Business Modelling is simply the first step in the process. Creating a “sustainable business model” requires the identification of additional factors and the refinement of some already included. The authors of this tool believe their variation of the Business Modelling canvas captures these elements and contribute to the “sustainability” of any business model.
A business model describes how a company does business and what its value proposition (benefits or offering to customer), value creation (resources, suppliers and other partners who help create value) and value capture mechanisms (cost structures and revenue streams) are.
Sustainable business models consider a much wider group of stakeholders than just customers, and explicitly consider society and environment as stakeholders. They go beyond creating value for a customer and include concerns about the benefits and harms to society and the environment by the way business is done. This is a much more systemic view on doing business than making money by delivering benefits and value to customers.
I am interested how current business models can become more sustainable and how start-ups can develop sustainable business models from the outset.
Together with my colleagues Sam Short, Padmakshi Rana, and Steve Evans, I developed the Value Mapping Tool, to assist in ‘sustainable business modelling’ – the process of inventing new sustainable business model ideas.