Company A is a coffee roasting factory. Company A aims to transform all raw materials into sustainable products. The factory roasts around 100.000 tonnes of coffee annually. After consumption on average the same ammount of coffee residue (SCG’s) is thrown away every year. Company A wishes to create a more sustainable business model.
The core problem.
The company in question has SCG’s as a cost structure in their business model. The coffee residue is treated as waste and therefore failed value. The coffee residue is a downgrade on the financial and environmental outcome of the company.
If the company in question was to give away their SCG’s to a partner they would eliminate the coffee residue as a cost structure in their business model. The partner could use their waste to create new value. A new startup can be created, called BeanGreen, that converts the SCG’s into a new product. The coffee residue can be combined with bio polymers to create biodegradable coffee cups, flowerpots and packaging material.
The company in question gets a reduction in waste and cost structure and an increase in revenue streams and social and environmental values. The coffee residue is no longer treated as waste but as value to create biodegradable coffee cups, flowerpots and packaging material. The waste cost is drastically reduced by removing the coffee residue from the cost structure. The cost of packaging material costs are also reduced by using the new packaging product made by BeanGreen. Revenue streams are increased by creating a new value stream by selling coffee cups and flowerpots.
Environmental values are increased by reducing waste send back to the waste disposal and using less plastic packaging materials.
Social values are increased by giving the customers a chance to drink coffee out of its own residue with the Bean Green coffee cups or even with the possibility to create new plants by planting them with the biodegradable flowerpots into the ground. The initial idea behind Bean Green was eventually sold to scale up the concept. The new owner has implemented Bean Green's ideas even further and created more jobs for the local community.