Post on 19-Jan-2015
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Developing Natural Products and New Value Chains in Kelantan while
Maintaining Cultural Integrity: What, How and for Whom
Mohd. Murray Hunter University Malaysia Perlis (UniMAP)
Keynote address to the Conference on Natural Products: Integrating Traditional Practices & Technology Advancement for Creating Business Opportunities, 21-22nd
November, Grand River View Hotel, Kota Bahru, Kelantan, Malaysia
“On one hand, rural development starts with people and their education, organization, and discipline. Without these
three, all resources remain latent, untapped potential”
E.F. Schumacher 1975, P. 168.
The importance of Kelantanese Culture
Agricultural Activities
Rubber
Palm Oil
Paddy
Fruit Production
Vegetable Production
Other Crops
Agro-Industry
Agro-Tourism
Handicraft
Fishing
Industry
Other Activities
Logging
Biotechnology
Service
Construction
Education
Transport
Product Space Map of Kelantan
ISSUES AND PROBLEMS ENCOUNTERED IN NEW CROP DEVELOPMENT
Focus Paradigm
Requires focus on concept of product where present focus is on cultivation
This requires research This requires entrepreneurship approach Concepts not understood by farmers
Basic Research
Needs access to worldwide data Requires availability of suitable germ-plasmas Requires basic R&D to determine whether crop
technically suitable Requires basic R&D to determine if potential crop is
economically feasible
ISSUES AND PROBLEMS ENCOUNTERED IN NEW CROP DEVELOPMENT
Crop Management & Processing
Propagation technologies How to plant, cultivate & manage to crop How to harvest, extract, store and handle How to process How to package Transportation and storage
Marketing Infrastructure
Require coordination of production with demand Require correct channels of distribution Requires a marketing strategy
Economies and Logistics
Requires enough volume to economically transport and distribute
Requires solution to inconsistencies of quality and production
ISSUES AND PROBLEMS ENCOUNTERED IN NEW CROP DEVELOPMENT
Organisation Need committed people with strong leadership and trust
Government Need to translate support into action Need funding allocations
Finance Very difficult to obtain funding for these projects
Consumers Need efforts for education & promotion
Partly modified from Kee, T. B., Monoculture in Malaysia: Impacts, Potential Solutions, paper presented to Monocultures: Environmental and Social Effects and Sustainable Alternatives Conference, Songkhla, Thailand, 2-6 June, 1996.
The path to development of natural products
in Kelantan
Raw Herbs
Fresh Consumption Dried Fermented
Extracts
Medicinal Powders
Medicinal Beverages
Essential Oils & Other Volatiles
Flavour & Fragrance
Personal Care & Cosmetics
Standardised Extracts
Phytopharmaceutical Products
Fractions & Isolates
Bioactive Compounds
Prescription & OTC Drugs
Figure 1: The Family Tree of Herb Derivatives
Agricultural Application
Traditional Herbal Medicines
Aromatherapy
Enzymes
TRADITIONAL HERBAL MEDICINE
HomeopathyTraditional Chinese Medicine
Siddha
Ayurveda
Unani
TRADITIONAL MALAY MEDINE
Natural plant Extracts
Berberine
Quaternary Ammonium Compound
Fungal infections Diabetes mellitus Intestinal disorders
Represses tumor growth Antidepressant
Berberis vulgaris
Coptis chinensis
Extraction & Preparation
Essential Oils
Tea TreeAustralia
Wild Collection & Distillation
Small Holder (Patchouli Indonesia)
Medium Size Plantation
Bridgestow Tasmania
Processed Food
Beverages
Fine Fragrance
Aromatherapy
Cosmetics & Personal Care
Pharmaceuticals
Organic Agro-Chemicals
Existing Thai Organic Products
Essential Oil Based Fungicides/Insecticides
Control
Timorex 0.5 %
Nimgard + Kocide
Timorex 1 %
New Foreign Products
Five foliar sprays at 7-d intervals
0
1
2
3
4
5
6
7
Dise
ase
ratin
g (
1-1
0 )
Control Neemgard 1% Timorex 0.5% Timorex 1%
Treatment
a
b
b
b
Powdery Mildew in Sage
Field results Sage
0
5
10
15
20
25
30
35
40
45
50
Perc
ent i
nfec
ted
leav
es
Contol Timorex 0.25% Timorex 0.5% Timorex 1% Nimgard+Kocide
Treatment
a
c
c
bc
b
Five foliar sprays at 7-day intervals
Powdery Mildew in Parsley
Field Results Parsley
Prophylactic activity grape downy mildew Adelaide, Au.
