Business Model Innovation
Identifying Business Model Innovations for Sustainability
The idea of business model innovation captivates business leaders and sustainability advocates alike. The inner workings of a business model—its products and processes, its interactions with stakeholders, what and how it measures, the transactions it requires—influence a company’s ability to thrive in the future, and shape its impacts on people and planet.
As global trends — environmental, social, political, technological — continue to shift the foundations of our current business models, incremental innovation will become less effective in enabling companies, industries and whole economies to adapt and succeed. There is an urgent need for fundamentally different approaches to value creation.
But, how does business model innovation work? How does each new model, from car sharing to distributed energy and crowd sourcing, contribute to sustainability? In our report Model Behavior: 20 Business Models for SustainAbility, we break down the innovative models we’re seeing, trying to better understand their origins, mechanics and implications. In doing so, we hope to induce more focused conversation about business model innovation, going beyond merely marveling at each new car-sharing company or crowdfunding site, and delving deeper into how such innovation comes about, and how we can catalyze more of it.