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Peter Jones, PhD 
OCAD University Strategic Foresight & Innovation 
November17, 2014 
Caring for the Future: Artifacts for...
Strongly Sustainable Business Model (SSBM) Group 
•P. Jones, N. Harfoush (SFI OCADU) 
•A. Upward (York), B. Willard (TNS) ...
Ultimate Aim of the Design Research.
5 
RSD3 Oslo School Architecture & Design 
Social Business – Global Business 
U Plymouth, Dec 8-9 
Article accepted for Or...
Paradox of Design Research. 
“Design is not only about what is quantifiable and measurable; it is also about what cannot b...
Evaluation of efficacy - How effective is an artefact in its intended application? Action research mode of design evaluati...
The term has lost impact & meaning. For 3 decades we’ve anchored on sustainability. 
•Since Bruntland Commission (1987) 
•...
Can we sustain “Sustainability?” 
Ehrenfeld, J. (2000, March). Does eco-efficiency Lead to Fundamental Changes in the Dyna...
Strong vs Weak Sustainability 
•Non-substitutability of natural capital w/ others 
•Emerged from Ayres (1998) & others cri...
•Product/Service Systems (Vezzoli, et al) 
•Dematerialized product/services 
•Industrial (waste as supply) ecosystems 
•Co...
The most salient point to influence an entire enterprise, its people and operations, and to endorse and develop organizati...
Business Model Canvas 
Osterwalder & Pigneur. (2009). Business model generation. 
No environmental impact model No value c...
 
 
 
Understand the Natural and Social Science of Sustainability 
Defined the gaps in Osterwalder’s Ontology of profit...
Revising Definitions… 
A description of how an organization defines and achieves success over time. 
A Business Model = th...
Strongly Sustainable Business Model Canvas – 14 Questions 
V1.032 
© Antony Upward / Edward James Consulting Ltd., 2013
•Small OCADU research seed grant 
•Led a team of 2 SFI grad students – Kornet & Sharma 
•Visual identity & revised canvas ...
New canvas remains © author, by agreement until we have suitable collective entity.
A Value–Based Care Business Model using Osterwalder BMC
Integrated Practice Units 
Patient- Centred ITC 
Collab Inter- professional Decisions 
Patient-centred business strategy 
...
•BM explicitly represents value system & mental model 
•New design provides social affordances for claiming new values 
•A...
•Novel models are not simulatable – sims based on past data 
•Causal entailments (rel to environment) too complex 
•New BM...
May have a revised research agenda … 
•Completing article for Organization & Environment (2014) Business Model Frameworks ...
Peter Jones, Ph.D. 
pjones@ocadu.ca 
designdialogues.com 
designforcare.com 
@redesign 
Questions & Discussion?
Artifacts for the Systemic Design of Flourishing Enterprises - OCADU Research
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Artifacts for the Systemic Design of Flourishing Enterprises - OCADU Research

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Human commerce utilizes the most significant share of natural resources and produces the largest aggregate impact on the earth’s environment. As a consequence of modern employment and work cultures, commerce, corporations as opposed to governments, also construct much of the social contract and social organizational forms in developed societies. Sustainable development movements to conserve resources and to democratize or enhance organizational practices have called for culture change or transformation. However, these approaches have not yielded results that will significantly enhance human flourishing in the face of globalized commerce, which has no common governance system. We suggest that the goals of alignment toward sustainable development or so-called corporate sustainability are misguided and systemically depreciative, as they purport to sustain activities that foreseeably accelerate ecological degradation. We propose a modeling practice for stakeholder design of strongly sustainable enterprises for the intention of whole system flourishing across living ecosystems and organized social systems. This systemic design approach to business transformation functions at the level of the business model. We claim that business model design affords the highest leverage across all modes of organizing for collective cultural adoption ecosystemic practices.

