Resilience Design Toolkit. 50 Ingredients for Sustainable Business Model Innovation.
- 1. 5 ingredients for s u s t a i n a b l e business model innovation se of energy & water quantityo fe nergy& anywhere in your ecosystem know where most energ y andw ater is used life cycleo fo ur products?D ow em onito r andw ateru sagei no ur activities? Could w er educeo ur unit pricet oc ustom ers hm oree nergy a nd watere fficiency? Could we help ourc ustom ers reduc e theirw ater and usage ? Could w ew ork witho ur partn ers to help reduc e theirs ? minimizeu se of energy & water Minimize the quantityo fe nergy& water used anywhere in your ecosystem Do we know where most energ y andw ater is used in the life cycleo fo ur products?D ow em onito r energ y andw ateru sagei no ur activities? Could w er educeo ur unit pricet oc ustom ers throu ghm oree nergy a nd watere fficiency? Could we help ourc ustom ers reduc e theirw ater and energ y usage ? Could w ew ork witho ur partn ers to help reduc e theirs ? 1 3# 2 optf or disassembly Design fore asy disassembly&t hink circular Do we des igno ur pro duc ts to be easily disa ssembledi ntoi ndividu al com pon entsa tt he end o ft heir life? D ow eu se as little d ifferent kind s of materialsa sp ossible in our p rod ucts ? Cou ldw e take b ack use d pro duc ts or com pon ents forr e-m anu fact ure( reve rsel ogis tics)? Cou ldo ur clientsd isas sem ble and r e-as sem ble our p rod ucts themse lves ? 11 7 10 4 keep watcho ny our (eco)system Creativelyu se andr espondt o information'sf eedbacksa nd changes Arew ew ell informed aboutc hangesi no ur environment? Newt echnologies? Changing customersp references?R egulations? Do we understandi ts impacts? How could we better adapta nd benefit from change?H ow could we better integrate the unexpected?C ould we adaptf astert hrough self- 2726#28
- 2. Resilience Design Guide Design exciting business opportunities that enhance resilience for you and your ecosystem. Build future-proof companies that are more circular, innovative and life-friendly. Be inspired by the successful and sustainable strategies found in nature. This guide accompanies the Resilience Design Toolkit. Design Resilient Business Models
- 3. Written by: Sebastiaan de Neubourg (Greenloop) Gaëtan Dartevelle (Greenloop) Bertrand Grégoire (LIST) Translation: Hilde de Winne Book design: IMD Conseil
- 4. Table of contents Introduction The new normal - peak eve- rything For who? For what? Innovation inspired by nature What is in the toolkit? Resilience Design Card Resilience Principles Map Business Model Canvas The Business Model of a TREE 1 2
- 5. Techniques Workshop techniques Workflow 1. Let’s go outside! 2. Discover! 3. Build on your strengths 4. Improve your weaknesses 5. Solving a problem 6. Integrate your externalities 7. Create resilient project 8. Build a vision for resilience and sustainability Examples 1. Waste = input 2. Sell functionality 3. Mimic biological design 4. Co-create with suppliers & clients 5. Build a common purpose Wanne play? To go further The ResilieNtWEB story What we are reading? 3 4 5
- 8. 7 « Rethinking the future: It is a profound challenge, at the end of an era of cheap oil and materials to rethink and redesign how we produceandconsume;toreshape how we live and work, or even to imagine the jobs that will be needed for transition. » Ellen McArthur
- 9. 8 We need a better way to do business. Although industrialisation and globalisation have improved the quality of life for many, it is clear that we need to radically rethink the way we do business. Peak everything; we face peak-consumption in water, food, fuel and natural resources. We are measuring peak accumulation of CO2, toxics and a destabilisation of global ecosystems on which we are reliant. The new normal - peak everything We need new ideas and we need new tools. This practical guide helps you build better business models, products or services. Better means more sustainable, social and profitable. The Resilience Design Toolkit provides you with the tools to help you on your way. We are a very young species. We are not the first who have to come up with inventive ways to live and thrive on a finite planet. Life has been around for 3.8 billion years and is relentlessly adapting to new conditions through innovations. Sustainable business resilience is about the capacity of an organisation to anticipate, and adapt to changes in its environment and to learn in the process. The 30 resilience design principles are based upon the successful design principles from nature that explain its extraordinary capacity to innovate to stay resilient. By using your creativity they help you find novel ways to live successfully on a planet while creating conditions conductive to life.
