SSBMInnovation Business Model Design Workshop-1
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Presentation for first workshop (May 15, 2013) to design the business model for the crowd-funded collaborative project which will create the "book" / toolkit for Strongly Sustainable Business Model Innovation (http://www.SSMBG.com). As usual, recommended downloading the presentation and viewing in slideshow mode with the speakers notes handy
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SSBMInnovation Business Model Design Workshop-1
- 1. StronglySustainableBusinessModelInnovationToolkit–Workshop#1 Version1.0(Draft)2013-05-15 ©EdwardJamesConsultingLtd.SomeRightsReserved. 1 www.SSBMG.com ThisworkislicensedunderaCreativeCommonsAttribution-NonCommercial-ShareAlike3.0 UnportedLicense.Permissionsbeyondthescopeofthislicensemaybeavailableathttp:// www.EdwardJames.biz/Permissions Antony Upward, CMC antony@EdwardJames.biz @aupward #SSBMG Peter Jones, PhD peter@redesignresearch.com @redesign www.reDesignResearch.com Mention @OCADsLab Strongly Sustainable Business Model Innovation Toolkit Business Model Design Workshop #1 (of 2) May 15, 2013 Lots of speaker notes, Lots of speaker notes,including references including references Builds on many slides Builds on many slides download and view download and view in slide show mode in slide show mode for improved for improved comprehension comprehension
- 3. 3 To Proceed We All Need Answers… • What are we doing? • Why are we doing this? • What does success look like? • How are we going to do it? • Who is going to be involved - lead, engage, support? • How much will it cost - me, us; time, money, energy? • Where will the money and other resources come from? • When and where is all this happening? Workshops are designed for us, together, to create “good enough” answers… so we have the confidence to proceed
- 4. 4 + Our Theory of Success =
- 5. 5 Workshop…Planned Outputs • Strongly Sustainable Business Model for the project and beyond • Key tasks for next 12-24 months and beyond • Budget for first deliverable – “book” / toolkit • Detailed next steps plans … all shared publically
- 6. 6 Workshop… Desired Outcomes • Shared understanding of the project • Confidence that together we can succeed • Enable – Core-writing-team to step forward & commit (3-5 people) – Crowd-funding target to be set – Academic researchers to start to plan instrumentation • Experience the behaviours we'll need to succeed – Authenticity – Transparency of ideas and emotions – Trust and trustworthiness – Spirit of adventure, experimentation, learning and fun – Leaderful listening
- 7. 7 Creating the Space for Possibility Hello!Hello! WherWher e aree are we?we? GoodGood toto meetmeet you!you! What’What’ s ons on youryour mind?mind? HowHow areare youyou feelinfeelin g?g?
- 8. 8 the Worldthe World withwith StronglyStrongly SustainableSustainable BusinessBusiness ModelsModels
- 9. 9 Assume hope all you who enter here Vaclav Havel
- 10. 10 Maximization of wealth creation so we can afford the public good Our CurrentOur Current CollectiveCollective ResponseResponse Maximization of wealth creation so we can afford the public good What do you want to sustain? • For whom? • For how long? • How much will it cost? (p.26) “The possibility that human and other life will flourish on this planet forever.” (p.6) MyMy ResponseResponse
- 11. 11
- 12. 12
- 14. 14 Passing Benefit Corporation Legislation Passing Benefit Corporation Legislation A Toolkit for StronglyA Toolkit for Strongly Sustainable BusinessSustainable Business Design can, at aDesign can, at a minimumminimum,, helphelp ALLALL these people bethese people be more successfulmore successful
- 15. 15 We choose [to do these things] not because they are easy, but because they are hard” – J.F. Kennedy, September 12, 1962, “Things don’t happen. They are made to happen” – J.F. Kennedy, September 25, 1963 Big, Scary… But Inspiring
- 16. 16
- 19. 19 Experiment to Gain Experience
- 20. 20 But… Servants Have Needs Too! AA MeaniMeani ngfulngful ChalleChalle ngenge SomeSome InflueInflue ncence overover itsits DirectiDirecti onon PossibiliPossibili tyty for afor a SufficienSufficien tt FinanciaFinancia l Futurel Future
- 21. 21 In threes / on-line as one group What’s Possibility for impact? My possibility in this is? 05:00 Minutes…05:00 Minutes…
- 22. 22 TheThe Story SoStory So Far…Far……get me up to speed so I can help make this a big success! Love the idea… I want to get involved… So what are you thinking is next? What assumptions are you making?
