Sustainable Business Models

According to Dolesky, the complexity and dynamism of modern business environments have led to companies needing powerful tools that translate all relevant aspects into a comprehensive solution. Old business models do not offer the broad solutions needed for so many different, complex, and changing environments. Business complexity continues to grow with new business models, channels, competitors, and customer needs that drive performance expectations. These areas require excellence and innovation in planning and execution across all business functions. This complexity is visible both in the variety of use cases that require an analytic view, and in the speed and relevance of how analytics teams must deliver those insights

In the context of the business model, the “model” is the abstract representation of how an organization’s business activities work, and “business” can be understood as the structured transformation of input factors into products and services. A business model provides a simplified representation of value-creation processes, roles, and interactions to create customer value by ensuring competitive advantage and generating revenue, using a comprehensive aggregated picture of reality that can integrate political, legal, economic, sociocultural, technological, and ecological aspects into the transparent architecture to manage complexity

According to Alegre and Berbegal-Mirabent, business models provide a consistent and integrated picture of a company, describing the rationale for how an organization creates, delivers, and assesses value captures, and identifying the elements and relationships that describe how the business operates.

The conceptual model describes the value that a company provides to customers and its partner network to create, sell, and deliver that value to generate profitable revenue streams

The conceptual approach to business models is presented in different ways in the literature. However, three main value-based elements can be distinguished: value proposition, value creation and delivery, and value capture

A business model is projected through the perception of customers with unsatisfied (or unmet) needs. Successful projection provides a product or service to the customer who is willing to pay more for that product or service. The customer thus covers all costs and generates enough profit to sustain the business and its growth

A business model is defined by three main elements: value proposition, value creation and delivery, and value capture. Creating value is at the heart of any business model. Companies often capture value by taking advantage of new business opportunities, markets, and revenue streams

From the literature, the authors identified that the primary objective of establishing a sustainable business model is environmental issues, but achieving economic performance and gaining market share increase competition among companies. The authors also identified that increasing financial performance results in the development of a competitive business model

Another important point for the sustainable business model is the environmental issue. Therefore, it seems logical that environmental thinking should be included in the business model and that it should be the object of business model innovation

The technical innovations associated with Industry 4.0 offer the possibility to adapt existing business models or develop new ones. Furthermore, other companies can enter the market and influence the value chain. For business models to adapt, data must be stored in such a way that suppliers and manufacturers are functionally integrated into the value chain

Müller et al.consider that the business model concept thereby generates an understanding of how organizations can use Industry 4.0 to provide value offerings and appropriate pricing models to their customers.

Industry 4.0 offers potential for new and innovative business models. However, established manufacturing firms tend to be more oriented towards improving the efficiency of their processes through Industry 4.0

Industry 4.0 is increasingly being explored by academics, researchers, practitioners, and other relevant stakeholders. The idea of Industry 4.0 is supported by the advancement of information and communication technologies (ICTs) and data storage

Sustainable business models are very helpful to Industry 4.0, which can be conceptualized as a new stage of industrial maturity for product firms, based on the connectivity provided by the industrial Internet of Things, where the products and processes of companies are interconnected and integrated to obtain greater value for customers and internal company processes

Due to the growing concerns about sustainability summarized in the UN’s Sustainable Development Goals, sustainable business models are of interest to researchers and companies. Adopted by all UN member states in 2015, the Sustainable Development Goals provide that all countries should promote prosperity while protecting the environment, social needs, equality, and employment opportunity, combating climate change and preserving nature. Thus, sustainable business models incorporate the creation of monetary and nonmonetary value into this framework for a wide range of stakeholders from a long-term perspective

One of the differences between conventional and sustainable business modelsis that sustainable business models allow for a holistic view of how business is conducted, considering the interests of shareholders and environmental and social sustainability metrics. According to Bocken et al., their importance also lies in driving and implementing corporate innovation for sustainability, helping it to be incorporated into both corporate purposes and business processes, contributing to the achievement of a competitive advantage.

Due to the growth of academic and business interest in sustainable business models, Geissdoerfer et al.conducted a literature review on the topic. According to the authors’ definitions, sustainable business models are a modification of the conventional business model concept that incorporates concepts, principles, or goals that aim to integrate sustainability into its value proposition, value creation, and delivery activities, and/or value-capture mechanisms

According to Bocken et al., sustainable business models incorporate in their financial considerations the interests of the involved parties, including those concerning the environment and society, thus differentiating themselves from the concept of the business model, which only considers the cost structure and the revenue stream in its financial considerations.

4. Business Model Canvas and Sustainable Business Model

[26] developed a doctoral thesis in 2004 titled The Business Model Ontology–the Proposition in a Design Science Approach, under the supervision of Yves Pigneur; the objective was to approach the concept of business models ontologically to provide the basis for new management tools. Based on their thesis, Osterwalder and Pigneur [12] launched the book Business Model Generation, presenting the Business Model Canvas for the first time; according to Burkett [27], it offers a simple, visual, and one-page canvas on which it is possible to design, innovate, and discuss business models.

Osterwalderdeveloped a doctoral thesis in 2004 titled The Business Model Ontology–the Proposition in a Design Science Approach, under the supervision of Yves Pigneur; the objective was to approach the concept of business models ontologically to provide the basis for new management tools. Based on their thesis, Osterwalder and Pigneurlaunched the book Business Model Generation, presenting the Business Model Canvas for the first time; according to Burkett, it offers a simple, visual, and one-page canvas on which it is possible to design, innovate, and discuss business models.

