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Discussion: Externalities

Discussion: Externalities

More and more companies develop radically new business models to tackle contemporary urgent issues of sustainability.
At least 5 “shifting” dimensions can be identified, along which these new business models explore solutions in order to minimize negative externalities and maximize positive externalities:
– From linear to circular product life cycle https://en.wikipedia.org/wiki/Cradle-to-cradle_design
– From exclusive to inclusive products and services https://en.wikipedia.org/wiki/Bottom_of_the_pyramid
– From products manufacturing and distribution to service delivery https://en.wikipedia.org/wiki/Product-service_system
– From global to local value system http://www.paristechreview.com/2014/05/23/short-channels/
– From competition to cooperation https://en.wikipedia.org/wiki/Fair_trade

Select a company you know well ( company-HEIDELBERG ) or a product/a service you would like to improve.
a) Diagnosis
• Describe the current business model of the company using the business model canvas (in a synthetic manner, with bullet-points) (see below).
• Identify the main weaknesses of the current model in terms of environmental or social impact. You can focus on the most important one if easier.
b) Solition
• Imagine a more sustainable model using (at least) one “shifting” dimension
• Describe on which part of the business model you need to innovate to
implement your idea.
• Explain why your model would be feasible and analyze the key difficulties to the implementation (internal and external changes, cultural barriers, willingness to pay, competitors…)

Prepare individually a word document, presenting your diagnosis and solution. Explain your choices and promote your model as if you are in front of a potential impact investor you want to convince (https://en.wikipedia.org/wiki/Impact_investing).

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