0
5
10
15
20
25
30
35
Control Timorex 0.5% Copper 0.5%
Treatment
Perce
nt inf
ected
leaf
area
Plants were infected 2 days after spraying Disease was rated 14 days after inoculation
Percent infected clusters
Treatment
48.8 a Control
0.5 b Timorex 0.5%
0.0 b Timorex 1%
0.0 b Tebuconazole 0.02%
grape PM- Carignan
4 foliar sprays at 14-d intervals
Field Results GrapesTreatment & Prophylactic
0
10
20
30
40
50
60
70
Control Timor 0.5% Heliosulfur 0.5%
Treatment
Per
cen
t in
fect
ed c
lust
ers
1st Rating 1.7.03
2nd Rating 15.7.03
grape PM- Chardonnay 2003
Field Results Grapes
0
10
20
30
40
50
60
70
Control Timorex 1% Kocide 0.25%
Treatment
Per
cen
t in
fect
ed le
aves
Control of grape DM- 2003
5 foliar sprays at 7-d intervals
Powdery Mildew by Timor
Timor 0.5% Control
Enzymes & Cosmetics
Introduction
Common Enzymes, Potential Sources and Other Potential Applications
Enzyme Potential Sources Potential Applications Ascorbic acid oxidase
Citrus fruits, leaf vegetables, cucumbers
Fruit preservation, cleaning applications
Beta-amylase Grains, sweet potatoes, taro, cassava
Yeast production
Bromelains Pineapples Fertilisers, pseudo hormones, cleaning, cosmetics, personal care, mouthwashes, skin healing, anti-acne, anti-microbial
Catalase Animal wastes, milk wastes Cosmetic, anti-ageing, oxidising Chlorophyllase Some leaf vegetables UV absorption Elastase Animal intestines Cosmetics, anti-aging Glucoxidase Some mushrooms, mould, other
fungi Anti-oxidant
Papain Papaya Fertilisers, wound and skin healing, mouthwashes, other cosmetics, dishwashing, all purpose cleaning
Natural Based Enzyme Products
Natural Enzyme Based Products
Organic Herbicides
Product Reported Results*
Control O
Round Up Pro[i]
10
All-Down Organic[ii]
Range 0.5 – 3.8
[i] Registered Trademark of Monsanto.[ii] http://alldownherbicide.com/
Before
After
Pharmaceuticals: Artemisia annuaA source of artemisinin for treatment of malaria
World Shortage
Straight forward cultivation
Discovery: 2-10 years The extraction or synthesis of a new clinical or biological substance
Preclinical Testing: 4 years Laboratory and animal testing
Clinical trials: 7 years Phase 1 20-80 health volunteers used to determine safety, pharmacological and dosage.
Clinical trials: Phase 2 100-300 patient volunteers used to determine safety and efficacy
Clinical Trials: Phase 3 1000-5000 volunteer patients used to determine clinical health benefit and incidence of adverse reactions
TGA Registration 1.5-2 years 35-40K pages of data submitted for evidence on average
Pharmaceutical Benefits Scheme: 8 months Determination of cost effectiveness
Product Promoted to the Medical Profession
Post Marketing Monitoring: monitor safety and efficacy when used in wider population, with other diseases and taking other medicines.
