Strongly Sustainable Business Model Ontology - Example - Timberland - Summary v4.0
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The document presents a master's thesis evaluating the Timberland Company's business model through the lens of the strongly sustainable business model ontology. It describes Timberland's commitment to sustainability, providing a detailed look at its stakeholders, value propositions, and operational structure while illustrating the application of the ontology in a real-world context. The analysis offers insights into Timberland's strategic sustainability efforts and performance but notes that it is an illustration rather than an authoritative account.
![Other Firms in Timberlandās
Firm
Value Chain*
Name Description
Retailers 3rd party retailers who buy Timberland products wholesale and sell the to consumers
at a mark-up (retail prices) [approx in low thousands]
Franchizees Same as retailers, except that additional terms and conditions apply to the "look &
feel" of the "retail experience" and other aspects of the retailers operation [hundreds]
Contract Companies who purchase raw materials, capital equipment & facilities and labour ,
Manufacturers make Timberlands finished goods to Timberlands specifications, and are paid for the
raw materials and the value of the manufacturing services provided [approx 200]
Distribution Companies who purchase capital equipment & facilities and labour, and provide
Service Providers distribution services to receive, store and ship Timberlands finished goods [1]
Transportation Companies who provide transportation of raw materials, finished goods (new or post
Service Provider consumer), or waste [unknown number]
Raw Materials Companies who provide raw materials to Timberland (tier 1 suppliers), or their
Suppliers suppliers (tier 2, 3, 4, etc. suppliers) [unknown number]
Energy Suppliers C
* The ontology can represent aspects of these other firmās business models relevant to Timberlandās definition of sustainability, but in this illustration this has not
been included, due to lack of available public information
Timberland: An Illustration using the Strongly Sustainable Business Model Ontology /
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Strongly Sustainable Business Model Ontology - Example - Timberland - Summary v4.0
- 1. The Timberland Companyās Business Model An Illustration using the Strongly Sustainable Business Model Ontology v1.03ā” Masters Thesis* Evaluation Phase of the Ontologyās Development Feb 15, 2012 Antony Upwardā All Rights Reserved Ā© Antony Upward / Edward James Consulting Ltd. 2012 * Working title of thesis: āTowards an Ontology for Strongly Sustainable Business Models: A Design Science Explorationā ā Student in the York University Masters of Environmental Studies with Graduate Diploma in Business and the Environment at the Faculty of Environmental Studies and Schulich School of Business (2010-2012). Full resume at www.linkedin.com/in/antonyupward ā” The ontology itself is not described in this presentation. Contact the author for more information.
- 2. Objective of this Presentation ā¢ Provide a first illustrationā of how the strongly sustainable business model ontology can be used to represent a real firmās business model ā This presentation is a summary, see appendix for detailed version ā A wall sized version of this summary has also been produced using a summary of the ontology ā the strongly sustainable business model canvas ā¢ The description of Timberlandās Ontology was built using available information about Timberland ā see Bibliography ā Not validated with employees of Timberland ā Since this description of Timberlandās business model has not been validated with employees of Timberland it should be considered an illustration of the application of the ontology to a firm and should not be considered authoritative. Much of the original analysis of Timberland was conducted by the researcher and other members of a Schulich Business School group project team āGreen Fund Analysis of Timberland Companyā in fall 2010 in the class: SB/BSUS6300 āSustainability Business Strategiesā. This was updated with changes available publically as of August 2011 (i.e. before Timberland was sold to VF Corporation (owner of Wrangler, Lee Jeans etc.) Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 2
