Green Entrepreneurship

Transcription

1 Green Entrepreneurship German Embassy Green Economy Cycle (GEGEC) Workshop on Incubating Sustainability 29 th November 2017, Nairobi, Kenya Dr. Michael Prange TUHH Institute TIM (W7) Am Schwarzenberg Campus Hamburg GERMANY michael.prange@tuhh.de

2 Schedule Introduction to Green Innovation Discussion in focus groups Presentation of the findings Dr. Ing. Michael Prange 2

3 Green Entrepreneurship Dr. Ing. Michael Prange 3

4 Agenda 1. Business Ideas for Green Entrepreneurship 2. Business model representation and patterns 3. Shared economy and platform business 4. Industry 4.0 and the Internet of Things 5. Digitalization of the Global Value Chains Dr. Ing. Michael Prange 4

5 Green Entrepreneurship Green Entrepreneurship defines innovative entrepreneurship in the field of Green Business as well as Startups in the field of Green Technologies. Alternative terms: Ecopreneurship, Sustainable Entrepreneurship A business model describes the rationale of how an organization creates, delivers and captures value. A business model pattern describes business models with similar characteristics, similar arrangements of building blocks or similar behaviors. Dr. Ing. Michael Prange 5

6 Innovative business ideas An innovative business idea is based on a new product or a new service, which is not yet known in the market and their needs are difficult to estimate. Various design techniques can be used to design suitable business models for innovative business ideas: Customer Insights Ideation Visual Thinking Prototyping Storytelling Scenarios Dr. Ing. Michael Prange 6

7 Ideation Basic attitude for idea generation: Ignore the status quo Forget the past Stop focusing on competitors Challenge orthodoxies Epicenters of business model innovation: Resource driven Offer driven Customer driven Finance driven Multi Epicenter driven Challenge conventional assumptions with what if questions Dr. Ing. Michael Prange 7

8 Green Business Ideas Drip irrigation systems Green online product marketplace Eco landscaping Carbon dioxide capture Biodegradable plastic Waste/trash to energy Integrating sensors in agriculture Data center cooling Advanced thermostat systems Solar water heating Cool roofing installation Green building home supply store Green cement Modular home building Solar panel installer Green car dealership Dr. Ing. Michael Prange 8

9 Green Business Ideas Advanced lighting systems Green cleaning supplies Green business grant writer Carbon offset exchange Green remodeler Green laundromat Electric car charging stations Sustainable fishery Ecotourism Organic farming Organic restaurateur Green builder Environmental accountant Green office advisor Recycling operator ISO consultant Dr. Ing. Michael Prange 9

10 Green Business Ideas Home heating/cooling systems Heat pump installer Solar panel servicer Green college and MBA programs Water purifying systems Green chemistry Social financing Clean coal Biodiesel producer Eco friendly pest control Wind turbine technician Water & electricity consumption tracking Alternative transportation and shipping services Home eco gardening supplies Dr. Ing. Michael Prange 10

11 Example: Smart Hydro Power GmbH German company located in Feldafing (near to Munich) Mini hydroelectric power plant with 5 kw turbine Energy management system with battery storage Micro grid with auxiliary devices, e.g. pumps, water purification or cooling Connector for the national grid Dr. Ing. Michael Prange 11

12 Example: ubitricity GmbH German company located in Berlin Cost efficient charging infrastructure for electric cars Mobile electric meters with charging cable Communications platform for transaction based billing Dr. Ing. Michael Prange 12

13 Example: Nest Labs, Inc. American company located in Palo Alto (California) since 2010 Building automation system for energy efficiency and security Thermostats, smoke detectors and webcams Device control over Internet and smartphones Usability and design unique selling proposition Acquisition by Google in 2014 Dr. Ing. Michael Prange 13

14 Representation of business models A representation of a business model must cover the main areas of a business: Customers Offer Infrastructure Finance Business Model Canvas allow a structured representation and visualization of business ideas and business models. Dr. Ing. Michael Prange 14

15 Business Model Canvas Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Dr. Ing. Michael Prange 15

16 Building blocks of business models 1. Customer Segments 2. Value Propositions 3. Channels 4. Customer Relationships 5. Revenue Streams 6. Key Resources 7. Key Activities 8. Key Partnerships 9. Cost Structure Dr. Ing. Michael Prange 16

17 Example: Strategies of Daimler and CAR2GO Daimler ( is an international automobile manufacturer with an annual revenue exceeding 136 billion Euro through sales of more than 2 million vehicles. Car2go ( is a startup business offering city dwellers mobility on demand using a citywide fleet of Smart cars. Both companies have different business strategies to offer their customers individual mobility. Therefore they use different business models. Dr. Ing. Michael Prange 17

18 Example: Daimler Business Model Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Car Parts Manufacturers Manufacturing Design Cars, Trucks, Vans, Busses, Financial Services Mainly High End Brands Mass market Key Resources Channels Vehicle Plants Dealers Intellectual Property Sales Force Brands Cost Structure Revenue Streams Marketing + Sales R & D Manufacturing Vehicle Sales Vehicle Financing Dr. Ing. Michael Prange 18

19 Example: CAR2GO Business Model Key Partners Key Activities Value Propositions Customer Relationships Customer Segments City Management Fleet Management Individual urban mobility without car ownership One off Sign up City Dwellers Telematics Cleaning Key Resources Channels Service team CAR2GO.COM Telematics Systems Mobile phone CAR2GO shops Parking lots Car fleet Cost Structure Revenue Streams Systems Management Fleet Management Pay per minute Dr. Ing. Michael Prange 19

