The presentation made at the successful defense of my graduate thesis "Towards an Ontology and Canvas for Strongly Sustainable Business Models: A Systemic Design Science Exploration. For a brief intro see http://easyurl.net/About_SSBMC_in_3_mins_Prezi; for more see http://www.SSBMG.com. Full text will be available at http://hdl.handle.net/10315/20777 after ~Aug 30, 2013. Part of my Masters of Environmental Studies in Business Model Design and Sustainability + Graduate Diploma in Business and the Environment at York University's Faculty of Environmental Studies and Schulich School of Business.

1. 1
ES / ENVS7999 Thesis, © Antony Upward, 2013
Towards an Ontology and Canvas for
Strongly Sustainable Business Models
A Systemic Design Science Exploration
MES* Thesis Defense
August 6, 2013
Antony Upward†
, CMC, C.Eng‡
* York University Masters of Environmental Studies with Graduate Diploma in Business and the Environment
Faculty of Environmental Studies and Schulich School of Business
† Full resume at www.linkedin.com/in/antonyupward
‡ Certified Management Consultant www.cmc-canada.ca, Chartered Information Systems Engineer www.engc.org.uk
ThisworkislicensedunderaCreativeCommonsAttribution-NonCommercial-ShareAlike3.0
UnportedLicense.Permissionsbeyondthescopeofthislicensemaybeavailableat
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Download to Access
Speakers Notes on
Many Slides

2. 2ES / ENVS7999 Thesis, © Antony Upward, 2013
Gap and Impact
• Gap:
– No micro- economic, social and environmental definition of
strong sustainability
– No conceptualization of such a definition within existing business
model literature
– No taxonomy for patterns of strongly sustainable business model
designs (nor visual design tool)
• Impact of Gap:
– Desirable achievement of sustainability outcomes by
organizations unlikely (unreliable) and difficult (inefficient)
(Doig, 2003; Ehrenfeld, 2008;McDonough & Braungart, 2002)
• Benefit Audiences if Gap Closed
– New and Existing Firms, Policy Makers, Advisors, Investors,
Incubators

3. 3ES / ENVS7999 Thesis, © Antony Upward, 2013
Methodological
Challenge / Resolution
How can knowledge of strong sustainability, useful to
managers, be created?*
– Challenge: Lack of extant strongly sustainable businesses to theorize
from using descriptive science methods
– Resolution: use design science to undertake applied exploratory
research:
• Systems Thinking
• Focus on net-profit making organizations
Design science creates knowledge based on the experience gained from
the rigorous construction and evaluation of artefacts useful to managers
solving problems using the best available knowledge.
* Knowledge of what constitutes a strongly sustainable business is urgently needed to avoid the worst effects of Climate change and
other elements of the Global Problématique (Ozbekhan, 1970)

4. 4ES / ENVS7999 Thesis, © Antony Upward, 2013
Research Question
RQ: Is it possible to design an
ontology that can be usefully
employed to describe a firm’s strongly
sustainable business model design?
* Ontology is the artefact being built and evaluated by the systemic design science epistemological approach

5. 5ES / ENVS7999 Thesis, © Antony Upward, 2013
Research Activities and Outputs
Design Science Research Activity Streams
Output
Elements
P. D. E.
Prepare
Build
(Develop / Design)
Evaluate
(Validate)
i. Constructs
Understand the
literature:
– Business Models
(Profit-First & Strong
Sustainability)
– Epistemology
Entities Complete?
Consistent?
ii. Models Entity Relationship
Model
Comprehendible?
Real-world Likeness to
Artefact?
iii. Instantiations Case Studies Useful?
(Effective, Efficient)
iv. Method Systemic Design
Science
Rigorous enough to
design useful artefact?
DesignScience
ResearchOutput
Synthesized from Table 3-13 and 6-25: Table Structure derived from March & Smith, 1995, p.255; with additions from
Vaishnavi & Kuechler, 2009, p.6

6. 6ES / ENVS7999 Thesis, © Antony Upward, 2013
Designed Artefacts Overview
Wall charts of four of the Thesis Supplementary
Materials displayed:
– SM4b: Strongly Sustainable Business Model
Ontology
(Chapter 7)
– SM6a: Example instantiation of the Strongly
Sustainable Business Model Ontology (Timberland,
Chapter 8)
– SM5c & SM7: Example summary instantiation of
Timberland using Strongly Sustainable Business
Model Canvas (Chapter 8 and 7 respectively)

