Submitted By: Pratibha Saini Roll No.

- 74 Section- B

Should include understanding of social sustainability , Identification of social need with business potential , Design of Innovative Business Model , Critical Capital Resource Identification and Mobilisation Plan , Plan to leverage Community Resource

Title: My Action Plan for Building A Socially Sustainable Social Sustainability-

Businesses

Social sustainability is one aspect of sustainable development. It may include -human rights, labor rights, and corporate governance. Socially sustainable development is a development that meets the needs of the present without compromising the ability of future generation to meet their own needs. It respects the limited capacity of ecosystem to absorb the impact of human activates. The concept of socially sustainable development including socially sustainable urban development. Socially sustainable development may include: meets basic needs for food, shelter, education, work, income and safe living and working conditions; is equitable, ensuring that the benefits of development are distributed fairly across society; enhances, or at least does not impair, the physical, mental and social well-being of the population; promotes education, creativity and the development of human potential for the whole population; preserves our cultural and biological heritage, thus strengthening our sense of connectedness to our history and environment; promotes conviviality, with people living together harmoniously and in mutual support of each other; is democratic, promoting citizen participation and involvement, and

is livable, linking "the form of the city's public places and city dwellers' social, emotional and physical well-being" (Lennard and Lennard, 1987)

Identification of social need with business potentialThe social needs with business potentials are: 1. Use of energy efficiency resources like solar and water that are abundant in India. Energy efficiency is a critical step ahead in renewable energy sources, climate change, the overall economy and the growth of future industries. Most immediately, using less energy lowers costs and increases the competitive edge and even small improvements add up. Efficiency is also easier to enact than a shift to alternative fuels, for example, and can bring benefits at a number of scales. Gains can be directly monetary, but also include impacts in areas as wide-ranging as marketing, supply chain management, and product design.." At its core, energy efficiency is about doing more with less; it is a measure of the energy used for a given task, the goal being to provide the same (or better) level of output using less input. A typical example of energy efficiency in practice is the replacement of traditional incandescent lights with compact fluorescent bulbs, which use about 75% less energy and last longer. At a larger scale, however, the move to increase output per unit input includes opportunities for businesses across the value chain: in product design, materials, processing, manufacturing, transport, and distribution. Increased energy efficiency can be achieved by changes in technology, process, or behavior, and is a way to think more broadly about solutions to energy-related problems. The purpose of efficiency initiatives is not to ration energy use, but to find better, more innovative ways to accomplish goals. 2. Business opportunity at Bottom of pyramid- Micro-finance. 3. Using solar energy and water conservation for electricity generation and day to day water need respectively.

Innovative Business Model

Business Model Innovation (BMI) refers to the creation, or reinvention, of a business itself. Whereas innovation is more typically seen in the form of a new product or service offering, a business model innovation results in an entirely different type of company that competes not only on the value proposition of its offerings, but aligns its profit formula, resources and processes to enhance that value proposition, capture new market segments and alienate competitors.

The BMI concept itself was explored in detail by Mark Johnson of Innosight, Clayton Christensen, and Henning Kagermann of SAP in their feature article Reinventing Your Business Model published in the December 2008 Harvard Business Review. A business model, from their point of view, consists of four interlocking elements that, taken together, create and deliver value. According to their construct, Innovation can occur in one or more of these areas simultaneously

Customer Value Proposition First and most important, a successful company is one that has found a way to create value for customers that is, a way to help customers get an important job done. By job we mean a fundamental problem, in a given situation, that needs a solution. The best customer value proposition is an offering that gets that joband only that jobdone perfectly. The lower the price of the offering and the better the match between the offering and the job, the greater the overall value generated for the customer. The more important the job is to the customer, the lower the level of customer satisfaction with current options, and the better your solution is than your competitors at getting the job done, the greater the value for your company.

Profit Formula The profit formula is the blueprint that defines how the company creates value for itself. People often think that profit formulas and business models are interchangeable, but how you make a profit is only one piece of the model. It consists of the following: Revenue model (price volume) Cost structure (assets; direct and indirect costs; and a model of how, and whether, scale affects costs) Margin model (How much does each transaction need to net to cover the cost structure and deliver target profits?) Resource velocity (How much revenue do we need to generate per dollar of assets and per dollar of fixed costs, and how quickly?) Key Resources The key resources (or assets) are the people, technology, products, facilities, equipment and brand required to deliver the value proposition to the targeted customer. The focus here is on the key elements that create value for the customer and company, and the way those elements interact. Every company also has generic resources that do not create competitive differentiation.

Key Processes Successful companies have operational and managerial processes that allow them to deliver value in a way they can successfully repeat and increase in scale. These may include such recurrent tasks as training, development, manufacturing, budgeting, planning, sales and service. Key processes also include a companys rules, metrics and norms.

Market context and circumstances fueling BMI

Bob Higgins, founder and managing general partner of Highland Capital Partners, is quoted in Johnson, Christensen and Kagermanns Harvard Business Review article as saying, I think historically where we [venture capitalists] fail is when we back technology. Where we succeed is when we back new business models.

Business model innovations have reshaped entire industries and redistributed billions of dollars of value. Retail discounters such as Walmart and Target, which entered the market with innovative business models, now account for 75% of the total valuation of the retail sector. Low-cost U.S. airlines grew from a blip on the radar screen to 55% of the market value of all carriers. Over the past decade (1997-2007), 14 of the 19 entrants into the Fortune 500 owed their success to business model innovations that either transformed existing industries or created new ones.

A 2005 survey by the Economist Intelligence Unit reported more than 50% of executives believe that between now and 2010, business model innovation will be even more important for success than product or service innovation. A 2008 IBM survey of corporate CEOs echoed these results. Nearly all of the CEOs polled reported the need to adapt their business models; more than two-thirds said that extensive changes were needed.

An analysis of major innovations within existing corporations in the last decade (1998-2008), though, shows that precious few have been business-model related. And a recent American Management Association study determined that no more than 10% of innovation investment at global companies is focused on developing new business models. The authors therefore highlight five strategic circumstances companies commonly face that often require business model change: 1. The opportunity to address the needs of large groups of potential customers who are shut out of a market entirely because existing solutions are too expensive or complicated for them. This includes the opportunity to democratize products in emerging markets (or reach the bottom of the pyramid). 2. The opportunity to leverage a brand-new technology, wrapping the right business model around it or the opportunity to leverage a tested technology in a whole new market. 3. The opportunity to bring a job-to-be-done focus to a marketing-driven industry. Such industries tend to make offerings into commodities. But a jobs focus allows companies to redefine the industry profit formula. 4. The need to fend off low-end disruptors. If Tatas 1 Lakh ($2300) Nano is successful, it will threaten other automobile makers. 5. The need to respond to a shifting basis of competition. Inevitably, what defines an acceptable solution in a market will change over time, leading core market segments to commoditize.

Examples of BMI where the business model is the core value proposition
TataTata Nano 1 Lakh ($2300) city car AppleiTunes Store + iPod WalMartDiscount retailing HiltiPower tools leasing/subscription FedExGuaranteed overnight delivery SouthwestLow-cost regional air tra

Design for Innovative business model , Critical Capital Resource Identification and Mobilization Plan , Plan to leverage Community Resources
Innovative business model-To sell pure ghee from rural area to urban areas. Propositions for customers- fresh and pure ghee directly from villages a Haryana. Capital resources- tie-up with rural dairy farms, money from cooperative societies, managing supply-chains- channeling local people and gaowalas and local dairies. Mobilization plan- to collect desi ghee from these sources-local dairies, local people owing cattles etcs and selling it through in metro- cities at a premium price.