I recently graduated from the Hanken School of Economics in 2024, where my EMBA dissertation examined how client motivations shape the market for green transition services. My interest in this topic was sparked in my previous role as a Business Development Leader at a leading Big4 firm, where I became intrigued by the factors that drive clients to purchase sustainability services. This curiosity developed into a deeper exploration of how these motivations influence the buying and selling dynamics within green transition markets.
I was strongly encouraged by my instructor Pekka Helle to make most of this topic to understand the value drivers that both buyers and service providers face when evaluating and making value propositions in the green transition using Jobs-to-be-Done framework (Clayton M. Christensen et al. 2016). And more importantly, to find ways to resolve these challenges more effectively.
Two Key Areas of Focus in Circular Business Design
As part of my research, I focused on understanding what are the critical issues specifically in services related to Circular Business Design. Through my research, I identified two main areas for overcoming the challenges in ESG service sales:
- Understanding value drivers
In any sales relationship, understanding the key issues that both buyers and sellers face is fundamental. When it comes to ESG services, the nature of these issues can be particularly complex. For example, an R&D manager might prioritize innovation and technological feasibility, while a sustainability manager is focused on carbon footprint reduction and regulatory compliance.
I conducted five interviews with Finnish companies undergoing the green transition. From these, I identified 202 Jobs-to-be-Done responses and distilled them into 25 desired outcomes using Anthony Ulwick’s methodologies (2002). In a follow-up survey, participants ranked these desired outcomes, resulting in a prioritized list of value drivers.
- Capturing the Customer’s Voice for strategic decision making
A critical part of my research focuses on how to efficiently capture the buyer’s voice. Essentially, what buyers truly need and prioritize when purchasing green transition services and how these learnings could be used by the management in strategic decision making.
To address this, I investigated different stakeholder perspectives, ranging from strategists to R&D managers to sustainability managers, to better understand their unique needs and priorities.
To guide this analysis, I relied on following well-established business frameworks:
- The Business Model Canvas (by Alexander Osterwalder and Yves Pigneur, 2010) to map out the value proposition from a business perspective.
- Ten Types of Innovation (by Larry Keeley, 2013) to identify potential areas of innovation within ESG services.
- The Sustainability Business Model Canvas (by Robert Gerlach, 2015) to highlight sustainability-related value drivers.
“By leveraging these frameworks, I was able to distill and prioritize the most important factors influencing purchasing decisions for green transition services. This is a robust starting point for a managerial discussion in a company contemplating the make of transformational green transition strategy.”
How could this be applied to my organization?
If you’re interested in learning more or discussing how to apply these insights within your organization, ask for the white paper that will be published 18 November 2024. The future of Circular Economy services is about more than just meeting regulatory requirements. It’s about making a meaningful, lasting impact on both business and the planet.
Be in touch! Paula.vastela@ethica.fi, Head of Consulting, Circular Design, Executive MBA
Sources:
- Christensen, Clayton M., Hall, Taddy, Dillion, Karen and Duncan, David S. (2016). Know your customers’ “Jobs to be Done”, Spotlight on consumer insight. Is innovation inherently a hit-or-miss endeavour? Not if you understand why customers make the choices they do Harward Business Review
- Ulwick, Anthony W. (2002). Turn Customer Input into Innovation, Harvard Business Review
- Osterwalder, Alexander, and Yves Pigneur (2010). Business Model Generation: A Handbook for Visionaries
- Keeley, Larry (2013). Ten types of innovation the discipline of building breakthroughs, ProQuest
- Gerlach, Robert (2015). The Sustainable Business Model Canvas – A common language for Sustainable innovation article by, Threebility.com
