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Business Model Innovation for Sustainability

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Business Model Innovation for Sustainability
Business Model Innovation for Sustainability

_______________
Karan GIROTRA
Serguei NETESSINE
2013/64/TOM

Business Model Innovation for Sustainability

Karan Girotra*

Serguei Netessine**

*

Assistant Professor of Technology and Operations Management at INSEAD, Boulevard de
Constance 77305 Fontainebleau Cedex, France. Email: karan.girotra@insead.edu

**

The Timken Chaired Professor of Global Technology and Innovation, Professor of
Technology and Operations Management at INSEAD, Boulevard de Constance 77305
Fontainebleau Cedex, France. Email: serguei.netessine@insead.edu

A Working Paper is the author’s intellectual property. It is intended as a means to promote research to interested readers. Its content should not be copied or hosted on any server without written permission from publications.fb@insead.edu
Find more INSEAD papers at http://www.insead.edu/facultyresearch/research/search_papers.cfm

Business Model Innovation for Sustainability
Karan Girotra and Serguei Netessine, INSEAD

Plambeck (Forthcoming) describes five “Cleantech” firms (Zeta, First Solar, Better Place,
Amyris and Calera) and calls for guidelines on how the Operations Management community can stimulate invention of new business models that promote environmental sustainability. The need to systematize the study of business model innovation is central to the creation of sustainable businesses.
A new business model can often make the ownership and use of existing products/technology more environmentally and socially favorable. For instance, business models that align incentives of users with the environmental impact of their use can make existing products and technologies more sustainable. Further, just as in previous disruptive technological advances like the Internet, the advancement of sustainable technology has often exceeded the development of business models needed to capture value from it (Teece 2010). Specifically, the innovative technology


References: Aflaki, S. and S. Netessine. 2012. Strategic investment in renewable energy sources. INSEAD Working Paper No Agrawal, V.V., M. Ferguson, L.B. Toktay and V.M. Thomas. 2012. Is leasing greener than selling? Management Science, Vol Avci B., K. Girotra and S. Netessine. 2012. Electric Vehicles with a Switching Station: Adoption and Environmental Impact, INSEAD working paper. Amit R. and C. Zott. 2012. Creating Value through Business Model Innovation. MIT Sloan Management Review, Spring 2012. Belavina E. and K. Girotra, “The Relational Advantages of Intermediation,” Management Science, 58:9, September, 2012, pp1614-1631. Chesbrough H. 2010. Business model innovation: opportunities and barriers. Long Range Planning, Vol K. Girotra, C. Terwiesch and K. T. Ulrich. 2010. Idea Generation and the Quality of the Best Idea, Management Science, 56:4, April. K. Girotra and S. Netessine. 2011. How to Build Risk into your Business Model. Harvard Business Review, May. K. Girotra, S. Netessine, P. Pokala and D. Gupta. 2011. Better Place: The Electric Vehicle Renaissance K. Girotra and S. Netessine. 2014. The Risk-driven Business Model: Four Questions That Will Define Your Company Guajardo, J. A., Cohen, M. A., Kim, S. H., & Netessine, S. (2012). Impact of performancebased contracting on product reliability: An empirical analysis. Management Science, 58(5), 961-979. Gui, L., A. Atasu, O. Ergun, L. B. Toktay. 2012. Fair and efficient implementation of collective extended producer responsibility legislation. Hammer, M. 2004. Deep change: how operational innovation can transform your company. M.W. Johnson, C.M. Christensen and H. Kagermann. 2008. Reinventing your business model, Harvard Business Review, December. S. Kaplan. 2012. The business model innovation factory, Wiley. Lee, D. 2011. Turning waste into by-product. Harvard Business School Technology & Operations Mgt H. Lee and G. Michlin. 2006. Netafim: Migrating from Products to Solutions. Case, Stanford Business School. O.K Mont, 2002. Clarifying the concept of product–service system, Journal of Cleaner Production, Volume 10, Issue 3, Pages 237-245. Oliva, R. and J. Quinn. 2003. Interface’s evergreen services agreement. Harvard Business School case 603112-PDF-ENG. Oraiopoulos, N., M.E. Ferguson and L.B. Toktay. 2012. Relicensing as a secondary market strategy Reinhardt, F., R. Casadesus-Masanell and H.J. Kim. 2010. Patagonia. Harvard Business School case study 711020-PDF-ENG. Teece, D.J. 2010. Business models, business strategy and innovation. Long Range Planning, Vol C. Terwiesch and K. Ulrich. 2009. Innovation Tournaments. Harvard Business Press. K. Ulrich. 2008. TerraPass Inc., Wharton Teaching Case.
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