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Business Model Innovations for Sustainability

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Managing Sustainable Business

Abstract

Business models—the underlying structures of how companies create, deliver and capture value—form the engine of our economy. They determine the speed at which economies grow, and the intensity at which our resources are consumed. They determine the number and type of jobs in our cities, the provenance of the products we buy, and the price of the food we eat. They contribute to the quality of our communities and our lives.

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Notes

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    Ibid.

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    “Sustainability through Disruptive Innovation: Sustainability Report 2013.” Novelis. 2013. Web. 5 December 2013. http://www.novelis.com/en-us/Pages/sustainability.aspx

  14. 14.

    While this example is more process-oriented than others, we wanted to highlight a large company using this model. The other companies named are in fact using this production method as their business model.

  15. 15.

    Marquis C. and Park, A. “Inside the Buy-One Give-One Model.” Stanford Social Innovation Review. Winter 2014. Web. 6 December 2013. http://www.ssireview.org/articles/entry/inside_the_buy_one_give_one_model

  16. 16.

    Ibid.

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    Whittle, K. “The potential of the cooperative business model.” REconomy Project, 6 April 2013. Web. 15 November. 2013. http://www.reconomy.org/the-potential-of-the-co-operative-business-model

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    Worth, T. “Can co-ops redefine sustainable business?”. Guardian Sustainable Business. 21 November. 2013. Web. 4 December. 2013. http://www.theguardian.com/sustainable-business/cooperatives-sustainable-business-structures

  19. 19.

    Reiss, R. “Ocean Spray’s Secrets of Co-op Success” Forbes. 15 September 2010. Web. December 5, 2013. http://www.forbes.com/2010/09/15/papadellis-ocean-spray-leadership-managing-interview.html

  20. 20.

    A Participatory Guide to Business Models that Link Smallholders to Markets. International Center for Tropical Agriculture. 2010. Web. 5 December. 2013. http://dapa.ciat.cgiar.org/wp-content/uploads/big-files/2012/LINK_Methodology.pdf

  21. 21.

    “Sustainable Agriculture”. Walmart. Web. 5 December. 2013. http://corporate.walmart.com/global-responsibility/environment-sustainability/sustainable-agriculture

  22. 22.

    Community Sourced Capital. Web. 5 December. 2013. http://www.communitysourcedcapital.com/#section-home

  23. 23.

    Salter, Chuck. “Most Innovative Companies 2012: 36_Narayana Hrudayalaya Hospitals, For Bringing Medical Care to the Masses.” Fast Company. 7 February 2013. Web. 15 October 2013. http://www.fastcompany.com/3017477/most-innovative-companies-2012/36narayana-hrudayalaya-hospitals

  24. 24.

    Oxford Dictionaries. Web. 15 November. 2013. http://www.oxforddictionaries.com/definition/english/freemium

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    Fitchard, Kevin. “Got an old Spring phone? FreedomPop will activate it under its freemium plans.” Gigaom. 19 November 2013. Web. 5 December 2013. http://gigaom.com/2013/11/19/got-an-old-sprint-phone-freedompop-will-activate-it-under-its-freemium-plans/

  26. 26.

    Simpa Networks. Web. 5 December. 2013. http://www.simpanetworks.com

  27. 27.

    Simpa Networks. Web. December. 2013. http://simpanetworks.com/energy-as-opportunity/

  28. 28.

    Chesborough, H. “Business Model Innovations: Opportunities and Barriers.” Elsevier. 2009. Web. November 5, 2013. http://www.businessmodelcommunity.com/fs/Root/8oex8-Chesbrough.pdf

  29. 29.

    “Treasure at the Bottom of the Pyramid.” Business Today. 11 December 2011. Web. 5 December 2013. http://businesstoday.intoday.in/story/innovation-cemex/1/20184.html

  30. 30.

    WaterCredit Overview. Web. 9 December 2013. http://water.org/solutions/watercredit/

  31. 31.

