tanja bisgaard at innovation forum in reykjavik, may 2012
TRANSCRIPT
![Page 1: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/1.jpg)
Green Business Model Innovation
Nordic Innovation Forum 24 May 2012
Tanja Bisgaard
![Page 2: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/2.jpg)
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
![Page 3: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/3.jpg)
The project
August 2011 – August 2012
4
![Page 4: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/4.jpg)
What is Green Business Model Innovation
![Page 5: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/5.jpg)
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
![Page 6: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/6.jpg)
Life-cycle models
• Green Supply Chain Management • Take-back Management • Cradle to Cradle • Industrial Symbiosis
7
![Page 7: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/7.jpg)
Functional sales
• Selling the function of a product as a service
• ESCO/MASCO/WASCO • CMS • DBFO
8
![Page 8: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/8.jpg)
Business models
When it is “business as usual”
Resource extraction
Design & Production
Sales & Distribution Use Disposal
9
![Page 9: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/9.jpg)
Life-cycle models
When it is Green Business Model Innovation
Resources
Design & Production
Sales & Distribution Use
Disposal
Green Supply Chain Management
Take-back Management Cradle to
Cradle
10
Industrial Symbiosis
![Page 10: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/10.jpg)
Functional sales
When it is Green Business Model Innovation
ESCO, CMS
DBFO
11
Resources
Design & Production
Sales & Distribution Use
Disposal
![Page 11: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/11.jpg)
Why are companies embracing Green Business Model Innovation
![Page 12: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/12.jpg)
Increase in resource prices
13
![Page 13: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/13.jpg)
Stricter regulation
• E.g. EU eco design
14
![Page 14: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/14.jpg)
Demanding customers
15
- but price is important
![Page 15: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/15.jpg)
Sensible investors
16 Source: Harvard Business School, September 2011
![Page 16: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/16.jpg)
Implications
• Challenges = innovation opportunities • Competitive advantage for Nordic companies?
– High quality – High standard of living – Embedded in our culture/ mindset
17
![Page 17: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/17.jpg)
Companies working with Green Business Model Innovation
![Page 18: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/18.jpg)
Case examples
• 40 case interviews from our work • Companies in the Nordic countries as well as
international
19
![Page 19: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/19.jpg)
Case Functional sales: Volvo Aero
20
![Page 20: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/20.jpg)
Case GSCM: IKEA IWAY
21
![Page 21: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/21.jpg)
Case C2C: Gabriel
22
![Page 22: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/22.jpg)
Case Take-back: Desso
23
![Page 23: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/23.jpg)
Characteristics/ results of working with
Green Business Model Innovation from the case interviews
![Page 24: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/24.jpg)
Characteristics: # employees
25 Source: Project interviews
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1 to 10 11 to 50 51-250 251-1000 1000+ NA
![Page 25: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/25.jpg)
Skills/ competencies
26 Source: Project interviews
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
![Page 26: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/26.jpg)
Financial results after the introduction of GBMI
27 Source: Project interviews
0%
10%
20%
30%
40%
50%
60%
70%
80%
The company estimates positive financial results
Not able to measure/have not measured yet
The company estimates negative financial results
The company has reached break-even
![Page 27: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/27.jpg)
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
![Page 28: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/28.jpg)
Policies to promote Green Business Model Innovation
![Page 29: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/29.jpg)
Policies at a general level
• The Danish Business Innovation Fund
30
![Page 30: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/30.jpg)
Policies at business model level
Business Model Existing policy Policy ideas
Green supply chain management
None found Support for R&D of new materials
Take-back management
None found Establish new infrastructure for recycling
Cradle to Cradle C2C network, EU National waste management plan, NL Waste and resource action program (WRAP), UK
Transparent EU certification of products
Industrial Symbiosis Kalundborg Industrial symbiosis program, DK National industrial symbiosis program (NISP), UK
31
Lifecycle models
![Page 31: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/31.jpg)
Policies at business model level
Business Model Existing policy Policy ideas
ESCO/ MASCO/WASCO
Federal Energy Management Program, US Green Deal, UK ESCO Light, DK
Broaden scope to cover e.g. reduction of waste
CMS REACH, EU
DBFO Private Finance Initiative, UK
32
Functional sales models
![Page 32: Tanja Bisgaard at Innovation Forum in Reykjavik, May 2012](https://reader033.vdocuments.mx/reader033/viewer/2022052905/55850751d8b42ad71b8b535d/html5/thumbnails/32.jpg)
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