canvas• Add: actors – the pool of all potential

stakeholders• Add: needs – the fundamental needs

of the actors; the needs that our value propositions must satisfy for the business to be successs

• Adjust: Add all other stakeholders to customers

• Adjust: Add channels to all stakeholder, not just customers

• Adjust: Add all desired relationships with all stakeholders, not just customers

• Recognize all stakeholders have variety of environmental, social and economic relationships

5b. Product, Learning & Development

Firm boundary

economic contexts

What does a firm do now and in the future?

Value Propositions that combine environmental, social and / or economic

factors for all stakeholders now and in the future

Value Propositions consider value created

(+ve) and value destroyed (-ve)

5b. Product, Learning & Development

– Value propositions for stakeholders other than customers

– Conception that a value proposition may be perceived negatively, harm the ability of an actor to meet their needs

Strongly Sustainable Canvas• Adjust value propositions to

include those for all stakeholders

• Adjust value propositions to consider both value created (+ve) and negative destroyed (-ve)

• Recognize value can be generated by any combination of environmental, social or economic elements

5c. Process

Firm boundary

economic contexts

How, where and with what does the firm do it?

Ultimate source & sink of all tangible

resources

Ultimate enabler for all

activities

All resources and activities have environmental, social and economic aspects

With all stakeholders

Governance

5c. ProcessProfit-First Canvas• Missing:

– Which stakeholders have power over what a firm does , how, where and with what is it done

– Ultimate source and sink for all materials – the biosphere

– Ultimate enablers all activities – eco-system services

– Partnerships with all stakeholders – not just suppliers of resources

– Consideration of factors other than monetary cost for resources and activities

Strongly Sustainable Canvas• Add: Decisions

– aka Governance• Add: Bio-Physical Stocks• Add: Eco-System Services• Adjust: partnerships to add

all stakeholders, not just suppliers

• Recognize that all resources and activities in a business model have economic, social and environmental aspects

5d. Measurement

Firm boundary

economic contexts

Definition of acceptable success

Measures of process

outcome and / or

performance

How does a firm define and measure success

(in Environmental, Social & Monetary units)?

Economic, social & environmental valuation of assets

(Tri-profit Balance Sheet)

Measures of prices (for value propositions),

costs, revenues and profits in economic, social & / or

environmental terms(Tri-profit P&L)

5d. Measurement

– Place to record definition of acceptable success

– Measurement of process performance (time, quality, etc.)

– Assets required or desired to be grown

– Ability to define how non-financial value can be calculated

Strongly Sustainable Canvas• Add: Definition of Acceptable

Success• Add: Process Measurement• Add: Assets required and

desired• Adjust: Pricing, Cost, Revenue

and Profit to recognize measurements may have a economic, social and/or environmental aspects (Valuation Method, Cost, Revenue and Tri-Profit)

vas V1.031

nd’s

– 14

s V1.032

Comparing Profit-First & Strongly Sustainable Business Model Canvases V1.031

Δ Δ ++

Tonight’s Case• Place sticky notes on the strongly sustainable business

model canvas to design your proposal for an improved Freshtec business model– Two groups – ~75 mins

• Debrief / closing discussion on1.Freshtec’s Approach2.Did the Strongly Sustainable Business Model Canvas Help?

• Does well; needs to do better– ~15 mins

• Will be videoing you at work and your feedback

Harvard Business School Case Study #9-511-059 by Jose Alvarez and Ryan Johnson – FreshTec: Revolutionalizing Fresh Produce

Next Steps on the Journey to Bring

the Better Business Canvas to the World…

Become a “First Explorer”– Enables commercial use of the new Canvas now

12 organizations around the globe have joined so far

Join the quest– Crowd-funded collaborative book project

Working Title: Strongly Sustainable Business Model Innovation– 13 International co-authors identified– Crowd-funding starting in 2014

Individuals and OrganizationsBackers also get immediate commercial rights to use new CanvasEveryone else will have to wait for the book

– Self Publish 2015Canvas released under a Creative Commons License free for

commercial use

Connect to like-minded colleagues– Linkedin and Facebook

100+ Members from around the globe

Help bring Sustainable Business Innovation to the World!

Be Informed: http://signup.SSBMG.comShare your ideas for the book: http://survey.SSBMG.com

www.facebook.com/StronglySustainableBusinessModels @aupward

#SSBMGStrongly Sustainable Business Model Group

forum.SSBMG.com

info@SSBMG.com

www.SSBMG.com

Learn More– ~3 minute Audio/Visual Overview

about.SSBMG.com• Videos

– youTube.com/ssBusinessModelTV• Learning Map

– wiki.SSBMG.com/home/learning-map• Blogs

– blog.SSBMG.com – slab.ocad.ca/blogs/antony-upward

Learn more: http://www.naturalstep.ca/gold-standard

Join a Key Related Project

Possible Table of Contents

Copyright

• All images used under applicable creative commons licences – see notes on each page

/Permissions – This work is licensed under a

Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.

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