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ES / ENVS7999 Thesis, © Antony Upward, 2013
Towards an Ontology and Canvas for
Strongly Sustainable Business Models
A Sy...
2ES / ENVS7999 Thesis, © Antony Upward, 2013
Gap and Impact
• Gap:
– No micro- economic, social and environmental definiti...
3ES / ENVS7999 Thesis, © Antony Upward, 2013
Methodological
Challenge / Resolution
How can knowledge of strong sustainabil...
4ES / ENVS7999 Thesis, © Antony Upward, 2013
Research Question
RQ: Is it possible to design an
ontology that can be useful...
5ES / ENVS7999 Thesis, © Antony Upward, 2013
Research Activities and Outputs
Design Science Research Activity Streams
Outp...
6ES / ENVS7999 Thesis, © Antony Upward, 2013
Designed Artefacts Overview
Wall charts of four of the Thesis Supplementary
M...
7ES / ENVS7999 Thesis, © Antony Upward, 2013
Summary of Evaluation Results –
Confirming Utility“I really liked is that it
...
8ES / ENVS7999 Thesis, © Antony Upward, 2013
Make it
“better,better,
faster,faster,
strongerstronger” ?
Learning by
Using ...
9ES / ENVS7999 Thesis, © Antony Upward, 2013
Contributions Summary
1. RQ can be answered Yes
– The Strongly Sustainable Bu...
10ES / ENVS7999 Thesis, © Antony Upward, 2013
Further Work:
Academic & Practitioner
• Opportunities to contribute to multi...
11ES / ENVS7999 Thesis, © Antony Upward, 2013
Discussion
12
ES / ENVS7999 Thesis, © Antony Upward, 2013
Backup Slides
13ES / ENVS7999 Thesis, © Antony Upward, 2013
Comparing Descriptive and
Design Science
Research
Activity
Tendency Purpose ...
14ES / ENVS7999 Thesis, © Antony Upward, 2013
“Discovery”
“Justification”
…of Theories
“Build”
“Evaluate”
…Artefacts
Provi...
15ES / ENVS7999 Thesis, © Antony Upward, 2013
People
• Executives, Managers,
Entrepreneurs, Investors,
Business Architects...
16ES / ENVS7999 Thesis, © Antony Upward, 2013
Overall Process for the Design of the
Business Model Ontology
Iterative
Abdu...
17ES / ENVS7999 Thesis, © Antony Upward, 2013
Research Activities and Outputs
Design Science Research Activity Streams
Out...
18ES / ENVS7999 Thesis, © Antony Upward, 2013
Contributions by Output and Activity
Design Science Research Activity Stream...
19ES / ENVS7999 Thesis, © Antony Upward, 2013
Contribution: Revised / Novel Definitions (1 / 2)
• A “profit-first” organiz...
20ES / ENVS7999 Thesis, © Antony Upward, 2013
Contribution: Revised / Novel Definitions (2 / 2)
A description of how an or...
21ES / ENVS7999 Thesis, © Antony Upward, 2013
Comparing
Profit-First &
Strongly
Sustainable
Business Model
Canvases V1.031...
22ES / ENVS7999 Thesis, © Antony Upward, 2013
Evaluation Results Detail
Research Objective
Aspect of
Utility Metrics
Summa...
23ES / ENVS7999 Thesis, © Antony Upward, 2013
Further Work: Academic
• Opportunities to contribute to…multiple fields via
...
24ES / ENVS7999 Thesis, © Antony Upward, 2013
Further Work: Practitioner
• 46 International members of
OCADU Strategic Inn...
25ES / ENVS7999 Thesis, © Antony Upward, 2013
Possible Table of Contents for “Book”
26ES / ENVS7999 Thesis, © Antony Upward, 2013
27ES / ENVS7999 Thesis, © Antony Upward, 2013
www.SSBMG.com
• About the Strongly Sustainable Business
Model Canvas ~
3 min...
28ES / ENVS7999 Thesis, © Antony Upward, 2013
Citation
• Preferred citation for this work is:
– Upward, A. (2013). Towards...
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MES Thesis - Ontology & Canvas for Strongly Sustainable Business Models - Oral Defense

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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.

Published in: Business, Technology
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MES Thesis - Ontology & Canvas for Strongly Sustainable Business Models - Oral Defense

  1. 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 http://www.theUpwards.net/Permissions Download to Access Speakers Notes on Many Slides
  2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 11. 11ES / ENVS7999 Thesis, © Antony Upward, 2013 Discussion
  12. 12. 12 ES / ENVS7999 Thesis, © Antony Upward, 2013 Backup Slides
  13. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 25. 25ES / ENVS7999 Thesis, © Antony Upward, 2013 Possible Table of Contents for “Book”
  26. 26. 26ES / ENVS7999 Thesis, © Antony Upward, 2013
  27. 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. 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.

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