[12], the business model represents parts of the planned strategy to be implemented within their organizational structures, processes, and interdependent systems.

For Osterwalder and Pigneur, the business model represents parts of the planned strategy to be implemented within their organizational structures, processes, and interdependent systems.

[2][26] developed a study evaluating and comparing the most common construction models in the literature, and on that basis identified the most frequently mentioned components. The result of this research consisted of a synthesis with nine building blocks, covering all components of the business models mentioned by at least two authors, excluding elements related to competitors.

Osterwalderdeveloped a study evaluating and comparing the most common construction models in the literature, and on that basis identified the most frequently mentioned components. The result of this research consisted of a synthesis with nine building blocks, covering all components of the business models mentioned by at least two authors, excluding elements related to competitors.

[28].

The aim of the authors in developing the business model canvas was to allow anyone interested to create or modify a business model, since its screen has a clear language, allowing for the exchange of ideas among those involved in the business modeling process

Figure 1 shows the interaction among business model canvas blocks.

Figure 1. Business model canvas blocks. Source: Based on Osterwalder and Pigneur [12].

Business model canvas blocks. Source: Based on Osterwalder and Pigneur

Figure 1, five blocks of the business model refer to the external aspects, namely, value proposition, customer relationship, customer segment, channels, and revenue stream, while the others refer to the internal aspects: key activities, key partners, key resources, and cost structure. Bocken [18] considers that the first groupings of the best-known sustainable business models were oriented towards the combination of products and services such as leasing and renting. To expand this list and capture emerging practices in the field, archetypes of sustainable business models were developed and classified according to more technological, social, and organizational types [14].

According to, five blocks of the business model refer to the external aspects, namely, value proposition, customer relationship, customer segment, channels, and revenue stream, while the others refer to the internal aspects: key activities, key partners, key resources, and cost structure. Bockenconsiders that the first groupings of the best-known sustainable business models were oriented towards the combination of products and services such as leasing and renting. To expand this list and capture emerging practices in the field, archetypes of sustainable business models were developed and classified according to more technological, social, and organizational types

[29]. Figure 2 illustrates an example of this screen from the sustainable canvas business model.

To illustrate sustainable business models, different elaborations have emerged in recent years, such as the flourishing screen by Jones and Upward in 2014, and the screen of the sustainable business modelillustrates an example of this screen from the sustainable canvas business model.

Figure 2. Screen of sustainable business model canvas. Source: based on Bocken et al. [29], Osterwalder and Pigneur [12], and Richardson [30].

Screen of sustainable business model canvas. Source: based on Bocken et al., Osterwalder and Pigneur, and Richardson

Figure 2, three archetypes are incorporated into the conceptual business model of Osterwalder and Pigneur [12]. Thus, in the value proposition structure, the elements of profit, people, and planet appear, categorizing the holistic approach necessary to face the challenges of a sustainable future, focusing on environmental changes in parallel with economic and social changes [14].

According to, three archetypes are incorporated into the conceptual business model of Osterwalder and Pigneur. Thus, in the value proposition structure, the elements of profit, people, and planet appear, categorizing the holistic approach necessary to face the challenges of a sustainable future, focusing on environmental changes in parallel with economic and social changes

[18].

Sustainable business models use the triple base (people, profit, and planet) to measure the performance of companies, in addition to promoting environmental management in a systemic way, significantly impacting business growth prospects

Interest in the topic has expanded and is part of the agenda of companies, which, driven to incorporate within their values a positive contribution to sustainability, have begun to seek not only profit for their shareholders, but to face the challenges of development, considering social and environmental aspects.

[31]: (1) No poverty; (2) Zero hunger; (3) Good health and well-being; (4) Quality education; (5) Gender equality; (6) Clean water and sanitation; (7) Affordable and clean energy; (8) Decent work and economic growth; (9) Industry, Innovation, and Infrastructure; (10) Reduced inequality; (11) Sustainable cities and communities; (12) Responsible consumption and production; (13) Climate action; (14) Life below water; (15) Life on land; (16) Peace, justice and strong institutions and (17) Partnership for the goals.

The Sustainable Development Goals illustrated by the UN and faced by companies and by society in Brazil and globally are: (1) No poverty; (2) Zero hunger; (3) Good health and well-being; (4) Quality education; (5) Gender equality; (6) Clean water and sanitation; (7) Affordable and clean energy; (8) Decent work and economic growth; (9) Industry, Innovation, and Infrastructure; (10) Reduced inequality; (11) Sustainable cities and communities; (12) Responsible consumption and production; (13) Climate action; (14) Life below water; (15) Life on land; (16) Peace, justice and strong institutions and (17) Partnership for the goals.

[31]. Launched in 2015, the 2030 Agenda is the joint work of governments, companies, and citizens towards the creation of a new sustainable global socioenvironmental model.

Sustainable Development Goals drive global actions to eradicate poverty and protect the environment and the climate, guaranteeing people everywhere the possibility of enjoying peace and prosperity. Launched in 2015, the 2030 Agenda is the joint work of governments, companies, and citizens towards the creation of a new sustainable global socioenvironmental model.