The Stages Involved in the Development of a Pharmaceutical Product
Screening Process for New Natural Products
Screening
• Require Knowledge of Essential Oil Applications
• Require knowledge of International Market• Require Knowledge of International
Regulations• Need to Collaborate with Industry Parties
Screening Protocols
• Anti inflammatory• Anti microbial• Skin whitening• UV absorbing• Anti age actives• Flavour & fragrance application• Aromatherapy
Regulatory Screening
• United States - GRAS (Genarally Regarded as Safe)• RIFM – Collections of Monographs• Food and Drug Administration• Europe – REACH, BPD, SCP
Ranking Criteria 1. Potential Returns 2. Production Costs 3. Capital Investment 4. Crop Suitability 5. Risk 6. Time Frame of Opportunity 7. Level of Difficulty to enter Market 8. Personal Bias
The novelty of a new essential oil
The potential uses & applications of the new essential oil
The closeness of any substitutes
The stability of the essential oil in applications
The cost/performance ratio
The Toxicity
The general consistency of quality and supply
The prevailing market/product trends
The current level of technology
Low Novelty High Novelty
Low Potential High Potential
Close Substitutes
No Close Substitutes
Poor Stability Good Stability
Poor Ratio Good Ratio
High Toxicity Low Toxicity
Low Consistency
High Consistency
Low Trend Match
High Trend Match
High likelihood of
synthesis
Low Likelihood of
Synthesis
A B D C
A Grid showing the characteristics of a new essential oil
Evaluation Criteria (Aroma)• The Novelty of the new essential Oil Dependent on the uniqueness of the flavour/odour
profile. Degree of novelty, limited by the availability of substitutes. Can be considered novel, if considered a more cost effective source of a natural aroma chemical. Source of a natural aroma chemical, not previously known to exist in economically extractable quantities.
Evaluation Criteria
• The Perceived Potential uses and Applications of the New Essential Oil
Perfumers and Flavourists must perceive applications potential. Material must be stable and versatile in harsh media of end products.
Evaluation Criteria
• The Closeness of any Substitutes to the New essential Oil
• Degree of ease new aroma from essential oil can be duplicated by synthesis or reconstitution. If close substitutes available, new material must be more cost effective.
Evaluation Criteria
• The Stability of the New essential Oil• Stability as an essential oil and stability in end
products.
Evaluation Criteria
• The Cost Price/Performance Ratio of the New Essential Oil
• Important in the application potential of the new essential oil. New material must offer a perceptible odour/flavour at low concentrations
Evaluation Criteria
• The Toxicity Aspects of the New Essential Oil• Must be proven beyond doubt through expensive
trials. Flavour and Fragrance houses will not consider using a new essential oil unless it meets IFRA safety and Toxicity recommendations and is included in the FEMA GRAS list. EU has recently regulated on a number of aroma materials
Evaluation Criteria
• The General Consistency of Quality and Supply• Natural materials vary in quality according to
geographic origin, type of soil, level of nutrients in the soil, climate and weather, rainfall, time of harvest, season, methods of extraction, altitude and the incidence of pests and diseases. Risks of supply from natural disasters, wars, political conditions and the inexperience of new producers
Evaluation Criteria
• The Prevailing Market/Product Trends• Market and product trends slowly evolve.
These are the results of complex forces such as technology, advertising and cultural influence upon consumer tastes and preferences. A particular essential oil may become more or less important to industry, depending upon these trends.
Evaluation Criteria
• The Current Level of Technology• Technology influences substitutes that are
available and the costs of production.
