Business Model Innovation for Sustainability

Powerful Essays
Business Model Innovation for Sustainability

_______________
Karan GIROTRA
Serguei NETESSINE
2013/64/TOM

Business Model Innovation for Sustainability

Karan Girotra*

Serguei Netessine**

*

Assistant Professor of Technology and Operations Management at INSEAD, Boulevard de
Constance 77305 Fontainebleau Cedex, France. Email: karan.girotra@insead.edu

**

The Timken Chaired Professor of Global Technology and Innovation, Professor of
Technology and Operations Management at INSEAD, Boulevard de Constance 77305
Fontainebleau Cedex, France. Email: serguei.netessine@insead.edu

A Working Paper is the author’s intellectual property. It is intended as a means to promote research to interested readers. Its content should not be copied or hosted on any server without written permission from publications.fb@insead.edu
Find more INSEAD papers at http://www.insead.edu/facultyresearch/research/search_papers.cfm

Business Model Innovation for Sustainability
Karan Girotra and Serguei Netessine, INSEAD

Plambeck (Forthcoming) describes five “Cleantech” firms (Zeta, First Solar, Better Place,
Amyris and Calera) and calls for guidelines on how the Operations Management community can stimulate invention of new business models that promote environmental sustainability. The need to systematize the study of business model innovation is central to the creation of sustainable businesses.
A new business model can often make the ownership and use of existing products/technology more environmentally and socially favorable. For instance, business models that align incentives of users with the environmental impact of their use can make existing products and technologies more sustainable. Further, just as in previous disruptive technological advances like the Internet, the advancement of sustainable technology has often exceeded the development of business models needed to capture value from it (Teece 2010). Specifically, the innovative technology



References: Aflaki, S. and S. Netessine. 2012. Strategic investment in renewable energy sources. INSEAD Working Paper No Agrawal, V.V., M. Ferguson, L.B. Toktay and V.M. Thomas. 2012. Is leasing greener than selling? Management Science, Vol Avci B., K. Girotra and S. Netessine. 2012. Electric Vehicles with a Switching Station: Adoption and Environmental Impact, INSEAD working paper. Amit R. and C. Zott. 2012. Creating Value through Business Model Innovation. MIT Sloan Management Review, Spring 2012. Belavina E. and K. Girotra, “The Relational Advantages of Intermediation,” Management Science, 58:9, September, 2012, pp1614-1631. Chesbrough H. 2010. Business model innovation: opportunities and barriers. Long Range Planning, Vol K. Girotra, C. Terwiesch and K. T. Ulrich. 2010. Idea Generation and the Quality of the Best Idea, Management Science, 56:4, April. K. Girotra and S. Netessine. 2011. How to Build Risk into your Business Model. Harvard Business Review, May. K. Girotra, S. Netessine, P. Pokala and D. Gupta. 2011. Better Place: The Electric Vehicle Renaissance K. Girotra and S. Netessine. 2014. The Risk-driven Business Model: Four Questions That Will Define Your Company Guajardo, J. A., Cohen, M. A., Kim, S. H., & Netessine, S. (2012). Impact of performancebased contracting on product reliability: An empirical analysis. Management Science, 58(5), 961-979. Gui, L., A. Atasu, O. Ergun, L. B. Toktay. 2012. Fair and efficient implementation of collective extended producer responsibility legislation. Hammer, M. 2004. Deep change: how operational innovation can transform your company. M.W. Johnson, C.M. Christensen and H. Kagermann. 2008. Reinventing your business model, Harvard Business Review, December. S. Kaplan. 2012. The business model innovation factory, Wiley. Lee, D. 2011. Turning waste into by-product. Harvard Business School Technology & Operations Mgt H. Lee and G. Michlin. 2006. Netafim: Migrating from Products to Solutions. Case, Stanford Business School. O.K Mont, 2002. Clarifying the concept of product–service system, Journal of Cleaner Production, Volume 10, Issue 3, Pages 237-245. Oliva, R. and J. Quinn. 2003. Interface’s evergreen services agreement. Harvard Business School case 603112-PDF-ENG. Oraiopoulos, N., M.E. Ferguson and L.B. Toktay. 2012. Relicensing as a secondary market strategy Reinhardt, F., R. Casadesus-Masanell and H.J. Kim. 2010. Patagonia. Harvard Business School case study 711020-PDF-ENG. Teece, D.J. 2010. Business models, business strategy and innovation. Long Range Planning, Vol C. Terwiesch and K. Ulrich. 2009. Innovation Tournaments. Harvard Business Press. K. Ulrich. 2008. TerraPass Inc., Wharton Teaching Case.

