Business development, strategic analysis and social responsibility within the water industry : a system dynamics approach

Abstract

Business developments within the water industry exist in the form of corporate market ventures and governmental initiatives to satisfy municipal needs. The two are infinitely interrelated and with increasing demand, new financing options and heightened regulatory activity they are dynamically shaping the industry's behavior. As 1) water has become a limited and invaluable resource, 2) once government controlled water operations fragment and reconsolidate under privatization, 3) technological adoption accelerates, and 4) regulation both domestic and internationally tightens, new ventures are at the mercy of increasingly multifaceted system dynamics. This paper aims to analyze the complexity of these dynamics, by placing weight on the components that are critical in adding value to the system in the face of a shaping environment. Whether entrepreneurial, intrapreneurial or governmentally-driven, understanding truly relevant value propositions and strategic importance will help clarify the various elements that affect decisions on new business venture planes.