- 10. 9 For who? For what? The Resilience Design Guide is a handbook for change makers. A change maker knows there must be a better way. A change maker wants to change the status quo and perceives the current way of doing business as too narrow. A change maker is looking for fresh ideas for his/her organisation. Entrepreneur You are looking for new ways to do business. You want do well by doing good. Consultant You are a business or sustainability consultant; you search for effective ways to help your clients perform better on both the short and long term. Intrapreneur You are a member of the green team or work at business development. You search for fresh ways of doing things… well… just better. Do you think business and sustainability should be mutually reinforcing? Design business models and innovations that deliver positive impacts for your customers, your employees, business partners, society and the planet. Design more functional, local, renewable, innovative, efficient, circular and life- friendly business models. How areyougoing to? improve my branding? improve supplier relationships? increase employee well- being? increase customer loyalty? improve my business resilience? attract new customers? save money ?
- 11. Innovation inspired by nature Biomimicry From biology to business Life on earth has been around for 3.8 billion years. We are a very young species. Humans have been here for about 0,007 % of that timespan. We are frantically looking for successful ways to live sustainably on this planet. We can learn a great deal by looking closely at the sustainable world that is already out there. Together with other animals, plants, bacteria and fungi we face the very same planetary limits and boundaries and share a common goal: to survive. Imitating the way nature works to find sustainable solutions to human challenges is called biomimicry; bios = life and mimesis = imitation. Nature provides a vast yet largely unexplored library of efficient designs, materials, processes and strategies that have been time-tested through natural selection. We learnt how to design aerodynamic high-speed trains by studying the odd shaped beak of the Kingfisher bird. We learnt how to create powerful waterproof glues by closely looking at blue mussels attached to underwater rocks. Or we learnt how to create efficient transportation networks by studying foraging leaf-cutter ants or travelling slime moulds. All plants, animals, bacteria and fungi have evolved by a set of simple yet effective design principles to continuously adapt to changing environments. We can see that all life makes use of locally available and renewable resources and energy, relentlessly recycles all materials and builds resilient long-term ecosystems on which life is ultimately reliant. Life creates conditions conducive to life. The Resilience Design Cards are based on these successful design principles found in nature. They suggest ways to be more sustainable, successful and how to innovate continually to find your fittest solution. 10
- 12. Curious to see examples of biomimicry in action? Have a look at the back of the Resilience Design Cards or check out the online repository for inspiring cases. « After 3.8 billion yearsof evolution, nature haslearned what works, whatis appropriate, and whatlasts here on earth. » Janine Benyus « Life is a property ofplanets rather than ofindividual organisms. » Harold Morowitz « The architect of thefuture will build imitatingnature, for it is the mostrational, long-lasting andeconomical of all methods.» Antonio Gaudi 3.800.000.000 195.000 180 years ago: first life on earth years ago: first homo sapiens sapiens years ago: industrial revolution 11
- 13. Resilience thinking Resilience is about the capacity to adapt and thrive under changing conditions. Planet Earth has some pretty strict quality standards; more than 99% of species that have ever lived are now extinct. The fittest living systems do not only make the most optimal use of energy and materials but are also best equipped to adapt to change. Living organisms and systems are masters at adaptation. A healthy human body has an impressive arsenal of immune cells that protect us from a wide variety of viral and bacterial attacks. In the very same way, a mature forest has built-in failsafe mechanisms that keeps the ecosystem healthy during seasonal fluctuations or forest fires. In fact both the human body and a forest often grow stronger and more resilient due to these disturbances. Resilience thinking is systems thinking To design for resilience is to design the conditions for an organisation to adapt and change when needed. We can learn a great deal by looking at successful strategies found in nature. In nature, resilience is built upon the interdependence between living organisms in local ecosystems. If my health depends on yours, then I will go to great lengths to look after your wellbeing. Resilience is also built on diversity and redundancy as each unpredictable disturbance requires a different response. When one solution fails or performs poorly, others can step in to compensate. An ecosystem with a rich biodiversity is often a resilient system. Business resilience Our world is becoming increasingly more turbulent. Transparency and agility have become important in a world connected by ever-faster technology. On a planet with 7 billion people, pressure on natural resources is rising and human activity is changing weather patterns. Consumer preferences are shifting as we are better informed, grow older and are concerned about our health. Resilience is not about responding to incidental changes, it's about continuously anticipating and adapting to changes that are happing ever faster. Resilience is about adapting before circumstances force you to. Sustainable business resilience is about the capacity to anticipate, adapt and learn. The ability to operate more efficiently and circular without using fossil fuels will define winners and losers in business. « Life is interdependence.There is no such thingas living separate. Thatis what we inherit, that’swhat all species inherit. » Peter Senge 12
