Understanding Green Business Models

Understanding a Green Business Model?

In order to understand the definition of a Green Business Model (GBM), it is essential to derive the particulars of the definition from the BM disciplines. A BM is a structural logic by which businesses can operate; this describes the method through which companies deliver value to customers, induce consumers to pay monetary value which is then converted into profit (Dunphy, E. Dallamaggiore and Morrissey, 2016), which entails that the primary motivation of a business model is to generate economic value.

Critical analysis of target groups (TG)

TG expresses the sectors of customers whom a business needs to supply value to (Abuzeinab. A 2015). The idea of smart ventilation is appealing. However, it is needed to be pitched to right target audience in order to ensure that the business is able to maintain its pace and perform considerably well in the corporate market. Therefore, proper attention is needed to be given while selecting the target audience. That would include

1) Public sector

2) Social housing

3) Private sector

4) Property developer

5) Green client

Public sector.

One of the most effective target groups can be the public sector based customers. While the major objective of organisations engaged in these sectors is to provide the public with standard services, it would encompass Hospitals, Schools, libraries , Old age care facilities, Healthcare centres etc. It is the most appropriate place to achieve the target objective because the government has set the “net zero carbon-built environment in the UK” standards to be achieved. So, to achieve this emission goal and to implement such smart ventilation systems, it is the best option because it reduces consumption of HVAC energy by 15% and reduces 15% of electricity demand as well. (UK Green Building Council. (2020).

Properties developers and privet home owner

The second target group consists of property developers and privet home owners in the market. The idea of smart ventilation system can be acceptable for developers and house owners who are trying to ensure that considerable responsibilities towards society could be maintained (Chenari et al. 2016). Addressing environmental and health issues with small steps like smart ventilation can appeal to them. If both groups adopt these methods in order to bring down the amount of energy consumption around 15 %, at the same time improving indoor air quality and “reduce the risk of a number of health issues like asthma, allergies, and headaches by reducing chances of allergies.” (2020). (Benefits of Smart Ventilation Research and Development.)

Social housing and private rented sectors

The average age of tenants in social housing is 52. Similarly, the average income is roughly £394 which is significantly lower than all the other sectors. Moreover, social housing involves highest numbers of inmates affected by long term illnesses or disabilities (49%) (English Housing Survey, 2016) if the social and housing associations adopt these methodologies, then, these would assist them to achieve 80% CO2 emission reduction goal and the Zero carbon goal objectives as well. The idea of smart ventilation system can be one of the cheapest solutions in the market because it requires very low amount to process. Additionally, it is additionally able to reduce CO2 and provide thermal comfort with improvement of indoor air quality. (UK Green Building Council. (2020).

Critical analysis of financial logic

FL is the combination of the financial assessment of both value creation and value capture processes. When generating an energy retrofit, it will involve the cost structure regarding key activities which will be performed and key resources which will be utilized (Abuzeinab. A, 2015). It can be unarguably stated that the business of revolving ventilation systems would be likely to provide a cost effective alternative. By investing on these options, it is likely that more amount of profit is being attained. However, in order to convince the individuals, it is important to take into account that the payback period will be longer. Furthermore, it is also needed to be taken into account that these options are commercially viable. With appropriate support from certain sources such as the government and other private sectors, it is likely to be one of the most sought-after alternatives.

BM Vs GBM

Conclusion and new insights

On the basis of the above-mentioned discussion, it is evident that smart ventilation is one of the most significant business prospects concerning the Green Business Model. Not only is it cost effective and provides better air quality, it could also be an effective tool in managing the process of energy consumption. However, it is important that appropriate conviction is being attained by specific target audience. In order to do so, it is important that the key resources are properly utilised and standard steps are taken to ensure that business activities are channelized in proper direction. Thus, a sustainable and effective outcome can be achieved with proper implementation of the resources.