- 24. 24 Previous Best Practice • Have Idea + Get Money + Hard Work + Hope + Luck Not… • Efficient • Effective • Reliable
- 25. 25
- 26. 26 Lots about money, and the people you financially transact with… …(almost) nothing about everyone and everything else
- 27. 27 But we want…
- 28. 28 Understand the Natural and Social Science of Sustainability Asked what are the gaps in Osterwalder’s PhD Ontology of Profit-First Businesses, based on the science Designed an Ontology of Strongly Sustainable Business Models Created the Strongly Sustainable Business Model Canvas, a visual design tool, powered by my Ontology, and tested it 1. Against standards of sustainable business 2. Formally with 7 experts and 2 case study companies 3. Informally with dozens of others: Business people, professors, students
- 29. 29 Understand the Natural and Social Science of Sustainability Asked what are the gaps in Osterwalder’s PhD Ontology of Profit-First Businesses, based on the science Designed an Ontology of Strongly Sustainable Business Models Upward, A. (2013, Forthcoming). 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), 1-889 (i-xx). doi:http://hdl.handle.net/10315/20777 Created the Strongly Sustainable Business Model Canvas, a visual design tool, powered by my Ontology, and tested it 1. Against standards of sustainable business 2. Formally with 7 experts and 2 case study companies 3. Informally with dozens of others: Business people, professors, students
- 30. 30 Revising 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 • 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
- 31. 31 StronglySustainableBusiness ModelCanvas–14Questions V1.032 © Antony Upward / Edward James Consulting Ltd., 2013 Some rights reserved. Permissions available at www.EdwardJames.biz/Permissions
- 33. 33 Reaction So Far? (From Confidential Expert Respondents) “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
- 34. 34 Make it “better,better, faster,faster, strongerstronger” ? Learning by Using / TestingTesting it out someit out some moremore? But What About…? (Ideas from All Respondents) 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?
- 35. 35 So…What’s Next? Bring the new canvas to the world.
- 36. 36 Design Principles for Next Steps – Ideas • Enjoy Being the Change – Purpose / passion driven – Focus on Small / Medium Business (they can change more easily) • Existing and Start-ups – Think Local, Adapt Global – Radical Transparency with Appropriate Protection • Creative Commons Licensing – B Corp Certified Scoring >150/200 • Steps toward a Vision – “Minimum Viable Product” (MVP) – Compliance with The Natural Step Sustainability Principles • Crowd Funded – Committed Individuals – Organizations • Research Enabling Continuous Improvement • Build a Community – Mutually supportive eco-system • Highly involved stakeholders • Sharing of opportunities and revenues • Maximize local opportunities, minimize flying around! – Collaborative writing / testing / governance – Spread the word – Learn by Doing & from Each Other – Use leverage to the max B Corps / Locally oriented businesses
- 37. 37 Not your typical business “book” • Summer 2014 • Self Publish “Book” is Focus for Crowd-Funding • Sufficient Funding Gate ~Sept 2013 • Find Agent & Publisher – Marketing, Distribution, Translations • “app” • Community Revenue Opportunities via – Training Service “Toolkit” – Consulting Service “Toolkit” – Education / Classroom “Toolkit” • Full alignment with emerging “Gold Standard” for Strongly Sustainable Business • Best Practices • More Case Studies Now Next
- 38. 38 Table of Contents for “Book” – Ideas
- 39. 39 Now Oct-Dec 2013 Jan-Summer Fall Start Funding Funding Completed Book Self-Published Book Published by Established Publisher Jan Key Tasks & Timeline – Ideas July-Sept 2014 2015 Work- shops Soft Launch Content Creation ID Core Team Find Backers Initiate Funding Collab. Platform Content Creation Wave 1 Learn w/ Collaborators Wave 2 Write Wave 3 Design Wave 4 Launch Wave 5 Market Find Agent Wave Next… Continuously Improve Toolkit Wave Next… New Tools Added Eco-System Revenue Streams Grow Community Academic Papers Legal Entity
- 40. 40 ConsultantsCore- Writing Team (Authors/ Designers) (3-5) Stakeholders – Ideas Now Next Impact Investor s / Venture Capi Policy Maker s Educat ors “Encour agers” (Incubators, Start-up Training Schemes, Credit-Unions, Co-op Associations, etc.) Train ers Managers in Existing Businesses Entrepreneurs /Innovators Researc hers “Gold-Standard” Standard Setters & Certifiers
- 41. 41 Current Activities • Develop Business Model using canvas • Identify Core Writing Team (3-5) • Collaborative platform (for Fund Raising & Writing) • Develop Learning Map – wiki.SSBMG.com/home/learning-map • “Soft Launch” activities • Continue content creation – Methodology – SSHRC application – Design principles / Gold standard – Case studies • Started 5 + more in the pipeline Want to use the Canvas Now? Ask me! Based on Mutual Sharing / NDA Agreement Work- shops
- 42. 42 1st Workshop1st Workshop • Level Set • Brainstorm Business Model 22ndnd WorkshopWorkshop • Budgeting • Immediate Next Steps Planning FundFund RaisingRaising Budget /Budget / TargetTarget DetailedDetailed Next-StepNext-Step PlansPlans for…for… Workshop Outputs: Our Good Enough… Business Model (“book” project & beyond) 1. Crowd-funding marketing 2. Collaboration planning 3. Crowd-funding & collaboration platform req’ts 4. Legal entity design & creation Core- Writing Team (3-5) Moveforwardwith crowd-funding,legalentity,etc. Everything That’s Happened So Far! Pre-WorkPre-Work (Everyone)(Everyone) 1.Review Biz Model & Time Line 2.Complete Survey 3.Add your ideas to Budget Template Post-WorkshopPost-Workshop SynthesisSynthesis (One-time Working Group) Personal ReflectionPersonal Reflection How do I want to be involved? Core-team? What do I need so I can commit? Everything posted to wiki.SSBMG.comEverything posted to wiki.SSBMG.com Key TasksKey Tasks && Time LineTime Line
- 43. 43 Break – 10 mins • There will be a group which needs to meet once (virtually) between now and the next workshop • Objective: – Synthesize output of this workshop into a proposed business model to be reviewed at next workshop • If you’re interested, make yourself known
- 44. 44 Questions Clarify / Challenge • Facts • Assumptions
- 45. 45 Co-Create Business Model • Form Groups – Pick Spokesperson • Brainstorm – Until 15h45 ESTUntil 15h45 EST • Use Template (on-line / flip-charts) – Business Model – Scope, Key-Tasks & Timeline – Pick-stakeholder from hat… then • Brain-storm value propositions, processes, measures of success from the perspective of that stakeholder • Repeat – at least twice (40 mins) • Report Back – 30 mins30 mins • Working Group will Synthesize prior to 2nd Workshop
- 46. 46
- 47. 47 Collaborator / BackerCollaborator / Backer Value PropositionValue Proposition (Example)(Example) read content first & exclusivel y use the canvas in your own business now! try it out – be a case study interact with Strongly Sustainabl e Business Thought influence writing team & the commun ity share your experien ce, gain from others demonstrate your thoughtleadership to your peers exclusiv e webinars earlyaccess toimprovem ents preferred access to subsequent training & consulting revenue your name / organizati on logo in book credits discount onfinal bookprice be a part of the change we need to flourish be a part of something BIGBIG: a global strongly sustainable business community haveFun!
