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The Strongly Sustainable Business Model Ontology and Canvas - A Briefing v2.3

For people who are interested in this research. It provides a deep dive on the SSBMO and SSBMC v1.03. For an introduction see the ~3 minute prezi and the Learning Map at http://wiki.SSBMG.com/home/learning-map
by

Antony Upward

on 15 March 2017

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Transcript of The Strongly Sustainable Business Model Ontology and Canvas - A Briefing v2.3

Simulate
Scholarly
Practitioner
Osterwalder, A. (2004). The Business Model Ontology: A Proposition in a Design Science Approach. (Ph.D., l’Ecole des Hautes Etudes Commerciales de l’Université de Lausanne). , 1-172.
Osterwalder, A., Pigneur, Y., & Clark, T. (2009). Business model generation : a handbook for visionaries, game changers, and challengers. Amsterdam: Alexander Osterwalder & Yves Pigneur
Zott, C., Amit, R., & Massa, L. (2011). The Business Model: Recent Developments and Future Research. Journal of Management, 37(3 (on-line)), 2-25. doi:10.1177/0149206311406265
A: Explosion of interest due to perception of possibilities for dramatically new business business models enabled by the Internet

Practitioners more than Scholars
a. Organizations trying to be strongly sustainable* need to apply the latest natural and social science knowledge of what causes sustainable outcomes to emerge.

b. The "profit as primary goal" assumption in existing conceptions of a business model make them difficult to use to design strongly sustainable* organizations.
Explore: Is it possible to design an ontology that can be usefully employed to describe a firm’s strongly sustainable business model design?

Develop and use a systemic design science epistemology to build and evaluate the utility of such an artefact.
Screenshot Impacts of Business Model Toolbox iPad app from
http://businessmodelgeneration.com/toolbox (Retrieved 2011/8/5)
This video embeded in this blog:post: http://www.businessmodelalchemist.com/2011/05/business-model-toolbox-for-ipad-bmtbox.html(retrieved 2011/8/5)
Past: 24+ Management Information Systems Consultant (Business Architect) who Teaches

Goal: Practitioner / Researcher who researches, teaches and consults in field of sustainable business

Currently: Masters of Environmental Studies & Graduate Diploma Business + Environment (2010-2013)

Next Step:
Focus on collaborations to create Strongly Sustainable Business Model Toolkit
See http://www.SSBMG.com
Three containing Systems provide the context for modelling strong sustainability:
Social
(Includes the knowledge and technological)
Financial Economy
(Money)
Environment
(Phyiscal, Chemical,
Biological)
...And these systems are entirely contained within one another...i.e. the socially constructed could not exist without the bio-physical
Osterwalder, A. (2004). The Business Model Ontology: A Proposition in a Design Science Approach. (Ph.D., l’Ecole des Hautes Etudes Commerciales de l’Université de Lausanne). , p.127
Major ontology design challenge:
Make the inherently complex comprehensible for managers, entrpreneurs, investors and all other stakeholders
The Boundary of the Firm Needs to Be Shown
(Still an entity...just a primary key of nearly all other entities)
Firm
(Focal, Other)
Process
(Internal & External)
The following entities are added to represent missing constructs required to model strong sustainability...
The following entities are changed to represent missing aspects of constructs required to model strong sustainability...
Perspectives of a firm: The groupings are returned to their balanced scorecard definitions and then amended to represent missing constructs required to model strong sustainability...
Stakeholder
(Internal &
External)
Measurement
(Monetary, Social,
Environmental)
Product, Learning
& Development
School of Information Technology Management
B.Sc. (Hons)
Computer Systems
Engineering
About Me
Background
Masters* Thesis
Towards an Ontology and Canvas for Strongly Sustainable Business Models:
A Systemic Design Science Exploration
Research Activities & Outputs
The Strongly Sustainable Business Model Ontology and Canvas

A Briefing
Major Research Assumptions
Design Process
Summary of Ontology Design Changes from Osterwalder
Strongly Sustainable Business Model Ontology - Detail with Attributes
Who is talking about Business Models... and Why Now?
What is a Business Model?
How Does a Business Model Ontology Relate to Other Concepts?
Click Go To: Practitioner Details
Click Go To: Scholarly
Working Definition: The "logic" of a business
Who needs and who decides what you do
How you do it and with what resources
How you measure "success"
Doing the "right" things
Doing things "right"
How you know you are doing the "right" things "right"
No agreement in the literature
...used often without "explicitly defining the concept"

Agreement that it is a model
...a simpler representation of something more complex in "reality"








Assertion: when used to express a desired future "reality" a Business Model
....is inherently normative
....is all about how you choose to answer these questions
What is an Ontology
An explicit specification of a conception
Gruber, T. (1993). "A translation approach to portable ontologies." Knowledge Acquisition 5(2): 199-220
First attempt at a Business Model Ontology
...A Design Science Approach...
Osterwalder, A. (2004). The Business Model Ontology:
A Proposition in a Design Science Approach.
(Ph.D., l’Ecole des Hautes Etudes Commerciales de l’Université de Lausanne). , 1-172.,
Assembled by Antony Upward from text, tables and figures pp.42-102
Detail Summary
Formal Research
Question & Approach
But
...a sustainable firm must also remain sufficiently monetarily profitable.

