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![Revising Definitions…
A description of how an organization defines and achieves success over time.
A Business Model = the logic for an organization’s existence:
•Who it does it for, to and with
•What it does now and the future
•How, where and with what does it do it
•How it defines and measures its success
“A Business Model describes the rationale of how an organization creates, delivers and captures value [in monetary terms]”
Value = the perception by an actor of a need being met; measured in aesthetic, psychological, physiological, utilitarian and / or monetary terms.
Value is created when needs are met via satisfiers that align with the recipient’s world-view, and destroyed when they don’t
Necessary, but not sufficient](https://image.slidesharecdn.com/ocaduflourishingbusiness-141117162600-conversion-gate02/75/Artifacts-for-the-Systemic-Design-of-Flourishing-Enterprises-OCADU-Research-15-2048.jpg)
Uploaded byPeter Jones
Artifacts for the Systemic Design of Flourishing Enterprises - OCADU Research
The document discusses a research agenda led by Peter Jones and collaborators focused on strongly sustainable business models (SSBMs) and their design for flourishing enterprises. It outlines objectives such as developing a visual tool, evaluating social and environmental benefits, and refining business model frameworks that prioritize sustainability. The research aims to create practical applications and case studies for small and medium-sized enterprises, advocating for an integrated approach to business strategy and sustainability metrics.
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Artifacts for the Systemic Design of Flourishing Enterprises - OCADU Research
- 1. Peter Jones, PhD OCAD University Strategic Foresight & Innovation November17, 2014 Caring for the Future: Artifacts for the Systemic Design of Flourishing Enterprises
- 2. Strongly Sustainable BusinessModel (SSBM) Group •P. Jones, N. Harfoush (SFI OCADU) •A. Upward (York), B. Willard (TNS) •100+ members of SSBM community of practice Research Agenda A Design Science project. 1.Develop and validate an ontology for strongly sustainable business models and a visual tool for modeling such businesses (the Flourishing Business Canvas). 2.Explore advanced methods of impact definition, measurement and valuation of social and environmental benefits that can support decision making in organizations. 3.Identify and map the processes related to business strategy decisions in SMEs. 4.Use design methods to develop a toolkit for SMEs and test the kit with organizations to further improve it and to create case studies. 5.Human-centric research into the role of business models in SMEs
- 3. Ultimate Aim ofthe Design Research.
- 5. 5 RSD3 OsloSchool Architecture & Design Social Business – Global Business U Plymouth, Dec 8-9 Article accepted for Organization & Environment special issue: Business Model Frameworks for Strongly Sustainable Outcomes
- 6. Paradox of DesignResearch. “Design is not only about what is quantifiable and measurable; it is also about what cannot be measured, the non-quantifiable. As the source of values for decisions in design is not only the artifactual world (objective, quantitative data), but also the world of culture (subjective, qualitative data), there are many things that are difficult or impossible to measure adequately.” Charles Owen (2007). Design Thinking: Notes on its Nature and Use Design Research Quarterly, 2 (1) 16-27.
- 7. Evaluation of efficacy- How effective is an artefact in its intended application? Action research mode of design evaluation. •Developed framework & compared with Osterwalder •Artefacts presented in plausible situations of engagement •Iterative design with expert & user feedback •Sufficient for this stage of early tool development (Design science research achieving delayed acceptance in non-IT literatures. Epistemological mismatch with natural & social science, which we (design) futily attempt to appease. Key is unit of analysis.) Design Science methodology.
- 8. The term haslost impact & meaning. For 3 decades we’ve anchored on sustainability. •Since Bruntland Commission (1987) •Sustainable Development •Ecological Modernization Considered “weak sustainability” & enablers of the status quo The Resilience of Sustainability
- 9. Can we sustain“Sustainability?” Ehrenfeld, J. (2000, March). Does eco-efficiency Lead to Fundamental Changes in the Dynamics of Industrial Activities? In national Conference on Sustainable Development: Eco-efficiency and industrial development. Oslo.
