Innovation strategy for Pyropower

How to introduce biochar, a carbon-capturing material, and biochar systems in the European market? How should Pyropower, an initiative based on biochar systems, navigate the future to build a successful business out of biochar systems?

Role
  • Worked on every section of this project
Tools & Basics
  • Vision in Design, Blue ocean strategy, Value modeling
  • Business model canvas, revenue model, roadmapping
  • Research- competition research, porter's forces, interviews, desktop research
Context
  • 20 weeks (Aug. 2020- Jan. 2021)
  • In collaboration with Pyropower
  • Masters thesis project

Introduction

Pyropower is an initiative working in the field of biochar systems, established in 2019. Pyropower is active in Europe, Indonesia and India. This project looks at the European context for Pyropower. The project identifies a suitable market for Pyropower in Europe and develops related business model. The project also develops a vision for Pyropower to forward to substantiated by research and future envisioning, and shows the business model related to it.

Design goal

While developing business, its equally important to build a position for startup.

Pyropower is currently in a startup phase and developing new ways to introduce biochar systems in the market. biochar system comprises of waste management, biochar, carbon credits and electricity. Pyropower tries to build business models to add value to current chain. While adding value by providing a solution is important, it is equally important to add value emotionally, to propagate a brand story that connects with people and creates a special bond with them. The purpose of the project is to build the business models as well as build the unique position for Pyropower which will resonate with people and build a brand story.

Business design
Build unique position

Background

What is biochar
Biochar is a carbon rich compound, a product of pyrolysis of biomass. As biomass is pyrolysed, carbon is stored within the biomass, in solid form, thus making biochar a carbon negative solution. The biochar then has multiple applications, one of which is mixing in the soil to improve its yield. Thus biochar is a trusted way of carbon sequestration as carbon remains in the soil for many more years to come.
What is biochar systems
Biochar systems is a combination of different sectors that complement each other to produce biochar. Biochar systems address
1. Waste Management
2. Heat Energy
3. Carbon Credits
4. Biochar itself

Approach

The vision in design is used as a guiding process for the project. The ViP process addresses future opportunities and possibilities rather than solving everyday problems. Pyropower, being a new startup, is able to, and should, look for newer and distinctive opportunities, which will give Pyropower an attractive position and future oriented ambition to look forward to. To address the complexity due to different timelines, 3 layers and need of a strategic outputs, the ViP method is supported with strategic tools, which connect the ViP process with strategic outcomes as well as address the different timelines and multilayered complexity during the project.

Deconstruction

Pyropower

The past projects of Pyropower show that the company helped people to solve their problems collectively. Pyropower is a new startup in the field of agro-innovation, which believes in 3 pillars- empowering community, circular economy, biochar and energy.

Biochar

High cost of initial investment for biochar can be a problem, along with acceptance of biochar instead of organic fertilizers. On the bright side, more and more farmers are moving towards organic farming, which can create demand in future. Considering other applications of biochar, agriculture still remains the best suited sector for application of biochar.

Market

There already are established companies in the market of biochar and Pyropower being a new entrant in the market, Pyropower can get substituted with other company’s product. It is important for Pyropower to create their loyal base of customers to sustain in the market.

People

The future is about local communities and small independent cities, where people think about future generations also. More and more people are interested in organic products, organic farming activities and building a community that shares their vision.

Blue Ocean Strategy- 
ERRC framework

Eliminate

This includes factors that current industry is competing on, which should be eliminated now so as to create new axis for competition.Considering the biochar industry in Europe, the focus of the industry is on increasing the quality of biochar, providing a really high quality biochar. This leads to more sophisticated equipment and more costs.This factor of competition can be eliminated.

Reduce

Reduce includes factors that should be reduced well below the industry standards. In case of the biochar industry, the cost of biochar itself should be reduced well below the industry standards. The current costs of biochar is too much for the agriculture sector to let the biochar to be used for agricultural purpose.

Raise

The factors those should be raised high above the industry standards are included in the raise domain. Considering European context, companies are focusing on sells of biochar to agriculture sector, whereas the companies are not actually looking at ways to reduce the high initial investment as well as address the trust issue people have about biochar being effective in the sector. Pyropower can also address these issues through their business.

Create

The factors that are never offered by the industry are included in the create domain, which forms the new proposition. In case of biochar industry and Pyropower, Pyropower wants to work on community aspect and wants to create a social impact while addressing the biochar related business which can be the new proposition for Pyropower.

Community Supported Agriculture (CSA) groups are identified as the go to market for Pyropower which also is an untapped market for biochar. Community Supported Agriculture consists of a community of individuals who pledge support to a farm operation. These communities are more sustainably aware and are more likely to adopt biochar for increasing yield of the farmers associated in the CSA.

Construction

The construction phase of vision in design method, used to create a service design concept for Pyropower. With the use of strategic tools, the results such as revenue models,business models are also designed within the phase. The construction phase looks into future and designs a proposition as well as designs business models for immediate introduction.

For near future

Value modelling
Business modelling

Future context creation

  • Domain definition
  • Context factors
  • Different worldviews
  • Community model
  • Mission Statement
    ‍

For far future

  • Interaction vision- how Pyropower should create value in future
    Service qualities
  • Concept development
  • The service
  • Value modelling
  • Business modelling

Creating future context and vision

Future context creation

  • Collect factors which are evidence and clues from future context
  • Factors collected from Economical, Social, Technological, Demographic, Ecology, Political, Psychology, Evolutionary, Biological, Culture and Agriculture sector
  • Interaction of factors with each other creates future context, around 8 such future contexts were created.

Mission Statement

What one wants to achieve with the worldview chosen. The statement tells what the designer has envisioned to design for the worldview he has chosen.

‘I want socially aware people to be recognized as a valuable resource to the agricultural community and enable the exchange of this valuable resource to ensure overall development and innovative culture within the collaborative agricultural community by allowing participants of the community to take action and fulfill their psychological desires.’

Interaction vision

A new platform is proposed as a far future development for Pyropower. The platform is inspired by the future that people want to fulfil their psychological needs and the psychological need of the future will be of building their own community and playing an active part in the community by exchanging resources.  

The platform facilitates exchange of volunteers between CSAs available on the platform so that they can choose activities they want to fulfill their psychological needs while also contributing to development of the community they want. A figma prototype shows overall idea of the platform.

Figma Prototype

Modeling

Value model showing exchange of values in far future

The business model for business-future

Business model for biochar kiln in future

Value model showing exchange of values for immediate introduction in market

Business model for biochar

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