c. So, Osterwalder's ontology and the efforts to validate and justify* is a legitimate starting point
Q: What's missing?
Q: What needs to
be changed?
Not too many adds
Context (0+3)
A boundary (0+1)
6 constructs (20+6)


Not too many changes
4 of 4 Perspectives
4 of 20 Constructs
Nothing deleted
A:





A:
Relationship "Mechanism"
"Profit"
"Target Customer"
"Revenue Stream and Pricing"
"Infrastructure" via "Internal Processes" to:
"Financial Aspects" via "Financial" to
"Customer Interface" via "Customer" to:
"Product" via "Learning & Growth" to:
To conceptualize process of exercising power between stakeholders over the priority of the needs of stakeholders
To conceptualize the total quantity of tangible resources in the biosphere
(ultimate limts)
To conceptualize the activities which transform and / or move bio-physical stocks without any involvement of any part of society
To conceptualize the measurement fives types of capial which a firm can create, increase, use or destroy: natural, social, manufactured, financial, human (inc. knowledge)
To conceptualize the measurement of anything not related to the value the firm provides to meet the needs of stakeholders
To conceptualize the set of percieved (or not) needs (purposes) which an actor has, some of which could be fulfilled through a relationship with a firm (i.e. the actor becomes a stakeholder)

Needs can be "positive" (availablility of food) or "negative" (absence of water borne polution)
To conceptualize the :
Purpose and goal of the entity whose business model this is (the "focal firm")
Its relationship to other firms
Its role as a stakeholder in its own right
To create the primary key for all other entities within the firm boundary (i.e. except for: Actors, Needs, Bio-physical Stock, Eco-system Service)
It IS more complex for a firm to be sustainable than "simply" profitable -
by definition* a sustainable firm must be:
More integrated
More differentiated

So any conception of a strongly sustainable firms is also going to be more complex
* Gharajedaghi, J. (2006). Systems thinking :managing chaos and complexity : a platform for designing business architecture (2nd ed.). Amsterdam, Netherlands ; Boston, MA, U.S.A: Elsevier Butterworth-Heinemann,.

Allen, T. F. H., Tainter, J. A., & Hoekstra, T. W. (1999). Supply-side sustainability. Systems Research and Behavioral Science, 16(5), 403.
So...How am I doing?

Is the Strongly Sustainable Business Model Ontology:
Complete?
Comprehensible?
Consistent with Real World Phenomena?
Introduction
& Context

Current Knowledge about Business Models
Conceptual
Solution

Problem
Example
* As described by the International Panel on Climate Change and other bio-physical science.

Ayres, R. U., van den Bergh, J. C. J. M., & Gowdy, J. M. (1998). Viewpoint: Weak verses Strong Sustainability. Discussion paper TI, 98-103/3). Amsterdam, Netherlands: Tinbergen Institute. http://dare.ubvu.vu.nl/bitstream/1871/9295/1/98103.pdf

Neumayer, E. (2010). Weak versus strong sustainability :exploring the limits of two opposing paradigms (3rd ed.). Cheltenham, UK ; Northampton, MA : Edward Elgar,.

Rockström, J. (2009). A safe operating space for humanity. Nature, 461(7263), 472.

Rockström, J., & et. al. (2009). Planetary Boundaries: Exploring the Safe Operating Space for
Humanity. Ecology and Society, 14(2), 32.

Blattberg, C. (2000). Welfare: Towards the Patriotic Corporation. From pluralist to patriotic politics :putting practices first (pp. 172-184). New York City, New York, United States of America: Oxford University Press1
Compared to Osterwalder's Business Model Ontology
Jamshid Gharajedaghi was a PhD student of noted organizational systems thinker Russell Ackoff
* Both in his 2004 PhD and subsequently the significant "face value" gained from the growing practitioner community around the Business Model Generation book, Business Model Canvas and Business Model Toolbox iPad App
Osterwalder PhD Scope
Via = name of the grouping in the Balanced Scorecard literature
(Kaplan and Norton)
Osterwalder's original element name shown in quotes
The Business Model Ontology
is the data model for the iPad Business Model tool in the video
The Business Model Ontology
http://prezi.com/zxdosyc5ukxu/tri-profitability-a-challenge-for-discussion/?auth_key=950b94cd5d46aedd09ff66b001fef5cef0cf714a
Provide the 7 Experts with an understanding of the Strongly Sustainable Business Model Ontology and the Canvas it powers* so they can answer this question:
"Do you think the SSBMO is useful?"
Origins of this Prezi
v1.031
Research
Goal

Research Goal
Increase the quality‡ of strongly sustainable business models and....