7. 7ES / ENVS7999 Thesis, © Antony Upward, 2013
Summary of Evaluation Results –
Confirming Utility“I really liked is that it
really makes youmakes you
thinkthink about things
that you would never
consider before”
Management Consultant
“You've ratcheted it upYou've ratcheted it up to the
next degree of specificity and
made sure that it is truly about
sustainable businesses. Whereas
the current [tools] that I’ve seen,
honestly could be applied to any
kind of business”
Sustainable Business NGO
“The power of this thing is
it’s really the first to takethe first to take
the social aspect and thethe social aspect and the
biophysical intobiophysical into
considerationconsideration. And I
haven’t seen that that any
other business model
that would take that into
consideration”
Business Architect / Professor /
Consultant
“This is an
impressive
body of work”
Management
Consultant
“I like the tool and think
it provides a great way
to analyze a company”
Leader Eco-Industrial Park
“It’s about timeIt’s about time
somebody did
something like
this”
Author / Consultant
“I recognize this firm.”
“This gets the zeitgeist ofThis gets the zeitgeist of
who we arewho we are, which is great”
(Reacting to his business
described using the Canvas)
CTO Small Manufacturer
“If I was starting a
brand new business, a
significant business today,
I would use thisI would use this business
model to help me define
and develop a pure
detailed business plan”
Management Consultant

8. 8ES / ENVS7999 Thesis, © Antony Upward, 2013
Make it
“better,better,
faster,faster,
strongerstronger” ?
Learning by
Using / TestingTesting
it out someit out some
moremore?
Summary of Evaluation Results –
Opportunities for
Improvement
A better way to
introduce and
summarize the
canvas
A methodologymethodology for
designing great
sustainable
business models?
An “app” so I can
do this on my
tablet with my
clients?
A communitycommunity of
people using and
improving it?
Ensuring the design
principles align with
the emerging “Gold
Standard” for
Sustainable Business?
Training /
Workshops for
Social /
Environmental
Entrepreneurs ?
A Consulting Service
that uses the Canvas
to Diagnose and
Improve the
Sustainability of
Business?
The design principlesdesign principles to
help me come up with
great answers to the 14
questions?
How about some
more examples and
case studiescase studies?

9. 9ES / ENVS7999 Thesis, © Antony Upward, 2013
Contributions Summary
1. RQ can be answered Yes
– The Strongly Sustainable Business Model Ontology and
Canvas achieved a satisfactory level of utility with opportunities
for improvement identified
2. Framing of the problem and solution
– Weaknesses, world-view, inter-disciplinarity, definitions, proto-
theory/design principles
3. Improvements to (systemic) design science preparation,
build and evaluation research design and execution
• Limitations
– Time, business process detail, design mode use, longitudinal
use, design method

10. 10ES / ENVS7999 Thesis, © Antony Upward, 2013
Further Work:
Academic & Practitioner
• Opportunities to contribute to multiple fields via
Multiple epistemic modes
• International practitioner / academic network is
growing
– Crowd-funded collaborative “Strongly Sustainable
Business Model Innovation” Toolkit planned
• Book, app, education and consulting versions
• Full alignment with emerging “Gold Standard” for Strongly
Sustainable Business
Join Us! http://signup.SSBMG.com

11. 11ES / ENVS7999 Thesis, © Antony Upward, 2013
Discussion

12. 12
ES / ENVS7999 Thesis, © Antony Upward, 2013
Backup Slides

13. 13ES / ENVS7999 Thesis, © Antony Upward, 2013
Comparing Descriptive and
Design Science
Research
Activity
Tendency Purpose Output Examples
Descriptive
Science
Inquiry
Describing
and
explaining
the bio-
physical and
social
Theoretical Truth: the
description /
explanation /
theory is true
Theory* &
Evidence
Physics,
Chemistry,
Biology,
Ecology,
Sociology,
Economics,
Psychology
Design
Science
Inquiry
Building and
evaluating
something
new
Applied Efficacy: the
built artefact
is useful
Artefacts* &
Evidence
Engineering,
Medicine,
Architecture,
Law,
Management,
Information
Systems
* Note that Theories and Artefacts are both credentialed knowledge, but the process of credentialing is different.
Table 3-3, Derived from Derived from: Lee, 2000, Slides 15-16 speakers notes; Romme, 2003b, Table 1 & 2)

