Business model innovation in the water sector in developing countries

Area of Science:

• Environmental Engineering
• Public Health
• Business Strategy

Background:

• Fluoride and arsenic contamination pose significant risks to drinking water safety in low-income countries.
• Existing water treatment technologies face challenges in achieving financial sustainability.
• Effective business models are crucial for scaling safe and affordable drinking water solutions.

Purpose of the Study:

• To analyze and present diverse business models for water treatment technologies.
• To identify innovations in business models for financial sustainability.
• To highlight the role of capacity building in fostering business model innovation.

Main Methods:

• Description of four distinct business models: low-value device distribution, high-value device sales, community-based micro-water treatment plants, and entrepreneurial franchising.
• Analysis of current business model innovations including cost reduction, payment security, diversification, and distribution channels.
• Examination of skills and competencies required for capacity building in business model development.

Main Results:

• Four primary business models and emerging hybrid models for water treatment technologies were identified.
• Innovations such as cost transparency, extended payment terms, and diversified distribution channels enhance financial viability.
• Capacity building focusing on specific skills and competencies is essential for future business model innovation.

Conclusions:

• Business models are critical for the financial sustainability and scalability of water treatment technologies.
• Innovations in business models and strategic capacity building are key to providing safe drinking water solutions.
• Further research and implementation of these models can improve access to safe water in underserved regions.