...the efficiency of business model designers* who create them.
Business Model Generation by Alexander Osterwalder et. al. ... established that tools can help business model designers sketch, simulate and test business models...
Prototype
Sketch
Osterwalder, A., Pigneur, Y., & Clark, T. (2009). Business model generation : a handbook for visionaries, game changers, and challengers. Amsterdam: Alexander Osterwalder & Yves Pigneur
http://www.businessmodelgeneration.com/canvas
Smith, A., Osterwalder, A., Business Model Foundary, & Hortis - Le Studio. (2011). Business Model ToolBox (http://businessmodelgeneration.com/toolbox ed.). Apple AppStore / Switzerland
Smith, A., Osterwalder, A., Business Model Foundary, & Hortis - Le Studio. (2011). Business Model ToolBox (http://businessmodelgeneration.com/toolbox ed.). Apple AppStore / Switzerland
Smith, A., Osterwalder, A., Business Model Foundary, & Hortis - Le Studio. (2011). Business Model ToolBox (http://businessmodelgeneration.com/toolbox ed.). Apple AppStore / Switzerland
Based on Osterwalder's ground-breaking 2004 PhD...
Osterwalder, A. (2004). The Business Model Ontology: A Proposition in a Design Science Approach. (Ph.D., l’Ecole des Hautes Etudes Commerciales de l’Université de Lausanne). , 1-172.
A First attempt at a Business Model Ontology
Sold more than 270,000 copies as of Feb 23, 2012 (launch was early 2010) (http://www.businessmodelgeneration.com/ http://www.businessmodelhub.com/ and http://businessmodelalchemist.com)

Osterwalder, A., Pigneur, Y., & Clark, T. (2009). 
Business model generation : a handbook for visionaries, game changers, and challengers. Amsterdam: Alexander Osterwalder & Yves Pigneur.
Defintion: Ontology
A framework which helps enable communication between people by providing a consensual conceptual vocablary
Paraphrased from p.142 of Bullinger, A. C. (2008). Innovation and Ontologies: Structuring the Early Stages of Innovation Management. Wiesbaden, Germany: Gabler Verlag / GWV Fachverlage GmbH.
So...what's the problem that's
still to be solved?
The implicit normative* assumption in the Business Model Ontology† that every business model designer agrees with Milton Friedman:
Current "Best" Practice
"In entrepreneurship [unlike, say, in car design] we still rely on real-life crash tests which leads to costly failures"
Osterwalder, A. (2011). The new business models: designing and testing great businesses. Lift 11, Geneva, Switzerland. 1-87. slide 19 [minute 3.00-3.30] (http://liftconference.com/lift11/program/talk/alex-osterwalder-new-business-models and http://www.slideshare.net/Alex.Osterwalder/lift11-presentation
Problem
† and nearly all other business model research
* i.e. they assume that this is the "ideal" goal!
"Profit First "
.
"There is one and only one social responsibility of business–to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.”

p.133, Friedman, M. (1962). Capitalism and freedom. Chicago: University of Chicago Press.
The Profit-First
World-View
"Strongly Sustainable" is a term from Ecological Economics:
The impossibility of substituting natural capital with human, manufactured, social or financial capital ...
Particularly in time frames which might mitigate the worst effects of climate change and other anthropomorphic impacts*

For more sustainable outcomes to emerge, it implies the need for all human organizations to integrate the achievement social, environmental and monetary goals.
An Emerging Alternative
World-View,
Based on
Science:
Strong
Sustainability
Definition: Sustainability
A: A Value Judgement Based on Ones World-View

B: An emergent property of the systems of systems comprising the environment, society and the economy – knowable only with hindsight

C: “The possibility that human and other life will flourish on this planet forever”†

D: “The interplay between a continuously evolving state of nature and a continuously changing state of mind”, not “a [static] ecological condition”‡
Table adapted from p.255 March, S. T., & Smith, G. F. (1995). Design and natural science research on information technology. Decision Support Systems, 15(4), 251-266. doi:10.1016/0167-9236(94)00041-2) and updated to include an additional design output commonly accepted by design science researchers, e.g. p.6 Vaishnavi, V., & Kuechler, W. (2009). Design Research in Information Systems. Retrieved 2010/10/18, 2010, from http://desrist.org/design-research-in-information-systems
What are the Changes from the Business Model Ontology to Create the Strongly Sustainable Business Model Ontology
Focal Firm
Other Firm 1
Other Firm 2
Other Firm 3
NGO 1...n
Government
etc.
Organization
Organization
Think of the boxes with a solid black boarder as a spreadsheet - which can contain information about many examples of the noun which is the title of the box

i.e. "Organization" contains information about the focal firm (the firm whose business this is) and other organizations which this firm has a relationship (customers, suppliers, regulators, NGOs, governments etc.
Technically the diagramming notation used is "Entity Relationship Modelling"*. ERM is used to design the structure of databases.


