Digital Technology-based New Business Model for Inclusive Development

"Leave no one behind" has been a key objective of the recently agreed UN 2030 Sustainable Development Goals (SDGs). As the poor, in particular the youth and women, are often being marginalised and excluded from market participation due to unequal access to education, resources and information, empowering and including these segments into the main stream market and income creation activities turns out to be an important imperative to achieve SDGs and build an inclusive society. This is important as developing countries are witnessing an upsurge of young people in rather inadequate labour market. While emerging digital technologies can become both an equaliser and a disruptive factor in labour markets, they can empower both women and youth. The decreasing cost of digital technology should thus foster and support new exchange mechanisms that will generate new models of value creation (Amit and Zott, 2012) and will lead business organisations towards network based systems (Dafe & Lewin, 1993; Dunbar & Starbuck, 2006). Many new digital technology-based business models have already been developed. These developments not only create new drivers for economic growth, but also lead to upgrading of capabilities of small business owners. Such increased capabilities will in turn enhance the welfare of the poor (Sen, 1999).
However, there are a number of gaps to fill in order for this potential to fully materialise. (1) Most of the research focuses on the evaluation of the impact of technology on development. Little is known about the business models that are needed to transform the benefits of technology into jobs, income and a driver for growth for the poor (Seelos & Mair, 2007). (2) The existing studies mostly focus on e-trading businesses that sell products or services online, and normally require considerable initial capital investment to start the business. What type of new business model can help the poor to benefit from digital technology? This is an under-explored area for inclusive development. (3) Some research is available on how to use business models for digital innovations to support growth of new businesses and employment. How is it possible to design a business model to empower the poor who have no initial capital to benefit from technological progress is missing. What underlying institutional, regulatory and capability conditions are needed to ensure the success of such digital technology-based new business model? What role can the state and Multinational Enterprises (MNEs) play in this process? These questions will fill the significant gap and provide important policy and managerial implications.
Drawing on inter-disciplinary research from technology, development studies and responsible business studies, this project aims to fill in the gap in the literature with an Inclusive Digital Model (IDMODEL) that will particularly include deprived youth and women. In particular, it will:
1) Develop, test and finalise a digital technology-based new business model which enables poor people to start a business based on their skills and experiences, while requiring minimum capital investment.
2) Evaluate the impact of this DT-based business model on jobs, income creation and capabilities building.
3) Analyse the underlying regulatory and capability conditions that are needed to ensure its success and scale up, and the possibility to replicate in other developing countries.
4) Examine how the state, MNEs and civil society can collaborate for inclusive development.
The project will be supported by a multi-disciplinary team of researchers from the universities of Oxford and Birmingham, and collaborators in Bangladesh and China from both the private and public sectors.
It will contribute to the literature by filling current gaps on technology, business model and inclusive development and its impact as well as producing novel datasets and robust empirical evidence to elaborate relevant policies for development.

IDMODEL places communication, policy engagement and exploitation of its research methodologies and findings at the heart of its activities. In addition to the project's overall dissemination and uptake approach, each work package will have a clearly defined impact strategy with specific and targeted engagement with a range of partners and stakeholders.

1. Communications, Engagement and Collaboration
The development of the IDMODEL proposal has come about through extensive consultation and co-production with a range of academic, policy and corporate partners in the UK, Bangladesh, China, other developing countries such as Africa, and in key international agencies. These include its named international partners and advisors of the project; national policy makers, NGOs, key United Nations agencies, and major internet MNEs. The Ministry of Foreign Affairs and the Minister of ICT of Bangladesh are consulted and are supportive to the project. By maintaining our co-production and engaged interaction with these various partners and stakeholders we will ensure that our research is better rooted to local needs, and thus better able to provide useful knowledge. The PI and Co-I are frequent advisers to UN agencies and the PI serves in the Governing Council of the UN Technology Bank and the 10-Member Group to the UN Technology Facilitation Mechanism. These close links with UN agencies, Bangladesh government are also effective avenues for communicating the findings and policy uptakes.
The project will maintain a bespoke website and social media, disseminating its research outputs and activities. The PI and Co-I are already active discussants on major media disseminating research findings.
The project will hold Round-table Discussions at an early stage of IDMODEL to have a close 'reality check' to ensure that the research fits the local context and focuses on most urgent problems. We will co-organise stakeholder meetings with key UN agencies, targeting ministers and business leaders for dissemination and engagement. In Bangladesh, we will organise a workshop involving all stakeholders to participate. Training workshops will be organised there. The collaboration with scholars and research institutes in Bangladesh and China will also significantly enhance our local policy dimensions and business linkages.

Impact Pathways by Work Programmes:
WP 1 will engage with policy makers, regulators, business leaders and the grassroots communities in Bangladesh and China improve the digital business ecosystem, and influence the shaping of an agenda on inclusive digital economy.
WP2 will engage with MNEs, NGOs, grassroots communities and the government to promote the diffusion and adoption of IDMODEL in the wider society; engage with MNEs and policy makers to improve local digital infrastructure; and engage with policy makers to enhance the developmental impact of IDMODEL.
WP 3 will engage with MNCs and local government and NGOs to promote collaborations between the three actors for inclusive development, and influence the shaping of corporate strategies that promoting SDGs and strengthen public policies that encourages such a change and collaborations among these actors.

Exploitation and application
Senior officials of ITU and UNDESA serve as policy advisors to the project, which will strengthen the policy impact and research uptake. Findings from the survey and other research will be feedback to participating communities, digital micro firms, platform provider and MNEs, and policy makers in NGOs and government, and help them to identify strengths and gaps, and learn from best practice. The project will engage graduate students at the Universities of Oxford and Birmingham. Masters and doctoral students at these institutions will be able to draw on this database for their thesis research. The project will also develop new models and interdisciplinary approaches on IDMODEL.