    “Microfranchise Wiki: Fan Milk Limited”. Brigham Young University. Web. 5 December. 2013. http://marriottschool.byu.edu/selfreliance/wiki/controller.cfm?page=11

  32. 32.

    Mathew, S. and Dzawu, M. Danone Joins Dubai Based Abraaj in Ghana Fan Milk Buyout. Bloomberg. 24 October 2013. Web. December 5. 2013. “http://www.bloomberg.com/news/2013-10-24/danone-joins-dubai-based-abraaj-in-ghana-fan-milk-buyout-1-.html

  33. 33.

    “SC Johnson & Community Cleaning Services: Delivering Sustainabilty Opportunities, Incomes and Improved Hygiene in Kenya.” WBCSD. Web. 5 December 2013. http://www.wbcsd.org/Pages/EDocument/EDocumentDetails.aspx?ID=14164&NoSearchContextKey=true

  34. 34.

    Adner, R. “Don’t Draw the Wrong Lessons from Better Place’s Bust”. Harvard Business Review. 7 June. 2013. Web. 10 July. 2013. http://blogs.hbr.org/2013/06/dont-draw-the-wrong-lessons-fr/

  35. 35.

    Kuttayan, A., Rao, S. What Works: ITC’s e-Choupal and Profitable Rural Transformation. World Resources Institute, University of Michigan, University of North Carolina. August 2003. Web. http://www.wri.org/sites/default/files/pdf/dd_e-Choupal.pdf

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    Singh, T. “Starbucks to Recycle Coffee Grounds and Baked Goods into Laundry Detergent and Other Products”. inhabit. 20 August. 2012. Web. 10 September. 2013. http://inhabitat.com/starbucks-to-recycle-coffee-grounds-and-food-waste-into-bio-plastics-in-hong-kong

  37. 37.

    “Panera shelves pay-what-you-can idea”. NBC News. 10 July. 2013. Web. 4 December. 2013. http://www.nbcnews.com/business/panera-shelves-pay-what-you-can-idea-6C10588100

  38. 38.

    “High Impact Social Programs”. Inter-American Development Bank. Web. 4 December. 2013. http://www.cemex.com/SustainableDevelopment/HighImpactSocialPrograms.aspx

  39. 39.

    LythGoe, L. “Trouble Brewing: Africa and Alcohol Problems”. Think Africa Press. 14 January. 2013. Web. 5 December. 2013. http://thinkafricapress.com/society/trouble-brewing-africa-and-its-alcohol-problems

  40. 40.

    Fabricant, R. “Meet Your New R&D Team: Social Entrepreneurs”. Harvard Business Review. 8 March. 2013. Web. 4 December. 2013. http://blogs.hbr.org/2013/03/meet-your-new-rd-team-social-e

  41. 41.

    “Worth from Waste”. Procter & Gamble.2 April. 2013. Web. 10 September. 2013. http://blogs.hbr.org/2013/03/meet-your-new-rd-team-social-e

  42. 42.

    BMW i Ventures. BMW Group. 20 January. 2012. Web. 5 December. 2013. http://corporateventuringconference.com/wp-content/uploads/2013/02/BMW_i_Ventures.pdf

  43. 43.

    Clark, S. “The Auto Industry Embraces Its Own Disruption”. Harvard Business Review. 23 November. 2011. Web. 10 September. 2013. http://blogs.hbr.org/2011/11/embrace-disruption-to-build-yo

  44. 44.

    “A New Model and Shift to Sustainable Business and Innovation”. Nike. Web.10 September. 2013. http://www.nikebiz.com/crreport/content/strategy/2-1-4-a-new-model-and-shift-to-sustainable-business-and-innovation.php

  45. 45.

    Philipkoski, K. “A Levi’s Secret Lab Is Unveiled With a Sustainable Men’s Line”. Racked. 7 November. 2013. Web. 5 December. 2013. http://sf.racked.com/archives/2013/11/07/levis-opened-a-secret-lab-this-spring.php

  46. 46.

