There might not be any stringent definition of what a business model is. But it constitutes the core ideology behind why and how a business will fare in a market in a given environment. The product or service alone is not a determining factor here. A business model showcases what is ‘value for customers’ and how that value can be created and delivered through a planned framework of capabilities.
Technology has played a big role in the emergence of unique and disruptive business models as it can significantly affect what is ‘value for customers’ and how the value chain operates. For instance, Tunisian fintech startup Kaoun offers e-KYC, electronic signature, and online payment services to businesses, governments, and financial institutions. These services have tremendous potential in achieving macroeconomic goals like financial inclusion and distribution of public welfare services. RideSafe in Kenya is a blockchain-based application that offers real-time emergency response solutions to the public motorbike sector in the event of an accident.
It is not just what the product or service is but also how ‘value for customers’ is created and delivered that determines the fate of businesses.