- 3. Purpose: Evaluation* This āreal worldā example of the application of the ontology is intended for: 1. Senior managers in firms who are considering participating in the case study* research ā¢ The illustration gives a sense of how their firmās business model might be represented using the ontology 2. Third-Party experts who are being asked for their opinions on the ontology* ā¢ The illustration gives a the experts a practical example to help their understanding of the ontology and frame their feedback 3. The researcher to test the ontology ā¢ Building the illustration is helping to āself-validateā* the completeness and internal consistency of the ontology * The evaluation/validation of the ontology has three steps: E1a. āself-validationā by the research (E1a-1: Using the B-Labs Impact Assessment Survey v3, E1a-2: Building this Illustration), E2b. Obtaining Third Party Expert feedback on the ontology, and E3. case studies on three firms: obtaining feedback from senior managers in firms whose business models have been described using the ontology. Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 3
- 4. Timberland: Fast Facts ā¢ 88 year old, US$1.4B, profitable, U.S.-headquartered footwear and apparel, manufacture and retail company ā¢ Largely outsourced manufacturing in 200 locations worldwide ā¢ Peer group: Columbia, Nike, Patagonia, North Face and Deckers. ā¢ Long term commitment to all three dimensions of sustainability ā āToday, we embrace corporate responsibility consciously and deliberately. We believe in our ability and responsibility to make socially and environmentallyā responsible decisions that benefit our business, the outdoors and our communities. These are not commitments we make altruistically. On the contrary, our strategic sustainability programs help build a stronger companyā improving our bottom line as well as our ability to improve our physical and social environment. We call this our Earthkeepers philosophy, and it drives everything we do.ā ā¢ http://responsibility.timberland.com/executive-commitment/ (retrieved 2011/09/26) ā¢ In a un-audited analysis Timberland Scored 78.4 out of 200 on the B-Labs Environmental and Social Impact Assessment Tool v2 ā A score above 80 qualifies a firm for āBenefit Corporationā status* * see http://www.bcorporation.net/ Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 4
- 5. Structure The ontology describes all the Firm firms involved in Timberlandās value network 1. Stakeholder 2. Product, Learning and Development The ontology breaks a business model into four 3. Process perspectives, aligned with the four perspectives of the Balanced Scorecard* 4. Measurement * The Balanced Scorecard is a strategic performance management tool described in Kaplan, R.S & Norton D.P. "The Balanced Scorecard ā Measures that Drive Performance", Harvard Business Review, Feb. 1992 Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 5
- 6. Firm Focal Firm: Timberland ā¢ Timberland ā The focal firm of this business model ā¢ Other firms in Timberlandās value network are listed (next slide), but their business models have not been described (information not available) ā Portions of these other firmās business models likely impact the achievement Timberlandās social, environmental and financial measurements ā The ontology can represent these aspects of other firmās business models Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 6
- 7. Other Firms in Timberlandās Firm Value Chain* Name Description Retailers 3rd party retailers who buy Timberland products wholesale and sell the to consumers at a mark-up (retail prices) [approx in low thousands] Franchizees Same as retailers, except that additional terms and conditions apply to the "look & feel" of the "retail experience" and other aspects of the retailers operation [hundreds] Contract Companies who purchase raw materials, capital equipment & facilities and labour , Manufacturers make Timberlands finished goods to Timberlands specifications, and are paid for the raw materials and the value of the manufacturing services provided [approx 200] Distribution Companies who purchase capital equipment & facilities and labour, and provide Service Providers distribution services to receive, store and ship Timberlands finished goods [1] Transportation Companies who provide transportation of raw materials, finished goods (new or post Service Provider consumer), or waste [unknown number] Raw Materials Companies who provide raw materials to Timberland (tier 1 suppliers), or their Suppliers suppliers (tier 2, 3, 4, etc. suppliers) [unknown number] Energy Suppliers C * The ontology can represent aspects of these other firmās business models relevant to Timberlandās definition of sustainability, but in this illustration this has not been included, due to lack of available public information Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 7