Each box is an "entity" (and potentially a database table). Each example, or instance, of that entitiy can be thought of as a row in the database table

e.g. "The Organization Entity has several instances, including the Focal Firm, Firm 1, Firm 2, an NGO, etc."

e.g. "The Organization table has a number of rows, including a row for the Focal Firm, and rows for Firm 1, Firm 2, an NGO etc."
A Note on Notation:

This is a standard, albeit summarized, Entity Relationship Model*
* http://en.wikipedia.org/wiki/Entity-relationship_model
** Thesis Chapter 7: ~200 pages includes detailed descriptions of each entity and the differences between SSBMO and BMO
*** See "Detail Path" in this Prezi for complete ERD of SSBMO; Uses Crows Foot Notation
(http://en.wikipedia.org/wiki/Entity-relationship_model#Crow.27s_Foot_Notation)
Although not shown in this summary diagram, the design documentation** and the detailed diagram*** name and show the cadinality of all the relationships between the entities
Process
(Internal & External)
Stakeholder
(Internal &
External)
Measurement
(Monetary, Social,
Environmental)
Product, Learning
& Development
How, where and with what do
you do it
How you define and measure success
Who you do it for / to / with
What you do now and in the future
From: Kaplan, R. S. (1996). In Norton D. P., NetLibrary I. (Eds.), The balanced scorecard: translating strategy into action. Boston, Mass.: Harvard Business School Press. Osterwalder used the same approach in the Business Model Ontology.
Perspectives of an Organization
A Useful Way Of Grouping Related Concepts about an Organization
Contexts for an Organization
The systems and their nested relationships that sustain all organizations

A Useful way of showing how organizational concepts relate to these systems
Contexts, Perspectives & Organizations
Constructs and Relationships
* http://en.wikipedia.org/wiki/Entity-relationship_model
Technical Detail
Contexts and Perspectives in the Strongly Sustainable Business Model Ontology
v1.03
Perspectives of an Organization
A Useful Way Of Grouping Related Concepts about an Organization
Multiple Organizations are Usually Involved in a Single Business Model
Each organization relates to the Environment, Society and the Financial Economy

The organizations form a web or network
Organizations Have Relationships With all Three Contexts
Some concepts within an organization will relate
Only to the environment
Just society (and by implication the environment which contains society)
To the financial economy (and by implication society and its containting envrionment)
Examples of each are:
Raw materials from the earth's crust
Goodwill between an organization and its community
The monetary price of a product or service
Summary of Strongly Sustainable Business Model Ontology
v1.031
Process: How, where and with what do you do it
Measurement: How you define and measure your success
Stakeholder:
Who you do it for, to and with
Product, Learning and Development: What you do now and in the future
An actor has some potential or actual involvement with a Firm based on at least one Need which their Relationship(s) with the Firm is intended to fulfill through the receipt of one of the Firm’s Value Propositions via one or more Channels.

An actor can be a collection of humans, a single human, or non-human. A non-human actor is usually represented to the firm by humans.

Actors, in a role as one or more Target Stakeholders, receive the Firm’s Value Proposition(s) via one or more Channels.
An actor has a set of perceived (or not) Needs (purposes), some which could be fulfilled through a Relationship with a Firm.

Needs can be “positive” or “negative” – i.e. I need food (positive), I need to be free from physical pain (negative). So if a firm is doing an actor harm (intentionality on the part of the firm is unimportant), the actor still has a need which a relationship with a firm could fulfill.

Needs are fulfilled through the realization of the value described in one or more Value Proposition Offerings delivered via one or more Channels Links
A Target Stakeholder is a role which an Actor takes on that defines the Actors:
Which a company believes are or should be its stakeholders
Who have claimed a Relationship with the company and have become stakeholders
Who are (usually negatively) impacted by the company but who have not acted to claimed a relationship
A Criterion defines the characteristics of a Target Stakeholder, i.e. why the firm and/or stakeholder have a relationship.
For Stakeholders the Criteria
will:
Match a Need to the Function of the Relationship which the Stakeholder and Firm are entering into, maintaining or ending.
Select the Channel Link(s) which are relevant to the delivery of the Value Proposition Offerings.
A Channel describes how a firm delivers a Value Proposition to a Target Stakeholder.

Channels allow firms to find, build, maintain and end Relationships Target Stakeholders and vice versa
A Link describers one of (usually several) functions of a Channel.

Links may be related to other links over time (e.g. a link used to initiate a Relationship through increased awareness of the firm’s Value Proposition will happen before a Link through which a purchase is made).
A Relationship describes all facets of an association a firm will, has or had with one or more Target Stakeholders. A Relationship is based on the tangible and / or intangible equity (e.g. non-financial and / or financial).

A Relationship can serve several Relationship Functions for the Firm, the Target Stakeholder or both.

Relationships can be positive or negative.
The Relationship Function is part of a Relationship and describes a purpose of a relationship between the company and its customers.
Actors exist outside organizations,
stakeholders are roles which actors assumes due to their relationship with an organization
Organization Boundary
Think Mazlow's Heirarchy of Needs
A Value Proposition is a description of (positive or negative) value for one or more Target Stakeholders

Value propositions are required for all Target Stakeholder, not just customers. For example it would seam important for a firm to conceive of why another actor would wish to enter a partnership (i.e. the value proposition of that suppliers employees, communities, etc.).
An Offering is a part of one or more Value Propositions.

An Offering may be required for the different aspects of a Value Proposition as the Relationship with the Target Stakeholder changes over time.

i.e. The offering used to educate a customer stakeholder about a product is different from the offering that sells or provides after sales service about the same Value Proposition.
The organization only has "privileged access" to a sub-set of the environment; the remainder is outside the organization
Organization Boundary
A Partnership is a voluntarily initiated cooperative agreement formed between two or more independent organizations in order to carry out a project or specific activity jointly by coordinating the necessary Capability(ies), Resource(s) and Activity(ies).
An Agreement describes the structure (terms and conditions) and process of a partnership between two or more Target Stakeholders
A Decision is the description of a judgement which groups of Target Stakeholders make related to one or more of the Firm’s Value Proposition through their participation in one or more Value Configurations (Processes).

