Developing an Innovative Business Model

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Developing an Innovative Business Model

Novo Nordisk entered into a renewable energy policy because it was seeking a partnership with any energy company to help it ensure the provision of a certified renewable energy. It had first considered the possibility of constructing its own wind farm to generate the energy but it could not bear fruits because it was not financially feasible. Being that Dong Energy was one of Europe’s leading energy groups, with an ambition to triple its renewable energy capacity by 2020, it was a perfect opportunity for Novo Nordisk and Dong Energy to collaborate in order to establish a strong partnership that would bring a formidable response to the energy problem facing the two companies. The partnership between the two companies was very relevant in the sense that both the companies had a common objective of responding to the challenges facing them. The only problem they had is that of financial feasibility. For example, Dong Energy had to ensure financial leverage for long term investment in renewable energy but it lacked a sustained commercial base, which was the same problem that Novo Nordisk had.

The initiative by Novo Nordisk and Dong Energy is able to expand to a broader scale given the fact that the two companies are very innovative and can for that matter invent new and sustainable business models to help them identify new energy saving models. This was only possible by Dong Energy lending its expertise in energy efficiency to Novo Nordisk to offer consulting services technical advice. Dong also used its expertise to produce customized solutions, which involved improved servicing and efficiency, energy consumption audit, and maintenance of energy installations. Novo Nordisk on the other hand would devise cost effective ways of achieving high reduction in CO2 emissions. Dong would then initiate a long term mechanism to help contribute in financing capital requirements and bring additional renewable energy.