- 8. 1. Stakeholder Actors and their Needs Generic actors who may Needs* relevant to Timberlandās receive positive or negative stated value propositions that these value from Timberlandās actors have: stated value propositions : ā¢ Footwear and clothing Human (protection for the body) Community ā¢ Exercise to maintain a healthy body ā¢ Ability to carry multiple objects, ā¢ Social acceptance, Firm Media ā¢ Environment, society workplace that Human allows for human and non-human flourishing Government ā¢ Appreciation of the outdoors Any Other Community ā¢ Continue to exist. Based on the belief Animal Firm of the humans involved that some of Government NGO their needs can be best met through NGO Plant the on-going existence of the community, NGO, firm or government Biosphere ā¢ Improvement. A need to seen an NGO improvement (as defined by themselves), in the environment and/or * Think of Maslowās hierarchy of needs society ā Society that enables flourishing for humans, includes the idea that individual humans prefer the idea that they are unique Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 8
- 9. Actors Who Are Recognized 1. Stakeholder Stakeholders (1 of 3) Name Description Related Actor Timberland The focal firm of this business model Firm Business Any other firm or organization involved in the (outdoor) apparel industry, includes direct Firm, NGO Colleagues competitors Shareholder Any human owning shares in the company Human Investor Any firm owning shares in the company / any employee of such a firm Firm, Human Analyst Any human offering opinions or data about the advisability of buying or retaining ownership in Human shares of the company Employee Any human with a current employment contract with the company Human Partner Employee Any human with a current employment contract with any firm the company partners with Human Manager Any employee with responsibility for the outcomes produced by one or more other employees Human Officer Any human with a position which has legal or other external obligations related to the Human company i.e. independent member of the BoD) Consumer People who buy timberlands products segmented into: Human - Men, Women, Children - Sensitivity to Price: basic, premium & elite - Types of outdoor activity: mountaineering, hiking, boating, casual, "performance", professional - Location: North America, Europe, Asia Franchisee Firms with a specific type of partnership with Timberland which directs the majority of the Firm franchises operations (wholesaling and retailing) Retailer Firms who have a (wholesale) purchasing relationship with Timberland and who then retail Firm Timberland's finished goods to consumers Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 9
- 10. 1. Actors Who Are Recognized Stakeholder Stakeholders (2 of 3) Name Description Related Actor Supplier 1. Suppliers of Raw Materials Firm 2. Manufactures of Finished goods 3. Distribution facilities service provider (Canada, Asia) 4. Retail real-estate providers (Shopping Malls etc.) 5. Misc (Employee benefits, office suppliers, real estate / office, energy, transportation) Families / The collection of people who live in the places where Timberland operates Community Communities Media Any organization whose objectives include Media is the communication of selected information Third Party Any organization (firm, NGO or Government) whose purpose includes providing Firm Auditor another stakeholder with an independent opinion on the state or performance of NGO some aspect of Timberland Government Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 10
- 11. 1. Actors Who Are Recognized Stakeholder Stakeholders: NGOs (3 of 3) Timberland has listed the following NGOās as ones they work with closely on specific value propositions (see slides ā2. Product, Learning and Developmentā) 1. Business for Innovative Climate and Energy Policy - a Project of Ceres (Timberland was founding member) (http://ceres.org/bicep) 2. The Climate Group (http://www.theclimategroup.org/) 3. Climate Counts (http://www.climatecounts.org/) 4. Conservation Business New Hampshire (Timberland was founding member) (http:// conservationnh.org/) 5. Leather Working Group (http://www.leatherworkinggroup.com) 6. Outdoor Industry Association - Eco Working Group (http://www.outdoorindustry.org) 7. Sustainable Apparel Coalition (http://www.apparelcoalition.org) 8. Social Accountability International 9. (http://www.sa-intl.org/) 10. BSR HERProject (http://herproject.org/) 11. VeritĆ© (http://www.verite.org) 12. Plant Water Foundation (http://www.planet-water.org) 13. CARE (http://my.care.org/) 14. Global Social Compliance Programme (http://www.gscpnet.com/) Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 11
