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Working towards the weconomy

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Working towards the weconomy

  1. 1. Tempo HEISwedbank ConferenceVilnius (D)25.04.13Prof. Dr. Jan JonkerNijmegen School of ManagementRadboud University NijmegenThe NetherlandsWORKING TOWARDS THE WECONOMYSustainable Development as part of ourBusiness ModelsWe live in Exciting TimesChange – Transformation – TransitionHave become the key-words of our societyWelcomeBob Dylan Got it Right …
  2. 2. Societal “Bubble Bursts”At the beginning of this 21st Century we have encountered five“crises” … (so far …).[1] Safety[2] Trust[3] Commodities[4] Money[5] GovernanceWelcome to the “Risk Society”. …Entangled Debates:(CSR – SD – SR – CE etc.)(a) Global Warming: temperature and its long term effects;(b) Poverty: balance in access and distribution to basic values (food, education,technology);(c) Depletion: speed use of natural sources (oil, water, iron);(d) Management (profit): governance, social contribution, responsibility;(e) Institutions: governance, distribution of power and wealth, democracyAny of these (often loosely coupled) global debates can be focused on eitherthe business enterprise, consumers, governments or other stakeholders.
  3. 3. NGO’sCivil SocietyPrivate SectorFundamental changes between institutionsSocial WelfarePublic PolicyPay taxes , obeylawsEmploy peoplehelp solve socialchallengesact responsiblyDeregulation,downsizing. SocialReturn and –impact -redistribute wealthBe a partner inaddressing socialproblemsPublic SectorMoving from a care society to a self-care society©BradGoogins,Berlin,2006)Process of Sustainable Development (SD)OCF - Gro Harlem Brundtland (1987)“... sustainable development is not a fixedstate of harmony, but rather a process ofchange in which the exploitation ofresources, the direction of investments, theorientation of technological development,and institutional change are madeconsistent with future as well as presentneeds.” (1987)
  4. 4. Levels of Change (1)Sustainable [Societal] Developmentimpoverishment- depleting investing +return tonaturehumanfocuseddevelopmentsustainable[societal]developmentecological & material capital-depleting© Thomas N. Gladwin - ‘Mastering Strategy’ - 2000investing+humanandsocialcapital
  5. 5. Signs of a ‘New’ EconomyA different (w)economy… in progress …
  6. 6. Wicked Questions?Copyright Robert E. Horn, 2007Levels of Change (2)
  7. 7. Living in an organised societyRole of Business?“The debates address political and socialissues that exceed the mandate andcapabilities of any corporation, alone. At thesame time, in the present global political andsocietal ‘landscape’, corporations are the onlyinstitutions with the resources, thetechnology, the global reach and ultimatelythe motivation to achieve SD through CSR.”Taken from: Stuart Hart, in: Elkington, J. (1999). Cannibals withForks. Oxford (UK): Capstone Publishing
  8. 8. Value CreationPeople Planet Profit (PPP)Elkington (1998)Organisations: Red, Green or Blueorganisationalgainenvironmentalgainsoc-envgainclosed ‘systems’shareholderseco-efficiencycontrol-managementsingle value creationcomplianceindustrial ecologystakeholderseco-efficacityrisk-managementmultiple value creationreduction‘Hub’s, COP’s & networksConstituentseco-innovationcommunity-managementshared value creationco-creationConventionalorganisationEnvironmentalorganisationSocietalorganisation
  9. 9. Changing Course:re-thinking collaboration conceptsWicked challengesEinstein got it right too18
  10. 10. Organisational ecologyLevels of Change (3)
  11. 11. The Bottom-line QuestionsHow can we organize sustainabilityLandscape of ‘wicked questions’:(1) Changing nature value creation(2) New strategic choices(3) Exploring new business models.Generic Business ModelAdopted from Ostenwalder, A. (2004). The Business Model Ontology’PhD manuscript, free downloadable at www.hec.unil.ch
  12. 12. Changing the way we organise:value creation …instead of destructionOrganising sustainability implies to create multiple values (MVC)This can only be organised and shared in a collective way.Copyright Keith HaringThree notions of Value Creation
  13. 13. Emerging Strategies for SustainabilityBoundaries are blurred!PLANETEco - efficiencyEco – efficacityEco – innovationPEOPLECommunity buildingCooperativesSocial EntrepreneurshipPeer to Peer BusinessDescribing and exploring these strategies will be the subject of a 2014/2015Working Paper (?) entitled “Creating the WEconomy: Strategizing Multiple,Collective and Shared Value-creation”PROFITBottom of the Pyramid (BOP)Micro-creditCrowd-fundingCommunity-investment
  14. 14. Value creation:five elementsJonker (2012) based on Shafer et al. 2005 & Simanis en Hart2011BusinessIntimacy:TrustCharacteristics NBM’s1.Principle of shared value creation2.Collective organising (organisational ecology)3.Money not only medium of exchange4.Focused on use and needs – not on property5.From ownership to access6.Long term commitment (governance)7.Contribution to the WEconomy (circular economy)
  15. 15. The Pyramid and the Pancake4 types of business modelsOrganisinghorizontallyOrganisingVerticallyThe WEconomy is ...Creating together value that is of valueNewBusinessModels
  16. 16. Trends(careful)• Making progress towards a ‘new’ economy• From organising SD IN towards BETWEEN organisations• From ‘buying’ toward collective organising (coöperative)• From global to local/regional connected with networks• Van ‘cost’ to ‘profit’ ... based on an array of value’sClosureDid Kermit got it right?Thank you for your attentionWelcome to the WEconomy
  17. 17. ContactProfessor Dr. Jan JonkerProfessor Corporate Sustainability, research fellow andconsultantNijmegen School of Management, Radboud UniversityNijmegen, PO BOX 9108, 6500 HK Nijmegen, TheNetherlands(em) janjonker@mobile.me (or) j.jonker@fm.ru.nlLinkedIn: see public profile. Standing invitation toconnect through janjonker@wxs.nl