In May 2014, Carina Millstone, visiting research fellow at the Global Development and Environment Institute at Tufts University discussed "What would business look like in a steady-state economy? in a Critical Theme seminar hosted by IIED. In the seminar, Millstone covered the nature and workings of individual private sector organisations in the steady-state economy, with a particular focus on purpose, products and business models. Her presentation consisted of early findings of research she is currently conducting on sustainable business practices. More details: http://www.iied.org/economics.

1. CARINA MILLSTONE
DESIGNING BUSINESS
FOR A CROWDED PLANET
21.05.14 IIED

2. The challenge of the crowded planet
The Planet The Crowd The Anthropocene
• Global steady-state
economy “sized”
within planetary limits
• Resource contraction
and convergence
• De-growth and
good growth
• Resilience

3. What does responsible business
look like on the crowded planet?

4. Business models
that require and
drive frugal products
and services
about my project
1. The purpose of business
2. The nature of products and services
3. Business models
4. Scale, place and growth
5. Ownership, profit and financing
6. Operations
7. The limits to business and alternatives
8. Transitions

5. “If I had asked people what they
wanted, they would have said faster
horses.” Henry Ford
1. the purpose of
business
Could business innovate to help meet
the challenge of the crowded planet?

6. On the crowded planet, business
innovates for frugality.
Efficiency
Sufficiency
Frugality
Requires innovation in
• Technology
• Organizations/
Institutions
• Behaviors/ Lifestyles
• Relations/ Society

7. Offering efficient and
sufficient products and
services to customers
Finding ways for making
such products and
services commercially
viable by developing…
Business models
that require and
drive frugal products
and services
Frugal innovation creates a new kind of
value.

8. On the crowded planet,
business offers efficient and
sufficient products
2. the nature of products and services

9. Products can be designed for frugality...
90%
10%

10. …through the incorporation of attributes
for efficiency and sufficiency.
PRODUC
TNaturally-
inspired
Humane
Job-
efficient
Operation
Skill-
supporting
Cultural
Function
Non-
proxy
Frugally-
normative
Lifelong
InfluenceDwindling
Streamlining
Path-
Independent

11. 3. business models for
frugality
On the crowded planet,
business models require and
drive frugal products and
services

12. creation of a
high-volume
of products
#1: the product creator and steward
creation and
stewarding of
frugal products

13. #2: the product retailer and sustainer
retail of
high-volume
of products
retail and
aftercare of
frugal products

14. #3: the product renter
rental of
selected products
broad rental of
frugal products

15. #4: the service provider
sales of products
and provision of
services
broad provision
of frugal services &
product services

16. #5: the product and service matchmaker
businesses
“doing business”
households
exchanging
amongst
themselves

17. models and product lifecycle

18. #1 Product Creator
#2 product retailer
#3 Product Renter
#4 Service Provider
#5 Product & Service
Matchmaker
PEER
END USER
sal
e,rental,service
s
ale s
ale
sal
e,rental,service
sal
e
retu
rn
rent
al
service
sale
PRODUCT
END USER
product flows today

19. models and product flows
#1 Product Creator
& Steward
#2 product retailer
& sustainer
#3 Product Renter
#4 Service Provider
#5 Product & Service
Matchmaker
PEER
END USER
sal
e,rental,service
s
ale
buy-
back
buy
-back s
ale
sal
e,rental,service
buy-back
/end-of-lease
sale/l
ease
retu
rn
rent
al
service
buy-back /end-of-lease
sale /lease
PRODUCT
END USER

20. #1 product
creator &
steward
HHH HHH HHH HH HHH HH HH H H H
#2 product
retailer &
sustainer
HH HHH H
#3 product
renter HHH
HH
HHH HHH
HHH
#4 service
provider HHH HHH HH HHH HHH
HHH
#5 product
& service
matchmaker
HH HHH HH HHH
BUSINESS
MODEL
models and product attributes
ATTRIBUTE

21. #5 product &
service matchmaker
#4 service provider
#3 product renter
#2 product retailer
& sustainer
#1 product creator
& steward
the toy
• create frugal toys
• toy repair and
remanufacturing
• only stock frugal toys
• second-hand toys
• buy-back programs
• repairs
• toy rental
• toy subscription
• entertainment services
• play centers
• peer-to-peer toy
market
• barter
• gifts

22. • leasing and servicing
• taxi services
#5 product &
service matchmaker #4 service provider
#3 product renter
#2 product retailer
& sustainer
#1 product creator
& steward
the car
• fuel-efficient cars
• refurbishment and
upgrades
• secondary market
• buy-back programs
• repair services
• short and long term
rental market
• peer-to-peer rental
• peer-to-peer rides

23. Products and business models
for frugality are insufficient.
Organizational design is an
integral part of frugal value.
4. some conclusions..

24. 1. How do we consider scale?
1. What is the best ownership structure for
different sectors?
1. When is providing products and services
on a commercial basis detrimental to
frugality?
some questions…..

25. The crowded planet requires
frugal innovation by the private sector
On the crowded planet, business creates
value by offering products that promote
efficiency
and sufficiency of resource use
…and developing models that require
and drive such products
Appropriate form, ownership structure and
scale are integral to frugal value.

26. Please get in touch at
carina@frugalvalue.net