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The general purpose of the RUN business model is to improve the performance of the agricultural innovation system by providing an operational framework for intensified information exchange, interaction and collaboration between a large number of independent actors and organization towards a common goal, while rewarding their individual effort.
The RUN -System business model acknowledges the fact that each actor of the innovation system, from donor to farmer, is in exchange and might therefore be a beneficiary in one process and a service provider in another. To illustrate this with an example, the expert is a beneficiary, if farmers provide him with farm-household data for a study or the development of an adapted technology. Conversely, the farmer is the beneficiary, if an expert provides him with information, which contributes to the solution of a problem or an improved decision. The RUN -System business model aims at optimizing the performance of each actor, be it an actor from the research and development community (R&D) or the community of practice. It provides a set of solutions that facilitate interaction and exchange. The most important are A central element of the model is the definition and delivery of services. The operational framework of the model comprises a standard procedure for the definition of services and their price, a system for seamless documentation of all processes in near real time and a work-flow management system that assures delivery and the timely payment of involved actors.
How it works
The RUN -System business model pursues a decentralisedcollaborative, result oriented and demand driven and result oriented approach for the provision of knowledge management and innovation support services that services that aim at satisfying the particular needs of individual persons or organisations. The system takes advantage of young professionals and the Internet to pool and organise human resources and local initiatives for the provision of services that are designed by experts. Services have a specific objective and are usually launched in the frame of a coordinated action towards a specific goal. In most cases a specific service is part of a set of complementary services (service package).
The operation of the RUN-System is best explained using the example of the information exchange service (IES-service) . The IES-service plays a key role in this project and that enables a systematic dialogue between the research and development community. The graph below illustrates the different steps from the design to the delivery of the service, the role of the different actors and the costs involved.
The RUN -System business model can be used for all kind of services from vocational training to making radio programmes. Please, click here to view the list of complementary services that were successfully implemented during eRAILS2 project that was carried out by the Federal Office for Agriculture and Food of Germany (BLE) following the RUN business model in collaboration with FARA and with support of the Africa Development Bank.
Benefits
The
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involvement of different actors with complimentary skills and institutional background stimulates learning and improves collective know-how. The graph below gives an overview of the multiple benefits of the IES-service and how it contributes to the strengthening of the agricultural innovation system.
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The seven principles of the business model
1. Focus on the needs expressed by individuals: Consistent focus on the needs of the target group is assured by turning their needs for basic services Demand driven: The core idea of the RUN business model is to switch form a system subsidy of the offer to a system of subsidy of demand. A service fund turns the needs of rural poor into market effective demand. The system empowers beneficiaries to express their needs and to formulate a corresponding request for service. They evaluate the services upon delivery. Following the logic of the innovation systems approach, farmers are not the only beneficiaries. Other stakeholders such as researchers, statisticians, entrepreneurs, extension agents and even decision makers, are potential beneficiaries.
2. Build on the local economy: To ensure sustainability and maximum impact of the investment, thecosts prices of services are determined on the basis of the prices of the local economy. Service delivery is exclusively organized in participation with existing initiatives, small businesses and young professionals. The various actors are engaged following the principle of subsidiary, considering their professional and social skills. The system is open for new-comers and engages actors on a competitive basis.
3. Result oriented: A service is a set of tasks involving several actors so called task managers. Each task has a defined price and result that is defined in clear quantitative an qualitative terms. Tasks mangers are paid for the delivery of the results and not for the compensation of his expenditures and efforts.
3. Cost-benefit analysis: Services are launched in the frame of a coordinated action towards a specific goal. Prior to the launch of a service, its expected benefits and its impact on the cost-benefit ratio of the entire action are carefully examined. The analysis considers the outputs and outcomes for primary and secondary beneficiaries. Work-flows are optimized to assure the economical use of resources and multiple use of gathered data, information and experience. Sequential and parallel services are carefully tuned in order to achieve optimal results. Only services with a high return on investment are launched.
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