- 10. Strong vs WeakSustainability •Non-substitutability of natural capital w/ others •Emerged from Ayres (1998) & others criticizing the lack of progress from sustainable dev •Few examples of strong sustainability in 90’s, & as applied to business, considered improbable. •Aim for compatibility with The Natural Step (FSSD) & anchor in bio-physical sciences •Living systems theory (Allen, Tainter & Hoekstra) Supply-side •Socio-ecological systems & ecological macroeconomics A Foundation for Speaking of Flourishing
- 11. •Product/Service Systems (Vezzoli,et al) •Dematerialized product/services •Industrial (waste as supply) ecosystems •Collaborative consumption •Public-private incentive models •Regional mutualism / Import shifting / Circularity Best cases include - •Interface (circular carpet model) •Patagonia, Timberland •Unilever (societal health aims) “More sustainable” business models
- 12. The most salientpoint to influence an entire enterprise, its people and operations, and to endorse and develop organizational values and processes oriented to sustainability. “Represents the business & money earning logic of a company” (Osterwalder, 2004) Later “the rationale of how an organization creates, delivers and captures value” (Osterwalder & Pigneur, 2009) Upward & Jones: A business model describes for an organization the logic for its existence, who it does it for, to and with; what it does now and the future; how, where and with what does it do it; and how it defines and measures its success. A Design Argument for Business Models
- 13. Business Model Canvas Osterwalder & Pigneur. (2009). Business model generation. No environmental impact model No value chain / supply impacts No societal impacts, No triple-bottom line option
- 14. Understand the Natural and Social Science of Sustainability Defined the gaps in Osterwalder’s Ontology of profit-first businesses, based on the science Designed an Ontology of Strongly Sustainable Business Models Co-designed Strongly Sustainable Business Model Canvas, a visual design tool, structured by the Ontology, and tested: 1.Against standards of sustainable business 2.Formally with 7 experts and 2 case study companies 3.Informally with dozens of others: Business people, professors, students Upward’s research led to ... Article in review: Upward & Jones, Business Model Frameworks for Strongly Sustainable Outcomes
- 15. Revising Definitions… Adescription of how an organization defines and achieves success over time. A Business Model = the logic for an organization’s existence: •Who it does it for, to and with •What it does now and the future •How, where and with what does it do it •How it defines and measures its success “A Business Model describes the rationale of how an organization creates, delivers and captures value [in monetary terms]” Value = the perception by an actor of a need being met; measured in aesthetic, psychological, physiological, utilitarian and / or monetary terms. Value is created when needs are met via satisfiers that align with the recipient’s world-view, and destroyed when they don’t Necessary, but not sufficient
- 16. Strongly Sustainable BusinessModel Canvas – 14 Questions V1.032 © Antony Upward / Edward James Consulting Ltd., 2013
- 17. •Small OCADU researchseed grant •Led a team of 2 SFI grad students – Kornet & Sharma •Visual identity & revised canvas (same entities) •Encoded meaningful palette & boundaries •Revised model through case studies •Continual iterative refinement since summer •Canvas presented at fall conferences (RSD, BAWB) •Workshops at BAWB, Intersections, sLab, This year …
- 18. New canvas remains© author, by agreement until we have suitable collective entity.
- 19. A Value–Based CareBusiness Model using Osterwalder BMC
- 20. Integrated Practice Units Patient- Centred ITC Collab Inter- professional Decisions Patient-centred business strategy Health outcomes that matter to Patients / family Meet pts in more locations, online, community Community care partners Partner w/ small clinics Delivery across clinics & centres Long-term patient relationships Treat pts by bundling care across journey Incentivized reimbursement models Expand service across geographies New cost models based on bundled / integrated care Measure outcomes & costs / patient Waste products Support services – water, cooling, air refresh Cultural service, Natural settings Regulatory services: air, waste, water Bio-stocks used directly Patient-led care circles Active care continuity Volunteers for non- critical needs Decentralize hospital into special units Patient- relevant agencies Gov agencies Local ecologies, watersheds Local Communities Social health determinants Housing Food supply … Community health outcomes Increased Dr & Patient preference Faith & social communities Real resource costing Shared assets across regions Return on Social capital Costing across patient lifecycle
- 21. •BM explicitly representsvalue system & mental model •New design provides social affordances for claiming new values •As anticipatory system, feed-forward loop Business Model as Formative Context Business Model as Anticipatory System (Rosen, 1991)
- 22. •Novel models arenot simulatable – sims based on past data •Causal entailments (rel to environment) too complex •New BM theories “operational models entailing strategy” •Anticipated outcomes guided by updating model with feedback information (encoding) •& updating new decisions with updated decoding. •New view of a flourishing “enterprise” Living system model of firm & entire value network in bio-socio-eco-cultural contexts, within planetary limits Business Model Designs the Enterprise
- 23. May have arevised research agenda … •Completing article for Organization & Environment (2014) Business Model Frameworks for Strongly Sustainable Outcomes Participating in key conferences / workshops •Continuing research w/ sLab team: Healthcare case study Flourishing Cities / urban policy canvas •Client projects & early adopters (First Explorers program) •2015 – identify key project to sponsor field research •Propose / publish field research with SSHRC or other sponsor Next steps in SSBM design research
- 24. Peter Jones, Ph.D. [email protected] designdialogues.com designforcare.com @redesign Questions & Discussion?