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Artifacts for the Systemic Design of Flourishing Enterprises - OCADU Research

  1. 1. Peter Jones, PhD OCAD University Strategic Foresight & Innovation November17, 2014 Caring for the Future: Artifacts for the Systemic Design of Flourishing Enterprises
  2. 2. Strongly Sustainable Business Model (SSBM) Group •P. Jones, N. Harfoush (SFI OCADU) •A. Upward (York), B. Willard (TNS) •100+ members of SSBM community of practice Research Agenda A Design Science project. 1.Develop and validate an ontology for strongly sustainable business models and a visual tool for modeling such businesses (the Flourishing Business Canvas). 2.Explore advanced methods of impact definition, measurement and valuation of social and environmental benefits that can support decision making in organizations. 3.Identify and map the processes related to business strategy decisions in SMEs. 4.Use design methods to develop a toolkit for SMEs and test the kit with organizations to further improve it and to create case studies. 5.Human-centric research into the role of business models in SMEs
  3. 3. Ultimate Aim of the Design Research.
  4. 4. 5 RSD3 Oslo School Architecture & Design Social Business – Global Business U Plymouth, Dec 8-9 Article accepted for Organization & Environment special issue: Business Model Frameworks for Strongly Sustainable Outcomes
  5. 5. Paradox of Design Research. “Design is not only about what is quantifiable and measurable; it is also about what cannot be measured, the non-quantifiable. As the source of values for decisions in design is not only the artifactual world (objective, quantitative data), but also the world of culture (subjective, qualitative data), there are many things that are difficult or impossible to measure adequately.” Charles Owen (2007). Design Thinking: Notes on its Nature and Use Design Research Quarterly, 2 (1) 16-27.
  6. 6. Evaluation of efficacy - How effective is an artefact in its intended application? Action research mode of design evaluation. •Developed framework & compared with Osterwalder •Artefacts presented in plausible situations of engagement •Iterative design with expert & user feedback •Sufficient for this stage of early tool development (Design science research achieving delayed acceptance in non-IT literatures. Epistemological mismatch with natural & social science, which we (design) futily attempt to appease. Key is unit of analysis.) Design Science methodology.
  7. 7. The term has lost impact & meaning. For 3 decades we’ve anchored on sustainability. •Since Bruntland Commission (1987) •Sustainable Development •Ecological Modernization Considered “weak sustainability” & enablers of the status quo The Resilience of Sustainability
  8. 8. Can we sustain “Sustainability?” Ehrenfeld, J. (2000, March). Does eco-efficiency Lead to Fundamental Changes in the Dynamics of Industrial Activities? In national Conference on Sustainable Development: Eco-efficiency and industrial development. Oslo.
  9. 9. Strong vs Weak Sustainability •Non-substitutability of natural capital w/ others •Emerged from Ayres (1998) & others criticizing the lack of progress from sustainable dev •Few examples of strong sustainability in 90’s, & as applied to business, considered improbable. •Aim for compatibility with The Natural Step (FSSD) & anchor in bio-physical sciences •Living systems theory (Allen, Tainter & Hoekstra) Supply-side •Socio-ecological systems & ecological macroeconomics A Foundation for Speaking of Flourishing
  10. 10. •Product/Service Systems (Vezzoli, et al) •Dematerialized product/services •Industrial (waste as supply) ecosystems •Collaborative consumption •Public-private incentive models •Regional mutualism / Import shifting / Circularity Best cases include - •Interface (circular carpet model) •Patagonia, Timberland •Unilever (societal health aims) “More sustainable” business models
  11. 11. The most salient point to influence an entire enterprise, its people and operations, and to endorse and develop organizational values and processes oriented to sustainability. “Represents the business & money earning logic of a company” (Osterwalder, 2004) Later “the rationale of how an organization creates, delivers and captures value” (Osterwalder & Pigneur, 2009) Upward & Jones: A business model describes for an organization the logic for its existence, who it does it for, to and with; what it does now and the future; how, where and with what does it do it; and how it defines and measures its success. A Design Argument for Business Models
  12. 12. Business Model Canvas Osterwalder & Pigneur. (2009). Business model generation. No environmental impact model No value chain / supply impacts No societal impacts, No triple-bottom line option
