Purpose

...

The general purpose of the RUN business model is to improve the performance of the agricultural innovation system towards impact and to increase the returns on investment into development by providing . It is 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 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. Conversely, the farmer is the beneficiary, if an expert provides him with information, which contributes to the solution of a problem.  The RUN 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. 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.

...

The RUN business model pursues a collaborative, result oriented and demand driven approach for the provision 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).

An example is the The operation of the RUN-System is best explained using the example of the information exchange service (IES-service) that . It enables a systematic dialogue between the research farmers and development communityexperts. 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 involvement of different actors with complimentary skills and institutional background is aiming at building up of collective know-how that is required for the delivery of complex services. The process stimulates learning at all levels of the innovation system. 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.

The seven principles of the business model

1. 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. All services are delivered following the demand that is expressed by an individual. 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.

Image Removed

2. Build on the local economy: To ensure sustainability and maximum impact of the investment, the The prices of services are determined on the basis of the prices of the local economy. In order to contribute to the strengthening of strengthen local initiatives, service delivery is exclusively organized in participation services are delivered in collaboration with existing initiatives, small businesses and young professionals. The various actors are engaged as task managers following the principle of subsidiary, considering their professional and social skills. The system is open for new-comers and engages tasks managers on a competitive basis.

...