- 48. 48 Report Out… Our Business Model…
- 49. 49 Wrap-up • Business Model Synthesis Working Group – Virtual meeting – Date / Time to Meet • 2nd Workshop re-Scheduling – Originally Wednesday May 22nd 12h30-16h30 EST • Done Well – Do Better – F2F & On-Line
- 50. 50 Next Steps • Stand-by for: – Updated calendar invite for 2nd Workshop • Try to Carve Out Time for Pre-Work for 2nd Workshop • Details to be sent with calendar invite 1. Explore Learning Map wiki.SSBMG.com/home/learning-map 2. Review Materials from 1st Workshop 3. Review Business Model & Time Line • As synthesized by working group • Bring your comments on strengths, weaknesses, opportunities & threats to 2nd Workshop (or email if you can’t make it) 4. Reflect on • How you want to be involved? • What can my contribution be? • What you need environmentally, socially, financially in order to commit? 5. Complete On-Line Survey 6. Complete Budget Template • Add what you need financially in order to commit? • Bring to 2nd Workshop (or email if you can’t make it)
- 51. 51 Check-out
- 52. 52 Thank-you! • For your time and hard-work – Especially those on-line for sticking with us! • To OCADU sLab for Hosting • Helpers • Peter Jones Hope to see you at the 2nd Workshop… For Updates… blog.SSBMG.com
- 53. 53 www.SSBMG.com • About the Strongly Sustainable Business Model Canvas ~ 3 minute Audio Visual Overview • Learning / Knowledge – wiki.SSBMG.com/home/learning-map • Blogs – blog.SSBMG.com – slab.ocad.ca/blogs/antony-upward http://www.facebook.com/StronglySusta @aupward #SSBMG info@SSBMG.com http://blog.SSBMG.com
- 54. 54 Copyright & Licenses • All images used under applicable 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.
- 55. 55
Notas do Editor
- First of two workshops, today, and tentatively next Wednesday (May 22nd) (we'll conduct a poll to confirm date or pick a new one) Please feel free to tweet and post about these workshops – with hash-tag tag #SSBMG Sign audio/visual release
- I’d like to invite everyone to take a place in the circle - physically for those in the room and virtually for those on-line Let’s first get grounded in the space you’re in. Feel your contact with the furniture and let yourself experience the peace just being here with nowhere else to go for our time together. Now let yourself become centered, be fully present to listen and to speak in circle and in our small groups. My name is Peter Jones and along with my colleague Antony Upward we designed and will be facilitating these two workshops. We also have a number of helpers… taking pictures, tweeting, taking notes, helping out with the remote attendees
- First of two workshops, today, and tentatively next Wednesday (May 22nd) (we'll conduct a poll to confirm date or pick a new one) So why these workshops now? (slide 3-4) What are we aiming to do (slide 5-6) To be able to proceed with the project to bring the Strongly Sustainable Business Model Canvas to the world we need to be able to come up with "good enough" answers to the questions I am sure you all have on your minds Coming up with "good enough" answers to all these questions is our aim over these two workshops
- By having you all involved we hope to come up with better answers than if a much smaller group had been involved AND the starting point for the community which we hope will be the key ingredient in making this project a huge success Image from: http://profounderblog.files.wordpress.com/2011/06/crowd-v-community2.png?w=595
- We are aiming to capture the “good enough” answers we create collectively later in this and the 2 nd workshop in these outputs…
- And we are also aiming to create the following outcomes… Shared understanding and knowledge of the project context and the answers to the questions Confidence that together we can succeed Enable Members of the core-writing-team to step forward / self-identify and commit to the project (3-5 people) Us to set t he budget for the crowd-funding Academic researchers to start to plan instrumentation of the project ([participative] action research, descriptive science research, design science research) Experience of the behaviours we'll need to Succeed Authenticity - Transparency of ideas and emotions Trust and trustworthiness Spirit of adventure, experimentation, learning and fun "what if" "imagine if" are commonly heard! Leaderful listening
- We're talking about strongly sustainable business models - businesses that integrate environmental, social and economic benefit creation. So how environmentally and socially aware are we of the context of this place and time? Which watershed are we in? Who was here before us? Chat amongst yourselves Reveal answer for Toronto, remote participants can share if they know – and commit to find out before 2 nd workshop!
