What do a set of keys, a Velcro wallet from 1988 and an hour-long commute have in common? On the surface, not much. But at a recent meeting we hosted, they each represented personal stories from our participants and how companies face the opportunity or challenge to meet consumer needs while driving sustainability. In downtown Las Vegas on June 12-13, GreenOrder convened a group of 15 leaders from companies including eBay, Facebook, Las Vegas Sands, National Grid, Republic Services, RidePal, ThredUp, UPS and Zappos to discuss how friction points in our daily human experience can illustrate the need for new business models that also improve sustainability.
What do a set of keys, a Velcro wallet from 1988 and an hour-long commute have in common? On the surface, not much. But at a recent meeting we hosted, they each represented personal stories from our participants and how companies face the opportunity or challenge to meet consumer needs while driving sustainability.
In downtown Las Vegas on June 12-13, GreenOrder convened a group of 15 leaders from companies including eBay, Facebook, Las Vegas Sands, National Grid, Republic Services, RidePal, ThredUp, UPS and Zappos to discuss how friction points in our daily human experience can illustrate the need for new business models that also improve sustainability.
Many in the field agree that sustainability is no longer the best vehicle for most companies that want to make a positive environmental impact with their products and services. Rather, developing an elegant solution to a daily human dilemma is the most powerful way to be sustainable at scale and grow your company, while minimizing impact on natural resources.
Our group in Vegas took a generative, design-based approach to prototype new business opportunities using human experience as inspiration. At the outset of the meeting, we asked participants to share personal stories relating to sustainability. Here are some that inspired us:
Defying Online Algorithms with Authentic, Impactful Storytelling
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A set of keys: “Airbnb let me keep my house”
Many are familiar with Airbnb, the online platform that connects travelers with real homes instead of hotels. Airbnb is an example of how value is extracted in a simple but elegant way, meeting the needs of owners or renters who need a bit of extra cash or want to connect with fellow travelers, and the needs of travelers who prefer to stay in a local neighborhood instead of a hotel, or if demand for hotels outstrips supply at a given time. While Airbnb has the potential to reduce building footprints and new construction in the communities in which it operates, its growth is due to its appeal as a revenue source for owners and convenience for renters, rather than as an eco-option for travelers. This model has resonated so much with consumers that by the end of 2012, Airbnb was filling more room nights than Hilton Hotels. This could be a game changer for hotels and new construction worldwide.
A Velcro wallet: “The importance of design and durability, and how I got my job”
A great story came from someone in the retail industry who cited a 20-year-old Velcro wallet as the thing that saved him when he showed up in formal attire to an interview at a company with a startup-like culture. Aside from bringing back fond memories of the '80s, the wallet is a symbol of how great design can have real impact on what and how we consume. Leading companies are now looking at quality design as a key to product success after a decade of disposable living and increasing interest in the authenticity of consumer products in the US. More than one company at the table shared that products with a story are more appealing and lasting. Some now call this personal connection with products and design the IKEA effect.
An hour-long commute: “How a daily frustration led me to start my own company”
One of the most acute daily unmet needs for millions of people globally is to eliminate or remove the stress from a commute to the office. One of our participants, an ex-Googler, turned this unmet need and human experience into a business opportunity that also happens to cut down on emissions. The service RidePal uses online platforms to aggregate demand for shared buses, known affectionately as “the Google bus for the rest of us.”
What does this emergence of new business models that happen to be sustainable mean for corporates? How can companies focus on human needs and experiences to design better services rather than attempt to primarily optimize for sustainability? What role can corporate sustainability teams play in helping to develop new business models like those mentioned above?
We believe that companies that answer these questions correctly will outpace their competition as consumer preferences continue to evolve.
Published Jul 9, 2013 7pm EDT / 4pm PDT / 12am BST / 1am CEST