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Antony Upward, MES, CMC* [email protected] @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.
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• 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
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But…
=
Today…
Unintended consequences for
Missed innovation
opportunities
Increasing risks
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=Do Good & Do Well
Why are Better Businesses Better?
Less RiskMore Innovation
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So…How do you design a better business?
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Previous Best Practice• Have Idea+ Get Money+ Hard Work+ Hope + Luck
Not…• Efficient• Effective• Reliable
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Lots about money, and the people you financially
transact with…
…(almost) nothing about everyone and everything else
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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
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The Profit-First Business Model Canvas: 9 Questions to be Profitable
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Example of a Profit-First Business Model: Montreux Jazz Festival
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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?
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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.
From
To
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
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2. Add Real Context of Business
Context: Environment (Physical / Chemical / Biological)
(Monetary)
A Business
(Social/Technology) Context:
Society
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Context:Financial Economy
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“Just” Being Profitable is Not Simple
“And that, in simple terms, is how you start a profitable small business”
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2. Customer
4.Learning& Growth
3. Internal Processes
1. Financial
3. Add Useful Perspectives
Perspectives on a business from the profit-first Balanced Scorecard
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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)?
© Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions
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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:
© Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions
A Business
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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
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…Co
ntex
t & P
ersp
ectiv
es
Flatt
ened
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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
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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
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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
Hidden SlideHidden Slide
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5b. Product, Learning & Development
Firm boundary
Environmental, social &
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)
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5b. Product, Learning & Development
Profit-First Canvas• Missing:
– 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
Hidden SlideHidden Slide
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5c. Process
Firm boundary
Environmental, social &
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
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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
Hidden SlideHidden Slide
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5d. Measurement
Firm boundary
Environmental, social &
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)
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5d. Measurement
Profit-First Canvas• Missing:
– 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)
Hidden SlideHidden Slide
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Stro
ngly
Sus
tain
able
Bu
sine
ss M
odel
Can
vas V1.031
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Tim
berla
nd’s
Bus
ines
s M
odel
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Stro
ngly
Sus
tain
able
Bus
ines
s M
odel
Can
vas
– 14
Que
stion
s V1.032
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Comparing Profit-First & Strongly Sustainable Business Model Canvases V1.031
+
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Δ
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Δ Δ ++
Δ
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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
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Next Steps on the Journey to Bring
the Better Business Canvas to the World…
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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!
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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
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
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Learn more: http://www.naturalstep.ca/gold-standard
Join a Key Related Project
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Possible Table of Contents
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Copyright
• All images used under applicable creative commons licences – see notes on each page
© Antony Upward / Edward James Consulting Ltd., 2013. Some rights reserved. – Permissions available at www.EdwardJames.biz
/Permissions – This work is licensed under a
Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.
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