business model innovation for growth and resilience - …€¦ · business model innovation for...

Business model innovation for growth and resilience

© The Carbon Trust

© The Carbon Trust

Current business models face multiple challenges

Material input costs

Security of supply

Changing usage patterns

Regulation

Competition

Materials

extraction &

production

Component

manufacture

Final product

manufacture

Use &

consumption

(B2B / B2C)

Disposal

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Innovation can mitigate these and unlock significant new sources of value

New ways to better

serve customers;

new markets

Maintaining end-of-

life value & circular

resource use

Reduced dependency

on virgin materials;

control over supply

Materials

extraction &

production

Component

manufacture

Final product

manufacture

Use &

consumption

(B2B / B2C)

Disposal

© The Carbon Trust

Customer relationships

Revenue streams

Channels Customers3. Value

proposition

Core capabilities

Cost structure

1. Operating model 2. Revenue model

Suppliers & partners

Operations & activities

To maximise impact, companies should explore how areas of their business model can be adapted or changed

Adapted from Alexander Osterwalder’s Business Model Canvas

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Examining risks and opportunities reveals new ways to add value, grow revenues, and improve competitiveness

Can we reduce our customers’ total cost of

ownership?

Value proposition

Operating model

Revenue model

Are we exposed to significant risk of

material supply or price volatility?

Can we capture more value through

different delivery and pricing models?

Can we help our customers grow more sustainably?

Can we enter new markets or disrupt

existing ones?

Can we fundamentally change our resource

cost position?

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Value proposition

Operating model

Revenue model

Example business model innovations

Rental and ‘on-demand’ subscription models

Refurbishing and reselling

Remanufacturing

Collaborative consumption & peer-to-peer sharing

Product service systems

A

CB

DF

E

Closed-loop material recycling

Click on letters to see examples

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Innovation can yield a number of benefits

Higher revenues per customer

More customer touch-points, and closer/longer relationships

Higher margins

Reduced cost of goods sold

Mitigated risks

Supply chain resilience and control

New sources of growth

New markets and customer segments

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› Resource waste & risk exposure

› Customer insights

› Market and industry trends

We can help you at each stage of your journey

› Develop call to action

› Engage internal & external stakeholders

› Generate options

› Define business case

› Design solutions / prototype

› Pilot new approaches

› Establish partnerships

› Iterate design

› Develop business plan

› Implement change

› Learn and improve

› Resource efficiency diagnostic

› Market insights

› Visioning and strategy

› Innovation process

› Business case development

› Design partnerships

› Developing consortia and partnerships

› Technology incubation

› Programme management

› Supply chain innovation

› Funding & investment

Understand Mobilise Create ExecuteTest

Learn

Iterate

KEY

AC

TIV

ITIE

SC

AR

BO

N T

RU

ST S

UP

PO

RT

© The Carbon Trust

Extended

enterprise /

value chain

Corporate /

internal

Incremental Breakthrough

Impact

Sco

pe

Business model

innovation

Sourcing &

supplier dev’t

Mfg. / process

innovation

Operational

efficiency

Proposition

development &

market entry

Supply chain

optimisation

Our services and capabilities span the full range of strategy and operational improvement

© The Carbon Trust

Case study: Dyson sustainable design

We helped Dyson design carbon emissions out of its innovative Dyson Airblade, making it one of the most energy efficient hand dryers in the world. Read more

Case study: BT Net Good

The pioneering carbon abatement methodology behind BT’s Net Good programme was reviewed, refined and endorsed by the Carbon Trust and Camanoe Associates (researchers from MIT). Read more

Case study: Coca-Cola consumer engagement

Ground-breaking project tested whether providing environmental information to consumers can help encourage sustainable consumption habits. Read more

Case study: Kingfisher

Working with the Carbon Trust since 2008 to put carbon management and green growth at the heart of its business strategy. Read more

© The Carbon Trust

Case study: JCB product innovation

Uncovering the potential for product innovation, giving JCB an improved proposition: reduced cost of ownership for customer; increased re-sale value; and superior environmental credentials

Case study: Whitbread sustainable business growth

Identifying new opportunities for sustainable growth in the business.

Read more

Case study: GE Ecomagination

Working with GE to identify and evaluate early stage companies, then incubate and invest in those with the most potential.

Read more

© The Carbon Trust

Reports

Opportunities in a resource constrained world: How business is rising to the challenge Download

Our Viewpoints

Business model innovation and strategies for sustainable growth Read

Net Possible: how can a business succeed in giving back more than it takes? Read

Adapt or die – our sustainable future lies inside business Read

How businesses are sleepwalking into a resource crunch Read

Optimising the Value Chain: survival of the fittest Read

Why Big Data will have a big impact on sustainability Read

© The Carbon Trust

Contact:

Aleyn Smith-GillespieAssociate Director, Carbon Trust AdvisoryAleyn.Smith-Gillespie@carbontrust.com

BusinessAdvice@carbontrust.comwww.carbontrust.com

© The Carbon Trust

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Rental and ‘on-demand’ subscription models

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Refurbishing and reselling

Retailer

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click for example

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Example: electronics industry

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Remanufacturing

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Closed loop material recycling

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Collaborative consumption, sharing economy, and peer-to-peer models

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Product service systems

› Managed

service

› Pay-per-use

› Performance

-based

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