Ava
ilabi
lity
Incr
ease
s
Usefulness Increases
Media Reports
Ideas
Data
Information
Knowledge
Wisdom
The Continuum from media reports to wisdom in relation to availability and usefulness
Genetic Material
Habitat & Topography Suitability
Soil Type, Texture & Drainage Suitability
Temperature Range Suitability
Rainfall Suitability
Access to Irrigation
Diurnal Radiation
Crop Maintenance Cycle
Pest, Disease & Weed Control Issues
Easily Available
Need to Develop
Very Suitable Not Suitable or Need to Develop
Very Suitable Not Suitable
Very Suitable Out of Range
Very Suitable Deficient or Excessive
Yes No
Very Suitable Out of Range
Common & Generic
Require Specialized Processes
Common & Generic
Require Specialized Processes
Harvest & Extraction Processes
Common & Generic
Require Specialized Processes
The Agronomic Characteristics Required for the New Essential Oil
Technology Required
Level of Mechanization Required
Research & Development Time-frame
Capital Requirements
Crop Cycle Timeframe
(Additional) Infrastructure Required
Regulatory Issues
Skills, Competencies & Capabilities Required
Networks, Market, Potential Competitors, etc.
Low & Generic
High & Specialized
Low and/or Generic
High and/or specialized
Short & straight forward
Long & Complex
Low High
Short Long
Low High
Low Need of Consideration
High Need of Consideration
Common & Generic
Rare & Specialized
Available Networks, Wide Market & high
competition
Need Network, Specialized
Market, Few Competitors
Potential Revenue High Low
The Project Characteristics.
Competencies Required During the Essential Oil Development Process
Screening & Bio-prospecting
Propagation & domestication or
introduction
Planting, cultivation & maintenance
Harvesting, Extraction and
wastage handling
New product development &
creation of value added products &
activities
Strategic, operations, finance and technical
management
Product & venture management
Marketing & commercialisation
Sustaining and growing the enterprise
(adapting & survival)
Output: Result/Performance, Sustainable and healthy enterprise or
a struggling and failing enterprise
Opportunity and technical competencies require:
Botany, ethno-botany, research ability, chemistry, bio-chemistry, analytical
chemistry. Market and specific technical product knowledge
Technical Competencies require: Plant physiology, micro-propagation, nursery
management, agronomics
Technical competencies require:
Bio-system engineering, Soil management,
entomology, plant nutrition, Agronomics, field
management, irrigation engineering
Technical competencies require:
Thermodynamics and plant physiology, heat transfer, distillation engineering,
chemistry, chemical engineering, agricultural
engineering, environmental engineering (waste
management)
Strategic, opportunity and technical
competencies require: Project management,
marketing management, chemistry, cosmetic
chemistry, perfumery/ flavour knowledge,
Packaging & design, manufacturing
engineering
Strategic, organizational, relationship opportunity competencies require:
Business strategic, industry knowledge, industry
networks, ability to raise finance, ability to plan,
implement & adjust, leadership, entrepreneurial
Strategic and organizational
competencies require: Administrative, financial management, technical management, strategic
management, personnel management, resources
management, entreprenuerial
A Simple Competency Audit Example (Hunter 2009, P. 299).Competency Present Not
PresentComments
Technical 1. Botany2. Plant Physiology3. Chemistry/Analytical4. Micro-propagation5. Nursery Management6. Environmental Engineering7. Chemical engineering/thermodynamics/etc8. Soil Management9. Agronomy/plant nutrition/field
management10. Entomology11. Irrigation engineering12. Agricultural Engineering13. Regulation knowledge14. Cosmetic chemistry/food etc15. Perfume/flavours16. Packaging & design17. Consumer product manufacturing
Basic
BasicExperienceExperienceExperience
BasicBasicBasic
LowLowLowLowLowLowLowLowLow
Need guidanceNeed assistanceNeed guidance Assistance AvailableCan design Need appraisalUse contractorUse instituteReplicated experimentsWith EnvironmentUse contractorCan developNeed assistanceLearn from experienceUse contractor
Competency Present Not Present
Comments
Opportunity/Entrepreneurial/Commitment1. Able to screen environment for opportunities2. Able to evaluate opportunities3. Commitment level
YesYes
Passionate
Need to see realistically
Relationship1. Have relationships in target industries2. Have relationships in research area3. Have relationships in finance industry
A fewA fewSome
Organising/Management1. Able to project manage2. Able to administrate3. Able to financially manage operation4. Able to undertake research5. Able to keep key people motivated
YesYesYesYesYes
Strategic1. Understand dynamics of market and industry
environment2. Able to plan for a business within this environment3. Able to implement, evaluate and adjust plans in this
environment
YesYesYes
Believe so but not tested
THE ROAD TO ACHIEVEMENT
The Farm Family Family & Farm History, Current farm Operation, Current Family Status.