20 Business model patterns Business models with similar characteristics, similar arrangements of building blocks or similar behaviors can be described by business model patterns. Some important concepts of business model patterns are: 1. Unbundling business models 2. Long Tail 3. Multi Sided Platforms 4. FREE as a business model 5. Open business models Dr. Ing. Michael Prange 20

21 Example: Unbundling business model Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Product & service innovation Infrastructure management Infrastructure Manage R&D Customer acquisition Key Resources Infrastructure services Product &service innovation Highly service oriented Channels Strong relationships, acquisition & retention B2B B2C / B2B Customer focused Large volume Strong channels Talent pool Customer base Cost Structure Revenue Streams High fixed costs High employee costs High costs of customer acquisition Commodities pricing Premium pricing Large share of wallet Dr. Ing. Michael Prange 21

22 Example: Long Tail business model Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Niche content providers Platform management Large scope of niche content Many niche segments User generated content Service provisioning Content production tools Niche content providers Key Resources Platform Channels Internet Cost Structure Revenue Streams Platform management & development Selling less of more Dr. Ing. Michael Prange 22

23 Example: Multi Sided Platform Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Platform management Value proposition 1 Customer segment 1 Service provisioning Value proposition 2 Customer segment 2 Key Resources Value proposition 3 Channels Customer segment 3 Platform Cost Structure Revenue Streams Platform management & development Possible revenue flow subsidy Revenue flow 3 Revenue flow 1 Revenue flow 2 Dr. Ing. Michael Prange 23

24 Example: FREE as a business model Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Infrastructure development & maintenance Premium service Free basic service Automated & mass customized Small base of paying users Large base of free users Key Resources Channels Platform Cost Structure Revenue Streams Fixed costs Cost of service for premium users Cost of service for free users Paid premium services Free basic services Dr. Ing. Michael Prange 24

25 Example: Open business model Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Innovation partners Screening Sell innovation Secondary market Research community Managing networks Exploring market Key Resources R&D results Unused intellectual property Channels Licensees Innovation customers Screening capabilities Buy innovation Internet platforms Access to innovation network Cost Structure Revenue Streams Externalizing development costs Spin off Sales divestiture License fees Dr. Ing. Michael Prange 25

26 Strategy development In practice there is not only a single business model, there are really a lot of opportunities and options that have to be discovered. The environment and framework of a business model must be considered for the strategy development of the company: Key trends Industry forces Market forces Macro economic forces The strategy development process leads to the value proposition architecture of the company. The evaluation of the value proposition architecture by creating new and innovative business models is a permanent process. Dr. Ing. Michael Prange 26

27 Example: Sharing Economy Source: Business Model Toolbox (2017) Dr. Ing. Michael Prange 27

28 Example: Hook & Bait Source: Business Model Toolbox (2017) Dr. Ing. Michael Prange 28

29 Example: Freemium Source: Business Model Toolbox (2017) Dr. Ing. Michael Prange 29

30 Example: Subscription Source: Business Model Toolbox (2017) Dr. Ing. Michael Prange 30

31 Example: Customer Data Monetarization Source: Business Model Toolbox (2017) Dr. Ing. Michael Prange 31

32 Digitalization Digitalization is the transformation of business models and processes due to the use of information and communication technologies: Electronic collection and evaluation of data Autonomously working, self organizing systems (automation) Networking and synchronization of previously separate activities (networks) Digital mobile access to the Internet and internal networks (infrastructure) Digitalization permeates almost all areas of life (production, purchasing, distribution, traffic, health, education, housing, leisure,...) The impact of digitalization on industrial value creation and production is described by the term Industry 4.0. Dr. Ing. Michael Prange 32

33 Industry 4.0 The term Industry 4.0 stands for the fourth industrial revolution, a new level of organization and control of the entire value chain over the life cycle of products. The combination of people, objects and systems creates dynamic, real timeoptimized and self organizing, cross company value creation networks that can be optimized according to different criteria. Dr. Ing. Michael Prange 33

34 Internet of Things The Internet of Things links the real, physical world with the virtual, digital world through cyber physical systems and supports the integration of products, production facilities and objects with embedded software into intelligent and distributed systems. Source: Deutsche Messe (2016) Dr. Ing. Michael Prange 34

35 Scheme of a value chain Dr. Ing. Michael Prange 35

36 Global value creation network Source: Hewlett Packard (2013) Dr. Ing. Michael Prange 36

37 Discussion in focus groups Dr. Ing. Michael Prange 37

38 Discussion in focus groups Green Economy through Kenyan German Open Innovation Networks Kenya s Future Role and Value Propositions in the Global Value Chains Shared Economy and Platform Business for Logistics and Transport Green Innovation and Technologies in the Agricultural Sector Cooperation and Know how transfer between Academia and Industry Dr. Ing. Michael Prange 38

39 Presentation of the findings Dr. Ing. Michael Prange 39

40 Presentation of the findings Green Economy through Kenyan German Open Innovation Networks Kenya s Future Role and Value Propositions in the Global Value Chains Shared Economy and Platform Business for Logistics and Transport Green Innovation and Technologies in the Agricultural Sector Cooperation and Know how transfer between Academia and Industry Dr. Ing. Michael Prange 40