The financial value of a sustainable business has far reaching benefits.
One of the first things that comes to mind when people think about the value of an opportunity is profit. This is a huge consideration when starting a new business or developing something new, as operations need to be sustainable so the business can continue to generate profit and remain competitive against other businesses. However, there’s more to the concept of financial value than profit.
When someone develops their innovation in response to an innovative opportunity, a key step in assessing the value of the innovation, as well as opportunity, is the transaction when your first customers exchange financial value (their own money) for the innovative product or service.
ExampleSustainable business benefits individuals
Open Bionics is a venture creating affordable assistive devices that allow humans to continue to function as normal after losing a limb. Their first product is the Hero Arm that provides a multi-grip bionic hand. Open Bionics wants to help people to access these limbs, however, they still need to be a sustainable business so they can continue to develop and produce their products. Therefore, for someone to access one of their products they need to purchase it.
The profit generated from the transaction contributes to sustaining the person who developed the limb and their organisation. After all, money is to businesses like air is to humans. It isn’t the sole purpose, but it is required to survive. To help make their products more accessible whilst still maintaining sustainability, Open Bionics have conducted research and experiments using 3D printing to find the most affordable manufacturing methods.
For a transaction to happen, customers have to believe that the innovation will provide some benefit to them. Does it solve their problem? Does it make their lives easier? This can also be measured in financial terms. For example, how much money did the innovation save the customer? How much time does the innovation save them, and how much do they value their time?