- 12. Channels via which Stakeholders 1. Stakeholder Receive Value (1 of 3) Channel Name Purpose of channel Related Value Proposition Related Stakeholder(s) Retail For customers ā¢ Product Excellence ā¢Consumers* Corporate and Franchisee 1. Awareness ā¢ Brand Differentiation owned (bricks and mortar, 2. Evaluate web)ā, 3rd party (bricks and 3. Purchase mortar + web), 4. After Sales Product Labelling For customers ā¢ Brand Differentiation ā¢ Consumers Conveying important intangible 1. Awareness ā¢ Climate and intrinsic attributes of the 2. Evaluate ā¢ Product product: āGreen Indexā rating 4. After Sales ā¢ Factories system ā¢ Service ā¢ Responsibility ā¢ Transparency Reporting For consumers ā¢Financial Excellence ā¢Analysts Providing stakeholders with 1.Awareness ā¢Product Excellence ā¢Shareholders information 4.After Sales ā¢Factories ā¢Investors ā¢Responsibility ā¢Consumers For others ā¢Transparency ā¢Employees 3.Realization ā¢Brand Differentiation ā¢Communities ā¢Employer of Choice ā¢Business Colleagues ā¢NGOs * Other channels used by Timberland for creating and maintaining relationships with their consumer (and other) stakeholders include: contact (call) centre, information and community website, surveys and focus groups Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 12
- 13. 1. Channels via which Stakeholders Stakeholder Receive Value (2 of 3) Channel Name Purpose of channel Related Value Proposition Related Stakeholder(s) Factory Code of Conduct For suppliers ā¢Trading Partnerships ā¢Suppliers Assessments Human Rights 1. Requirements ā¢Product Excellence ā¢Employees Initiatives* 2. Establishment ā¢Factories ā¢Consumers On going process of assessing all 3. Realization ā¢Responsibility ā¢Shareholders aspects of contract manufacturers operations 4. Renewal ā¢Transparency ā¢Partner Employee ā¢Brand Differentiation ā¢Employer of Choice NGO Collaboration For NGOs ā¢Climate ā¢ Timberland Programmes 3. Realization ā¢Product ā¢ NGOs ā¢Direct collaboration or joint 4. Renewal ā¢Factories ā¢ Employees programs on CSR objectives ā¢Service ā¢Annual planning and review ā¢Brand Differentiation process ā¢Transparency ā¢Focused reporting on CSR activities, via meetings & ā¢Existence conferences ā¢Growth * Other similar channels include: The Annual Supplier summer, Supplier Capacity Building programs, and others provided by the purchasing function within Timberland. Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 13
- 14. 1. Channels via which Stakeholders Stakeholder Receive Value (3 of 3) Other channels identified that Timberland uses to create or maintain a relationship with one or more of its stakeholder groups include: ā Legal and Regulation āConsumer and Trade Show Booths ā Business Community Citizenship āPrivate Meetings ā Employee Website / Human Resource Function āPublic Meetings ā Wholesale Website / Wholesale Function āEarthDay ā Corporately owned wholesale showrooms āPath of Serviceā¢ ā Third Part Auditor āServ-a-palooza ā Voice / Web "Conference" Calls āFactoring Engagement in Service ā Media interviews and press releases āEmployee Engagement in Non-Profit Boards ā Public Speeches (Conferences etc.) āSustainable Living Environment Program Observations ā Timberlandās program to use some of boots as raw materials for āremanufacturingā uses the retail channel and the direct shipment by consumers to gather used boots ā Timberlandās use of different channels to help execute their customer segmentation strategy, particularly based on price, is unclear from the public information. Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 14
- 15. Relationships* 1. Stakeholder Relationship Name / Target Stakeholder Value Proposition Purpose Attract Net New Consumers Product Excellence, Product-Cradle to Cradle, Consumers / Climate, Factories, Service Existing Customers Make Subsequent Purchases Attract / Retain Retailers Retailers Build Brand and Product Knowledge Attract / Retain Suppliers Suppliers Product Excellence Attract / Retain Employees Employers of Choice Employees Attract / Retain Investors Shareholders, Financial Excellence, Responsibility, Investors, Analysts Transparency, Governance Gain / Maintain Goodwill Community, NGO, Product-Cradle to Cradle, Climate, Factories, Government, Media Service, Responsibility, Transparency, Governance Continuous Learning All Existence, Growth, Product Excellence Enabling Co-Creation of Innovation * Relationships between Timberland and one or more of their stakeholders. Each relationship needs to be created and maintained over time through stakeholders receiving one or more value propositions via one or more channels. Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 15
