Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012

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Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012

  1. 1. Green Business Model Innovation Nordic Innovation Forum 24 May 2012 Tanja Bisgaard
  2. 2. 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
  3. 3. The projectAugust 2011 – August 2012 4
  4. 4. What isGreen Business Model Innovation
  5. 5. 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
  6. 6. Life-cycle models• Green Supply Chain Management• Take-back Management• Cradle to Cradle• Industrial Symbiosis 7
  7. 7. Functional sales• Selling the function of a product as a service• ESCO/MASCO/WASCO• CMS• DBFO 8
  8. 8. Business models When it is “business as usual”Resource Design & Sales & Use Disposalextraction Production Distribution 9
  9. 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
  10. 10. Functional salesWhen it is Green Business Model Innovation Resources Design & Disposal Production DBFO Sales & Use Distribution 11 ESCO, CMS
  11. 11. Why are companies embracingGreen Business Model Innovation
  12. 12. Increase in resource prices 13
  13. 13. Stricter regulation• E.g. EU eco design 14
  14. 14. Demanding customers- but price is important 15
  15. 15. Sensible investors 16Source: Harvard Business School, September 2011
  16. 16. Implications• Challenges = innovation opportunities• Competitive advantage for Nordic companies? – High quality – High standard of living – Embedded in our culture/ mindset 17
  17. 17. Companies working withGreen Business Model Innovation
  18. 18. Case examples• 40 case interviews from our work• Companies in the Nordic countries as well as international 19
  19. 19. Case Functional sales: Volvo Aero 20
  20. 20. Case GSCM: IKEA IWAY 21
  21. 21. Case C2C: Gabriel 22
  22. 22. Case Take-back: Desso 23
  23. 23. Characteristics/ results of working withGreen Business Model Innovation from the case interviews
  24. 24. 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
  25. 25. Skills/ competencies4,54,03,53,02,52,01,51,00,50,0 26 Source: Project interviews
  26. 26. 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
  27. 27. 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
  28. 28. Policies to promoteGreen Business Model Innovation
  29. 29. Policies at a general level• The Danish Business Innovation Fund 30
  30. 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
  31. 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
  32. 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
  33. 33. Thank you More information can be found at www. foranet.dkContact: tanja@novitasinnovation.com
  34. 34. Thank you More information can be found at www. foranet.dkContact: tanja@novitasinnovation.com

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