- Image credit: http://www.123rf.com/photo_8576527_business-people-with-thumbs-up-on-white-background.html / William Perugini / 123RF Stock Photo
- Thank-you for being here. Welcome! After nearly 3 years in the halls of academe its great to be out in the world again! I am really excited to be here today with you; together we're about to do something really really exciting, ground breaking, and I hope world-changing! We're alive at an incredibly exciting time, scary for sure, but at the risk of being call naïve in this work I hope we can choose to take a hopeful stance; choosing to believe that engaging with the world is the only way to learn and live! Image: Used under creative-commons license: http://en.wikipedia.org/wiki/File:Sunrise_thailand_ko_samui.jpg
- The word sustainability is an adjective or adverb – there must be something or some process you wish to sustain! When you use the word sustainability you have to come up with answers to these questions 1. And of course when you come up with your answer you’ll need to consider Your understanding of how nature works Your own personal values Your practical situation. (Pause) 2. I think our existing collective goal for humanity has got means and ends mixed up… we (correctly) recognized that in our chosen economic system wealth is required in order to create the public good, but by putting wealth creation first we’ve allowed our selves to forget why we wanted that wealth in first place! 3. So I think humanity needs a new aspirational collective goal – one which John Ehrenfeld, recently retired MIT scholar and one of the founders of the industrial ecology , has brilliantly and inspiringly articulated: what we want to sustain is “the possibility that human and other life will flourish on this planet forever”. What I like about this: What: Its about possibility – how good can we be? (Its not about mere survival of the rate race or just languishing) Who: Its inclusive – all humans and all other life – its humble about our place in the universe For How Long: It’s a goal which has no end – do we imagine there are fundamental limits to flourishing? Biophysical constraints on how for sure, but not on what we can imagine ! How much: typically people think about the word cost in financial terms first… but in this case I look at the environmental, social and economic costs - and I think the jury is very much out on whether this is more or less costly than our current approach So I want a future in which the goal of flourishing is the norm. Flourishing of ourselves, for those we love, for the rest of humanity and indeed for all life on earth (4. Aside: This definition is very much aligned with the Ecological Economists who define strong sustainability as the inability for us to replace key back-stop forms of natural capital with any other type of (human manufactured) capital, particularly not in timeframes which might allow us to avoid the worst impacts of our current approaches (Compare this to neo-classical, natural resource and environmental economists definitions of sustainability, which are labelled ‘weak sustainability’) Inspired by Allen, T. F. H. (2003). In Hoekstra T. W., Tainter J. A. (Eds.), Supply-side sustainability. New York: Columbia University Press; Summary available http://www.slideshare.net/AntonyUpward/supply-side-sustainability-summaryupward-av102 Ehrenfeld, J. (2008). Sustainability by design: a subversive strategy for transforming our consumer culture. New Haven, Connecticut, U.S.A.: Yale University Press. Ehrenfeld, J., & Hoffman, A. J. (2013). Flourishing: a frank conversation about sustainability Neumayer, E. (2010). Weak versus strong sustainability: exploring the limits of two opposing paradigms (3rd ed.). Cheltenham, UK ; Northampton, Massachusetts, U.S.A.: Edward Elgar. http://www.johnehrenfeld.com/2013/02/sustainability-and-resilience.html
- I have a dream that together all of us here will contribute to that future, a future where all life on this planet can flourish. I believe we can do this by providing better tools to everyone who is attempting to change business away from simple wealth maximization towards creating the conditions for flourishing. Tools to help them be more effective, more efficient, and more reliable at creating the change we need, the change we want - to create a world where people and other life flourish. I want to help all the change makers who want to use business and the power of human organizations to create that future faster and better.
- So in this project we're setting out to change the world and make history! Inspired by http://www.etsy.com/listing/98905968/8x10-print-raise-hell-and-change-the http://sd.keepcalm-o-matic.co.uk/p/keep-calm-and-carry-on-no-thanks-i-d-rather-raise-hell-change-the-world/
- Let’s take a moment to imagine what this might be like… Imagine a new operating logic for business which integrates the achievement of environmental, social and economic benefits 2. Now imagine creating a toolkit to help people create these businesses Now, what if that toolkit Used the latest natural and social science of sustainability – so it was as good as our best current knowledge allowed Contained an attractive visual design tool, A set of strongly sustainable business design principles Steps for its effective use And example case studies Imagine how such a toolkit would help you bring into the world your strongly sustainable business idea! How could it help you improve the sustainability of your business ?
- This is not a small group of people! And more … All sustainability consultants … All sustainability professionals in the increasing number of companies seeking to improve their sustainability … All Credit Unions … All Co-ops … All the members of all these organizations And this is “just” our potential “friendly” market – the many many other groups are pursing projects and initiatives that are helping to bring about a new operating logic of business to enable flourishing. So this project sets out to make a key contribution to an already large community of leaders in business sustainability… because so far no one has proposed a toolkit which can help all these groups to apply these new ideas, and to enable them to do so efficiently and effectively! But, that’s not all, we want to write this in such a way any business person would want to engage with the toolkit… Imagine how much larger our market gets when you realise, as Bob Willard has been highlighting for years, that more sustainabile businesses are simply *BETTER* businesses – even if your goal remains predominately to make money… Now our market becomes… … All entrpreneurs, innovators, investors … All venture capitalists … All consultants … All business owners … All business educators … All business Incubators (OCADU, MaRSDD, RyersonDMZ, etc.)
