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Business Model Canvas: A new outlook towards agribusiness
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Mukund Deshpande
January 31 , 2015
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Being at the bottom of the pyramid for agribusiness, generations after
generations, a farmer manages his business based on somebody else’s
decision. Be it selection of crop, fertiliser, pesticide or the right
time to sale the produce, the right trader, the form and packaging of
farm product, he has to take decisions based on information disseminated
by marketing campaigns, opinions based on the experience of some other
farmer who has different quality of soil and different conditions
regarding availability of water and skills in processes like germination
of seeds and so on.
Lack of knowledge
In reality, one end of
our agribusiness supply chain is suffering from lack of information,
lack of management skills to identify and solve correct problems, and
the creator of resources who do not have control over their creation.
Meanwhile, we have efficient logistics management corporates, processed
food manufacturers, exporters and so on having control over their
resources. Though this cannot be generalised, but one thing is for sure,
if you know the problem, and the dynamics then you can solve the
problem. With real-time dynamics in view, one can know the exact
problem.
Advantage of Business Model Canvas
Supply chain handholding
The
Business Model Canvas comes in handy, which can be used by farmers with
regard to all corporations and stakeholders, making the industry take
control of its resources. The most important advantage is the fact that
this Canvas lays emphasis on developing partners and associates and
allows to take cognisance of a customer, every time one views it.
Informed decision-making
The
second major advantage is one can evaluate selection of one’s focus
areas while making conclusions in one’s Canvas. A business model for
plantation of medicinal plant will make one think about selection of
duration of harvesting the produce, when one will arrive at a revenue
stream. So, cultivation of short-term, mid-term and long-term medicinal
plants in optimum proportion will be farmers’ own and wise decision.
Expenses verses paybacks
The
next advantage is that Business Model Canvas is very truthful. Many a
times, a person looking at revenue stream may not bother looking at cost
structure but here the cost structure is surely visible, also the
non-tangible factors like correct associations, key resources will play
important role to figure out facts. This may work as a whistleblower
much before one directly invests one’s strength in the unknown.
Understanding the whole picture
Innovation
is discovery of the existing possibility. When you try to throw an
arrow, then the probability of hitting bull’s eye is 50%, but if you do
not throw it at all, then the probability is 0%. With Business Model
Canvas one can find out more avenues in customer segment, more
opportunities in product format and also new markets. This engagement
with newer dimension leads an individual and organisation to perform
more - for example, Abhinav Farmer Club in Maharashtra is able to sale
agri produce directly to urban housing societies with a total win-win
situation for farmers and consumers.
Availability of channels
While
many industrial players are still facing challenges from unorganised
players as well as those who are still searching for channels to reach
out to high paying customers or where the business is more profitable in
terms of process, many have established channels to reach their optimum
goal. It may be Re 1 from 100 customers or Rs 100 from 1 customer, one
needs to seek strength and weakness embedded in both the channels. The
Canvas gives you freedom to establish and try out such channels.
Control over the resources
All
the cooperative movements and revolutions in the past have witnessed
strength coming from lending control on resources to the creator. With
the application of Business Model Canvas from farm land to consumer, it
will be complete understanding and control of the business as is. Many
doubts regarding dependency over nature will play their role but with
optimum use of available resources any individual or organisation can
make a significant change in their being.
(The author is CEO, Mettle Innovations)
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TOPICS
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