Revealed: six business models of the future

Six new business models each with the ability to transform the way in which companies interact have been identified in a new report.

Largely emerging thanks to tech innovation, the six go hand-in-hand with new ways for those using a business -- the clients – to operate and consume products and services, the report says.

The six are:

1. Platform-based businesses

Simply digital marketplaces which match buyers and sellers. Example: AirBnB

2. Mass customisation 2.0

Notably ‘on-demand’, local manufacturing services which enable customers to engage with companies to self-build highly tailored products. Example: OpenDesk

3. Frugal

This model centres on reimagined R&D processes that open up new market segments for low-cost, high-quality products and services. Example: Renault’s Indian-designed Kwid

4. Modern barter

As the name strongly implies, this is the name for any platform that enables the exchange of goods and services with fellow users, often through digital or online currencies. Example: TimeRepublik

5. ‘Pay what you want’

Also as the label strongly suggests, this model lets customers pay what they think is the right price, typically as part of tiered or ‘freemium’ deals. Example: Humble Bundle

6. Mega-hyperlocal

Using this model, companies flourish because of their deep connection with the community in which they operate. Example: London’s Kernel Brewery.

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Despite its central importance to all of the models, technology is “only part” of what is enabling them, says Jim Greer, report author and business insights manager at the ACCA, which published the report.

“It is also about the ability of entrepreneurs and innovators to access new networks, capital and ecosystems amidst a challenging economic climate and in doing create new sources of lasting value,” he said.

“These new models are not without their challenge. Recent rulings around the world against a variety of companies powered by new models, for example ride-sharing, food delivery and home-stay services, highlight the degree to which they still come up against traditional regulatory barriers.”

Andy Gibbs of the Economic and Social Research Council, which co-published the report, welcomed Greer’s seminal findings.

“An understanding of new business models, driven not just by technology but underlying social and economic changes, is vital for businesses, policy-makers and professionals,” he said.

The report, entitled ‘ Business models of the future: emerging value creation,’ is available online.