- 14. Source: Gilles Hutchins, The Nature of Business Anticipate, adapt and learn. An organisation responsive to change uses disturbances to develop and grow. It understands the business ecosystem in which it operates and works together with stakeholders to build long-lasting conditions that create win-win conditions for all. Firm of the past Firm of the future Independent Synergistic Competitive Collaborative Controlled Conducive Closed-source Open-source Stable Dynamic Maximizes/Minimizes Optimizes Resists change Leverages diversity Linear Networked Short-term Long-term Function fits form Form fits function Proactive, planned Responsive, emergent Self-focused System-focused Exploitation Mutualism Avoids disturbance Leverages disturbance Manages risks Fosters resilience Protects Adapts Forces Fits How the Resilience Design Toolkit was made The Resilience Design Cards reflect the best available techniques found in nature, translated from biology to bussiness language. The cards start with very practical principles (design out waste, minimise energy use), to more strategic and organisational principles (use diversity, co-create with partners). They help you build resilient companies that are more sustainably and responsive to change. « New problems demand new principles. Put bluntly, there’s simply no way to build tomorrow’s essential organizational capabilities—resilience, innovation and employee engagement—atop the scaffolding of 20th century management principles. » Gary Hamel « With survival of thefittest, Darwin meant"better adapted to thelocal environment" ratherthan "best physical shape"much like a puzzle piecerather than an athlete. » « We can’t solve problems by using the same kind of thinking we used when creating them. » Einstein 13
- 15. Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist.* 14 * Kenneth Boulding, Economist, philosopher and systems theorist
- 16. « It’s going to take all of us. It’s going to take forever. And that is the point. » William Mcdonough 15
- 17. Not included: 1.000.000 Post-its A motivated and diverse team 10 liters of coffee or tea what is in the toolkit? The Resilience Design Toolkit contains various elements to help you design resilient business models 16
- 18. 1Business Model Canvas The Business Model Canvas is an open source tool for sketching business models. 30Resilience Design Cards Each card features a Resilience Design Principle. Go to page 20 for more details. 30Resilience Design Magnets The post-it size magnets help you map your ideas on the Business Model Canvas. 1Resilience Principles Map All the resilience principles and their connections in one single map. 1Online repository of inspiring business examples Go to short.resilientweb.eu/repository se of energy & water quantityo fe nergy& anywhere in your ecosystem know where most energ y andw ater is used life cycleo fo ur products?D ow em onito r andw ateru sagei no ur activities? Could w er educeo ur unit pricet oc ustom ers hm oree nergy a nd watere fficiency? Could we help ourc ustom ers reduc e theirw ater and usage ? Could w ew ork witho ur partn ers to help reduc e theirs ? minimizeu se of energy & water Minimize the quantityo fe nergy& water used anywhere in your ecosystem Do we know where most energ y andw ater is used in the life cycleo fo ur products?D ow em onito r energ y andw ateru sagei no ur activities? Could w er educeo ur unit pricet oc ustom ers throu ghm oree nergy a nd watere fficiency? Could we help ourc ustom ers reduc e theirw ater and energ y usage ? Could w ew ork witho ur partn ers to help reduc e theirs ? 1 3# 2 optf or disassembly Design fore asy disassembly&t hink circular Do we des igno ur pro duc ts to be easily disa ssembledi ntoi ndividu al com pon entsa tt he end o ft heir life? D ow eu se as little d ifferent kind s of materialsa sp ossible in our p rod ucts ? Cou ldw e take b ack use d pro duc ts or com pon ents forr e-m anu fact ure( reve rsel ogis tics)? Cou ldo ur clientsd isas sem ble and r e-as sem ble our p rod ucts themse lves ? 11 7 10 4 keep watcho ny our (eco)system Creativelyu se andr espondt o information'sf eedbacksa nd changes Arew ew ell informed aboutc hangesi no ur environment? Newt echnologies? Changing customersp references?R egulations? Do we understandi ts impacts? How could we better adapta nd benefit from change?H ow could we better integrate the unexpected?C ould we adaptf astert hrough self- 27 26#28 WASTE = INPUT & SUPPLY LOCAL SOURCING OPT FOR REPAIRABILITY CO-CREATE WITH SUPPLIERS & CLIENTS MULTIPLE REVENUE STREAMS 17
- 19. A closer look at … Each card features probing questions, suggestions, links and examples. 42 31 There are 3 types of cards Products & Services, Materials & Processes and Finance & Organisation. Links to other cards that are worthwhile considering Suggestions to blocks of the Business Model Canvas where you could apply the principle Probing questions for your business. Are we…? Could we maybe…? 18
- 20. a Resilience Design Card 7 5 6 A business example that illustrates the resilience principle Possible benefits for your business Scan the QR code and visit the online repository with more inspiring business cases and helpful tools. 19
- 21. 3 types 3 colours The Resilience Design Cards come in three colours; each colour refers to specific aspects of your company. Products & services Consider the way you design your products and services. Think modular, transparency and functionality. Materials & production Consider the energy, water and materials you are using in your processes and products. Think local, renewable and circular. Finance & organisation Consider how you organise your company and how you collaborate with others. Think multiple revenue streams, co- creation and use diversity. products&services finance & org anisation materials& production 20