You May Also Find These Documents Helpful

  • Powerful Essays

    Business Model Innovation

    • 10764 Words
    • 44 Pages

    user-centric approach to business model development Simon J.D. Schillebeeckx, Priti Parikh, Rahul Bansal, Gerard George n Business School, Imperial College London, South Kensington Campus, London SW7 2AZ, UK H I G H L I G H T S c c c c Review of two decades of rural electrification research. Content analysis of 232 scholarly articles. Literature is categorized into four focal lenses: technology, institutional, viability and user-centric. We develop a business model framework for rural electrification…

    • 10764 Words
    • 44 Pages
    Powerful Essays
  • Powerful Essays

    Business model innovation

    • 6555 Words
    • 36 Pages

    Doing Something New with Something Old Using Business Model Innovation to Reinvent the Core The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-forprofit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep in­ ight s into the…

    • 6555 Words
    • 36 Pages
    Powerful Essays
  • Satisfactory Essays

    BUSINESS MODEL Innovation Provide one example of a setting where one of the business model innovations discussed in class can have, or has already had, a game changing, disruptive impact. Opportunities, which are novel, not mentioned in the class or in the book and not yet implemented are preferred. State clearly the context, provide the traditional way of doing business, provide the innovation you have in mind and make a logical argument on why this could be game changing. You can use any of the…

    • 440 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Shawney et al. (2011) introduced a tool that can be used to look for opportunities to innovate. The ‘innovation radar’ has 12 key dimensions, namely: offerings, platform, solutions, customers, customer experience, values capture, processes, organization, supply chain, presence, networking and brand. Next, this paper will apply some of these key dimensions to an innovative firm. The innovative firm I would like to discuss is Ikea Ikea has been able to provide customers with a wide portfolio of…

    • 530 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    SMART INNOVATION AND SUSTAINABILITY OF IKEA GROUP 3 Outline Review from Midterm Excerpt of IKEA SWOT of IKEA IKEA Business Model IKEA Network IKEA Innovation IKEA Niche Market IKEA Sustainability Strategy IKEA Products The Use of Technology in IKEA compare with IKEA and Wal-Mart Conclusion Excerpt of IKEA (1/3) 1943 IKEA established 1948 Furniture Business, Catalogue Published 1956 Self Assembly Furniture 1975 Baby Boom, New Customers more sofas 1973 IKEA…

    • 1763 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Business Sustainability

    • 704 Words
    • 3 Pages

    ------------------------------------------------- Business Sustainability Business sustainability is often defined as managing the triple bottom line - a process by which firms manage their financial, social and environmental risks, obligations and opportunities. These three impacts are sometimes referred to as profits, people and planet. However, this approach relies on an accounting based perspective and does not fully capture the time element that is inherent within business sustainability. A more robust definition is that business sustainability…

    • 704 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    LEGO business Model Innovation. It also narrates the brief history of Lego Company. The Lego Game was divided into two parts. In the first part the different participants of the supply chain was without permission to communicate with the up- or downstream sites in the supply chain. It also demonstrates the significance of each element in the legal business model. It describes the four elements of business model which helps LEGO system. It also explains the viewpoints of LEGO city business model…

    • 556 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Innovation: The Key to Achieve Organizational Sustainability Introduction Currently, the theory of sustainability has gained an international popularity not only in the more macro social and ecological level, but also in the relatively micro organizational level. To be more specific, now it has become the primary goal of an organization to sustain a healthy and long-term development, or sustainable development. The role of innovation in the organizational sustainability, however, is not yet decided…

    • 1361 Words
    • 5 Pages
    Best Essays
  • Good Essays

    Tetra Pak Business and Innovation Models 1) Tetra Pak as a Market Pull model for innovation. Before the introduction of Tetra Classic pack in 1952, milk was sold unpackaged, in returnable glass bottles, in groceries and small stores. Distribution was by horse-drawn cart, which took days to reach certain areas. As self service stores gradually replaced traditional groceries, it led to the need for a more practical and hygienic system for selling milk. Tetra Pak's packaging process enabled…

    • 855 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Business Sustainability

    • 640 Words
    • 3 Pages

    BMO5501 – BUSINESS ETHICS AND SUSTAINABILITY Country Briefing Paper Sustainability: Issues and Challenges in Australia and Afghanistan Prepared by: 1. Massouda Nazari (3867371) 2. 3. 4. 1. Introduction: Background & Context 2. Economic Context 3. Economic & Political System…

    • 640 Words
    • 3 Pages
    Powerful Essays