HOW INNOVATIVE BUSINESS MODELS CAN
BOOST THE ENERGY EFFICIENT BUILDINGS
MARKET?
LGI IN BRIEF
 4 Business lines
 Energy & climate, Sustainable
transition, Smart mobility , ….
 EU projects & B2B
 After Umbrella: Entrust
Two words about Umbrella and business
models
EU TOPIC:
Development and validation of new processes and business models for the
next generation of performance-based energy efficient buildings integrating
new services
Umbrella’s answer:
Business model innovation for high performance buildings supported by whole
life optimisation
Work on business model:
Based on multi-level perspective theory and co-evolution theory for
sustainable and energy transitions.
PRESENTATION PLAN
 The market, pressures, business models and innovation
 Example of innovative business models
 Innovative business models in the EEB market and in the
Umbrella project
The Energy Efficient Building (EEB) Market
 New market , since it is created and accelerated by
energy and environmental/climate concerns and crises
 Transition from the « old » market to the « new » = the
EEB market blocked by a number of barriers:
•
•
•
•
•
Market barriers and failures
Information failures
Financial barriers
Structural barriers
Awareness barriers, from both sides
What’s a market and what’s a business model?
STRUCTURAL
FRAMEWORK
OFFER
DEMAND
What’s a market and what’s a business model?
Market, value chain and business model
VALUE CHAIN
OFFER
DEMAND
What’s a market and what’s a business model?
Business model definition, according to Osterwalder
A business model describes the rationale of how an organisation creates,
delivers and captures value
Business model definition, according to Timmers
A business model is an architecture for the product, service and information
flows, including a description of the various actors and their roles; and the
potential benefits for the various business actors and a description of the
sources of incomes
Business model definition, according to Mahadevan
A business model defines the value provided to consumers, the revenues for the
organisation and the logistics
What’s a market and what’s a business model?
Market, value chain and business model
What’s a market and what’s a business model?
Market, value chain and business model
BM
The Multi-Level Perspective
BARRIERS
The Multi-Level Perspective and the EEB market
What’s a market and what’s a business model?
Business model definition, according to Doganova & EyquemRenault
Business models are active construct or market devices that are capable of
shaping the environment in which they are operating
Business model innovation
Business model innovation goes beyond product or service innovation. It relates
to the development of a novel activity system.
A business model is considered innovative when:
- It adds new activities
- It links activities in novel ways
- It changes the performing parties
The Multi-Level Perspective, co-evolution of
business models and the EEB market
New regime
Innovative business models
New Activity
system
New
VP
P&S
Sale
C
or
C’
New building value chain
Energy and
environmental
crisis solving
New products & services
New transactions
Energy efficient building stock
New socio-technical system
Innovations
become the new
« norm »
Innovative Business Models for the EEB market
 Online platforms with trust-based ranking
 Digital technologies: Opower
 Vertical integration including Operation &
Management from energy actors
 One stop shop
Innovative Business Models for the EEB market
MUST BE SUSTAINABLE
Innovative business models must be different from the ones that
contributed to lock us in the non sustainable energy paradigm
They must revolve around energy efficiency, sustainable energy and
overall, sustainability while coping with other structural and demand
parameters
Sustainable business model:
Where to invest for running a business model that will be able to
reimburse the debt?
Call for an holistic definition of debt
Innovative Business Models for the EEB market
Type of innovative and sustainable business models
 Product-service system & functional
economy
 Circular economy, green supply chain
management and industrial symbiosis
 Energy efficiency
 Sale of negawatts
Innovative Business Models in the Re:Form
platform
Innovative Business Models in the Re:Form
platform
Innovative Business Models in the Re:Form
platform
 Energy Performance Contracting, based on the ESCO
business model
 DBFO models (extensive definition)
 Third party financing
 One-stop- shop
 Redistribution of risk sharing
 Integrated services
Metered Energy EfficiencyTransaction Structure
Metered Energy EfficiencyTransaction Structure
Innovative and sustainable business models:
considerations
Business models are still dependent on the market
structure
For truly innovative and sustainable business models,
building market actors need to take the time to take
an « entrepreneur » viewpoint and take the time to
rework fundamentally their current business.
THANK YOU
Eve Dallamaggiore
eve.dallamaggiore@lgi-consulting.com