The three relationships which decisions have with other entities is intended to model Luftman’s definition of Governance, i.e. Governance as being about:
Power (who can make decisions?) – i.e. the relationship with Target Stakeholder
Alignment (why they make them) – i.e. the decision must have something to do with a firms value propositions
Processes (how they make them) – i.e. the relationship with Value Configuration. As collections of activities linked to a decision Value Configurations would constitute a the Governance arrangements / Decision Making Processes
The Value Configuration of a firm describes the arrangement of one or several Activity(ies) in order to provide a Value Proposition

i.e. a Top Level or Core Process
An Activity is an action a company performs to do business and achieve its goals
A Bio-physical stock represents the total quantity of tangible Resources in the biosphere.
Eco-System Services are Activities which transform and / or move Bio-Physical Stocks without any involvement of any part of (human) Society.
A Capability describes the ability to execute a repeatable pattern of actions which transform/move matter, create/manipulate knowledge, and/or form/change opinion through the use of energy / increase in entropy.

A firm has to dispose of a number of Capabilities via Value Configurations to be able to offer its Value Proposition.

Capabilities are based on a set of Resources from the firm or its Partner(s)
Resources(s) describe all the tangible and in-tangible stocks a Firm needs in order to provide its Value Proposition(s).

For:
Tanglible Resources are part of a Bio-Physical Stock of like matter, and must be tracked in the bio-physical Environment for their full life cycle (before, during and after transformations and / or movements).
Intangible Resources are recommended to be tracked through as many antecedents and successors as possible (in order to understand past, and minimize future unintended consequences)
Biophysical Stocks
Eco-System Services
Luftman, J. N. (2004). In Bullen C. V. (Ed.), Managing the information technology resource: leadership in the information age. Upper Saddle River, N.J.: Pearson Education.
The Valuation Method describes the method used to measure the value of an Offering and/or Link. The Valuation Method describes the Revenue(s) (benefits) and Costs associated with a Value Proposition on all three dimensions of sustainability.

Valuation Methods may make use of one or more Process (operational) Measures.

The Valuation Method specifically defines what method is used to determine the monetary price of the value offered (and hence a monetary Revenue stream.
The combined environmental, social and monetary profit (positive or negative) of the firm

For a discussion about the challenges involved in defining "tri-profitability" please see this presentation
A way of categorizing all Revenue, Costs and Assets for accounting purposes e.g. calculation of Tri-Profit (Profit & Loss Statement), Balence Sheets, etc.
Revenue describes the measures all “positive value” (benefits) received by the stakeholders of the firm (environmental, social and/or financial).
Cost measures all costs incurred by the stakeholders of the firm (environmental, social and/or financial)
Non-value related measures of Activities (and hence any facet of any element in the Process Perspective)

e.g. Quality, Timeliness, Quantity, Efficiency, etc.
Assets are anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive environmental, social or monetary value.

Assets represent ownership of value that can be converted into envrionmental, social of monetary revenues .
Revenue, Cost and Asset are calculated by one or several Valuation Methods
The SSBMC: a practitioner tool "powered by" the SSBMO
Osterwalder, A., Pigneur, Y., & Clark, T. (2009). Business model generation : a handbook for visionaries, game changers, and challengers. Amsterdam: Alexander Osterwalder & Yves Pigneur http://www.businessmodelgeneration.com/canvas
Ontologies may be designed using knowledge based on multiple divergent world-views
e.g. Profit First and Strongly Sustainable

But the world-view of the ontology user over-rides
Their definition of sustainability is what matters when the ontology is used

So, Ontologies are not prescriptive... but provide an opportunity for their users to learn from the embedded knowledge
If they are predisposed to do so
Types:
Firm
NGO
Government
This description of Timberland’s 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, based on publically available information was conducted by the researcher and other members of a Schulich Business School group project team “Green Fund Analysis of Timberland Company” in fall 2010 in the class: SB/BSUS6300 “Sustainability Business Strategies”. 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.)
Notes on Timberland Example
The following is an example of the SSBMC in use.
For the full detail of The Timberland Company Business Model described using the SSBMO see: http://www.slideshare.net/AntonyUpward/strongly-sustainable-business-model-ontology-example-timberland-detail-v40
This example was prepared on a 60" x 48" wall board and photographed
Practitioner
Tool

As a comparison, here is Osterwalder et. al's Business Model Canvas (powered by the BMO) and the Strongly Sustainable Business Model Canvas (powered by the SSBMO)
My Systemic Design Science Process
* SSBMO / SSBMC
* Entrepreneurs, Managers, Strategiests, Business Architects, Venture Capitalists, Consultants, You!
One:
Two:
For the summary of The Timberland Company Business Model described using the SSBMO used to build the SSBMC example above see: http://www.slideshare.net/AntonyUpward/strongly-sustainable-business-model-ontology-example-timberland-summary-v40
The Strongly Sustainable Business Model Ontology
The Strongly Sustainable Business Model Canvas
The Timberland Company
Sold more than 425,000+ copies as of Late 2012 in 23+ languages
(launch was mid 2009)
(http://www.businessmodelgeneration.com/ http://www.businessmodelhub.com/ http://www.alexosterwalder.com/ and http://businessmodelalchemist.com)

