Social Enterprise Business Models: Operations Efficiency Model
The first social enterprise business model covered by Professor Bentley is the Operations Efficiency model. In a typical operations efficiency model, a company takes advantage of certain efficiencies that may be uncovered by addressing social impacts. It is quite common to see this in energy costs and labor efficiencies. This type of model provides companies the opportunity to create positive environmental and social impacts.
For example, Wash Cycle Laundry, a company that utilizes the operations efficiency model, is a sustainable alternative to the traditional dry cleaning service. Unlike a traditional laundry service that uses trucks for delivery, Wash Cycle Laundry opts for delivery by bicycle. This alternative is considerably inexpensive compared to traditional distribution. Laundry is cleaned in energy efficient washing machines. The high energy efficient washing machines provide a great deal of environmental impact.
Wash Cycle Laundry also provides a great deal of social impact through their services by employing hard to employ populations who are ready to get back into the workforce. By providing employment for people transitioning out of other hard to employ situations-sex offenders, welfare recipients, etc. – make a company like Wash Cycle Laundry more efficient operationally. New efficiencies within the company are created by these different employment tactics.
A Great Deal of Impact
An operations efficiency model provides the opportunity for companies to create positive environmental and social impacts. Both the environmental and social impacts allow for a company to operate more efficiently.
In the next part of the September series, Professor Bentley will be discussing the Value Rub model, which also creates significant positive impacts.