Business Model Canvas





BMC.pdf

The experience of building the first prototypes has learned that the Fortune Cooker might be quite expensive to produce. Moreover, market research has pointed out that none of the test persons would be able this pay this amount of money. Research also shows that full technical functionality and good user-experience is the most important in designing for the people cooking on gas, whereas a low price has the highest priority for the people cooking on wood. It is highly unlikely that the priorities of both groups can be combined in one product.

Therefore we should reconsider the target group (market) of the Fortune Cooker. This gives us two options:

1. The Fortune Cooker focuses on people that cook on gas. An advantage is that it can be made possible to define the price of the Fortune Cooker so that they can purchase it themselves, which makes the product more ‘stand-alone’. A disadvantage is that the initial aim of the Fortune Cooker to improve health and reduce CO2- emission and deforestation will be not, or less achieved, as the Fortune Cooker will not be used in the way that it is designed for.

2. The Fortune Cooker focuses on people that cook on wood fires. In this way the Fortune Cooker does aim to accomplish its mission of being a clean cook stove and reduce CO2- emission and deforestation. A disadvantage is that these people are, in the current situation with the current design, not able to purchase the Fortune Cooker themselves.

As this choice highly influences the continuation of the project, these options have been discussed with the project leader, Jan Kluiver. The decision was then made to stick to the initial goal: “To adapt an environmentally clean cooking device to the wishes and values of the customer, with the ultimate goal to reduce CO2-emis¬sion and deforestation by cooking on wood fire.” This means the target group will be people cooking on wood fires. Even though this is a logical decision, as this target group fits best with the product’s mission, it comes with a new hurdle to be overcome. On one hand, it is the client’s goal to create a product – and a business model – that is commercially viable and that will enable the user to buy the product without making use of subsidies. On the other hand, however, it is the chosen target group of people cooking on wood fire, who have the least money to spend. A new business model will have to take this contradiction into account, and further research will probably be needed to think of good way to solve this difficulty.

The new business model canvas is composed by combining an evaluation of the initial future business model canvas – the one made before going to Morocco – with the conclusions drawn from our research. It is also adapted to the customer segment of people cooking on wood fire. The previous canvas and its evaluation can be found in Appendix 9.

The new business model canvas will – along with the List of Requirements and Wishes – provide a basis for continuation of the project. It is shown on the next page. Yellow parts in the canvas are adaptations on or additions to the previous canvas. In Appendix 10 some of them will be further explained.

One of the most important aspects in the new Business Model Canvas that need to be highlighted is the choice for letting franchisers run the business of the Fortune Cooker. Engineers Without Borders Netherlands is a small organization, and thus letting people tied to this organization manage the workshop would be difficult logistically speaking. More importantly, enabling locals to manage their own business is the key to a sustainable enforcement of the economy in a developing country. This can stimulate employment, as well as knowledge development, which both contribute to the development of an area. Hence, Engineers Without Borders will be tasked with supervising and facilitating the Fortune Cooker franchisers. As such, Engineers Without Borders will set up a national or regional supply chain for the franchisers, promote the Fortune Cooker with a broader aim and attracting western investors to partly finance the project. The Moroccan franchisers are tasked with building and selling the Fortune cookers locally and they are free in choosing to use the services of Engineers Without Borders.

For those who cannot afford the Fortune Cooker in one go, a dedicated payment structure should be in place, such in trading of natura or a loan. However, as the aim is to let the franchisers do the selling, we may need to give them control over these issues as well. Either way, a sound payment structure should be in place to fall back on. For example: during our research, we have experienced that the women who had very little to spend tried to get by by making and selling baskets or food, but they did not have the right connections or resources to actually sell. It is a possibility to establish some kind of trade centre, that gives women the possibility to sell their goods, in return for a Fortune Cooker (after a reasonable amount of delivered goods). With this way of selling the Fortune Cooker, people can be encouraged to build up some kind of business on their own, which could eventually contribute to development of the local economy.

The eventual goal of the Business model for Engineers Without Borders is to be needless in sustaining the Fortune Cooker franchisers. Thus, all tasks of Engineers Without Borders are taken over by Moroccans and will make western investors less and less needed and ultimately obsolete.