How does it work to have positive impact as the main outcome of a business and not profit? While conventional for-profit businesses have maximizing profit at the core of their business models, social businesses see profits as a tool rather than an end. Stable revenue is only a part of a much larger picture to achieve social impact.
Social businesses use the same three-dimensional model as conventional, for-profit businesses:
These three components build what social business call the ‘Financial Sustainability Model’. However, this is only one of three important components in the business model. The other two are ‘Social Impact Model’ and the ‘Community Engagement’.
The Social Impact proposition explains the intent and mission of the business. To exemplify, SiembraViva in Medellín, Colombia, offers convenience and conscious consumption to urban dwellers yet the social proposition is to empower local farmers and increase ecological produce.
The Community Engagement: This is an imperative element to the social impact proposition and financial sustainability model. Community engagement roots the social business, ensuring the social impact proposition is relevant and that the financial sustainability model has an arena on which to act. 
Read more about this topic at Ericsson Networked Society site
Related: The Social Business Era: Creating Impact and Influencing Change
In our brand new report, The Social Business Era: Creating Impact and Influencing Change, we explore a new model for 2017 and beyond: The Social Business. This is a new type of company on the market that is out to challenge traditional ways of doing businesses.
The majority of companies operating today use profit as their main measurement, i.e. the business is judged by others (the market) with economic figures and the potential for growth. But things are changing.
It is no coincidence that social businesses have recently emerged and developed in the Networked Society. But why is this happening now?
How do we define The Social Business?
Create positive impact…who wouldn’t want to do that?
In my next post for the Networked Society blog, I will take a look at the main differences between traditional and social businesses.
Read more about this report at Ericsson Networked Society site
Related: The Social Business Era: Creating Impact and Influencing Change
As described in my last blog post, Mobility, Broadband and the Cloud have become general-purpose technologies with a broad applicability, creating a foundation for innovation and driving the transformation of society.
Right now we see some progressive innovation happening, and in almost every area Mobility, Broadband and the Cloud are being used to create progress. This is happening in industrial bio-technologies, smart materials, sensors and 3D printing, wearable technology and the Internet of Things, as well as in smart energy, robotics, analytics and visualization.
It is hard to find any area that is not being advanced by Mobility, Broadband and the Cloud. This shift can be summarized in three areas. Continue read about this at the Ericsson Networked Society blog.
In a post I published last week, I wrote about the game changers – the innovative individuals who are creating their own products and services, and placing them online.
Consumers that embrace social innovation and entrepreneurship are now taking the lead in determining what is interesting and what is not when it comes to the latest goods and services. This is creating an open marketplace that is changing the relation between established corporations, brands and consumers. This adjustment in the marketplace is being driven by three change agents… Read the full article on the Ericsson Networked Society blog
You own an electric car. You plan to go on a weekend trip, let’s say to the mountains. It’s a three-hour drive and your main concern is whether the battery can get you to your destination and back without having to recharge the car. And if not, is there a charging plug on the way so you can stop and recharge it? Never mind the several hours it takes to do this. So what’s the solution? As more and more people opt for electric cars, smart charging systems will be a crucial component when it comes to creating an optimal consumer experience. Read the full post>>>
