Michael Porter, world famous strategy guru, defines the productivity frontier as representing the sum of all existing best practices at any given time. If a company’s products are at or near the productivity frontier, then further operational efficiencies are hard to come by. In this case, it pays to adopt a strategy to redesign and reposition products as ‘green’ to capture additional market share, revenues and profits. Conversely, for those products which are not at the productivity frontier, there is opportunity for further operational efficiencies. Therefore it is possible to develop product strategies that incorporate regenerative practices that reduce waste and increase reuse. These in turn capture potential savings due to the synergy all along the value chain, creating a more sustainable business ecosystem.
A good example where this reasoning could be applied is in the packaging industry, where margins are very low and competition is fierce. Here the technology is mature, but also rapidly changing, in part due to the increased demand for sustainable solutions. Opportunities exist for innovative breakthroughs in both manufacturing methods and bio-based materials. Multifunctional packaging approaches utilizing eco-friendly materials can provide added functionality, sustainable packaging approaches and a built in solution to disposal. If interested in exploring possibilities, contact us at john@sustainablesystems.com.
