Four Steps to Sustainable Business Model Innovation

We have entered a new era for business in which sustaining competitive advantage requires companies to transform their business models for sustainability. As a result, leaders need a systemic understanding of sustainability challenges-and how their companies can play a part in addressing them. The authors-current and former senior consultants at Boston Consulting Group-introduce the concept of Sustainable Business Model Innovation (SBMI) and the four steps required to achieve it: Expand the business canvas; innovate for resilience; link to drivers of value; and scale the initiative. Many examples of companies large (3M, BASF, PepsiCo) and small (Ajinomoto, Indigo AG, Veolia) that have achieved SBMI are provided throughout. In the end, the authors show that it is not only possible-but increasingly critical-to create social and business value with one business model.