- 16. 2. Product, Learning & Development Value Propositions (1 of 3) Value Proposition Value for Which Reason for Value Levelā Value Life Cycle Price Levelā Name Target Value Stageā” Stakeholder Proposition* Financial Excellence Shareholder Risk Innovative Innovation Ownership Market Effort Employer of Choice Employee Risk Excellence & Innovation Realization Market Effort Outdoor Equipment / Consumer Risk Excellence & Innovation All N/A Apparel Provider of Choice Product Excellence Consumer (men, Use Excellence & Innovation Use & Renewal Market woman, children) High-End Excellence & Innovation Retailers Risk Creation, Purchase & Market Effort Transfer High-End Trading Partnerships Suppliers Risk Excellence & Innovation Requirements Market (and Retailers Effort Establishment, above?) Realization & Renewal * For the target stakeholder the value proposition: reduces risk, reduces their effort, and/or is useful to them ā From low to high value: me-too, innovative imitation, excellence, innovation ā” Stage in the relationship between Timberland and the Stakeholder: from 1. Creation, 2. Purchase, 3. Use, 4. Renewal, 5. Transfer, or 1. Requirements, 2. Acquisition, 3. Ownership, 4. Retirement, or 1. Requirements, 2. Establishment, 3. Realization, 4. Renewal ā Price level is for value propositions which are valued in the market in monetary terms. Market means price is average market price Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 16
- 17. 2. Product, Learning & Development Value Propositions (2 of 3) Value Proposition Value for Which Target Reason for Value Level Value Life Price Level Name Stakeholder Value Cycle Stage Proposition Growth -"#1 Outdoor All Stakeholders Risk Excellence Varies by N/A Brand on Earth" Stakeholder Brand Differentiation Retailers Risk Excellence & Innovation Realization Market Effort Build Brand and Consumers Risk Innovative-Immitation Awareness N/A Product Knowledge Retailers Effort Climate - "Protecting All Stakeholders, with a Use Excellence & Innovation Varies by N/A the Outdoors" specific focus on NGOs: Risk stakeholder 1.Timberland 2.BICEP 3.Climate Group 4.Climate Counts 5.Conversation Business NH Product - "Innovating All Stakeholders, with a Risk Excellence & Innovation Varies by N/A Cradle-to-Cradleā* specific focus on NGOs: stakeholder 1.Timberland 2.Leather working Group 3.Outdoor Industry Association - Eco Working Group 4.Sustainable Apparel Coalition * Includes increase in proportion of āeco-concious materialsā, and the launch of the āEarthkeeperā line of boots which have been designed to use less virgin materials and for remanufacturing and/or recycling into new similar products (i.e. not down-cycling) Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 17
- 18. 2. Product, Learning & Development Value Propositions (3 of 3) Name Value for Which Target Reason for Value Level Value Life Price Level Stakeholder Value Cycle Stage Proposition Factories - "Improving All Stakeholders, with a Risk Excellence & Innovation Varies by N/A Worker Lives" specific focus on NGOs: stakeholder 1.Social Accountability International 2.BSR HERProject 3.VeritƩ 4.Plant Water Foundation 5.CARE 6.Global Social Compliance Programme Service - "Engaging Communities with a specific Risk Excellence & Innovation Realization N/A Communities" focus on community NGOs: City Year, Unis Cite, Green Net, Trees for the Future, Skills USA, FFA Responsibility All Stakeholders Risk Excellence & Innovation Varies by N/A stakeholder Governance Shareholders Risk Excellence Realization N Transparency All Stakeholders Risk Excellence Realization N/A Existence Timberland + All Other Risk Innovation Varies by N/A Stakeholders Effort Stakeholder Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 18
- 19. 3. Process Decisions Stakeholders / Example* Value Decision Makers Decision Topics Propositions Corporate Employer of Officers Social Resp. Choice Factories Living Managers Wage Trading Partnerships Benefits: Employees Nature & Eligibility Responsibility Supplier & Creating / Retail Reducing Partners Jobs Financial Excellence Health & NGOs Safety Transparency * This is a partial list of decisions ā focused (though not exclusively) on those decisions which are related to non-financial aspects of Timberlandās Value Proposition. These are mentioned directly or indirectly by Timberland in their publically available information. It is assumed that other decisions are taken by stakeholders who are Officers of Timberland with limited influence from other stakeholders (i.e. senior management, members of the Board of Directors) Dotted lines indicate these stakeholders have been accepted by the decision makers (solid lines) as influencers on the decisions being made Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 19
- 20. 3. Process Partnership* Partnership Name Part of which Relationship Involving which Part of which Value Stakeholders Propositions Employment Attract / Retain Employees 1. Employees 1. Employer of Choice 2.Management 2. All other Value 3.Timberland Propositions Supplier- Manufacturing 1. Attract / Retail Suppliers 1. Suppliers 1. Product Excellence 2.Attract / Retail Investors 2.Timberland 2.Trading Partnerships 3.Factories 4.Responsibility Innovation 1. Gain / Maintain Goodwill 1. NGO 1. Climate 2. Continuous Learning Enabling 2.Timberland 2.Product Innovation 3.Factories 4.Service Retail 1.Attract/Retail Retailers Retailers / Franchisees 1. Brand Differentiation 2.Trading Partnerships 3.Product Innovation-Cradle to Cradle Supplier-Raw Materials 1. Attract / Retail Suppliers Suppliers 1.Product Excellence 2.Attract / Retail Investors 2.Financial Excellence 3.Trading Partnerships 4.Climate 5.Responsibility * A list of the relationships with target stakeholders which Timberland has chosen to codify into one or more legal / social contracts in order to reduce risk / secure capabilities and/or resources to reliable delivering one or more value propositions Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 20