Osterwalder, A., Pigneur, Y., & Clark, T. (2009). 
Business model generation : a handbook for visionaries, game changers, and challengers. Amsterdam: Alexander Osterwalder & Yves Pigneur.
Build a really useful tool to help people like us effectively describe and design environmentally, socially and monetarily sustainable businesses.
Objective:
Title:
Overview of Strongly Sustainable Business Model Canvas
Overall Process to Build SSBMO
...When
Comparing
Osterwalder's
PhD BMO to...
Latest natural and social scientific research on what tends to cause sustainable outcomes to emerge
Latest management research on business models
Since Osterwalder started his PhD in 2000
Bibliography of over 1000 works created from experience, course work and literature review on works related to business models and environmental, social and monetary sustainability. Key works reviewed include:
Allen, T. F. H. (2003). In Hoekstra T. W., Tainter J. A. (Eds.), Supply-side sustainability. New York: Columbia University Press.
Blattberg, C. (2000). Welfare: Towards the Patriotic Corporation. From pluralist to patriotic politics :putting practices first (pp. 172-184). New York City, New York, United States of America: Oxford University Press
van den Bergh, J. C. J. M., & Verbruggen, H. (1999). Spatial sustainability, trade and indicators: an evaluation of the ‘ecological footprint’. Ecological Economics, 29(1), 61-72. doi:10.1016/S0921-8009(99)00032-4
Cavaganaro, E., & Curiel, G. H. (2012). The Three Levels of Sustainability. United Kingdom: GreenLeaf.
Ehrenfeld, J. (2008). Sustainability by design: a subversive strategy for transforming our consumer culture. New Haven: Yale University Press.
Friedman, A. L. (2006). In Miles S. (Ed.), Stakeholders: theory and practice. New York: Oxford University Press.
Gharajedaghi, J. (2011). Systems thinking: managing chaos and complexity : a platform for designing business architecture (3rd ed.). Burlington, Mass.: Morgan Kaufmann.
Hart, S. L., & Sharma, S. (2004). Engaging fringe stakeholders for competitive imagination. Academy of Management Executive, 18(1), 7-18.
Rockström, J. (2009). A safe operating space for humanity. Nature, 461(7263), 472.
Rockström, J., & et. al. (2009). Planetary Boundaries: Exploring the Safe Operating Space for Humanity. Ecology and Society, 14(2), 32.
Zott, C., Amit, R. H., & Massa, L. (2011). The Business Model: Recent Developments and Future Research. Journal of Management, 37(3 (on-line)), 2-25. doi:10.1177/0149206311406265
Ask
Q: What's missing?
Q: What needs to
be changed?
Gregor, S., & Hevner, A. R. (2011). Introduction to the special issue on design science. Information Systems and E-Business Management, 9(1), 1-9.
Hevner, A. R., March, S. T., Park, J., & Ram, S. (2004). Design Science in Information Systems Research. MIS Quarterly, 28(1), 75-105.
March, S. T., & Smith, G. F. (1995). Design and natural science research on information technology. Decision Support Systems, 15(4), 251-266. doi:10.1016/0167-9236(94)00041-2
March, S. T., & Vogus, T. J. (2010). Design Science in the Management Disciplines. In A. R. Hevner, & S. Chatterjee (Eds.), Design Research in Information Systems (pp. 195-208) Springer US. doi:10.1007/978-1-4419-5653-8_14
For a summary of the overall research design and the full details of the evaluation research design please see http://www.slideshare.net/AntonyUpward/research-design-for-evaluation-of-strongly-sustainability-business-model-ontology
For an overview of the epistemological and methodological approach to this research please see http://www.slideshare.net/AntonyUpward/design-science-systems-thinking-and-ontologies-summaryupward-av10
The Montreux Jazz Festival
As a comparison, here is Osterwalder et. al's Business Model Canvas being used to show a summary of the "Profit-First" Business Model of the Montreux Jazz Festival
Derived from Case Study pp.103-117 Figure 52 in Osterwalder, A. (2004). The Business Model Ontology: A Proposition in a Design Science Approach. (Ph.D., l’Ecole des Hautes Etudes Commerciales de l’Université de Lausanne). , 1-172.
Built using iPad app by Smith, A., Osterwalder, A., Business Model Foundary, & Hortis - Le Studio. (2011). Business Model ToolBox (http://businessmodelgeneration.com/toolbox ed.). Apple AppStore / Switzerland:
The Business Model Canvas for:
The Montreux Jazz Festival
Brief Overview
Click here if you already understand Alexander Osterwalder's Business Model Ontology and Canvas
Click here for addition material on business models and how the ontology was built
Deeper Dive
Click here for an introduction to the Strongly Sustainable Business Model Ontology and Canvas
Overview
i.e. Briefing + Interview with 7 Experts
i.e. 2+ Case Studies
e.g. B.-Impact Assessment Survey v3 from B-Labs (http://www.bcorporation.net)
Experts Briefings and Interviews completed between March 1-April 15 2012
Case Studies completed between March 26-May 30, 2012
* i.e. integrating achievement of environmental, social and monetary goals
v1.03
* My supervisory committee and other academics have indicated that this work is at a PhD level.
‡ Reliability, consistency, effectiveness
† p6 Ehrenfeld, J. (2008). Sustainability by design: a subversive strategy for transforming our consumer culture. New Haven: Yale University Press. “Forever” means “for a long time” – defining this is problematic.