14. 14ES / ENVS7999 Thesis, © Antony Upward, 2013
“Discovery”
“Justification”
…of Theories
“Build”
“Evaluate”
…Artefacts
Provides “truths”
Guide generation,
construction and
evaluation of
designs
Phenomena in
Context
Descriptive
Science
Research
Design
Science
Research
Provides “value
& utility” Phenomena
are created through the use
of artefacts.
Informs creation of theories
via observation
of phenomena
Tends to be
disciplinary
i.e. Theoretical /
Experimental
Tends to be
Trans-, Inter- or
Multi-disciplinary
i.e. Applied / Action
Research
* Figure 3-5: Derived from text of March & Vogus, 2010
Design and Descriptive Science –
A Causal Loop Diagram

15. 15ES / ENVS7999 Thesis, © Antony Upward, 2013
People
• Executives, Managers,
Entrepreneurs, Investors,
Business Architects,
Consultants
Organizations
• Strategy, operations and
innovation planning and
decision making groups
Technology
• Communication support
• Generative (Abduction)
support
• Evaluative (Decision
Making) support
Environment Research
D. Build
• Strongly Sustainable
Business Model
Ontology artefact:
i. Constructs
ii.Model
iii.Instantiation
iv.Method
E. Evaluate
E1: Self
E2: Third-Party
E3: Case Study
E4: Synthesis/Analysis
Philosophical
• Critical pragmatism
Epistemological
1. Design
2. Information
3. Systems
Key Disciplinary Frames
• Natural & Social science
• Ecological: sociology,
economics & management
• Organization (Innovation,
Strategy, OM/IS)
Methods
• Data collection, analysis
design and evaluation
techniques
Tools / Techniques /
Formalisms
• Literature Review
• Entity Relationship
Modelling
• Interviews
Knowledge Base
Iterative
Design
Process (D1-4)assess
refine
Relevance Rigor
P1. Problem
P2. Applicable
Knowledge
C1. Application
to solve problem
C2. Additions to
knowledge base
Quality (reliability,
consistency,
effectiveness)
and efficiency of
creation of
strongly
sustainable
business models
Consistent explicit
process choosing
relevant
knowledge
(A-Search, B-
Reflect, C-Apply)
Research Process –
Prepare (P), Build (D), Evaluate (E)
Figure 3-19, Derived from Hevner et al., 2004, Fig.2 p.80

16. 16ES / ENVS7999 Thesis, © Antony Upward, 2013
Overall Process for the Design of the
Business Model Ontology
Iterative
Abduction*,
Induction &
Deduction
Analysis &
Synthesis
* Informed guessing…Charles Sanders Pierce’s "abductive logic" (Martin, 2009).
1. Build
“What should this strongly
sustainable business model
ontology consist of?”
Iterative
Feedback &
Evaluation
Analysis &
Synthesis
2. Evaluate
“Is the strongly sustainable
business model ontology
useful?”
Comparator Knowledge
from Existent Businesses
(Formal & Tacit) (“K1…6”)
Representation of
Existent Businesses
Business Models as
Instantiations of Ontology
Natural andSocial ScienceTheoreticalKnowledge
Formal Science
Theoretical
Knowledge
3. Knowledge of Real
Businesses Business
Models Represented
Using Ontology
(2 Case Studies)
2. Knowledge from Real
Businesses
(7 Expert Interviews)
1. Knowledge Embedded
in Sustainability
Measurement Tools
Strongly
Sustainable
Business Model
Ontology & Canvas
(Designed Artefacts)
“K0”
“K0-PF”
“K0-SS”
Key Theoretical
Frames
• Formal Science
Information Systems (Computation),
Systems, Chaos & Complexity
• Natural Science
Physics, Chemistry, Biology& Ecology
• Social Science
Ecological: Sociology, Economics &
Management
Incl. Reflexive Modernization, Strong vs. Weak
Sustainability
• Organization & Management
Innovation, Strategic, Ops & Mgt Info. Systems

