Question

the Archetypes for the Sustainable Business

Model. Discuss each of the following: (4 pts.)

1. Create value from waste

2. Deliver functionality rather than ownership

3. Develop scale solutions

Answer 1

Creating sustainable business models and incorporating them into business processes will be a means of creating a competitive advantage. Many approaches are there that will contribute to building sustainability.

1. Create Value from waste:

Creating value from waste means utilising waste into valuable streams and as an useful i nout into some other production so that better use can be made of an under-utilised capacity. For this companies will have to enter and enter into initiatives that create new partnerships to eliminate waste. Partnerships can be entered into with recycling firms or other companies across industries to capture and transfer the waste. This will reduce the economic and environmental costs through reusing the material and turning waste material into something useful. This archetype will reduce the impact industries have on the environment as it will reduce the demand for primary resources and close the material loop. This is not reducing the waste to a minimum but finding new ways of using the waste to create more efficiency.

2. Deliver functionality rather than ownership:

This focuses on providing satisfaction to the needs of the consumer without owning the product.. Hence the focus will shift from manufacturing to maximising the use of a product through probably multiple uses. Here consumers will have to pay for availing a service and not for buying the product. Companies will buy the product and become owners of the product and they will enable consumers to access to the products. This is more popular in expensive products, so that the consumer does not have to buy the product for his own. This requires a significant shift in the consumers attitude and they need to be educated to shift away from owning a product. Here the product still remains important but what is more important is the consumer experiencing the value proposition. So, here the archetype is all about shifting towards a a service model even for products. It will incentivise manufacturers to manufacture products that more durable, upgradable,repairable etc, thereby reducing the demand for resources and changing the consumption pattern of consumers.

3. Develop Scale Solutions:

This means to develop scalable and sustainable solutions that will maximise the benefit to the society and the environment. Collaborating with the right channels and partners will ensure in building a sustainable business model that can achieve scale. New unusual business partners and relationships will be needed for this. Today most businesses are built upon sustainability. Creating sustainability into the business might slowdown aggressive growth and might not be as attractive to investors. This archetype is for specifically scaling up business models built for sustainability.