2. Inclusive business models
2
Identifying common priorities
Session 9
Common upgrading priorities
• Why identify common upgrading priorities?
• Contribute to collaborative business partnership
• Both sellers and buyers move forward more
effectively
• Communicate to partners priority areas for
attention/funding
3. Inclusive business models
3
Identifying common priorities
Session 9
Process to identify
common upgrading priorities
1. Priority
areas for
producers
2. Priority
areas for
buyers
Compare
them
Identify
converging
points
4. Inclusive business models
4
Identifying common priorities
Session 9
Tools for consensus on priorities
• Desk review of existing markets studies, value
chain mapping
• Surveys and focus group discussions with
buyer(s) and FBO(s)
• Producer-buyer forums informed by results of
market appraisals with a neutral convener
• Neutral facilitator to bring consensus between
two actors.
5. Inclusive business models
5
Identifying common priorities
Session 9
Forum/Round-table
Agenda elements:
1. Presentation of business model analysis
2. Plenary discussion of analysis (validation)
3. Group work: buyers and sellers identify
their own upgrading priorities
4. Presentation of buyer and seller priorities
5. Facilitation of discussion
– Common areas
– Priority ranking
7. Inclusive business models
7
Identifying common priorities
Session 9
Common priorities
• What are the common priorities for producers
and buyers?
• Rank the three most important ones
8. Inclusive business models
8
Identifying common priorities
Session 9
Example – Blue Skies case
Buyer priorities Seller priorities
- Reduce purchase price of fruits - Obtain higher price for fruits
- Increase total volume of fruits
delivered - reduce rejections (5-
10%) and side-selling
- Increase volume of sales
- Obtain steady supply of fruits - Receive fast payments
- Improve quality of fruits delivered - Reduce production costs
(certification, seeds, inputs)
Notes de l'éditeur
This session presents steps two and three of the IBM approach. Common upgrading priorities are those action-areas common to both the seller and a buyer (step two). Once the common upgrading priorities have been identified, activities and interventions to address them can be designed and implemented (step three).
Outputs
Participants will be able to:
Analyze a business model in terms of producer and buyer priorities.
Identify common priorities to push the business forward.
Common upgrading priorities are key areas that contribute to competitive performance
Few key areas where things must go right for business relationship to flourish
Areas that should receive constant and careful attention from actors
Common upgrading priorities are those action areas common to both seller and buyer. To identify these, business model descriptions of both the farmer group and the buyer are reviewed separately and the respective priority areas identified and ranked. The results of both rankings are then compared, to identify priority areas common to both actors. In most cases, price will rank highly in both priority areas,
indicating that an action area is needed to address the problem.
This process needs to be carried out in a workshop setting that brings together representatives of farmers and buyers in addition to local market experts and a neutral convener, such as a local NGO. The objective of the workshop, referred to as a producer-buyer round table, is to ensure that common upgrading priorities are not only valid in terms of viability for both enterprises, but that both farmer organizations and buyers agree on the main challenges and priorities.
Priority areas will typically be grouped into reliability of supply, quality standards and price. Their ranking, however, will vary according to the nature of the commodity, such as staple or high-value cash crops and the different target markets, such as export traders, the tourist industry, hospitals, supermarkets and fresh markets.
At the introduction of the exercise remind the participants that normally this should not be a desk exercise, but based on conversations with the producers and the buyers, possibly through a round-table.
Alternative approach to this group work: instead of asking the groups to identify buyer and producer priorities one after the other, the group work could more closely simulate a round table:
Divide each group in smaller subgroups. One small group will play the producers, one small group the buyers, and one participant will take the role of neutral facilitator.
The neutral facilitator will give the recap of the previous BM analysis, after which the sub-groups will work on their respective priorities.
They will then present this (within the group only), and the neutral facilitator will try to help them find consensus on their common upgrading priorities.
In the plenary, ask participants to try to identify buyers’ and sellers’ priorities for a case already studied. The presentation contains guidelines for the Blue Skies case, but this should really come from participants so that they reflect on what is a priority. Write them down on a flipchart. Guide them to come-up with the priorities so that they understand what they are expected to do in the group exercise.