Axel Sommer. Managing Green Business. Model Transformations. < ) Springer
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1 Axel Sommer Managing Green Business Model Transformations < ) Springer
2 Contents List of Figures List of Tables List of Abbreviations XIX XXIII XXV Part I: Introduction 1 The Emergence of Green Business Models The Green (r)evolution The Origins of the Business Model Concept Green Business Models as a Means towards Competitive Sustainability 5 2 Purpose of this Work and Research Approach Current State of Research Overview of Relevant Research Domains Research Gap The Central Research Question Definition of Scope Definition of the Term "Green" in this Work Types of Corporations in Scope Green versus Conventional Business Models Analytical Focus Regarding the Transformation Process Structure of this Work Research Approach for the Practica! Part 19 Part II: Theoretical Foundation of Green Business Model Transformations 3 Environmental Sustainability in Business Sustainability Defined The Macroeconomic Perspective: Weak versus Strong Sustainability Corporate Sustainability The Relevance of Corporate Sustainability for Economic Success Critical Views on Corporate Sustainability 29
3 XIV Contents Evidence for the Value Creation Potential of Corporate Sustainability The Business Case for Environmental Sustainability Building the Business Case for Sustainability Overview of Environmental Sustainability as a Management Issue Current Perceptions on Environmental Issues Stakeholders' Relevance for Environmental Management and Competitiveness Possible Courses of Corporate Action to Tackle Environmental Issues Corporate Environmental Strategies 45 4 The Business Model Concept as a Unit of Analysis for Management Science Strategy and its Relation to Business Models Definitions and Elements of Business Models Recapitulation of the Business Model Ontology by Osterwalder The Product Pillar The Customer Interface Pillar The Infrastructure Management Pillar The Financial Aspects Pillar The Business Model Composition Applied in this Work Value Propositions Target Croups Key Resources KeyProcesses Financial Logic Understanding System Behaviour Background and Basics of Systems Thinking Practical Application of Systems Thinking Systems Archetypes Dynamics for Growth with New Business Models Business Model Change and Evaluation 88 5 Towards a Taxonomy of Green Business Models Existing Business Model Classifications Basic Considerations for Developing a Taxonomy of Green Business Models Four Generic Business Model Types Differentiated by Aggregated Environmental Impact Type 0: Reference Case Type 1: Incremental Improvement Type 2: Discontinuous Improvement Type 3: Strong Sustainability 102
4 Contents XV 5.4 Distinguishing the Four Business Model Types in Practice Challenge 1: Define Scope of Environmental Impacts Challenge 2: Determine Weights for Environmental Impacts Challenge 3: Distinguish Discontinuous vs. Incremental Improvement Proposed Solution: 4-Step Assessment Procedure Green Business Model Prototypes Organisations, Change, and Innovation Organisation Theory Organisations as Rational Systems Organisations as Natural Systems Organisations as Open Systems Complexity Theory and Organisations Theoretical Perspectives on Organisational Change What Is Organisational Change? Typologies of Organisational Change Four Generic Types of Process Theories for Change Organisational Growth and Crisis Stages Punctuated Equilibrium Theory The Garbage Can Model The Theoretical View on Change Applied in this Work Change Management Choosing the Appropriate Type and Pace of Change Roles in Change Organisational Inertia Resistance to Change as a Change Management Issue Practical Guides for Change Management Theoretical Perspectives on Organisational Innovation What Is Organisational Innovation? Typologies of Organisational Innovation Innovation in Large and Established Companies The Sources of Innovation Innovativeness and Absorptive Capacity Innovation Management Antecedents and Challenges of Successful Innovation Management The Process of Innovation Using Sustainability as a Catalyst for Innovation 167 Part III: Towards a Practical Management Approach 7 A Survey on Green Business Model Transformations A Plea for Green Business Model Transformations Normative Justification Economic Justification 173
5 XVI Contents 7.2 Vignette 1: Green Food - Niche or Inevitable Transformation? Prosta' s Turbulent Quest for Profitability through Greener Products Nestle and its Delicate Path towards Sustainability Vignette 2: Off-Grid Solar-Powered Lighting for the Base of the Pyramid Vignette 3: Energy Savings in Buildings - Performance Contracting Services Vignette 4: Green Corporate Platforms for Growth - GE Ecomagination Vignette 5: The Chemical Industry - Sustainability Services and Green Chemistry Vignette 6: Sustainable Transport Industries - Airlines and Shipping Green Airlines - An Oxymoron? Maersk - Challenging Conventional Wisdom within the Shipping Industry Vignette 7: Electric Cars - An Inconvenient Revolution First Mass Market Success - The Toyota Prius Hybrid The First Wave of Fully-Electric Vehicles for the Mass Market The Electric Car Game Is a Business Model Game Industries Not Covered in Case Vignettes Environmental Performance Assessment of Case Study Examples Significant Green (Type 2) Conditional Significant Green (Type 2) Non-significant Green (Type 1) Non-green (Type 0) Managerial Implications of Survey Results Overview of Managerial Implications Snap-Shot Analyses of Boundary Conditions Industry Level: Business Model Paradigms and Patterns of Firm Behaviour Business Model Level: Economic Effects of Environmental Sustainability Company Level: Change Capabilities and Eco-Mindedness Dynamic Patterns of Business Model Transformations The Trade-Off between Economic and Environmental Performance within and between Alternative Types of Business Models First Mover Advantage Pattern Creative Destruction Pattern Collective Opportunity Pattern Complementary Competition Pattern 246
6 Contents XVII Green Backlash Pattern Green Movement Pattern Corporate Journeys towards Green Business Models Motivation and Initial Situation Strategie Orientation Transformation Paths Managing Green Business Model Transformations - A Framework for Management Practice Framework Overview Phase I: Embracing Ambiguity Problem Context Scenario Flanning Management Tool: Accelerated Green Scenario Flanning Green Scenario Prototypes Change Management Challenges Phase II: Rethinking Old Certainties Problem Context Management Tool: Executive Ideation Workshop Management Tool: Crowd Ideation Event Change Management Challenges Phase III: Translating into Business Impact Problem Context Designing Business Models Management Tool: Business Model Refinement Heuristic Change Management Challenges Phase IV: Flanning for Action Problem Context Management Tool: Economic Model Management Tool: Strategie Plan Management Tool: Change Plan Change Management Challenges Phase V: Making it Happen Problem Context General Considerations for Implementing Green Business Model Transformations Specific Considerations for Different Corporate Journeys Change Management Challenges Phase VI: Finding New Signals Problem Context Optimising the New Business Model Finding New Signals Change Management Challenges Recapitulation of the Management Framework 342
7 XVIII Contents Part IV: Conclusion and Outlook 10 Conclusion and Outlook Summary Limitations Future Research 350 Reference List 353 Appendix 1: List of Interviews 391 Appendix 2: Gase Study Protocol Excerpt 393 Appendix 3: Industry Profiles of Relative Environmental Impact 399
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