Sustainable Business Model Innovation
It’s not provocative to state the importance of innovation in creating business value from your sustainability efforts. But, this value won’t come from mere technological innovation, like switching over to energy efficient lighting. The type of innovation necessary is business model innovation. Our work with MIT Sloan Management Review and the Boston Consulting Group shows that nearly 50% of companies have changed their business models as a result of sustainability opportunities. And interestingly, the more ambitious the innovation, the bigger the bang.
We found that 59% of companies that profited from sustainability did so by changing three or more elements of their business model. And a surprising combination of business model elements delivered the most potent results. It wasn’t the game-changing products, but a combination of innovation in the value chain and a focus on target customer segments that provided the strongest link.