‡ p23, p381 Allen, T. F. H. (2003). In Hoekstra T. W., Tainter J. A. (Eds.), Supply-side sustainability. New York: Columbia University Press.  Based on the 2nd Law of Thermodynamics as applied to the semi-open system that is planet Earth. For a summary of this book see http://www.slideshare.net/AntonyUpward/supply-side-sustainability-summaryupward-av102
" How can I make sure my business model is aligned with:
The Natural Step Framework for Strategic Sustainable Development Four System Conditions?
the BALLE Localist Values
Scores as many points as possible on the B Corp Impact Assessment Survey

What topics do I need to consider in my business model?

What tools can help me describe, communicate, discuss, design, choose, invent, challenge, improve, innovate, change my business model?"
Strongly Sustainable Organization Frameworks
© 2013 Antony Upward / Edward James Consulting Ltd.
(All Rights Reserved - For Permissions visit http://www.EdwardJames.biz/Permissions)
Replace Alex's definition of a (profit-first) business model:
"A business model describes the rationale of how an organization creates, delivers and captures value"*

With new working definitions

of...
What is a Business Model: Some Revised Definitions
‡ Based on my review of the latests natural and social science literature http://blog.edwardjames.biz/2012/11/towards-definition-of-organizational.html

* Value, in profit first terms, is quantified by money. p.14 Osterwalder, A., & Pigneur, Y. (2009). In Clark T. J., Smith A. (Eds.), Business model generation: a handbook for visionaries, game changers, and challengers. Amsterdam: Alexander Osterwalder & Yves Pigneur.

† Inspired by p6 Ehrenfeld, J. (2008). Sustainability by design: a subversive strategy for transforming our consumer culture. New Haven: Yale University Press. “Forever” means “for a long time” – defining this is problematic.
The perception by a human or non-human 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.
Destroyed when previously met needs go unmet due to: the withdrawal of satisfiers, the application of inappropriate satisfiers, or the application of satisfiers that do not align with the recipient’s world-view.
Value
One in which all of its behaviours and all the behaviours of all other relevant social, economic and biophysical actors, lead to the possibility that human and other life will flourish on the planet forever.†
Strongly Sustainable Organization
A description of the logic for an organization’s existence:
Who it does it for, to and with
What it does now and in the future
How, where and with what does it do it
How it defines and measures its success
Strongly Sustainable Business Model
My Starting Point...
Lots of new more sustainable business models being tried in the field... servicisation, dematerialization, localist, social-entrepreneurship, etc.

Went looking and couldn't find:
What are the (successful) patterns?
What would a sustainable business model pattern need to consider?
Click Go To: Epistemological Details
on Systemic Design Science
Methodological Approach
The study of
parts (analysis) and wholes (synthesis)
Systems Thinking + Design Science
More Info at:
http://slab.ocad.ca/the-strongly-sustainable-business-model-group-ssbmg
http://slab.ocad.ca/SSBMs_Defining_the_Future
http://slab.ocad.ca/blogs/antony-upward
Follow us on Facebook:
http://www.facebook.com/StronglySustainableBusinessModels)
Twitter: #SSBMG
We are planning a "crowd sourced" collaboration project to bring the strongly sustainable business model canvas to the world.

Will you join us?
Info @ http://www.SSBMG.com
Contact us: info@ssbmg.com
Join the team...
"Creates and evaluates [...] artefacts intended to solve identified organizational problems"*

"Strives to solve problems by an action-oriented approach, in order to find a viable artefact"†
* p.77 Hevner, A. R., March, S. T., Park, J., & Ram, S. (2004). Design Science in Information Systems Research. MIS Quarterly, 28(1), 75-105.
† p.26 Bullinger, A. C. (2008). Innovation and Ontologies: Structuring the Early Stages of Innovation Management (PhD Dissertation). Wiesbaden, Germany: Gabler Verlag / GWV Fachverlage GmbH.
Click Go To: Overview of Methdological Approach
The Symbiotic Knowledge Production Loop(s)
Comparing Design and Descriptive Science Modes of Knowledge Production
Derived from
Slides 15-16Lee, A. S. (2000). Systems Thinking, Design Science and Paradigms: Three Lessons from the Past to Resolve Three Dilemmas in the Present to Direct a Trajectory for Future Research in the Information Systems Field. Proceedings of the 11th International Conference on Information Management (ICIM), Kaohsiung, Taiwan. 1-28.
and
Table 1 & 2 of Romme, A. G. L. (2003). Organization Research and Organizational Learning: Towards a Design Science, Paper 55. Proceedings of the 4th Conference on Organizational Learning, Knowledge and Capabilities (OLKC), Barcelona, Spain. 1-19.
Derived from text of March, S. T., & Vogus, T. J. (2010). Design Science in the Management Disciplines. In A. R. Hevner, & S. Chatterjee (Eds.), Design Research in Information Systems (pp. 195-208). New York City, New York, United States of America: Springer. doi:10.1007/978-1-4419-5653-8_14

