Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012
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Green Business Model Innovation Nordic Innovation Forum 24 May 2012 Tanja Bisgaard
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Transcript of Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012
Green Business Model Innovation
Nordic Innovation Forum 24 May 2012
Tanja Bisgaard
Overview
• What is Green 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
The project
August 2011 – August 2012
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What is Green Business Model Innovation
Green Business Model Innovation
• 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
Life-cycle models
• Green Supply Chain Management • Take-back Management • Cradle to Cradle • Industrial Symbiosis
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Functional sales
• Selling the function of a product as a service
• ESCO/MASCO/WASCO • CMS • DBFO
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Business models
When it is “business as usual”
Resource extraction
Design & Production
Sales & Distribution Use Disposal
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Life-cycle models
When it is Green Business Model Innovation
Resources
Design & Production
Sales & Distribution Use
Disposal
Green Supply Chain Management
Take-back Management Cradle to
Cradle
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Industrial Symbiosis
Functional sales
When it is Green Business Model Innovation
ESCO, CMS
DBFO
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Resources
Design & Production
Sales & Distribution Use
Disposal
Why are companies embracing Green Business Model Innovation
Increase in resource prices
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Stricter regulation
• E.g. EU eco design
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Demanding customers
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- but price is important
Sensible investors
16 Source: Harvard Business School, September 2011
Implications
• Challenges = innovation opportunities • Competitive advantage for Nordic companies?
– High quality – High standard of living – Embedded in our culture/ mindset
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Companies working with Green Business Model Innovation
Case examples
• 40 case interviews from our work • Companies in the Nordic countries as well as
international
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Case Functional sales: Volvo Aero
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Case GSCM: IKEA IWAY
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Case C2C: Gabriel
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Case Take-back: Desso
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Characteristics/ results of working with
Green Business Model Innovation from the case interviews
Characteristics: # employees
25 Source: Project interviews
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1 to 10 11 to 50 51-250 251-1000 1000+ NA
Skills/ competencies
26 Source: Project interviews
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
Financial results after the introduction of GBMI
27 Source: Project interviews
0%
10%
20%
30%
40%
50%
60%
70%
80%
The company estimates positive financial results
Not able to measure/have not measured yet
The company estimates negative financial results
The company has reached break-even
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
Policies to promote Green Business Model Innovation
Policies at a general level
• The Danish Business Innovation Fund
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Policies at business model level
Business Model Existing policy Policy ideas
Green supply chain management
None found Support for R&D of new materials
Take-back management
None found Establish new infrastructure for recycling
Cradle to Cradle C2C network, EU National waste management plan, NL Waste and resource action program (WRAP), UK
Transparent EU certification of products
Industrial Symbiosis Kalundborg Industrial symbiosis program, DK National industrial symbiosis program (NISP), UK
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Lifecycle models
Policies at business model level
Business Model Existing policy Policy ideas
ESCO/ MASCO/WASCO
Federal Energy Management Program, US Green Deal, UK ESCO Light, DK
Broaden scope to cover e.g. reduction of waste
CMS REACH, EU
DBFO Private Finance Initiative, UK
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Functional sales models
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?
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