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Tempo HEI
Swedbank Conference
Vilnius (D)
25.04.13
Prof. Dr. Jan Jonker
Nijmegen School of Management
Radboud University Nijmegen
The Netherlands
WORKING TOWARDS THE WECONOMY
Sustainable Development as part of our
Business Models
We live in Exciting Times
Change – Transformation – Transition
Have become the key-words of our society
Welcome
Bob Dylan Got it Right …
Societal “Bubble Bursts”
At the beginning of this 21st Century we have encountered five
“crises” … (so far …).
[1] Safety
[2] Trust
[3] Commodities
[4] Money
[5] Governance
Welcome to the “Risk Society”. …
Entangled Debates:
(CSR – SD – SR – CE etc.)
(a) Global Warming: temperature and its long term effects;
(b) Poverty: balance in access and distribution to basic values (food, education,
technology);
(c) Depletion: speed use of natural sources (oil, water, iron);
(d) Management (profit): governance, social contribution, responsibility;
(e) Institutions: governance, distribution of power and wealth, democracy
Any of these (often loosely coupled) global debates can be focused on either
the business enterprise, consumers, governments or other stakeholders.
NGO’s
Civil Society
Private Sector
Fundamental changes between institutions
Social Welfare
Public Policy
Pay taxes , obey
laws
Employ people
help solve social
challenges
act responsibly
Deregulation,
downsizing. Social
Return and –impact -
redistribute wealth
Be a partner in
addressing social
problems
Public Sector
Moving from a care society to a self-care society
©BradGoogins,Berlin,2006)
Process of Sustainable Development (SD)
OCF - Gro Harlem Brundtland (1987)
“... sustainable development is not a fixed
state of harmony, but rather a process of
change in which the exploitation of
resources, the direction of investments, the
orientation of technological development,
and institutional change are made
consistent with future as well as present
needs.” (1987)
Levels of Change (1)
Sustainable [Societal] Development
impoverishment
- depleting investing +
return to
nature
human
focused
development
sustainable
[societal]
development
ecological & material capital
-depleting
© Thomas N. Gladwin - ‘Mastering Strategy’ - 2000
investing+
humanandsocialcapital
Signs of a ‘New’ Economy
A different (w)economy
… in progress …
Wicked Questions?
Copyright Robert E. Horn, 2007
Levels of Change (2)
Living in an organised society
Role of Business?
“The debates address political and social
issues that exceed the mandate and
capabilities of any corporation, alone. At the
same time, in the present global political and
societal ‘landscape’, corporations are the only
institutions with the resources, the
technology, the global reach and ultimately
the motivation to achieve SD through CSR.”
Taken from: Stuart Hart, in: Elkington, J. (1999). Cannibals with
Forks. Oxford (UK): Capstone Publishing
Value Creation
People Planet Profit (PPP)
Elkington (1998)
Organisations: Red, Green or Blue
organisational
gain
environmental
gain
soc-env
gain
closed ‘systems’
shareholders
eco-efficiency
control-management
single value creation
compliance
industrial ecology
stakeholders
eco-efficacity
risk-management
multiple value creation
reduction
‘Hub’s, COP’s & networks
Constituents
eco-innovation
community-management
shared value creation
co-creation
Conventional
organisation
Environmental
organisation
Societal
organisation
Changing Course:
re-thinking collaboration concepts
Wicked challenges
Einstein got it right too
18
Organisational ecology
Levels of Change (3)
The Bottom-line Questions
How can we organize sustainability
Landscape of ‘wicked questions’:
(1) Changing nature value creation
(2) New strategic choices
(3) Exploring new business models.
Generic Business Model
Adopted from Ostenwalder, A. (2004). The Business Model Ontology’
PhD manuscript, free downloadable at www.hec.unil.ch
Changing the way we organise:
value creation …instead of destruction
Organising sustainability implies to create multiple values (MVC)
This can only be organised and shared in a collective way.
Copyright Keith Haring
Three notions of Value Creation
Emerging Strategies for Sustainability
Boundaries are blurred!
PLANET
Eco - efficiency
Eco – efficacity
Eco – innovation
PEOPLE
Community building
Cooperatives
Social Entrepreneurship
Peer to Peer Business
Describing and exploring these strategies will be the subject of a 2014/2015
Working Paper (?) entitled “Creating the WEconomy: Strategizing Multiple,
Collective and Shared Value-creation”
PROFIT
Bottom of the Pyramid (BOP)
Micro-credit
Crowd-funding
Community-investment
Value creation:
five elements
Jonker (2012) based on Shafer et al. 2005 & Simanis en Hart
2011
Business
Intimacy:
Trust
Characteristics NBM’s
1.Principle of shared value creation
2.Collective organising (organisational ecology)
3.Money not only medium of exchange
4.Focused on use and needs – not on property
5.From ownership to access
6.Long term commitment (governance)
7.Contribution to the WEconomy (circular economy)
The Pyramid and the Pancake
4 types of business models
Organising
horizontally
Organising
Vertically
The WEconomy is ...
Creating together value that is of value
New
Business
Models
Trends
(careful)
• Making progress towards a ‘new’ economy
• From organising SD IN towards BETWEEN organisations
• From ‘buying’ toward collective organising (coöperative)
• From global to local/regional connected with networks
• Van ‘cost’ to ‘profit’ ... based on an array of value’s
Closure
Did Kermit got it right?