Strategic Business Analysis
Land Labour Capital
Business Goals
Family Values
The Vision “Mission Statement”
Family Goals
Self Assessment
Decision Making Skills Knowledge
Competencies
Personal Goals
Business Competencies
Knowledge
Production & Operations
Marketing
Personnel
Financial
Risk Management
Horizontal and
vertical expansion
Aspirations
Self view
Income needs
Time Horizon
View of retirement
Opportunity cost of doing
other activities
Passion
Family Considerations
Generational
evolution
Grooming successors
Family aspirations
Lifestyle
Attachment
Land & Estate
Valuing the
estate
Liquidity needs
Tax planning
Alternative land use applications
Multi-
use/business
Investment Plan
Time horizon
Investment
options
Risk management
Tax planning
Opportunity cost of doing
other activities
Exit barriers
$ Cost
$ Return
Deg
ree
of P
roce
ssin
g
Final Product Form
Selection of Crop
Trials
Propagation
Land Preparation
Planting, Maintenance &
Irrigation
Harvesting & Extraction
Product Development
Final Product
Crop & Project Failure
No Return
Com
post &
Mulch
Biofuel
Anim
al Feed
Crude E
ssential Oil
Organic A
gro-product
Cosm
etic &
Arom
atherapy
Nutriceutical
Pharm
aceutical
Conceptual Value Added Processing Options with Revenue and Cost
Implications
Consumers
Wholesalers & retailers
Manufacturers
Flavour & Fragrance Houses
Traders & Brokers
Primary Producer
Essential oil as primary Product. Focus on market demand & supply
and meeting standard
Essential oil as an ingredient in
a product. Focus on uses
and applications research
Manufacture of end products. Focus on
formulation and end product
development
Technical Focus
General or Niche Customers
Vertica
l Integ
ratio
n A
lon
g th
e Su
pp
ly
Ch
ain
Application Focus
Technology Focus
IP Focus (?) Specific
Customer
Branding Theme Consumer
Marketing Reaching
Mass or selected Markets
New Product Development
Agro Industrial Consumer Orientation Orientation Orientation
Consumer Trends
Important
Technical Trends
Important
Demand & Supply, Buying
Criteria Important
Venture Focus Along Different Parts of the Supply Chain
Natural Product Development Process (Aromatic)
Biological Screening
Screening For Development Potential
Regulatory Screening
Market Development Environmental
Analysis
Evaluation of Capabilites
Market Analysis
Technical Development
Commercialis -ation Strategies
Development Process
Screening Process
An Existing Crop – Product Already Traded
This can be seen as an improvement on existing production or setting up new production in an area
already producing the crop. Improving cultivation and harvesting methods
to improve productivity Finding new customers and channels to
increase sales
An Existing Crop – Leading to a New Product
This may involve moving along the value chain to a new market based on an essential oil already produced or producing an essential
oil for some type of value added product. Improving cultivation and harvesting methods to improve
productivity Finding out what products potential customers want in a new
product Producing a new product according to identified consumer
needs Organising the supply chain for the new product to get to
market Making the product available to more consumers who are
likely to want it
A New Crop to a New Geographic AreaThis involves producing an essential oil already in
trade in a new geographical area. Establishing the most efficient way to
cultivate, harvest and process the natural product
Matching the newly produced natural product with customer expectations and requirements
Organising the supply chain so the natural product reaches the market
Making the natural product available to new customers who are likely to require it
A New Crop and New ProductThis involves producing a product higher up the value chain,
differentiating it and producing the natural product. Making informed decisions about new crop choices Establishing the most efficient way to cultivate,
harvest and process the natural product Finding out from potential customers what they want
from the new product Making sure the oil meets the customer’s needs as
closely as possible Organising the supply chain so the natural product
reaches the market
The Natural Product Strategic Matrix
Systems Agriculture Agricultural professional stance that emphasizes
farming as a social practice that uses technology
Participatory Action
Research Emphasis on co-learning
through farmer and community participatory
research and empowerment programs
Traditional Academic Based Research
Based on developing technology and principals,
models and possible practices
Farming Systems Research
On-farm technical problem diagnosis and adaptive
research
Shift from theoretical and
technical to community
collaboration and problem specific
research
General Local
Technical
Social
Domain Focus
Dis
cipline O
rienta
tion
A typology of Various Farming Research Management Concepts
A Redeployment of Technology
that there “is also the tendency for Asian countries, including Malaysia, to deal with the issue of values in development by Importing many technologies and systems wholesale from