  13. 13.    Understand the Natural and Social Science of Sustainability Defined the gaps in Osterwalder’s Ontology of profit-first businesses, based on the science Designed an Ontology of Strongly Sustainable Business Models Co-designed Strongly Sustainable Business Model Canvas, a visual design tool, structured by the Ontology, and tested: 1.Against standards of sustainable business 2.Formally with 7 experts and 2 case study companies 3.Informally with dozens of others: Business people, professors, students Upward’s research led to ... Article in review: Upward & Jones, Business Model Frameworks for Strongly Sustainable Outcomes
  14. 14. Revising Definitions… A description of how an organization defines and achieves success over time. A Business Model = the logic for an organization’s existence: •Who it does it for, to and with •What it does now and the future •How, where and with what does it do it •How it defines and measures its success “A Business Model describes the rationale of how an organization creates, delivers and captures value [in monetary terms]” Value = the perception by an actor of a need being met; measured in aesthetic, psychological, physiological, utilitarian and / or monetary terms. Value is created when needs are met via satisfiers that align with the recipient’s world-view, and destroyed when they don’t Necessary, but not sufficient
  15. 15. Strongly Sustainable Business Model Canvas – 14 Questions V1.032 © Antony Upward / Edward James Consulting Ltd., 2013
  16. 16. •Small OCADU research seed grant •Led a team of 2 SFI grad students – Kornet & Sharma •Visual identity & revised canvas (same entities) •Encoded meaningful palette & boundaries •Revised model through case studies •Continual iterative refinement since summer •Canvas presented at fall conferences (RSD, BAWB) •Workshops at BAWB, Intersections, sLab, This year …
  17. 17. New canvas remains © author, by agreement until we have suitable collective entity.
  18. 18. A Value–Based Care Business Model using Osterwalder BMC
  19. 19. Integrated Practice Units Patient- Centred ITC Collab Inter- professional Decisions Patient-centred business strategy Health outcomes that matter to Patients / family Meet pts in more locations, online, community Community care partners Partner w/ small clinics Delivery across clinics & centres Long-term patient relationships Treat pts by bundling care across journey Incentivized reimbursement models Expand service across geographies New cost models based on bundled / integrated care Measure outcomes & costs / patient Waste products Support services – water, cooling, air refresh Cultural service, Natural settings Regulatory services: air, waste, water Bio-stocks used directly Patient-led care circles Active care continuity Volunteers for non- critical needs Decentralize hospital into special units Patient- relevant agencies Gov agencies Local ecologies, watersheds Local Communities Social health determinants Housing Food supply … Community health outcomes Increased Dr & Patient preference Faith & social communities Real resource costing Shared assets across regions Return on Social capital Costing across patient lifecycle
  20. 20. •BM explicitly represents value system & mental model •New design provides social affordances for claiming new values •As anticipatory system, feed-forward loop Business Model as Formative Context Business Model as Anticipatory System (Rosen, 1991)
  21. 21. •Novel models are not simulatable – sims based on past data •Causal entailments (rel to environment) too complex •New BM theories “operational models entailing strategy” •Anticipated outcomes guided by updating model with feedback information (encoding) •& updating new decisions with updated decoding. •New view of a flourishing “enterprise” Living system model of firm & entire value network in bio-socio-eco-cultural contexts, within planetary limits Business Model Designs the Enterprise
  22. 22. May have a revised research agenda … •Completing article for Organization & Environment (2014) Business Model Frameworks for Strongly Sustainable Outcomes Participating in key conferences / workshops •Continuing research w/ sLab team: Healthcare case study Flourishing Cities / urban policy canvas •Client projects & early adopters (First Explorers program) •2015 – identify key project to sponsor field research •Propose / publish field research with SSHRC or other sponsor Next steps in SSBM design research
  23. 23. Peter Jones, Ph.D. pjones@ocadu.ca designdialogues.com designforcare.com @redesign Questions & Discussion?

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