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About the Better Business Model Canvas

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A 30 minute video of this talk is available on the Strongly Sustainable Business Model Group's youTube Channel: http://youTube.com/ssBusinessModelTV http://www.youtube.com/watch?v=ApOkQhbvJSc.

In these slides Antony Upward, Sustainability Business Architect introduces the new better Strongly Sustainable Business Model Canvas and introduces the 14 questions it asks to help design better businesses.

As usual, recommended downloading the presentation and viewing in slideshow mode with the speakers notes handy

If you'd like to stay in touch with our work on Strongly Sustainable Business Models then please
- Watch our ~3 minute introduction - http://about.SSBMG.com
- Watch our other videos - http://youTube.com/ssBusinessModelTV
- Like our facebook page - https://www.facebook.com/StronglySustainableBusinessModels
- Join the linkedin group: http://forum.SSBMG.com
- Give us your ideas via our survey (http://survey.SSBMG.com) or just sign-up for email updates (http://signup.SSBMG.com)
- Visit our website: http://www.SSBMG.com

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About the Better Business Model Canvas

  1. 1. AbouttheStronglySustainableBusinessModelCanvas Version1.022013-11-20 ©EdwardJamesConsultingLtd.SomeRightsReserved. 1 www.SSBMG.com ThisworkislicensedunderaCreativeCommonsAttribution-NonCommercial-ShareAlike3.0 UnportedLicense.Permissionsbeyondthescopeofthislicensemaybeavailableathttp:// www.EdwardJames.biz/Permissions Antony Upward, MES, CMC* antony@EdwardJames.biz @aupward #SSBMG ssBusinessModelTV * Masters of Environmental Studies in Business Model Design and Sustainability; Certified Management Consultant About the Strongly Sustainable Business Model Canvas Introducing a Better Visual Tool to Design Better Businesses YorkU Schulich School of Business SB-OMIS6700 - Mgt of New Technology Prof. David Johnston, November 20, 2013 Builds on many Builds on manyslides; download and slides; download andview in slide show view in slide showmode for improved mode for improvedcomprehension comprehension Hidden slides Hidden slideswith additional with additionalinfo!info! SpeakerSpeaker Notes &Notes & Refs.Refs.
  2. 2. 2 • 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
  3. 3. 3 But… = Today… Unintended consequences for Missed innovation opportunities Increasing risks
  4. 4. 4 = Do Good & Do Well Why are Better Businesses Better? Less Risk More Innovation
  5. 5. 5 So… How do you design a better business?
  6. 6. 6 Previous Best Practice • Have Idea + Get Money + Hard Work + Hope + Luck Not… • Efficient • Effective • Reliable
  7. 7. 7
  8. 8. 8 Lots about money, and the people you financially transact with… …(almost) nothing about everyone and everything else
  9. 9. 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
  10. 10. 10 The Profit-First Business Model Canvas: 9 Questions to be Profitable
  11. 11. 11 Example of a Profit-First Business Model: Montreux Jazz Festival
  12. 12. 12 3. Channels3. Channels But…does this help to design a better business? 1. Customer Segments 1. Customer Segments 2. Value Propositions 2. Value Propositions 4. Customer Relationships 4. Customer Relationships 5. Revenue Streams 5. Revenue Streams 7. Key Resources 7. Key Resources 6. Key Activities 6. Key Activities 9. Cost Structure 9. Cost Structure 8. Key Partners 8. Key Partners What’s Missing?
  13. 13. 13 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 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
  14. 14. 14 2. Add Real Context of Business Context: Environment (Physical / Chemical / Biological) (Monetary) A Business (Social/Technology) Context: Society © Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions Context: Financial Economy
  15. 15. 15 “Just” Being Profitable is Not Simple “And that, in simple terms, is how you start a profitable small business”
  16. 16. 16 2. Customer 4. Learning & Growth 3. Internal Processes 1. Financial 3. Add Useful Perspectives Perspectives on a business from the profit-first Balanced Scorecard
  17. 17. 17 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
  18. 18. 18 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 Economy Context: © Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions A Business
  19. 19. 19 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 Slide Hidden Slide
  20. 20. 20 …Context&Perspectives Flattened © Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions
  21. 21. 21 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
  22. 22. 22 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 chosen stakeholders Who does a firm do it to, for and with? Value proposition delivery channels for all stakeholders
  23. 23. 23 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 Slide Hidden Slide
  24. 24. 24 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)
  25. 25. 25 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 Slide Hidden Slide
  26. 26. 26 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
  27. 27. 27 5c. Process Profit-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 Slide Hidden Slide
  28. 28. 28 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)
  29. 29. 29 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 Slide Hidden Slide
  30. 30. 30 StronglySustainable BusinessModelCanvas V1.031 © Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions
  31. 31. 31 Timberland’sBusinessModel
  32. 32. 32 StronglySustainableBusiness ModelCanvas–14Questions V1.032 © Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions
  33. 33. 33 Comparing Profit-First & Strongly Sustainable Business Model Canvases V1.031 + + Δ + Δ + + + + + Δ Δ Δ + + Δ Δ Δ Δ Δ Δ + Hidden Slide Hidden Slide
  34. 34. 34 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 on 1.Freshtec’s Approach 2.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
  35. 35. 35 Next Steps on the Journey to Bring the Better Business Canvas to the World…
  36. 36. 36 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 Organizations Backers also get immediate commercial rights to use new Canvas Everyone else will have to wait for the book – Self Publish 2015 Canvas 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!
  37. 37. 37 Be Informed: http://signup.SSBMG.com Share your ideas for the book: http://survey.SSBMG.com www.facebook.com/ StronglySustainableBusinessModels @aupward #SSBMG Strongly Sustainable Business Model Group forum.SSBMG.com info@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
  38. 38. 38 Learn more: http://www.naturalstep.ca/gold-standard Join a Key Related Project
  39. 39. 39 Possible Table of Contents
  40. 40. 40 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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