abroad without going through the process of mental transformation necessary to master them fully. Although
Malaysia is going through rapid transformation, our growth is one without development in the context of knowledge
contribution to science, engineering and technology. As long as we are consumers and operators of
sophisticated techniques, plants and technologies imported wholesale from abroad, we are to a certain
extent undergoing a technology-less form of industrialization. This transformation of values and attitudes is a key issue
in the nation’s development agenda”[i] .[i] Asma, A., Going Glocal: Cultural Dimensions in Malaysian Management, Kuala Lumpur, Malaysian Institute of Management, 1995, P. 179.
Tissue Culture
Microwave Oven Pressure Cooker
Chemicals & Spoons, etc. Glassware
• Minimise Production scale to account for initial low sales/production quantities and lower capital investment
• Mobile GMP Facility
• Simplified Technology
Culture
Leadership
Theories in action verses Espoused
Norms and group behaviour Organisational
learning (single or double looped
Productivity &
effectiveness
Stories, myths, heroes, artifacts, informal behaviours
We need to move from here…
To Here …
Negative Attributes
Positive Attributes
Destruction
Growth
The Cultural Dialectic
Modifying your emotional balance to become more effective, break through psychological blocks and become generally more positive.
Negative Emotions
Positive Emotions
Develop positive emotions until they dominate feeling
& thinkingReduce negative emotions until they don’t exist
within your feelings and
thinking
Fearful Awkward
Anxious Intimidated Tense Panic Scared
Confused Overwhelmed Apprehensive
Shocked Confused
Blurred
Confident Courage
Passionate Energetic
Determined Challenged Competitive
Focused
Develop Self-esteem, confidence and motivation
Courage
Passionate
intimidated
Determined
Energetic
Overwhelmed
Anxious
Challenging
The different sets of emotions will heavily
influence performance.
Awkward
Passionate
Tense
Confident
Shy
Scared
Excited
Confused
“Big-headed”
Overwhelmed
Different weight and balance of emotions may produce different behaviour & performance
Cultural Paradigm
Pee
r g
rou
ps m
en
tors
, s
oc
iety
Chance & Fate
Paradigm Personality Paradigm
Strategic Paradigm
Creativity Paradigm
Action Paradigm
Interpersonal Paradigm
Skills Paradigm
Infl
ue
nce o
n o
the
r p
ara
dig
ms
Co
mm
itm
en
t a
nd
eth
ics
So
cia
l &
Ed
uca
tio
nal
Bac
kg
rou
nd
Ide
nti
fy a
nd
ex
plo
it
op
po
rtu
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ies
Res
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rce g
ath
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Cu
sto
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Sen
se o
f ac
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Mo
tiv
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&
dete
rmin
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on
Ad
ve
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o r
isk t
akin
g
See
k &
id
en
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o
pp
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un
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Inn
ov
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ve
In c
on
tro
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f th
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bu
sin
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Ab
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sp
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peo
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Ab
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ork
w
ith
pe
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Netw
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Exp
eri
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Tec
hn
ica
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kil
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So
ft s
kil
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Tale
nts
& a
bil
itie
s
He
alt
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pe
rso
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fo
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tim
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En
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En
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akin
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co
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terp
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Up
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So
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Po
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eg
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ies
Attributes of the Entrepreneur
Attribute Small Business Entrepreneurial Business
Risk Risk is to be avoided by undertaking a business activity that is already proven to be successful. Therefore business models will not be novel.
