Innovative Business Models in Humanitarian Contexts
© Megan LeeThe main focus of innovation activities is often the development of products and services. We tend to forget that the supporting business models, in many cases, are the most important part of an innovation. In fact, research shows that one of the main reasons for failed innovations is the lack of a viable business model.
The most traditional business model for humanitarian assistance is obviously donor financing. This is an important pillar of our work. However, to continue our efforts to bridge the financing gap, and to fully utilise the power of cross-sectorial partnerships and digital developments, it is important that we also explore, develop and utilise other business models for humanitarian impact.
Careful considerations of which business models are needed to implement and scale any given innovation, can mean the difference between an innovation process that ends after the pilot, and a process that continues through implementation and scale.
Tools for business models
Humanitarian innovators face unique business model challenges. In contexts where crises and developing economic systems are common, new ideas can only advance if an innovator can find ways to support both the early work of innovation and the long term operation of a successfully deployed project. This report, and its supporting models, provide a foundation for a better understanding of the purpose of a business model for an aid sector innovator and suggest a range of available options:
"Supporting creative business models for innovators in the humanitarian sector". Report by Alliance4Impact for Innovation Norway, 2022.
This report highlights the range and variety of challenges to implementing circular economy approaches in humanitarian response, linking them to actual case studies and relevant business models. The report is intended to be used as a tool that enables Circular Economy innovators to take a step back and see with greater clarity the complex business model system that they are trying to create asking the questions:
- Is the system complete, with all parts working together?
- Is every actor and needed partner motivated to do their part?
- Will users of this solution select it over other available alternatives?
The report is accompanied by tools that can help you and your team design the best circular economy approach for your work. The research and the report were developed by Dan McClure and Hannah Reichardt in collaboration with Innovation Norway.
Click to download:
The Report: Making Circular Economy Business Models Work in Humanitarian Action
Tool 2: Getting started with Circular Economy
Tool 3: Circular Economy Business Model Strategies
Tool 4: Circular Economy Program Participants and Insights, required resources and costs