"Assets Under Management (AUM) and Sustainable Business Model Design: Creating Value for Companies and Society"

"Assets Under Management (AUM) and Sustainable Business Model Design: Creating Value for Companies and Society"

Assets Under Management (AUM) refers to the market value of investments that are managed by an individual or entity on behalf of clients. It is an important metric used to evaluate a company's management performance and experience. However, it is crucial to note that AUM calculations are limited to funds under discretionary management from individual investors.

On the other hand, sustainable business model design focuses on creating long-term value for both companies and society. It applies overarching patterns that encompass major design principles to various aspects of business. These patterns can be categorized into different groups, each targeting a specific module or aspect of the business model.

One of the key groups of patterns is pricing patterns and revenue patterns. These patterns help companies set prices and generate earnings from their sustainable business offerings. By strategically pricing their products or services, companies can not only ensure profitability but also promote sustainability in their operations.

Another important group of patterns is financing patterns. These patterns provide methods for obtaining equity, debt, and operating capital to fund sustainable business models. By having access to the necessary financial resources, companies can effectively implement their sustainable strategies and drive positive change.

Eco-design patterns are also vital in enhancing the sustainability of business models. These patterns focus on designing activities, processes, and offerings in a way that minimizes environmental impact. By incorporating eco-design principles, companies can reduce waste, conserve resources, and create more sustainable products and services.

In addition, closing-the-loop patterns play a significant role in integrating circular material and energy flows into business model design. These patterns enable companies to adopt a circular economy approach, where resources are recycled and reused, minimizing the need for new raw materials. By embracing circularity, businesses can reduce their environmental footprint and contribute to a more sustainable future.

Supply chain patterns are another crucial aspect of sustainable business model design. These patterns determine where resources come from and how companies can reach their target markets in the supply chain. By optimizing their supply chain processes and partnering with sustainable suppliers, companies can ensure the ethical sourcing of materials and reduce their environmental impact.

Giving patterns are also worth considering when designing a sustainable business model. These patterns facilitate companies' contributions of products or services to social causes or communities in need. By giving back, companies can positively impact society and contribute to the well-being of marginalized communities.

Access provision patterns are another group of patterns that create markets and offerings for overlooked social groups. These patterns focus on inclusivity and aim to provide access to products, services, and opportunities for individuals who are typically excluded from mainstream markets. By designing business models that cater to the needs of these groups, companies can foster social equality and empower marginalized communities.

Social mission patterns empower social groups to become productive partners and transform their needs into demand. These patterns aim to create sustainable business models that not only generate profit but also address social issues and empower communities. By aligning their business goals with social missions, companies can make a positive impact while ensuring long-term success.

Service patterns and performance patterns are also essential in the transition from physical products to functions, services, and results. These patterns emphasize the shift from a product-centric approach to a service-oriented one. By focusing on delivering value through services and outcomes, companies can reduce material consumption and promote a more sustainable consumption model.

In conclusion, the combination of assets under management (AUM) and sustainable business model design can create significant value for both companies and society. By effectively managing investments and incorporating sustainable design principles, businesses can drive positive change while ensuring long-term success. To leverage these concepts, here are three actionable advice:

• 1. Embrace sustainable business model design: Assess your current business model and identify areas where sustainability can be integrated. Adopting sustainable design principles can help you create long-term value and align your business goals with societal needs.

• 2. Optimize your supply chain: Review your supply chain processes and evaluate opportunities to reduce environmental impact. Partner with sustainable suppliers and prioritize ethical sourcing to create a more sustainable and responsible business model.

• 3. Engage in giving back initiatives: Identify social causes or communities in need that align with your company's values. Develop giving patterns that allow you to contribute products or services to these causes, making a positive impact on society and fostering social equality.

By incorporating these actionable advice into your business strategy, you can effectively manage your assets under management while creating a sustainable business model that generates value for both your company and society as a whole.