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 projectAugust 2011 – August 2012 4

What isGreen 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 7

Functional sales• Selling the function of a product as a service• ESCO/MASCO/WASCO• CMS• DBFO 8

Business models When it is “business as usual”Resource Design & Sales & Use Disposalextraction Production Distribution 9

Life-cycle models When it is Green Business Model Innovation Green Supply Chain Industrial Resources Management SymbiosisTake-back Design &Management Disposal Cradle to Production Cradle Sales & Use Distribution 10

Functional salesWhen it is Green Business Model Innovation Resources Design & Disposal Production DBFO Sales & Use Distribution 11 ESCO, CMS

Why are companies embracingGreen Business Model Innovation

Increase in resource prices 13

Stricter regulation• E.g. EU eco design 14

Demanding customers- but price is important 15

Sensible investors 16Source: 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 17

Companies working withGreen Business Model Innovation

Case examples• 40 case interviews from our work• Companies in the Nordic countries as well as international 19

Case Functional sales: Volvo Aero 20

Case GSCM: IKEA IWAY 21

Case C2C: Gabriel 22

Case Take-back: Desso 23

Characteristics/ results of working withGreen Business Model Innovation from the case interviews

Characteristics: # employees45%40%35%30%25%20%15%10%5%0% 1 to 10 11 to 50 51-250 251-1000 1000+ NA 25 Source: Project interviews

Skills/ competencies4,54,03,53,02,52,01,51,00,50,0 26 Source: Project interviews

Financial results after the introduction of GBMI80%70%60%50%40%30%20%10%0% The company estimates Not able to measure/have The company estimates The company has reached positive financial results not measured yet negative financial results break-even 27 Source: Project interviews

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 promoteGreen Business Model Innovation

Policies at a general level• The Danish Business Innovation Fund 30

Policies at business model level Lifecycle modelsBusiness Model Existing policy Policy ideasGreen supply chain None found Support for R&D of newmanagement materialsTake-back None found Establish newmanagement infrastructure for recyclingCradle to Cradle C2C network, EU Transparent EU National waste management certification of products plan, NL Waste and resource action program (WRAP), UKIndustrial Symbiosis Kalundborg Industrial symbiosis program, DK National industrial symbiosis program (NISP), UK 31

Policies at business model level Functional sales modelsBusiness Model Existing policy Policy ideasESCO/ Federal Energy Management Broaden scope to coverMASCO/WASCO Program, US e.g. reduction of waste Green Deal, UK ESCO Light, DKCMS REACH, EUDBFO Private Finance Initiative, UK 32

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? 33

Thank you More information can be found at www. foranet.dkContact: tanja@novitasinnovation.com

Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012

by Nordic Innovation on Jun 07, 2012

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Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012 Presentation Transcript