- 21. 3. Process Capability* Name Description Required Resources "Bricks and Mortar" Stores or parts of stores (shelf space) 1.Retail Space Retail Outlets 2.Enterprise Applications 3.Finished Goods "Clicks" Retail Outlets Websites Website Packaging & Labelling Ability to convey key aspects of the value proposition to consumers Knowledge Workers Motivated, knowledgeable human beings Employees Distribution Ability to receive, store and ship raw materials, finished goods, and 1.Distribution Facility post-consumer goods (for recycling) 2.Enterprise Applications 3.Raw Materials 4.Finished Goods 5.Post Consumer Goods Manufacturing Ability to create and package finished goods for sale 1.Raw Materials 2.Manufacturing Facility (in-sourced and outsourced) Partnership Ability to form, grow/evolve and benefit from partnerships 1.Employees 2.All other stakeholders Product Design Ability to create and revise designs for products and create plans for their manufacture 1.Knowledge * A list of the capabilities which Timberland needs to have access to in order to realize its value propositions for its target stakeholders. Capabilities drive the requirements for resources and in turn the activities which transform those resources. Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 21
- 22. Eco-System Services and 3. Process Bio-physical Stocks* Key Eco-Systems Services Used by Bio-physical Stocks Upon Which Timberland Timberland Relies or Creates Type Name Humans Supportin Water cycling g Livestock Primary production Leather Secondary production Timber Assimilation Regulating Maintenance of Air Quality Freshwater Regulation of Climate Chemicals (biological, including Water Purification and waste hydrocarbons), non-biological, treatment Manufacturing / Distribution Maintenance of soil quality Waste Pollination Packaging Waste Cultural Recreation and ecotourism Post Consumer Waste Ethical and spiritual values Educational and inspirational Use Waste values * Not all directly identified by Timberland, given here as an illustration of the type of thinking which Timberland has and may have done explicitly or implicitly in the construction of their business model. Eco-Services adapted from a sub-set of the complete list of 20 services listed by Hanson, C, J Ranganathan, C Iceland, and J Finisdore. (2008) The Corporate Ecosystem Services Review (Version 1.0). World Resources Institute. http://www.wri.org/project/ecosystem-services-review and http://www.wri.org/publication/corporate-ecosystem-services-review Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 22
- 23. Resources* 3. Process Resource Name Category Type Part of which Bio-physical Transformed into Which Other Related Stakeholders / Stock Resource / Biophysical Stocks by Partnerships Timberland Activities Retail Space Tangible Technical Many N/A Retail Distribution Tangible Technical/ Many N/A Facility: In- Biological In-sourced: sourced / 1.Employment outsources 2.Supplier-Real Estate 3.Supplier-Equipment Manufacturing Tangible Technical/ Many N/A Outsourced: Facility: In- Biological 1. Supplier-Distribution sourced / Services outsourced Finished goods Tangible Technical/ Many 1.Use Waste 1.Supplier-Manufacturing Biological 2.Post Consumer Resources 2.Timberland (internal oPackaging & Finished Goods manufacturing ability) 3.Packaging Waste 4.Post Consumer Waste Post consumer Tangible Technical/ Many 1 Post consumer waste Retailers goods Biological 2.Raw Materials Raw Materials Tangible Technical/ 1.Leather 1.Finished Goods Supplier-Raw Materials Biological 2.Fresh water 2.Manufacturing waste 3.Chemical 3.Packaging waste Hydro-carbons Tangible Biological Chemicals (Hydrocarbons) 1.Heat Supplier 2.Manufacturing waste 3.Distribution waste 4.Use Waste 5.Post Consumer Waste Employees Human N/A Many (Happier) Humans Employment Knowledge Intangible N/A None N/A Employment Website Tangible/ Intangible Technical Many N/A 1.Supplier-Equipment 2.Employment Enterprise Tangible/ Intangible Technical Many N/A Supplier Applications Electricity Intangible Technical Many Tangible, intangible, human. For tangible resources they can either be a technical nutrient * Heat, Light, Sound etc. Supplier Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / (will not be rendered harmless / useful by an eco-system service), or a biological nutrient 23 (which will be assimilated by eco-system services)