For summary of Causal Loop Diagramming (CLD) technique used in this figure: http://www.pegasuscom.com/cld.html
A Management Information Systems View of Knowledge Production
Fig.2 p.80 Hevner, A. R., March, S. T., Park, J., & Ram, S. (2004). Design Science in Information Systems Research. MIS Quarterly, 28(1), 75-105.
From Fig.3 p.493 Kuechler, W., & Vaishnavi, V. (2008). On theory development in design science research: anatomy of a research project. European Journal of Information Systems, 17(5), 489-504. doi:10.1057/ejis.2008.40
A Research Framework in Management Information Systems
Design Science Research Cycle for Management Information Systems
From p.255 March, S. T., & Smith, G. F. (1995). Design and natural science research on information technology. Decision Support Systems, 15(4), 251-266. doi:10.1016/0167-9236(94)00041-2
With additions from p.6 of Vaishnavi, V., & Kuechler, W. (2009). Design Research in Information Systems. Retrieved 10/18, 2010, from http://desrist.org/design-research-in-information-systems
Using the techniques of design as a method for
Creating novel artifacts (tangible & intangible) ('
design
')
Scientific research / credentialed knowledge production ('
design as science
')

The development of the theory behind the techniques through which
all
design is undertaken ('
the science of design
')
Where Does Design Fit in Knowledge Production - My Understanding
Fig.1 p.128 of Patokorpi, E., & Ahvenainen, M. (2009). Developing an abduction-based method for futures research. Futures, 41(3), 126-139. doi:10.1016/j.futures.2008.09.019
The Challenge for
Design of Sustainability
1. How do we understand the problem domain of the design...
2 How do we undertake design (build / evaluate)...
When the designed artefact describes a system with emergent properties, i.e. the "strongly sustainable organization"
(Remember: design isn't inherently systemic in its approach or result!)
How to do Systemic Design -
My Approach
For Prepare activities
Set Clear Objectives
For Build activities
Iteration
Set Boundaries
Identify the World-Views
For Evaluate activities... a diversity of triangulated
Approaches
Comparator Knowledge Sources
For more details of how I integrated systems thinking and design thinking see http://www.slideshare.net/AntonyUpward/design-science-systems-thinking-and-ontologies-summaryupward-av10
or my draft paper "Design Science to the Rescue? Knowledge Production for the Sustainable Organization" (email me)
About Design Science
(in an information systems context)
One Approach:
Checkland's Soft Systems + Design Science =
"Soft Design Science"
Baskerville, R. L., Pries-Heje, J., & Venable, J. (2009). Soft design science methodology. Proceedings of the 4th International Conference on Design Science Research in Information Systems and Technology (DESRIST '09), Philadelphia, Pennsylvania. 1-11. doi:10.1145/1555619.1555631
Pourdehnad, J., Wexler, E. R., & Wilson, D. V. (2011). Systems & Design Thinking: A Conceptual Framework for their Integration. All Together Now: Working Across Disciplines, Proceedings of the 55th Annual Meeting of the International Society of Systems Scientists, Hull, United Kingdom. 1-15.
The Business Model Ontology - Detail
Osterwalder, A. (2004). The Business Model Ontology:
A Proposition in a Design Science Approach.
(Ph.D., l’Ecole des Hautes Etudes Commerciales de l’Université de Lausanne). , 1-172., Adapted from p.44 and Defense Presentation
(http://www.hec.unil.ch/aosterwa/PhD/PhD_defense_Osterwalder.ppt) p.7
The Business Model Ontology - Summary
This work © by Antony Upward / Edward James Consulting Ltd., 2013. Based on criticism and review of Osterwalder, A. (2004)
The Business Model Ontology: A Proposition in a Design Science Approach (Ph.D., l’Ecole des Hautes Etudes Commerciales de l’Université de Lausanne), 1-172
This work © by Antony Upward, 2013. Based on criticism and review of Osterwalder, A. (2004)
The Business Model Ontology: A Proposition in a Design Science Approach (Ph.D., l’Ecole des Hautes Etudes Commerciales de l’Université de Lausanne), 1-172
This work © by Antony Upward 2013. Based on criticism and review of Osterwalder, A. (2004)
The Business Model Ontology: A Proposition in a Design Science Approach (Ph.D., l’Ecole des Hautes Etudes Commerciales de l’Université de Lausanne), 1-172
Detail with
Attributes
Summary
This work © by Antony Upward / Edward James Consulting Ltd., 2013. Based on criticism and review of Osterwalder, A. (2004)
The Business Model Ontology: A Proposition in a Design Science Approach (Ph.D., l’Ecole des Hautes Etudes Commerciales de l’Université de Lausanne), 1-172
http://hdl.handle.net/10315/20777
In this example the SSBMC is being used to provide an overview the business model of The Timberland Company.
Full transcript