    Balch, O. “How Philips is transforming its business model for sustainability”. Guardian Sustainable Business. 25 September. 2013. Web. 5 December. 2013. http://www.theguardian.com/sustainable-business/how-philips-transforming-business-model

Author information

Authors and Affiliations

  1. SustainAbility, Washington, DC, USA

    Lindsay Clinton

  2. Strategic Initiatives, PEMSEA, Quezon City, Philippines

    Ryan Whisnant

Authors
  1. Lindsay Clinton
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  2. Ryan Whisnant
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Corresponding author

Correspondence to Lindsay Clinton .

Editor information

Editors and Affiliations

  1. ABIS, The Academy of Business in Society, Brussels, Belgium

    Gilbert G. Lenssen

  2. INSEAD, Fontainebleau, France

    N. Craig Smith

  3. INSEAD, Singapore, Singapore

    N. Craig Smith

Appendix

Appendix

We reviewed business model innovation examples occurring at the following companies.

  • Aarstidarne

  • ACCION USA

  • AirBnB

  • Amul

  • Aravind Eye Care Hospital

  • Better Place

  • Blissmobox

  • BMW iVenture

  • Bonobos

  • BRAC

  • Care Hospitals

  • Cemex

  • eBay Inc

  • Equitas

  • ezetop

  • Fan Milk Ltd.

  • Fon

  • FreedomPop

  • Fundly

  • GiveForward

  • Grameen Bank Group

  • Hapinoy

  • Hilti Corporation

  • Indian Coffee House

  • IndieGoGo

  • Interface

  • ITC E-choupal

  • J&J’s Velcade

  • Jamii Bora

  • John Lewis Partnership

  • Kickstarter

  • Knowaste

  • Lego – Cuusoo

  • LeHigh Technologies

  • Lifestraw by Vestergaard Frandsen

  • M-Pesa by Safaricom

  • MicroEnsure

  • Mondragon Corporation

  • Mosaic

  • Mud Jeans

  • Narayana Hrudayalaya

  • Netflix

  • Novartis’s Arogya Parivar

  • Novelis

  • Novo Nordisk

  • Ocean Spray

  • OneMorePallet

  • OPower

  • OwnMutually

  • Panera Bread LLC

  • ParkatMyHouse

  • Patagonia

  • Re.Source

  • Recyclebank

  • RecycleMatch

  • REI

  • RelayRides’ GM partnership

  • Rolls Royce

  • Rubies in the Rubble

  • SAB Miller

  • Sarvajal

  • SC Johnson’s microfranchise initiative

  • Simpa Networks

  • SoapBox Soaps

  • SolarCity

  • SPUD

  • Starbucks

  • SunEdison

  • Sungevity

  • Sylva Foods

  • Tesla Motors

  • TextNow

  • The Co-operative Group

  • Threadless

  • Tom’s Shoes

  • TwoDegrees

  • Unilever’s Project Shakti

  • Vancity

  • Grameen Telecom’s Village Phone

  • VisionSpring

  • Walmart

  • Warby Parker

  • Waste Management, Inc

  • Water.org’s WaterCredit

  • Xerox

  • Zilok

  • Zipcar (now owned by Avis)

SustainAbility

is a think tank and strategic advisory firm that for over 25 years has catalyzed and supported business leadership on sustainability. Through our agenda-setting research and advocacy, we chart new territory and help business leaders and their stakeholders understand what’s next. Through our advisory services, we help clients anticipate trends, understand key risks and opportunities, develop effective strategies and initiatives, and build trust and unlock new possibilities through authentic stakeholder engagement and collaboration. Learn more at sustainability.com.

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Clinton, L., Whisnant, R. (2019). Business Model Innovations for Sustainability. In: Lenssen, G.G., Smith, N.C. (eds) Managing Sustainable Business. Springer, Dordrecht. https://doi.org/10.1007/978-94-024-1144-7_22

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