- 24. Activities* 3. Process Order to Cash The activities from stimulating demand, Enabling Top Level Processes taking orders from retailers, Supply Skilled Resources Improve the Business manufacturing/obtaining finished goods, The activities from hiring new employees, The activities required to make changes shipping finished goods and receiving their assignment, ongoing development, to all other processes in order to achieve payment motivation and remuneration, to them strategic objectives. Change can be ā¢ Marketing and sales leaving the organization at some point anywhere from incremental (e.g. TQM) to ā¢ Operations (in house ā¢ Hiring radical (e.g. Re-engineering). Drives all manufacturing) ā¢ Employee & partner employee "project" work. Monitors and seeks to ā¢ Outbound Logistics training improve the firms ability and efficiency in ā¢ Quality ā¢ Feedback & coaching changing. ā¢ ā¢ Continuous improvement Benefits Request to Solution ā¢ ā¢ All Change projects Separation The activities from receiving any ā¢ Health & safety request from a consumer or other ā¢ Service & charity stakeholder to providing a solution. e.g. warrantee claims, information, etc. ā¢ Service (call centre) Infrastructure Governing Requisition to Pay The activities from determining what needs Idea to Commercialization to End-of-Life Lead and Manage The activities in determining based on market The activities involved in setting, revising and to be acquired from outside the firm for the and/or technological knowledge new / changed agreeing strategic objectives, measuring on order to cash and other top-level products to offer, based on the firms value the achievement of those objectives, processes, making agreements to acquire propositions, the design of those products, and the understand, assessing and acting upon those goods and services, receiving them, creation/acquisition of the capabilities required to perceived gaps between strategy and ec o Pl ev eL po T e o C and making payment for them (aka offer them, through the product launch, sale, service execution āpurchasing deptā) ā¢ and eventual withdrawal from sale. (aka New ā¢ Board of Directors Corporate Purchasing Policy r ā¢ Source Product Development and Introduction) Social Responsibility Sub- ā¢ In-bound Logistics (raw Committee ā¢ Measurement (financial, social, materials, finish and post- consumer goods, transportation environmental) - optimization) ā¢ Supplier Factory Assessments * Little information given about activities publically, particularly the ātop-levelā āvalue chainā level activities (business processes). A standard model has been adapted (from Michael Hammer). The sub-processes listed are described by Timberland, but the list is clearly incomplete. Relationship between activities, the resources required / transformed, the eco-system service dependencies and the related partnerships has not been analysed due to lack of information r Timberland: An Illustration using missing support to allretail operations processes for owned). 24and operatedModel Ontology / merchandising Strongly Sustainable Business Likely the appropriate: retailers (3 party, franchize, stores owned rd by timberland and
- 25. 4. Measurement Measurement Overview ā¢ Large number of measures are prepared by Timberland ā¢ All required financial reports ā Audited as required ā¢ Global Reporting Initiative (GRI) based on G3 Guidelines and Apparel and Footwear Sector Supplement (AFSS) ā Some omissions ā¢ Data unavailable, not material, etc ā¢ Goal is 100% compliance ā Not currently audited (GRI Level B ā Self Declared) ā¢ Quarterly and annual on-line reporting on goals related to climate, product, factory and service value propositions ā Not currently audited ā¢ Following slides illustrate how some of the measures Timberland uses would be structured using the ontology āProcess Measureā and āValuation Methodā entities ā Other measurement entities: revenue, cost, asset, account, tri-profit are not included due to insufficient information Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 25
- 26. 4. Measurement Process Measures* Name Description Units Activity Measured CO2 Emissions GHG Emissions Scope 1 and 2 creation of CO2 Kg/year All Quantity Sold Quantity of finished goods sold to retailers Number/ Whole and Retail year sales Quantity Quantity of finished goods obtained from contract manufacturers or made in Number/ Procurement, Obtained Timberlands own factory year Manufacturing Community Number of hours spent by Timberland employees working on projects in the Hours / Community Service Service Hours community year Attrition Number of employees who leave voluntarily Number Supply Skilled / year Resources Accidents Number of employees who suffer accidents are work Number Supply Skilled / Resources Nature / Year Factory Multiple measures of operational, social and environmental performance of Multiple Requisition to Pay Performance contract manufacturers and own manufacturing facilities. * Shows how a small sub-set of the process measures Timberland uses could be structured using the ontology Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 26
