Innovation, creative destruction and sustainability: look to the base of the pyramid for customers previously ignored–then look for new ways to meet those needs.

We learned a lot from the class about the sustainable development and 3 Ps– people, planet, and profit– concept. This article proposed one way to facilitate the triple bottom line from , possibly, blue ocean strategy.
The author, Hart, Stuart L., presented the sustainability in terms of Shareholder’s value Matrix with the activities’ payoff today/tomorrow time and internal/external stakeholders involvement.

The purpose of this journal is to support the innovation by using the technology to get the revolutionary process, beyonding improving the existing technologies, in order to be sustainable and achieve the customer’s need, which aligning at the bottom of the pyramid as a new market. Eco-effectiveness, biomimicry, leapfrog technology, etc., all drive firms to what the economist Joseph Schumpeter called “creative destruction.” To achieve these goals requires new skill sets and new capabilities through activities such as internal development, joint partnerships, and acquisitions.

Not only do the companies increase the shareholder’s value, but they must also maintain corporate legitimacy and build positive reputations, especially after the recent events at such companies as Enron and WorldCom.

One way to sustain for tomorrow is, from shifting the paradigm, using the disruptive technologies , such as the clean technology and eco-effectiveness, as an opprtunity for companies to access the new market, which can be developed into the mainstream market, and lower cost with the example of computer and power generation.
However, as described by Christensen about Innovator’s dilemma , it would be that disrupters drooped to the bottom of the top of the pyramid, found these niche markets, and then moved upward to the mainstream market, creating entirely new industries in the process and ultimately driving out old technologies.
In sum, by considering stakeholder’s engagement, sustainability through creative destruction and innovation, and capabilities, the aspiring poor present a prodigious opportunity for the world’s wealthiest companies, but it will require a radical new approach to business strategy.

If you would like to read more, please click this link

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Posted in corporate sustainability, sustainable technologies

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