- Building a toolkit for strongly sustainable business is a big hairy audacious goal! Inspiring and bit a little scary! But like the man said: we don't do this because it is easy, but because it is hard! (after all if it was easy someone would have done it by now!) Image: http://commons.wikimedia.org/wiki/File:John_F_Kennedy.jpg
- So my question to all of you is What do you want your part in this to be? Imagine yourself in 12 short months time… How will you have helped to make this change? How will you have made a difference? Inspired by http://www.easterbrook.ca/steve/2009/04/daddy-what-did-you-do-in-the-climate-wars/ “ When people ask me these questions in decades to come, I need to be ready with an answer. I’d like to say that I did everything I could possibly do. I’d like to say that what I did was effective. And I’d like to be able to say that I made a difference. “ http://collections.vam.ac.uk/item/O74621/daddy-what-did-you-do-poster-lumley-savile/ http://commons.wikimedia.org/wiki/File:YourCountryNeedsYou.jpg
- When I considered my answer to these questions I realised that in our culture the proto-typical idea of an entrepreneur is that of a hero. A solitary individual, who (perhaps with a few others) by hard work (and a bit of luck) brings a new idea to market. But we all know, if this was ever true, for sustainable businesses it can never be true. For business to be sustainable all stakeholders need to be involved in its conception, design and operations - not just the few with the idea, money, power, or resources.
- Yes I'm an entrepreneur and a social innovator: I think most of us here are; but I am not a hero. I am your convener, your servant. The creator of the space and place in which together I hope we will choose to create the toolkit that will help to change the operating logic of business - forever! I believe that it is together that we are going to conceive, design, test, realise and successfully bring to market a toolkit to create the future of business. http://www.text100-uk.com/wp-content/uploads/2010/11/mobius-strip-gold.jpg
- But let's be realistic and humble about this endevour. This project is an experiment. An exciting one for sure - but a fragile experiment never the less. It is an experiment to see if we can create a sustainable business around a toolkit that helps people world-wide create sustainable businesses! So that means we must be the first to try out these tools; if we're going to sell dog food, we must want to and actually eat our own dog-food! And these workshops are but a first example; having all of you help design the business model for this business; here were are trying, for the first time, to execute our early thinking the method to create a strongly sustainable business. Call this a trial of strongly sustainable business design method v0.1 Like this bubble, another part of sustainability, is to be transparent as possible For example my research and the project wiki is currently in the public domain with a creative commons license (albeit with a commercial restriction which I hope we will lift when the toolkit is released) Right now I am assuming that when we launch the crowd-funding process in early June, the project budget, at the line item level, will be visible to potential backers. So in this project we're going to be learning by doing; we are conducting an experiment for the new way of starting businesses… a more sustainable way! But this means there is going to be ambiguity, we are going to make mistakes, but we are going to learn from them, and learn quickly. Then we are going to ensure we convey our learnings to the users of the toolkit we are creating. And we're also going to allow and enable academics to report on our experiment and experience to help develop a theory of strongly sustainable business and change – to help create future improvements to the toolkit. Image: Used under creative-commons license: Background - http://www.flickr.com/photos/kubina/42275601/ Needle - http://commons.wikimedia.org/wiki/File:Sewing_needle.png Credit Required in the form: "Photography by User: MrX"
- Yes, I am your servant, but I also have needs! :-) What do I want? What do I need? I need a sustainable future for the people I love and for myself – that means a meaningful challenge some influence over its direction, a possibility for a sufficiently secure financial future. I've been a full time student now for almost 3 years - that's not sustainable for me and my wife! Cartoon of Antony Upward by Jeff Penfold circ 1988
- Discussion in three or on-line as a group Report back - concerns and reasons for excitement - what is the possibility for the impact of SSBMs in the next 5 years (how could the world change) - What’s the possibility for you – what could you bring, how could this be good for you. (Whiteboard responses) Image in the public domain: http://commons.wikimedia.org/wiki/File:Two-people-talking-logo.jpg
- Image credit: http://www.123rf.com/photo_8576527_business-people-with-thumbs-up-on-white-background.html / William Perugini / 123RF Stock Photo
- So, irrespective of whether you’re going to create an old-fashioned profit first business, or one which is attempting to be less unsustainable, or one that is attempting to create the conditions for human and other life to flourish… if you have a goal for a business you need to design a strategy to meet that goal… How do you do it? Not only that… but How do you do it well? How do you produce a design for your business of high quality – one that reliably, consistently, effectively meets the chosen business goal? How do we, as business designers, under take business design efficiently ? Image in the public domain: https://upload.wikimedia.org/wikipedia/commons/f/fb/Architect.png
- "In entrepreneurship [unlike, say, in car design] we still rely on real-life crash tests which leads to costly failures” Compare how we design cars with how we design businesses today; today in business its like we do a rough sketch of a car (the business plan), get someone to put up the cash, then we spend the cash to build the car, and then wonder why most of the time the wheels fall off the first time we drive it! (and until recently this approach was considered a best practice!) Osterwalder, A. (2011). The new business models: designing and testing great businesses. Lift 11, Geneva, Switzerland. 1-87. slide 19 [minute 3.00-3.30] (http://liftconference.com/lift11/program/talk/alex-osterwalder-new-business-models and http://www.slideshare.net/Alex.Osterwalder/lift11-presentation I’m sure you’re all familiar with the anecdote concerning the tiny number of fortune 500 companies which stay on that list over long periods of time OECD research we’re actually not very good at creating firms which survive and flourish! 60% of firms in the manufacturing and service sectors in 6 of the larger OECD countries cease to exist within 7 years of founding (p.14, Figure VIII.5) Now some of this is clearly the normal process of ensuring that only the fittest survive … But I think we’d all acknowledge the significant financial, social, personal and environmental costs when firms go out of business . It clearly not a good thing – whether you’re an employee, a member of a community where a business is located or does business, a supplier, a customer, or someone who invested to create the business if it fails. And for anyone advising businesses this situation ought to be A) Humbling B) Rather worrying Why can’t we help business do better more reliably? Organization for Economic Co-operation and Development (OECD). (2001). Productivity and Firm Dynamics: Evidence from Microdata Workshop on Firm-Level Statistics, 26-27 November 2001 - Session 1: Determining the Entry and Exit of Firms. ( No. DSTI/EAS/IND/SWP/AH(2001)21). Paris, France: Organization for Economic Co-operation and Development (OECD). Phelan, K. (2013). I'm sorry I broke your company : when management consultants are the problem, not the solution . San Francisco, CA: Berrett-Koehler Publishers.