- 27. 4. Measurement Valuation Methods* Name Dimension Type Description Related Value Related Revenue Proposition Process Stream Measure Typeā Product Monetary Revenue Way of measuring the value which Product Quantity Sold Selling Sales retailers derive from the sales made Excellence to consumers Climate Environmental Cost Way of measuring the impact of Climate CO2 N/A Impact declining CO2 emissions Emissions Finished Monetary Asset Way of measuring the monetary Financial Quantity N/A Goods value of the finished goods in stock Excellence Obtained Inventory at the end of a period of time Quantity Sold Community Social Revenue Way of measuring the happiness Service Community N/A Impact generated from the community Service Hours service of employees * Shows how a small sub-set of the valuation methods Timberland uses could be structured using the ontology ā Only monetary revenue streams currently have types defined Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 27
- 28. Appendices ā¢ Supporting Detail ā¢ Bibliography/Sources
- 29. Detail ā¢ This presentation has provided a summary of an illustration of Timberlandās business model using the Strongly Sustainable Business Model Ontology v1.022 ā¢ This summary was based on a detailed document ā¢ Embedded PDF file contains the full illustration of the Timberland Business Model ā¢ Right Click to Open in Adobe Reader Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 29
- 30. Bibliography Public Sources about Timberland Consulted* ā¢ The Timberland Company (2009). Timberland ā Annual report 2009, Timberland, About Us, Investor relations, Annual reports. Retrieved from: http://thomson.mobular.net/thomson/7/3103/4234/ ā¢ The Timberland Company. (2009a). Timberland Climate Strategy. Retrieved 11/26/2010, from http:// www.timberland.com/graphics/media/tbl/Timberlands_Climate_Strategy_2009_report.pdf ā¢ The Timberland Company. (2009b). Responsibility Beyond Factory Walls: Engaging Factory Workers & Strengthening Communities. Retrieved 11/26/2010, from http://www.timberland.com/graphics/media/tbl/Beyond_Factory_Walls_2009_TImberlans_report.pdf ā¢ The Timberland Company. (2010c). CSR Strategic Pillar #3: Workplace. Retrieved 10/05/2010, from http:// community.timberland.com/Resource_/QuarterlyReport/71/Q2%202010%20Workplaces%20Data%20FINAL.pdf ā¢ The Timberland Company. (2010d). 2007-2008 Corporate Social Responsibility Report Retrieved 10/8/2010 from http://community.timberland.com/Resource_/PageResource/Corporate-Responsibility/Reporting-Downloads/2007-2008_Timberland_CSR_Report.pd ā¢ The Timberland Company (2010e). Timberland Quarterly Reporting: Q2 2010: Performance Dashboard. Retrieved 10/18/2010, from http://community.timberland.com/Resource_/QuarterlyReport/68/Q2%202010%20Dashboard.pdf ā¢ The Timberland Company (2010f). Timberland Quarterly Reporting: Q2 2010: CSR Strategic Pillar #1: Energy. Retrieved 10/18/2010, from http://community.timberland.com/Resource_/QuarterlyReport/69/Q2%202010%20Energy%20Data%20FINAL.pdf ā¢ The Timberland Company (2010g). Timberland Quarterly Reporting: Q2 2010: CSR Strategic Pillar #2: Product. Retrieved 10/18/2010, from http://community.timberland.com/Resource_/QuarterlyReport/70/Q2%202010%20Product%20Data%20FINAL.pdf ā¢ The Timberland Company (2010h). Timberland Quarterly Reporting: Q2 2010: CSR Strategic Pillar #3: Workplaces. Retrieved 10/18/2010, from http://community.timberland.com/Resource/QuarterlyReport/71/Q2%202010%20Workplaces%20Data%20FINAL.pdf ā¢ The Timberland Company (2010i). Timberland Quarterly Reporting: Q2 2010: CSR Strategic Pillar #4: Service. Retrieved 10/18/2010, from http://community.timberland.com/Resource_/QuarterlyReport/72/Q2%202010%20Service%20Data%20FINAL.pdf ā¢ The Timberland Company (2010j). Timberland ā Annual report 2010, Timberland, About Us, Investor relations, Annual reports. Retrieved from: http://thomson.mobular.net/thomson/7/3214/4490/ ā¢ Additional materials retrieved from http://responsibility.timberland.com September 8-23, 2011 *Much of the original analysis of Timberland was conducted by the researcher and other members of a Schulich Business School group project team āGreen Fund Analysis of Timberland Companyā in fall 2010 in the class: SB/BSUS6300 āSustainability Business Strategiesā Timberland: An Illustration using the Strongly Sustainable Business Model Ontology / 30