Presentation from GIFT's Global Leaders Programme (GLP) on the topic of creating new business models including the building blocks of Customer Segments, Value Proposition, Channels, Customer Relationships, Cost Structure, Revenue Streams, Key Activities, Key Resources, Key Partnerships. Thinking visually is critical. A diagram helps to show stakeholder relationships and the flow of goods, services and cash

1. BUSINESS MODELING 101
GLOBAL LEADERS PROGRAMME

2. WHAT IS A BUSINESS MODEL?
business model
noun
a plan for the successful operation of a business, identifying
sources of revenue, the intended customer base, products, and
details of financing.

3. OR, IN SIMPLERTERMS…
“How a business plans to make money”

4. WHY ASSUMPTIONS MATTER
A business model puts every assumption to the test!
 A business model is built on
assumptions about what the
business will and won’t do,
and why.
 Assumptions about:
 The market
 Supply & demand
 Cost structure
 Investment
 Regulation & policy
 Customer behavior

5. THE BUSINESS MODEL CANVAS
An effective tool for organising and justifying assumptions

6. THE BUILDING BLOCKS
 Customer Segments: Who are the
customers? What do they think? See?
Feel? Do?
 Value Proposition: What’s compelling
about the proposition? Why do
customers buy, use?
 Channels: How are these propositions
promoted, sold and delivered? Why? Is
it working?
 Customer Relationships: How do you
interact with the customer through their
‘journey’?
 Revenue Streams: How does the
business earn revenue from the value
propositions?
 Key Activities: What uniquely strategic
things does the business do to deliver its
proposition?
 Key Resources: What unique strategic
assets must the business have to
compete?
 Key Partnerships: What can the
company not do so it can focus on its
Key Activities?
 Cost Structure: What are the major cost drivers? How are they linked to revenue?

7. BUSINESS MODEL
VISUALISATION

8. THINKINGVISUALLY
 Before the business plan we must
agree on a business model
 A diagram helps to show
stakeholder relationships and the
flow of goods, services and cash
 Each team will develop and
present a diagram backed up by
solid assumptions
 The taskforce is responsible for
consolidating these proposals
into one final visualisation

9. SAMPLE BUSINESS MODEL
 Created during a GLP in Cambodia,
Dec 2016
 A new agricultural business under
a conglomerate – SOMA Group
 Participants challenged with
developing a new business model
to strengthen the country’s
struggling rice sector
 Proposed contract farming
company called FairSmart Agri:
providing inputs and training for
smallholder farmers while
preserving their ownership of land.

10. THE COMPANY
FairSmart Agri
Finance Operations
Partner
Relations

11. AFFILIATES & SUBSIDIARIESSOMA
ECOSYSTEM
FairSmart Agri
Finance Operations
Partner
Relations
FairSmart Farms
Agency
Management
Input Sales Farming Services
Procurement of
Paddy
Logistics
SOMA drying &
storage hubs
with biomass
generatorss Optional
integrated
Drying & Storage

12. SUPPLIERS & CUSTOMERSSOMA
ECOSYSTEM
FARMER
ECOSYSTEM
FairSmart Agri
Finance Operations
Partner
Relations
FairSmart Farms
Agency
Management
Input Sales Farming Services
Procurement of
Paddy
Logistics
Agency
Leader
Non-Agency
Farmers
Agency
Farmer
Agency
Farmer
Agency
Farmer
Farmer Recruitment
Rice
Millers
Power
Company
SOMA drying &
storage hubs
with biomass
generatorss
Input
Suppliers
Optional
integrated
Drying & Storage

13. FUNDING SOURCESSOMA
ECOSYSTEM
FARMER
ECOSYSTEM
FairSmart Agri
Finance Operations
Partner
Relations
FairSmart Farms
Agency
Management
Input Sales Farming Services
Procurement of
Paddy
Logistics
Agency
Leader
Non-Agency
Farmers
Agency
Farmer
Agency
Farmer
Agency
Farmer
Farmer Recruitment
Rice
Millers
Power
Company
SOMA drying &
storage hubs
with biomass
generatorss
Input
Suppliers
Optional
integrated
Drying & Storage
Private
Investors
Financial
Institutions$$$

14. FLOW OF GOODS AND SERVICESSOMA
ECOSYSTEM
FARMER
ECOSYSTEM
FairSmart Agri
Finance Operations
Partner
Relations
FairSmart Farms
Agency
Management
Input Sales Farming Services
Procurement of
Paddy
Logistics
Agency
Leader
Non-Agency
Farmers
Agency
Farmer
Agency
Farmer
Agency
Farmer
Farmer Recruitment
Rice
Millers
Power
Company
SOMA drying &
storage hubs
with biomass
generatorss
Input
Suppliers
Optional
integrated
Drying & Storage
Flow of inputs &
farming services
Flow of paddy Recruitment
& training
Surplus
electricity
Private
Investors
Financial
Institutions$$$

15. FLOW OF CASH!SOMA
ECOSYSTEM
FARMER
ECOSYSTEM
FairSmart Agri
Finance Operations
Partner
Relations
FairSmart Farms
Agency
Management
Input Sales Farming Services
Procurement of
Paddy
Logistics
Agency
Leader
Non-Agency
Farmers
Agency
Farmer
Agency
Farmer
Agency
Farmer
Farmer Recruitment
Rice
Millers
Power
Company
SOMA drying &
storage hubs
with biomass
generatorss
Input
Suppliers
Optional
integrated
Drying & Storage
Flow of inputs &
farming services
Flow of paddy Flow of cash
Recruitment
& training
Surplus
electricity
Private
Investors
Financial
Institutions$$$