- Newarly 10 years ago Alex Osterwalder and Yve’s Pignuer set-out to improve things.... Using the process of design to more efficiently, effectively and reliably create businesses that would be profitable. The business model canvas is a paper based visual design tool to more reliably design profit-first businesses. (There is a 2 x 1.5m version available via a creative commons licenses for free commercial use at www.businessmodelgeneration.com) Consists of… 1. The business model canvas is conceptually ‘powered by’ the business model ontology, developed by Alexander Osterwalder in his 2004 PhD. 2. In 2008-9 Alex and his PhD supervisor ran a crowd-funded book development project with 450 collaborators/funders. (http://www.slideshare.net/Alex.Osterwalder/bmgen-the-story-of-a-bestselling-management-book, http://jeffreykrames.com/2010/02/20/a-new-business-model-and-a-new-bestseller/) Published in mid-2009, as of March 2013, this popular book has now sold over 600,000 copies in 26 languages and has been in the top 10 amazon business books since launch. 3. In 2011 an iPad / web app that enhances the canvas was launched. This app enables a three step design process to be used – Green light / brain storm / get out of the box – quickly sketch lots of options Prototype business models in more detail – using the best elements of many sketches Simulate business models using the iPad or Web Apps In short, the profit first business model canvas makes clear what questions you have to answer well to increase the quality of your business design. And in turn this increases the efficiency of the designer! http://www.businessmodelgeneration.com/ Osterwalder, A., & Smith, A. (2012). Strategyzer: Your Business Model Toolbox on Strategyzer . Switzerland: Business Model Foundry GmbH. Smith, A., Osterwalder, A., Business Model Foundry GmbH, & Hortis - Le Studio. (2011). Business Model ToolBox . Apple AppStore / Switzerland: Business Model Foundry GmbH. Osterwalder, A. (2010, 2011). Business Model Canvas . Switzerland: Business Model Foundry GmbH. Osterwalder, A. (2004). The Business Model Ontology: A Proposition in a Design Science Approach. (Ph.D., l’Ecole des Hautes Etudes Commerciales de l’Université de Lausanne). , 1-172.
- But the profit first business model canvas only focused on only focused on helping to improve the design monetary profitable businesses… ignoring almost all the other things that natural and social scieence tells us are important to creating strongly sustainable businesses – businesses that enable flourishing of human and other life. Not surprising… given the historic design brief for business (generate the wealth so government can implement the social programs that enable flourishing) But I thought… we must be able to do better…
- Could we create businesses with a broader definition of success – one aligned (to some degree) with flourishing of human and other life? 1. Such businesses would require success to be defined in terms of not only the wealth we could generate, but simultaneously how how well it helped people and the planet flourish. Former oil company executive and now archbishop of the Church of England was quoted in a Globe and Mail article entitled “Bonuses incur wrath of Church of England” (page B9, 2013/4/13) “ Businesses are vehicles for wealth creation, without which there can be no wealth distribution. However, businesses cannot contribute to their full potential to a good society [, a healthy environment] and human flourishing if they have no regard for the society and environment in which they operate, and if individuals in business have regard only for themselves”. http://www.istockphoto.com/stock-photo-12372891-success-team.php?st=e968fda
- This was the question that, over 3 years ago, started me on my journey to becoming a sustainability business architect… and took me back to university… To my great surprise I found out that apparently these were questions that hadn’t been answered up to now… So let me tell you briefly what I did in my research and how I did it… there were four steps 1. 2. 3. 4. – next slide
- And then of course I had to write all this up in my thesis – handed in in mid-April – now awaiting oral defense
- Viewing business as a key enabler for the flourishing of human and other life requires us to reconsider what a business model is. 1. The folks who place the goal of wealth maximization first, and suggest this is the sole role of business (a world-view I call “profit-first”) have suggested that a business model… 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 . Amsterdam: Alexander Osterwalder & Yves Pigneur. 2. But this definition becomes quite problematic if ones goal is based on a world view which includes any level of recognition of the ultimate contexts for business and a goal of flourishing of human and other life. (I call this alternative world-view, in its most extreme form “strongly sustainable”.). At best one might say this description of a business model includes the necessary, but not all the aspects to be sufficient. 3. For example recent work on fundamental human needs and their satisfiers suggests that the definition of “value” is far more universal than just money… 4. Value is: Created when needs are met via satisfiers that align with the recipient’s world-view. Destroyed when previously met needs go unmet due to: the withdrawal of satisfiers, the application of inappropriate (pseudo) satisfiers, or the application of satisfiers that do not align with the recipient’s world-view. This based largely on the works of Manfred Max-Neef, whose ideas of Fundamental Human Needs (unchanging at all times and places) and large number of satisfiers of those needs (which are highly context dependent) Max-Neef, M., Elizalde, A., & Hopenhayn, M. (1991). Human Scale Development: Conception, Application and Further Reflections [Desarollo a Escala Humana: una opción para el futuro]. Uppsala, Sweden; New York City, New York, U.S.A.: Dag Hammarskyöld Foundation; The Apex Press, an imprint of the Council on International and Public Affairs. 5. In turn, this understanding of value within the fundamental contexts of all human organizations, suggests that a business model is something more… 6. Which we can simplify as…
