3.2 Solution business model
This business model is focused on the creation of a tailored or bespoke solution for a problem the customer faces, as displayed in the animation below. Again, here a ‘customer’ can be both an end consumer or a business or other type of organisation. The solution business model makes the engagement with customers greater than in product business models. Therefore, trust is crucial for this business model to succeed.
Simple examples of solution business models in cases where the ‘customer’ is an end-consumer (B2C) are kitchen design and interior decoration, where the firm builds a relationship with the consumer and designs a kitchen that suits their family needs and space. Examples where the end customer is a business (B2B), include all the bespoke services, such as accounting services, or any other consultancy advice that it is unique and tailored to the needs of the end customer.
Activity 2
Watch the video presentation of GEOSENSE [Tip: hold Ctrl and click a link to open it in a new tab. (Hide tip)] , an ICAERUS project partner and pioneer in the professional drone Greek market, and answer the following question.

Transcript: Video 1
Does GEOSENSE use a product or a solution business model?
Discussion
GEOSENSE distributes well-known brands from international drone manufacturers in Greece and conducts research & development for drone modification and advancing drone functionalities. As a result, you can say that GEOSENSE uses a product business model.
However, GEOSENSE does other things too! It offers bespoke services and turn-key solutions according to end-user needs, such as, to name only a few, GIS surveying, spatial data capturing, data management and analysis. It also modifies drone kits to provide interchangeable components depending on user needs. For this part of its operations, GEOSENSE uses a solution business model. The use of two business model types is common in large, complex organisations.
Solution business models offer great opportunities in agriculture. Farmers can purchase bespoke services rather than invest money to buy drones. Such bespoke services include outputs generated by the use of drones. This includes farm and crop analytics which can provide in depth information on diseases and nutrition needs of crops and farms. Bespoke services such as these create lots of opportunities for businesses interested in offering such services to farmers.