Ideas and opportunities are always risks. Every village and every person is unique and will have different ideas that suit them.
Need to Achieve A small business is totally orientated towards a financial return.
Financial return may not be the prime motivator. Individuals and groups may want to produce something they like and have pride in.
Creativity An enterprise will fit into a proven model so not much creativity is needed.
The enterprise from the first idea may be driven by many types of creativity, and creativity itself may be a source of satisfaction.
Flexibility A small business is a business operated through a disciplined routine in most cases.
Individuals and groups may be looking for maximum flexibility in an enterprise, so it can fit in with their life, rather than they have to fit in with the small business.
Change Small businesses rely on little environmental change for success.
Change in the environment may suit individuals and groups as they don’t want to get locked into routine, and change prototes their creativity.
Independence Financial independence is the objective. We are already independent and don’t want a business to lock us into a strict routine.
Foresight A daily, weekly, monthly or seasonal cycle that is predictable.
We may have to keep coming up with new things to keep the enterprise going.
Initiative There are very tight resources to have much initiative.
We rely on initiative to keep going, and all initiatives are considered.
Control of destiny The future is controlled by sales in the marketplace.
The future is in our hands of what we want to be.
Commitment Total commitment. I want to be committed on my terms.
Leadership I am the leader and do all tasks. Leadership is defined by tasks.
Peer based Education
Market
Branding
Haram (Those things prohibited by
Allah in the Al Qu’ran)
HACCP
GMP
Sustainable environment, community
& business
Community Benefit
Toyyibaan
Clean Healthy
Non-exploitive
Traceable
Supply Chain
Ethical
Culture is the Challenge
Culture is a brand
1. Recognition 2. Desirability
Selected branding paradigm to highlight the project’s offering and values the group stand
for in the international marketplace. (see figure branding typologies). This branding
should show natural (fully natural products)Organic, Sustainable production,
Community involvement, cultural and religious identity, and within an ethical
business framework.Trademarks and certain Copyright
Information
The product technology, i.e., natural, organic, cultural and spiritual aspects should
be reflected incorporated into the product. Thus the products require specific new
knowledge, process and protocols to achieve these ambitions.
Patents, Registered Designs, Proprietary Knowledge and branding
3. Form 4. Emotional Connection
Product manifestations must reflect where and why the products exist through copy,
materials and form.Copyrights and Trademarks
The products should reflect the consumer ambitions for natural and organic products
with a cultural and spiritual base and understand their direct contribution to the
community.Brands and Trademarks
Synergized IP & Branding
Organization
K-Development Model Network
Umbrella Brand (Direct Marketing Company)
Health Beverages
Herbs & Cosmetics
Nutraceuticals
Others
Funding Through
Prospectus
Integrated Farming
Organic Farming
R&D Cluster
Entrepre-neurship
Govt. Support
Graduates Under University Supervision
• Drive Marketing
• Product Development
• Business Operations
University Training
• Students
• Farmers
Application of University R&D
Initial Grant
• UNDP
• Prospectus
• Zakat
• VC
Element Existence
Values Most spiritual doctrines and religions have very positive values towards enterprise, independence and empowerment. These have to be brought to the surface of some cultures or sub-cultures, i.e., refocusing on the functional rather than the dysfunctional aspects.
Confidence Confidence is a group phenomena and can be improved through engagement of group processes to achieve new ways of seeing.
