The Obstacles of Sustainable Business Model Innovations

The continuous innovation process of the Information and Communication Technology (ICT) sector shape the way businesses redefine their business models. Though, current drivers of innovation processes focus solely on a technical dimension, while disregarding social and environmental drivers. However, examples like Nokia, Yahoo or Hewlett-Packard show that even though a profitable business model exists, a sound strategic innovation process is needed to remain profitable in the long term. A sustainable business model innovation demands the incorporation of all dimensions of the triple bottom line. Nevertheless, current management processes do not take the responsible steps to remain sustainable and keep being in denial of the evolutionary direction in which the markets develop, because the effects are not visible in short term. The implications are of substantial effect and can bring the foundation of the company’s business model in danger. This work evaluates the decision process that lets businesses decide in favor of un-sustainable changes and points out the barriers that prevent the development towards a sustainable business model that takes the new balance of forces into account.