1、Business models for doing well and doing good,EMC Feb 11 2011 Prof. Morten Hansen,Agenda,Whats wrong with CSR today Key issues, by industry Business models for doing well and doing good Taxonomy,Whats wrong with CSR,Generic list of 100 items Not linked to core business Not very important in company
2、VP of CSR/Sustainability Resolving key business issue often requires huge changes in core business CSR needs to be re-thought,Rethinking CSR,From 100-list to core business strategy From VP to CEO From CSR to Porters “CSV”-Creating Shared value From business models for making profits to business mode
3、ls for doing well and doing good; Its all in the “and” Requires 1) identifying core business issues, and 2) creating new business models,1. Identifying core business issue,Question: Whats the single most important social/environmental issue that the company should be concerned with?,2. Creating a ne
4、w business model (the hard part),Product strategyProcess strategyPeople strategy,Product Strategy,Portfolio: product-market composition Danone: shifting portfolioProducts themselves Improvements (e.g., food with less sodium) Segmentation,Product market segmentation,Premium segment- Costs extra, will
5、ing to pay more- Benefit: direct personal (eg healthy food, status) or indirect (save the planet)- Greenerprinter: “Dark Green”- Danone, healthy yogurts- 10-15% of a market,Product market segmentation,Light segment- Not willing to pay more, but will buy if social/environmental- Greenerprinter: “Ligh
6、t Green”- Customers will not offset extra costs,Product market segmentation,3) Good value, happens to be green/socialFavorable economics for customera) Pay more now, save more later- HydroPoint, Priusb) Good value right away - Zipcar, bike rental in Parisc) Lower price, because green/social reduced
7、costs- requires change in process,Process Strategy,Reduce resource use in company- Herman Miller chair 2) Product lifecycle approach- Reckitt Benckiser (detergent) 3) Supplier/Customer shared value- Improve total productivity(eg, from fair trade to better yield),People Strategy,Sustainability = talent attraction- People want to work for leading companies- Is this really the case? 2) Better social model = talent attraction- Work/life balance, daycare center, good environment, etc. - SAS Institute (Best place to work),