Thank you for your attention
Welcome to the WEconomy
Contact
Professor Dr. Jan Jonker
Professor Corporate Sustainability, research fellow and
consultant
Nijmegen School of Management, Radboud University
Nijmegen, PO BOX 9108, 6500 HK Nijmegen, The
Netherlands
(em) janjonker@mobile.me (or) j.jonker@fm.ru.nl
LinkedIn: see public profile. Standing invitation to
connect through janjonker@wxs.nl

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Working towards the weconomy

  • 1. Tempo HEI Swedbank Conference Vilnius (D) 25.04.13 Prof. Dr. Jan Jonker Nijmegen School of Management Radboud University Nijmegen The Netherlands WORKING TOWARDS THE WECONOMY Sustainable Development as part of our Business Models We live in Exciting Times Change – Transformation – Transition Have become the key-words of our society Welcome Bob Dylan Got it Right …
  • 2. Societal “Bubble Bursts” At the beginning of this 21st Century we have encountered five “crises” … (so far …). [1] Safety [2] Trust [3] Commodities [4] Money [5] Governance Welcome to the “Risk Society”. … Entangled Debates: (CSR – SD – SR – CE etc.) (a) Global Warming: temperature and its long term effects; (b) Poverty: balance in access and distribution to basic values (food, education, technology); (c) Depletion: speed use of natural sources (oil, water, iron); (d) Management (profit): governance, social contribution, responsibility; (e) Institutions: governance, distribution of power and wealth, democracy Any of these (often loosely coupled) global debates can be focused on either the business enterprise, consumers, governments or other stakeholders.
  • 3. NGO’s Civil Society Private Sector Fundamental changes between institutions Social Welfare Public Policy Pay taxes , obey laws Employ people help solve social challenges act responsibly Deregulation, downsizing. Social Return and –impact - redistribute wealth Be a partner in addressing social problems Public Sector Moving from a care society to a self-care society ©BradGoogins,Berlin,2006) Process of Sustainable Development (SD) OCF - Gro Harlem Brundtland (1987) “... sustainable development is not a fixed state of harmony, but rather a process of change in which the exploitation of resources, the direction of investments, the orientation of technological development, and institutional change are made consistent with future as well as present needs.” (1987)
  • 4. Levels of Change (1) Sustainable [Societal] Development impoverishment - depleting investing + return to nature human focused development sustainable [societal] development ecological & material capital -depleting © Thomas N. Gladwin - ‘Mastering Strategy’ - 2000 investing+ humanandsocialcapital
  • 5. Signs of a ‘New’ Economy A different (w)economy … in progress …
  • 6. Wicked Questions? Copyright Robert E. Horn, 2007 Levels of Change (2)
  • 7. Living in an organised society Role of Business? “The debates address political and social issues that exceed the mandate and capabilities of any corporation, alone. At the same time, in the present global political and societal ‘landscape’, corporations are the only institutions with the resources, the technology, the global reach and ultimately the motivation to achieve SD through CSR.” Taken from: Stuart Hart, in: Elkington, J. (1999). Cannibals with Forks. Oxford (UK): Capstone Publishing
  • 8. Value Creation People Planet Profit (PPP) Elkington (1998) Organisations: Red, Green or Blue organisational gain environmental gain soc-env gain closed ‘systems’ shareholders eco-efficiency control-management single value creation compliance industrial ecology stakeholders eco-efficacity risk-management multiple value creation reduction ‘Hub’s, COP’s & networks Constituents eco-innovation community-management shared value creation co-creation Conventional organisation Environmental organisation Societal organisation
  • 9. Changing Course: re-thinking collaboration concepts Wicked challenges Einstein got it right too 18
  • 11. The Bottom-line Questions How can we organize sustainability Landscape of ‘wicked questions’: (1) Changing nature value creation (2) New strategic choices (3) Exploring new business models. Generic Business Model Adopted from Ostenwalder, A. (2004). The Business Model Ontology’ PhD manuscript, free downloadable at www.hec.unil.ch
  • 12. Changing the way we organise: value creation …instead of destruction Organising sustainability implies to create multiple values (MVC) This can only be organised and shared in a collective way. Copyright Keith Haring Three notions of Value Creation
  • 13. Emerging Strategies for Sustainability Boundaries are blurred! PLANET Eco - efficiency Eco – efficacity Eco – innovation PEOPLE Community building Cooperatives Social Entrepreneurship Peer to Peer Business Describing and exploring these strategies will be the subject of a 2014/2015 Working Paper (?) entitled “Creating the WEconomy: Strategizing Multiple, Collective and Shared Value-creation” PROFIT Bottom of the Pyramid (BOP) Micro-credit Crowd-funding Community-investment
  • 14. Value creation: five elements Jonker (2012) based on Shafer et al. 2005 & Simanis en Hart 2011 Business Intimacy: Trust Characteristics NBM’s 1.Principle of shared value creation 2.Collective organising (organisational ecology) 3.Money not only medium of exchange 4.Focused on use and needs – not on property 5.From ownership to access 6.Long term commitment (governance) 7.Contribution to the WEconomy (circular economy)
  • 15. The Pyramid and the Pancake 4 types of business models Organising horizontally Organising Vertically The WEconomy is ... Creating together value that is of value New Business Models
  • 16. Trends (careful) • Making progress towards a ‘new’ economy • From organising SD IN towards BETWEEN organisations • From ‘buying’ toward collective organising (coöperative) • From global to local/regional connected with networks • Van ‘cost’ to ‘profit’ ... based on an array of value’s Closure Did Kermit got it right? Thank you for your attention Welcome to the WEconomy
  • 17. Contact Professor Dr. Jan Jonker Professor Corporate Sustainability, research fellow and consultant Nijmegen School of Management, Radboud University Nijmegen, PO BOX 9108, 6500 HK Nijmegen, The Netherlands (em) janjonker@mobile.me (or) j.jonker@fm.ru.nl LinkedIn: see public profile. Standing invitation to connect through janjonker@wxs.nl