- All this work lead to the identification of the the 14 questions that any business answer well if they are to enable flourishing of human and other life… Note that I found the literature strongly supported the idea that Osterwalder’s 9 questions are still necessary. So they remain – albeit adjusted in light of the true context of business – the environment and the society and economy it contains. So just as you can describe * ANY* profit-first business you can imagine with the profit-first business model canvas, you can describe that same business using my strongly sustainable business model canvas… but hopefully it will cause you to think about some other things too However, as noted early, the business model canvas’s 9 questions, even adjusted in light of the context are not sufficient. The literature suggested that just 5 more questions must be answered to have the possibility of describing a strongly sustainable business model – for a total of 14. 1..14 Note that None of this context is considered by Osterwalder’s Business Model Canvas The border of the firms involved a business model in relation to the enviroment, society and the economy isn’t even conceptualized
- And here’s an example… the Timberland Company business model, as of Summer 2011, based on a summary of publically available information. This is a photo of a 2m x 1.5m will sized strongly sustainable business model canvas (which is displayed on the wall of the meeting room). You can zoom into the image to read the details! http://www.slideshare.net/AntonyUpward/strongly-sustainable-business-model-ontology-example-timberland-summary-v40
- So what did my confidential expert respondents have to say about the research overall, the strongly sustainable business model canvas, and the underlying technical ontology which, like Osterwalder, powers the practitioner visual design tool – the canvas? 1… Image credit: http://www.123rf.com/photo_8576527_business-people-with-thumbs-up-on-white-background.html / William Perugini / 123RF Stock Photo
- But I also got lots of ideas for improvements from the feedback that both my formal and informal respondents made – things like: A method for the effective and efficient use of the canvas Design principles to follow to help create good answers to the 14 questions the canvas poses A Better way of summarizing / introduce the canvas More case studies of its use Image credit: http://www.123rf.com/photo_8576527_business-people-with-thumbs-up-on-white-background.html / William Perugini / 123RF Stock Photo
- Given you’re all here your wondering what’s next... Which we talked earlier about big picture terms – we plan to change the world by bringing the new strongly sustainable business model canvas to the world. But what does that look like in detail. This is what we are here to do together! What follows are ONLY ideas, some initial assumptions, food for thought and for you to build on and / or challenge, as we get into the main exercise this afternoon and much more in the 2 nd workshop… to design the business model to bring the new canvas to the world Image purchased from http://www.imagedirekt.com/en/royaltyfree-images-photos/1633288.html
- Since we’re designers we need to think about what principles we need to apply as we create this business. (again these are version 0.1 for part of the content of the book – the business design principles) Be the Change – Enjoy = Having Fun Bob Willard Maturity Model Level 5 – purpose / passion driven, p.21, Willard, B. (2012). In Willard B. (Ed.), The new sustainability advantage: seven business case benefits of a triple bottom line (Completely rev. 10th anniversary ed.). Gabriola Island, British Columbia, Canada: New Society Publishers Relevant to existing and start-up businesses -> irrespective of where they are on their journey thinking and acting to improve their sustainability. This is for regular business people *AND* the people who are on the leading edge. Another reason for focusing on SMB’s is that there is a lot of them and they have a much bigger impact on things like job creation than large businesses. Adhere to LOIS NOT TINA (http://en.wikipedia.org/wiki/Local_ownership_import_substituting and this blog post: http://blog.antonyupward.name/2012/12/tina-vs-lois.html Local but open platform Adaptive to local conditions and realities Enable Research to Enable Continuous Improvement Our knowledge of sustainability and organizations, while better than its ever been, is far from complete. If we don’t humbly recognize that gap and help improve the available knowledge we are sowing the seeds for our failure – since we won’t have solid a basis for improvement Lots of research methods and instrumentations are possible (Participative) Action Research Design Science Descriptive Science Build a Community Reasonable financial rewards across all the players in the eco-system Ensure we use to the maximum possible B Corps and locally oriented business for *everything* Lidwell, W., Holden, K., Butler, J., & Elam, K.,. (2010). Universal principles of design : 125 ways to enhance usability, influence perception, increase appeal, make better design decisions, and teach through design . Beverly, Mass.: Rockport Publishers.