- 22. The Resilience Principles Map The 30 Resilience Design Cards in 1 single map When, for example, you want to design out waste and see ‘waste = input’ than you might also want to have a look at card 11 ‘opt for disassembly’ or card 6 ‘local sourcing and supply’. Profit for a company islike oxygen for a person. Ifyou don't have enough ofit, you're out of the game.But if you think your lifeis about breathing, you'rereally missing something. Peter Drucker The Resilience Principles Map shows you how the principles are connected in one single poster. A larger Resilience Principle has more links with other cards. You are more likely to come across these cards. 21
- 23. The Business Model Canvas The 9 building blocks of the Business Model Canvas The Business Model Canvas (BMC) is a practical tool to describe, design and challenge your business model. This open source tool has been built by Alex Osterwalder and Yves Pigneur. Visit www.businessmodelgeneration.com for more info. Key Partners Key partners make up the network that surround the business and make its activities possible. Key Activities The acts the company must take for its business model to work. Key Resources The assets that are essential for producing the value proposition. Value Proposition It seeks to solve customer problems and satisfy needs with value propositions. Something useful for the customer that the organization can deliver. 22
- 24. Customer Relationships The type of customer relationship will deeply influence the customer experience. Customer Segments An organization serves one or several Customer Segments. Grouped by needs, relationship, interests, profit and distribution channel. Channels Value propositions are delivered through communication, distribution and sales Channels. How the organization’s value proposition reaches the customer. Revenue Streams The customer section generates cash for the business. Cost Structure Account for all costs inherent to the business model. 23
- 25. The Business Model of a TREE IF a tree would have a business model than it would look like this. Over millions of years of evolution a tree has developed a remarkable value proposition and build successful symbiotic partnerships. The Value Proposition of a tree is multi-functional. A tree provides fresh oxygen, food, shelter, soil stability and health, clean water, shade and beauty. The Key Activities of a tree are growth, repair, reshuffle information (DNA) and reproduce. It ensures that all resources are recycled in the most optimal manner… Key Resources are very very local CO2, sunlight, water, nutrients Key local Partners includes pretty much all of its customer like other trees and plants, insects, fungi and animals but also natural elements like wind, fire and rain. 24
- 26. Customer Segments & Relationships A tree co-creates ideal living conditions for itself and its customers that come to live or feed like birds, insects, humans or other mammals, fungi and plants. Channels The tree attracts its customers via flowers, fruits and smell. All packaging is biodegradable. Cost Structure A tree needs to grow, repair and reproduce - for that it needs building materials and energy. Revenues Stream A tree is engaged is various transactions with it key partners and customers. It offers shelter and food for animals, in return they disperse the seeds. A tree exchanges water for nutriments with a powerful underground fungi network. 25
- 27. Techniques Workshop techniques Workflow 1. Let’s go outside! 2. Discover! 3. Build on your strengths 4. Improve your weaknesses 5. Solving a problem 6. Integrate your externalities 7. Create resilient project 8. Build a vision for resilience and sustainability Examples 1. Waste = input 2. Sell functionality 3. Mimic biological design 4. Co-create with suppliers & clients 5. Build a common purpose Wanne play? To go further The ResilieNtWEB story What we are reading? 3 4 5
- 29. The Resilience Design Game Wanne play? Do you want to experience how to run a successful and sustainable business in an exciting and playful way? Learn how to build resilience business ecosystems through the Resilience Design Business Game. Do you have what it takes to develop new business solutions that will amaze and inspire other players? How will you adapt your strategy in face of challenging changes in your environment? Work together as a team and learn how to build a strategy, invest wisely, gather the brightest ideas, work together with other businesses and grow a circular economy. The Resilience Design Game is a business game for students, entrepreneurs en intrapreneurs that want to experience first-hand how it is to run a business in the economy of the future. The game can be played with 6 up to 12 players and takes about 2 hours. For more information, contact one of the project partners near you. SymbioVille 55
- 30. The ResilieNtWEB story The Resilience Design Toolkit, Guide, Resilience Scan and Game have been developed by the ResilieNtWEB project, financed by the European Interreg IVB program. ResilieNtWEB uses sustainability as a winning business strategy for small and medium sized companies. Through our business networks, we support enterprises to become more innovative and sustainable in the continuously changing environmental, economic and social context. The program brings together the expertise of organisations from Belgium, Luxembourg, north of France and south of England. The tools developed within this project are the result of the combined expertise, creativity and endurance of the project partners and more than 60 companies with which we worked together over the course of three exiting years. The project has been piloted by Brussels Environment and Greenloop. 57