New business models—The Framework for Sustainability Conversations, part 6/7
Sustainability approaches and strategies #6
New business models—The Framework for Sustainability Conversations, part 6/7
1—The Framework for Sustainability Conversations
The Framework for Sustainability Conversations considers different programming intervention levels and models, the upstream enabling environment, and the importance of meaningful interaction with communities to ensure better access to sustainability solutions. [+Please read part 1 here].
There are six dynamics in moving toward a sustainable enterprise. We will explore each one of them during the following weeks:
New business models, part 6/7—this publication.
2—New business models
We have some significant challenges to overcome. The new economic phase will be all about sustainable innovations and reducing biosphere harm, but very few organizations demonstrated their ability to exploit disruption versus stagnation.
Most product and service innovations now need sustainable business models to provide better quality or additional functionalities for an organization to survive and overcome the crisis. The demand of the customers is also increasing significantly. Some innovations are based on incremental improvements; others are related to breakthrough or leapfrog solutions.
But the problem is that these innovations are often ignored, disparaged, or even discouraged by existing players for whom the business model is unprofitable or otherwise unattractive and who therefore avoid or retreat from the market segment.
What is needed from the markets are sustainability innovations to:
generate new resources, supported by intellectual capital, or donations, grants, volunteer workforce in initially unattractive ways;
create systemic impact change through scaling and replication;
offer products and services that are simpler and less costly than existing alternatives, which may be perceived as having a lower level of performance. Still, users consider them to be good enough.
By conceiving new business models embed catalytic innovations, distinguished by their primary focus on social change, often deployed on a large scale, could easily be niched in market segments with underlying technical tailwinds that will last forever.
These industries are positive-sum and will always ensure customers are demanding faster, better, and cheaper solutions that allow for perpetual ability to innovate.
The current crisis highlight the need to challenge the status quo that has inadequately addressed social problems so far.
Small players can set their extended gameplay by offering simpler, good-enough alternatives to underserved groups of customers.
Remember that personal computers were a disruptive product innovation because, despite being less potent than legacy systems, they quickly discovered a huge unserved market for their affordable, if limited, capabilities.
3—Practice with the Framework for Sustainability Conversations in PDF
We believe sustainability should be at the core of every business. The Framework for Sustainability Conversation has been conceived to empower creators and leading modern teams to build purpose-driven projects and create value for the world’s most exciting companies.
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I'm sharing here the link to the LinkedIn publication and the comments--I hope it makes sense: https://www.linkedin.com/pulse/play-long-term-game-framework-sustainability-new-67-yael-rozencwajg