Models

New technologies provide access to entirely new capabilities, allowing us to reimagine the business models we use to create and capture value. Our models are meant to act as conceptual frameworks for identifying strategic opportunities enabled by innovative technologies and relevant to the ever-evolving SEA Region 

Our focus Business Models are meant to represent an abstracted overview of the fundamental business models of a 21st century digital economy.

These models have been adapted from the Smarter Startup’s Business Model Archetypes who adapted it from the 20th century Psychiatrist Carl Jungs’ Personality Archetypes. By understanding these fundamental archetypes Jung believed you could better understand the personality of an individual, and predict their response to a variety of stimulus.

A business model provides a conceptual construct to describe the functions of a business within the overall market landscape. This is especially helpful for evaluating the functions of a business, identifying strengths, weaknesses, and opportunities.

We find the archetypical form of classification for business models especially useful as it allows for emergent and ever-evolving characteristics to be accounted for. For businesses, there are three primary ‘personalities’ that describe the fundamental interests and activities of every business. Bridging each primary archetype are three secondary archetypes. Finally, at the center lies the only tertiary archetype, the ecosystem, which encompasses the characteristics of all three primary archetypes.

Primary Models:  

  • Product – one time purchase of an artifact
  • Service – manually doing something and charging a fee
  • Trade – Connecting buyers and sellers for commerce

Secondary Models:

  • Brokerage – providing trade as a service
  • Subscription – productizing and semi-automating a service
  • Marketplace – productizing trade with a self-service platform

Tertiary Models:

  • Ecosystem – Platform that combines all three primary archetypes

While these high-level abstractions can be helpful for identifying a generalized context, they are not specific enough to be actionable. For this, prototypes and patterns can be added to each of the model archetypes to help provide a more specific and functional demonstration of what is possible within any given archetype. This spectrum of structural prototypes is a great place to begin thinking through the strategy of almost any business.

Product

This primary archetype focuses on the development of a tangible artifact. The product is bought and sold at a one-time cost and is usually consumed for entertainment or efficiency purposes. In a digitized world, this often takes the form of software products and digital content.

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Examples:

Software: Marketplaces
Content: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Attributes:

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Patterns:

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Subscription

The subscription model is a secondary archetype that blends product and service archetypes. This model foregoes the purchase of a product up-front and instead provides continued access to a product or service for a lesser monthly cost. Consumers benefit by a reduced initial price as well as continued updates, improvements and support throughout the products’ lifespan. Businesses benefit by a reduction in up-front costs, a continued customer relationship and reduced dependency upon a marketplace.

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Examples:

Software: Marketplaces
Content: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Attributes:

Key partners: Ecosystem platform owner
Value proposition: Customization and support of platform
Key Activities: Customization and maintenance
Monetization: Time and materials

Patterns:

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Service

The third primary archetype provides intangible, often one-off, solutions for clients when commoditized products are insufficient. In a digitized world, services often take the form of integration, maintenance, or customization. Generally a service organization is formed by group of skilled professionals who sell their services at an hourly rate.

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Examples:

Software: Marketplaces
Content: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Attributes:

Key partners: Ecosystem platform owner
Value proposition: Customization and support of platform
Key Activities: Customization and maintenance
Monetization: Time and materials

Patterns:

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Brokerage

This secondary archetype combines the functions of a Trade Archetype and Service Archetype, trading on behalf of clients as a service. In the digital age, brokerages often service consumer-facing brands that focus on marketing and need assistance with more effective sourcing.

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Examples:

Software: Marketplaces
Content: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Attributes:

Key partners: Wholesalers
Value proposition: Efficient commodity procurement
Key Activities: Recruiting Wholesalers
Monetization: Base fee plus commission

Patterns:

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Trade

The primary archetype of Trade focuses on connecting buyers and sellers. Money is earned through arbitrage, selling a product for more than it was purchased for. A trader’s primary occupation is sourcing something of value, qualifying it, preparing it, and making it readily available to those willing to purchase it. Trade can take many forms, tangible(food) and intangible(information).

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Examples:

Software: Marketplaces
Content: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Attributes:

Key partners: Product sourcing and advertising
Value proposition: Low price, convenience, and curation
Key Activities: Sourcing and advertising
Monetization: Product arbitrage

Patterns:

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Marketplace

The Marketplace is a secondary archetype that combines attributes of of the Trade Archetype and Product Archetype by bringing buyers and sellers together via self-service platform which itself is a product. The products sold in the marketplace, tangible products and/or services are subject to Metcalfe’s Law (Network Effects) which states that the value of the network exponentially increases with every new node on the network. While reaching the critical mass necessary for strong network effects may be difficult, once reached this can be one of the most powerful growth dynamics in business.

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Examples:

Software: Marketplaces
Content: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Attributes:

Key partners: Merchants (sellers)
Value proposition: Destination shopping
Key Activities: Recruit vendors and advertise
Monetization: Commission per sale

Patterns:

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Ecosystem

The Ecosystem is the only Tertiary archetype, in that it combines the Product, Service, and Trade archetypes. While this is the most desirable archetype, it is the most difficult to achieve. Ecosystems generally form as a result of previously successful organizations expanding into complementary and synergistic offerings. Over time these synergistic activities act to entrench the brand as a market leader, adding to the value chain and the perceived value of the customer.

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Examples:

Software: Marketplaces
Content: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Attributes:

Key partners: PaaS providers
Value proposition: Turnkey software and management
Key Activities: Develop software and manage servers
Monetization: Subscription fee

Patterns:

Key partners: Marketplaces
Value proposition: Productivity or entertainment
Key Activities: Product Development
Monetization: One-time sale of product

Have a specific question regarding the SEA Ecosystem?

Have a specific question regarding the SEA Ecosystem?

© 2019 SEA. All rights reserved.

© 2019 SEA. All rights reserved.

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