cbmc 2.0 knowledge marketing
TRANSCRIPT
Business Model Analysis based on the Circular Business Model Canvas • Business model archetype • Business case mapping • Analysis of CBMC segments • KPI mapping • Business model story telling
What state is your
business model?
SMART and
forever young
bullishly pre-‐historic
nurtured and
about to birth
fresh and
blooming
“Businesses, which adopt sustainable business models, may be more resilient and compe77ve in the longer term… …by recognising the interdependencies between their business, and the society and environment in which they operate.” *
8 Sustainable business model types: 1. Maximise material and energy efficiency; 2. Closing material loops; 3. SubsEtute with renewables and natural processes; 4. Deliver funcEonality rather than ownership; 5. Adopt a stewardship role; 6. Encourage sufficiency; 7. Re-‐purpose the business for society/environment; 8. Seek inclusive value creaEon.
* NANCY M.P. BOCKEN Centre for Industrial Sustainability, University of Cambridge. Figure 1. Plan-‐C Business Model InnovaEon Grid (2014) h]p://www.plan-‐c.eu/bmix/
MulBple, triple boDom line value creaBon
requires managing added complexiBes.
Exploring and visualising the dynamics of social, economic, and ecological value
with a systemaEc approach enables scalable results.
A shared overview and focus for benefits
builds moBvaBon and support.
• Visualise underlying interdependencies and dynamics, • Highlight the value points, • Define drivers, enablers and challenges, • Enable the translaEon into relevant business models, • Create an engaged porbolio of acEon perspecEves.
Benefits speak for themselves
• Capitalising on resource efficiencies and reducEon of waste, • Products / services designed for ‘usership’ instead of ownership, • Long-‐term customer loyalty and more engaged partner relaEons, • Deliver value for society and environment whilst generaEng new revenue streams, • Leverage on resources and talents to create new business opportuniEes.
Partners
Key AcEviEes
Customers
Key Recourses Financial / Material
€
€ E
E
S S
RelaEons
Channels
VALUE PROPOSITION
Context: SOCIAL
Context: ECONOMIC
Context: ECOLOGICAL
€
€
Circular Business Model Canvas
Example analysis: Dr. Bronner’s CBMC Dynamics VisualisaBon + Story Telling Dr. Bronner's are an American, third generaEon family-‐owned business of German origin. The company produces 100% organic, cerEfied Fair Trade soap. Thriving on its loyal customer base and its stable supply chains, revenues have increased 43% In 2014. Dr. Bronner’s is based on a clear, explicitly social mission that is mission is lived consistently throughout the enEre operaEon. The company runs on a 1 – 5 benefit between lowest and highest salary and is currently being cerEfied as Benefits CorporaEon in the U.S.
“Dr. Bronner’s is a family business honouring the vision of our founder
Dr. E.H. Bronner by making socially and environmentally responsible products of
highest quality, and by dedica7ng our profits to helping make a beDer world.”
“All-‐One”
€
€ E
S
“All – One”
Dr. Bronner’s Business Model Type
Business Model Archetype*:
Stewardship DefiniBon: ProacEvely engage with all stakeholders to ensure their long-‐term health and well-‐being. PosiBve Impact: • Ensuring long-‐term well-‐being of planet (e.g. forests) and society (e.g. health)
• Ensuring long-‐term viability of the value network
PotenBal NegaBve Impact: • PotenEal price premium for consumers • Remaining niche
Resource stewardship
Biodiversity protecEon
Ethical trade (fair trade)
Context: Social
Context: Economic
Context: Ecological
Radical transparency about eco or societal impacts
Consumer care -‐ promote consumer health and well-‐being
*N.M.P. Bocken, S.W. Short, P. Rana, S. Evans (2013) A literature and prac;ce review to develop sustainable business model Archetypes, Journal of Cleaner ProducEon 65 (2014) 42-‐56
Partners
Key AcEviEes
Customers
€
€ E
E
S S
RelaEons
Channels
Dr. Bronner’s Value ProposiEon | Channels & RelaEons | Context (S|€|E)
The social channels & relaBons are excepBonal by their ‘fair’ nature and thus emoEonally charged. They are the basis for: -‐ Workers’, partners’ and community well-‐being, -‐ Consumer loyalty and advocacy,
The economic channels & relaBons are typical for a body care company. They are the basis for: -‐ Company performance, -‐ Suppliers’ / partners’ performance, They enable: -‐ CSR -‐ Philanthropy,
The ecological channels & relaBons are the basis for: -‐ high cerEfied product quality, -‐ good consumer health, -‐ suppliers’ and community well-‐being, -‐ nature preservaEon, sustainable farming
Context: Social Value
Context: Economic Value Context:
Ecological Value
“All–One”
The “All-‐One” VP/mission connects all aspects of the business within a context that feeds Dr. Bronner’s longstanding business model. The philosophical VP is compellingly and consistently ‘lived’ through the business’ channels & relaEons that are ’driving ‘ sales.