- For more details of the Gold Standard Work see: http://ecoopportunity.net/2013/02/the-sustainability-gold-standard-the-pathway-to-capitalism-2-0-event-summary-feb-7-2013/ http://www.naturalstep.ca/gold-standard Image: http://bookmarks.mikis.it/wp-content/uploads/2010/11/escher-two-drawing-hands.jpg http://20wattsmag.com/wp-content/uploads/2012/12/appstore.png http://www.bispublishers.nl/uploaded/book/190_bookpage_open-design-now.jpg
- As a working title we’re calling the “book” “Strongly Sustainable Business Model Innovation” This slide gives an outline of the table of contents with section 2 describing the strongly sustainable business model canvas, section 3 describing how to answer the 14 questions the canvas asks well, so you will score highly, for example, on the B Lab Benefit Impact Assessment Survey, align with the BALLE localist principles or the Framework For Strategic Sustainable Development Sustainability Principles (3 environmental and *NEW* 5 social), plus Transition Towns, Institute for Local Self-Reliance, etc. and the emerging “Gold Standard” section 4 describes how to use the canvas to create a strongly sustainable business model section 5 provides more case studies… Image: http://bookmarks.mikis.it/wp-content/uploads/2010/11/escher-two-drawing-hands.jpg
- May: Workshops, produce business model, budget, detailed crowd-funding plan Use wiki.SSBMG.com as transparent note book / collaboration space July-Sept: Launch crowd-funding, establish legal entity Sept: Funding gate - do we have the money raised? If funding looks likely, instantiate collaboration platform Funding remains open until end of Wave 3 Oct: Wave 1 - learn with collaborators Goal: refine / revise / create / test key content elements Canvas Design Principles Method Case Studies Test ways of explaining each of the above Jan: Wave 2 - write / revise / overall design April: Wave 3 - finalize / layout design June: Wave 4 - trial print run, F2F soft launch / workshop Aug: Wave 5 - print / distribute / market / conferences / talks Canvas released under Creative Commons BY-SA Open greenhouse to public / book customers Encourage sharing of experience / examples / remixes Wave Next (2014/2015 and beyond) Find agent and publisher - distribute, market, translate Develop Complementary Toolkit Elements -https://sites.google.com/site/ssbmgreenhouse/complementary-toolkit-elements Some could also be crowd-funded Grow co-op membership - add associates / franchisees Use toolkits to deliver branded services First academic papers about the project and the canvas published
- All the stakeholders have been placed in a hat … and we’ll use this list to help drive the business model design activity after the break…
- Firstly there is the little matter of the oral defense exam of my thesis…which will happen over the summer… in the mean time I’m working with other members of the strongly sustainable business model group to: Develop Business Model / Project Plan / Budget Using Canvas Identify Core Writing Team (3-5) Source / Design / Configure collaborative platform – funding & for subsequent project Develop Learning Map (existing materials) Start “Soft Launch” activities CMC Canada – late April The Natural Step world-wide Accelerate Conference (June) Blekinge Institute of Technology Masters of Strategic Leadership in Sustainability (Masters, PhD, Faculty) – last week – including founder of The Natural Step Forum for the Future – last week UK Chartered Quality Institute Deming SIG Model of the Sustainable Organization (March) BALLE Conference (June) Continued work on content creation – with people in the room today – Peter, Stephen, Bob, Pong – beyond what was included in the thesis Applied for SSHRC Funding Methodology development Strongly Sustainable Business Design principles and the associated Gold Standard for Sustaianble Business Started 3 Individual trials / case studies More in the pipeline Image credit: http://www.123rf.com/photo_13233038_sequence-of-pumpkin-plant-growing-isolated-evolution-concept.html / brozova / 123RF Stock Photo Image credit: http://www.123rf.com/photo_13109586_selection-of-graduation-caps-on-a-white-background.html / chris_elwell / 123RF Stock Photo</a>
- Ok finally before we take the break let’s return to what we’re concretely doing at these workshops… Deliverable View – concretely what is it we’re going to do!
- As you take each stakeholders perspective… Ask… if I was this stakeholder What value would I need / want What does the book need to look like, contain? How must it be packaged How must it be delivered What value might be destroyed for me by this project How do we reach this stakeholder (channels) How do we collaborate with this stakeholder How does this stakeholder find us? / how do we find each other (marketing channels) What processes do we need to deliver this value via these channels to this stakeholder? How will we and this stakeholder define and measure success? This ought to cover off the following SSBM process and organizational design SSBM book / publication design SSBM event and rollout design SSBM canvas and model design
- Example So a key part of any business model is the value proposition for the collaborators / backers (funders). Since you’re all potential funders / collaborators / backers I’ve chosen just to focus on those elements of the value proposition relevant to funders / collaborators. (other value propositions concern the core writing team, people who buy the book once its published, etc.) You’re going to get a chance to work on all the other value propositions…
- So to close if I could ask you to complete and return the paper survey I’ve just handed out… Image credit: http://www.123rf.com/photo_10247211_caucasian-and-afro-american-businessmen-shaking-hands.html, wavebreakmediamicro / 123RF Stock Photo
- http://blog.SSBMG.com currently points to my company blog: http://blog.EdwardJames.biz