17. 17ES / ENVS7999 Thesis, © Antony Upward, 2013
Research Activities and Outputs
Design Science Research Activity Streams
Output
Elements
P. D. E.
Prepare
Build
(Develop / Design)
Evaluate
(Validate)
i. Constructs Literature Review of
Key Theoretical
Frames – Summarized
in Design Principles
(ODPs, DDPs)
Entities Identified from
Design Principles
Complete?
Consistent?
ii. Models Entity Relationship
Model developed from
Design Principles &
Entities
Comprehendible?
Real-world Likeness to
Artefact?
iii. Instantiations Case Studies
Identified
Case Study
Instantiations
Developed
Useful?
(Effective, Efficient)
iv. Method Literature Review of
Design Science
Literature –
Summarized in Build
Principles (BPs)
Research Design that
Attempts to Minimize
Bias by Maximizing
Rigour
Rigorous enough to
design useful artefact?
DesignScience
ResearchOutput
Synthesized from Table 3-13 and 6-25: Table Structure derived from March & Smith, 1995, p.255; with additions from
Vaishnavi & Kuechler, 2009, p.6

18. 18ES / ENVS7999 Thesis, © Antony Upward, 2013
Contributions by Output and Activity
Design Science Research Activity Streams
Output
Elements
P. D. E.
Prepare Build
(Develop / Design)
Evaluate
(Validate)
i. Constructs Rigorous understanding
the Problem and related
Definitions
Rigorous definition of
constructs
Rigorous definition of
metrics
ii. Models Rigorous identification of
ontology design principles
which relates the
definitions
Rigorous coding and
capture of all the construct
inter-relationships
Rigorous relation of
metrics to research
question and objective
iii. Instantiations None None
Novel instantiations of
existing business
iv. Method Improvements in
(systemic) design science,
ontology engineering and
soft systems preparation
activity design
Improvements in
(systemic) design science,
ontology engineering and
soft systems build activity
design
Improvements in
(systemic) design science,
ontology engineering and
soft systems evaluation
activity design
v. Better Theory Proto-theory of the
Conditions Required for
the Emergence of Strongly
Sustainable Organization
Proto-Principles for the
Design of Strongly
Sustainable Organizations
None
DesignScience
ResearchOutput
Table Structure derived from March & Smith, 1995, p.255; with additions from Vaishnavi & Kuechler, 2009, p.6

19. 19ES / ENVS7999 Thesis, © Antony Upward, 2013
Contribution: Revised / Novel Definitions (1 / 2)
• A “profit-first” organization is one in which
monetary profit is the sole legitimate objective;
success is defined in terms of attempting to
maximizing monetary profit at all times and over
time. (Derived from Friedman, 1962)
• A “strongly sustainable” organization is one in
which all of its behaviours and all the behaviours
of all other relevant social, economic and
biophysical actors, lead to the possibility that
human and other life will flourish on the planet
forever. (Derived from Ehrenfeld, 2008)

20. 20ES / ENVS7999 Thesis, © Antony Upward, 2013
Contribution: Revised / Novel Definitions (2 / 2)
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 in
aesthetic, 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
p. 14 Osterwalder, A., & Pigneur, Y. (2009). In Clark T. J., Smith A. (Eds.), Business model generation: a handbook for
visionaries, game changers, and challengers

21. 21ES / ENVS7999 Thesis, © Antony Upward, 2013
Comparing
Profit-First &
Strongly
Sustainable
Business Model
Canvases V1.031
+
+
Δ
+
Δ
+
+
+
+
+
Δ
Δ Δ +
+
Δ
Δ
Δ
Δ
Δ
Δ
+
+ = New concept in SSBMC which doesn’t appear in BMC
Δ = Change / extended concept in SSBMC which does
appear in some form in BMC (as indicated by green arrow).