Key Recourses
Partners
Key AcEviEes
Customers
Key Recourses
€
€ E
E
S S
RelaEons
Channels
Dr. Bronner’s Key AcEviEes | Key Resources
The financial resource ouZlow / investments and revenue from premium margins enables suppliers’ development
The financial resource inflow / revenue stream enables operaEons, CSR, philanthropy,
The key acBviBes ‘producEon of body care products’ are the basis for the consistent, increasing revenue stream and high margins.
The key acBviBes support consumer health and well-‐being. They further provide the basis for suppliers’ well-‐being and community development.
Channels: Owned online channel, retail partners
The key acBviBes (producEon) benefit from suppliers’ well-‐being like educaEon, health, etc.
The financial resource ouZlow / payments / investments / premium enables Fair Trade (and expansion)
The Fair Trade material resource inflow enables producEon / key acEviEes
The material resource knowledge inflow enables producEon / key acEviEes
Channels: Fair Trade, CSR,
Philanthropy
Channels: Fair Trade, suppliers’
logisEc
“All–One”
Social Value
Economic Value
Ecological Value
€
€
€
The material resource ouZlow / waste from consumpEon of (recycled) plasEc packaging / bo]les
Dr. Bronner’s KPI Mapping (as per B-‐lab)
Mission & Engagement
Governance
Transparency
Governance Metrics
GOVERNANCE
IMPACT BUSINESS MODELS
Prod. specific
Social Enterprise
Community Product & Service Introduct.
Serving those in need
Producer Coop.
Local
Workers Metrics
Compensate & Benefits
Management & Worker Communica-‐Eon
WORKERS
Workers Ownership
ENVIRONMENT
Job creaEon
Diversity
Suppliers, Distributors & Product
COMMUNITY
Local involvement
Civic Engagement & Giving:
Outputs Land, Office, Plant Inputs
Partners
Key AcEviEes
Customers
Key Recourses
€
€ E
E
S S
RelaEons
Channels
“All–One”
Social Value
Economic Value
Ecological Value
RESOURCES
Dr. Bronner’s Story telling – Context
We, the socially conscious (customer) communi7es value Dr. Bronner’s ac;vi;es on social well-‐being shown in their philanthropic work. We also support their advocacy on food safety and their ac;vism on GMO labelling. We appreciate that Dr. Bronner’s ‘prac;ce what they preach’ and how this is founded in their tradi;on and personal family experience.
We, the health conscious (customer) communi7es value Dr. Bronner’s high, cer;fied product quality. Besides being willing to pay a premium for their soaps and lo;ons, we are ambassadors for the brand to family and friends.
We, the suppliers’ communi7es value Dr. Bronner’s high standards on Fair Trade and how the stable incomes from these premiums help our families to thrive through jobs, educa;on and the preserva;on of lands and natural habitat.
We, the (suppliers’ and customers’) communi7es value Dr. Bronner’s ac;ve engagement in crop diversity preserva;on. Their philanthropic work helps us to educate our children. As educated workers, they will show their apprecia;on and loyalty to Dr. Bronner’s.
Context: Social
Context: Economic
Context: ecological
Dr. Bronner’s Story telling – Business OperaEons
We, Dr. Bronner’s enjoy the commercial success we create from how we produce our product, source our ingredients and deliver this all this to our loyal customers.
We, the suppliers & partners value Dr. Bronner’s fair business mind-‐set. It provides a stable income for us and our families. Seeing also how our environment benefits from this, makes us loyal to the Dr. Bronner’s.
€
€ E
S
“All – One”
We, Dr. Bronner’s gladly pay Fair Trade premiums to our suppliers. The stable condi;ons it creates are a key success factor for our business. ‘Healthy’ partners means healthy business for the company and good service to our customers.
We, the customers enjoy Dr. Bronner’s natural products for our health and well-‐being. We gladly pay a premium to receive such ethically produced, high quality. We appreciate how Dr. Bronner’s informs about the background of their products.
Conclusions The success of Dr. Bronner's stems from its longstanding tradiEon and philosophy of a consistently holisEc approach to business. As a family-‐owned business, the company has all the freedom to follow its own vision and mission and to invest in extending this beyond customers, workers and partners to the communiEes around. Based on a relaEvely simple business model, the company operates in a niche market that is open to compeEEon from new or exisEng 'players'. Threats might arise from similarly branded / posiEoned products that are offered at a lower cost and that might compete on posiEoning in (retail) channels. Dr. Bronner's is partly protected by its unique philosophic / holisEc approach and its longstanding Fare Trade relaEons.
Amsterdam 2014 Stephan Jackmuth Urban-‐Goods | www.urban-‐goods.net