Development of Business Investment Decision (BID) tool and Operational Business Plan for RTB-EAGEL

The International Potato Centre (CIP), the International Institute of Tropical Agriculture (IITA) and Kenya Plant Health Inspectorate Service (KEPHIS), in collaboration with Prof. R Sai Shiva Jayanth from the Indian Institute of Management (IIM), Visakhapatnam, through One CGIAR’s Seed Equal Initiative, and the project CNCteH-16: Regional Germplasm Hub for Vegetatively Propagated Crops @ KEPHIS Muguga have developed a groundbreaking tool aimed at enhancing business decision-making in the seed sector. The tool is in development stage. This initiative focuses on addressing the critical need for improved seed business management and financial skills among stakeholders within seed supply chains. Currently, the tool is developed for Vegetatively Propagated Crops (VPC) seed business.

The Business Investment Decision (BID) tool is designed to provide essential advisory services for seed entrepreneurs, offering guidance on developing comprehensive business plans. This includes structuring business models, establishing costing and pricing strategies, crafting financial statements, conducting financial analyses, planning budgets, and more. By leveraging Artificial Intelligence (AI), the tool also assesses seed business performance and delivers targeted recommendations to strengthen operational strategies.

Figure 1: Workflow for Sweetpotato germplasm processing at RTB-EAGEL including virus cleaning and indexing

In a significant application of the BID tool, a detailed workflow (see Figure 1) was developed for the Root Tuber and Banana – East Africa Germplasm Exchange Laboratory (RTB-EAGEL) under the project called “the project CNCteH-16: Regional Germplasm Hub for Vegetatively Propagated Crops @ KEPHIS Muguga” (Figure 3). Data collection involved extensive workshops and interactions with team members at KEPHIS Muguga in Nairobi, resulting in a comprehensive documentation of the workflow and its various operational scenarios tailored to different customer segments.

Additionally, a Value Proposition Canvas (Figure 3) was employed to understand the facility’s diverse value propositions and the specific pain points and gains experienced by its target customers. This was followed by the creation of a Business Model Canvas (BMC) to delineate the key aspects of RTB EAGEL’s business model. These foundational steps were instrumental in utilizing a Design Thinking Approach to prototype the BID tool and develop an operational business plan for RTB EAGEL.

Figure 2: Explaining Value Proposition Canvas to the participants before collecting information on various aspects of Value Proposition Canvas and BMC at KEPHIS Plant Quarantine and Biosecurity Station (PQBS), Muguga Kenya

To ensure thorough data collection across other VPC crops such as Potato, Banana, Cassava, and Yam, specialized data collection tools were developed (refer Figure 4). Staff at KEPHIS Plant Quarantine and Biosecurity Station (PQBS) were briefed on the process and provided with formats for comprehensive information submission. Detailed consultations with stakeholders at RTB-EAGEL further informed the development of the operational business plan, covering critical aspects such as business incorporation, procurement strategies, revolving funds, financing options, payments, revenue sharing, and necessary subsidies.

Figure 4: Sample data collection format elaborating workflow, activities and various costs at KEPHIS PQBS, Muguga, Kenya
Figure 5: Various participants from KEPHIS PQBS Muguga.

This comprehensive effort at RTB-EAGEL aimed to gather data across all stages of its workflow, including activities and associated costs, to develop consolidated cost estimates. These estimates form the basis for creating modules on costing and pricing, financial projections, budgeting frameworks, financial analyses, and standard operating procedures. Insights gleaned from key informant interviews and workshop participants’ inputs were pivotal in refining both the BID tool and the operational business plan for RTB-EAGEL. The key team members of RTB-EAGEL participated in training organized by the Accelerated Breeding Initiative of One CGIAR, where they learned to use the “Breeding Costing Tool.” They found it to be useful and complementary to the BID tool.

Through these collaborative efforts, CIP, IITA and their partners are paving the way for enhanced efficiency and sustainability within the seed sector, empowering stakeholders with the tools and strategies needed to navigate complex business landscapes effectively. This initiative not only strengthens the operational capacity of RTB-EAGEL but also sets a precedent for advancing agricultural innovation and economic development across the region.

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