22. 22ES / ENVS7999 Thesis, © Antony Upward, 2013
Evaluation Results Detail
Research Objective
Aspect of
Utility Metrics
Summary Metric Values
Confirmatory
Opportunity for
Improvement
RO0 Rigor Context
M1 Expectation High
GR1-11M2 Desirability High
M3 Importance High
RO1a Reliability
Completeness
M4a
Completeness
(reliable)
Satisfactory GU1-6
M5 Level of Detail Satisfactory – Highly Satisfactory GU8
Quality
M6a
Comprehensibility
(reliable)
Satisfactory – Highly Satisfactory GU7, GU9, GU10
M7 Real-world Likeness Satisfactory – Highly Satisfactory None
RO1b Consistency Quality M8 Internally consistent Satisfactory None
RO1c Effectiveness
Generic M9 Useful to user Satisfactory – Highly Satisfactory GU9, GU11
Beauty M10
Elegance (technical,
aesthetic)
Satisfactory None
RO2 Efficiency
Completeness M4b
Completeness
(efficiency)
Satisfactory GU1-6
Quality
M6b Comprehensibility
(efficiency) Satisfactory GU7, GU9, GU10
M11 Easy to use Satisfactory GU9, GU11
Table 8-14. GR = Gap in Research Rigour; GU = Gap in Artefact utility; Both identified by evaluation activities (Thesis Chapter 8)

23. 23ES / ENVS7999 Thesis, © Antony Upward, 2013
Further Work: Academic
• Opportunities to contribute to…multiple fields via
– Existing field Profit-First Business Models
– Adding the Bio-physical Environment & Society to
Operations and Management Information Systems
– New field of Strongly Sustainable Business Models
• …via Multiple epistemic modes
– Design Science: Changes to improve artefact utility
– Descriptive Science: 5 testable hypothesis
– Action Research: Bring practitioner version of
Strongly Sustainable Business Model Canvas and
method for its effective use to market

24. 24ES / ENVS7999 Thesis, © Antony Upward, 2013
Further Work: Practitioner
• 46 International members of
OCADU Strategic Innovation Lab
Strongly Sustainable Business
Model Group
• 10 International “First Explorers”
using SSBMCanvas now
– Further feedback accumulating
• Planning for not your typical
business “book” underway
– 10 International co-contributors
identified
– Self Publish, 2014
– Crowd-Funded
• Individuals & Organizations
• Sufficient Funding Gate ~Fall 2013
• “app”
– Design Tool
– Business Learning Game
• Community Revenue Opportunities via
– Training Service “Toolkit”
– Consulting Service “Toolkit”
– Education / Classroom “Toolkit”
– Sustainability Entrepreneur’s “Toolkit”
– Industry Specific “Toolkits”
– Sustainability Maturity Level Specific
“Toolkits”
• Full alignment with emerging “Gold
Standard” for Strongly Sustainable
Business
– Measurement “Toolkit”
• Best Practices & More Case Studies
Now Next
Join Us! http://signup.SSBMG.com

25. 25ES / ENVS7999 Thesis, © Antony Upward, 2013
Possible Table of Contents for “Book”

26. 26ES / ENVS7999 Thesis, © Antony Upward, 2013

27. 27ES / ENVS7999 Thesis, © Antony Upward, 2013
www.SSBMG.com
• About the Strongly Sustainable Business
Model Canvas ~
3 minute Audio Visual Overview
• Survey to give input to book
– survey.SSBMG.com
• Mailing List sign-up
– signup.SSBMG.com
• Learning / Knowledge
– wiki.SSBMG.com/home/learning-map
• Blogs
– blog.SSBMG.com
– slab.ocad.ca/blogs/antony-upward
http://www.facebook.com/
StronglySustainableBusinessModels
@aupward #SSBMG
info (at) SSBMG.com
blog.SSBMG.com
Mailing List sign-up
signup.SSBMG.com

28. 28ES / ENVS7999 Thesis, © Antony Upward, 2013
Citation
• Preferred citation for this work is:
– Upward, A. (2013). Towards an Ontology and Canvas for Strongly Sustainable
Business Models: A Systemic Design Science Exploration. (Masters of
Environmental Studies / Graduate Diploma in Business + Environment, York
University, Faculty of Environmental Studies and Schulich School of Business),
1-891 (i-xx). (http://hdl.handle.net/10315/20777)
– Electronic copy will be available at this handle/DOI after Aug 30, 2013
• All citations in this presentation may be found in the Bibliography of the
thesis.