Ideas The skills of ideation can be developed through access to communications technology and developing both partial and whole brain thinking.
Potential Opportunities By linking ideas to markets, modes of entry, resources and skill needs, potential opportunities can be constructed.
Product Focus on themes rather than marketing mixes, look for ways to incorporate consumer fears, existence, acceptance, hopes and dreams in the product (spiritual materialism)
Markets Markets exist in various forms and segmentations with much more fragmentation, coupled with the ability to communicate are potentially accessible to village communities. Identify aspirations of consumers, connect products and channels to these aspirations.
Technology Technology is a way of how to make and do things. Product manufacture can be undertaken in scaled down models to suit decentralization, small unit output and flexibility. The focus is on how to do things in more cost effective ways, within the existing cultural socio-organisational setting.
Competitive Advantage In many FMCG markets competitive advantage has more to do with theme, schema and branding, through selected channels of distribution, than economies of scale. The product is a fulfiller of dreams.
Skills Not all the skills taught at formal educational institutions are needed to start an enterprise. In this regard its only necessary to provide people with what they need from the point of view of business, product development and production. There is a need for the “village university” to focus on showing people how to see, learn how to do and connect to consumers.
Agency/Networks Through modern communications technology (internet & travel) it is now possible to contact and interact with very wide groups of people, including agencies of interest, customers, grant agencies and sourcing know-how.
Logistics Logistics have advanced in recent years and can be coupled together such as the internet and EMS to create direct logistic systems between producers and consumers.
Resources We have to learn to use what we have and utilize these limited resources innovatively. There are many methods of alternative funding that can be explored and set up, i.e., Zakat, unit trusts, closed equity markets, etc.
Organisation New forms need to be generated from often discarded forms such as cooperatives. Cooperatives can exist at both production and market levels. People can form their own companies under umbrellas, organizations should be focused on linking the young with their older generation. Coalitions can be sort with larger organizations in developed countries for branding and market purposes. Organisations have to fit with existing social schema and develop from there, as people are ready.
The company would act according to the following principals;1. Commitment to Social Justice in Organic Agriculture 2. Transparency and Accountability 3. Direct and long-term trade relationships built on trust and mutual respect. 4. Equitable distribution of returns to stakeholders5. Communication and information flow 6. Skills development and capacity building 7. Internal ethics, and8. Professionals manning the PC, support the local community[i].
[i] Principals set out for peoples companies by Dr. Subash Mentha, Bangalore, India, as communicated to the author.
Resources & Finance
Resources (Infrastructure)
Zakat• One of the 5 pillars• Distributive justice (juristic & mandatory)• “zakat revenue can be spent under tamlik
mechanism for providing an opportunity or raising productivity of the poor. Viewed from the long term perspective the poor would become in time self-reliant, hense reducing the national burden of spending money on social security schemes.”
Khaliq Ahmad 2002 Intellectual Discourse Vol. 8, no. 2 (IIUM)
The conclusion is the beginning
A Roadmap from today
Create Ideas
Decide on what product each group would want to be involved in and match
this with an expert person and some students.
Screen the Idea for opportunity
Determine whether there is a market and how much competition there is.
Determine if the product can be made.
Look for ResourcesSkills (how to make), place to make,
finance
Essential Oil
Other Aromatic Extract
Aromatic Chemical (bio-route)
Aromatic Chemical (physical route)
Agro-Tourism Agricultural By-Products
The set of opportunities for an essential oil producer
Flavour & Fragrance
Commodity Oil
Specialty Oil
Aroma Chemical
Aromatherapy & Cosmetic
Production & marketing of
products Pharmaceutical
Agro-chemical
Business through select supply chains
Single Crop Portfolio of Crops
Higher differentiation and value adding
Builds brand image and support. Complements other activities.
General Trading (marketing)
Region’s production Specialised single oil
marketing General multi-oil
marketing
Diversification of activities
Mulches
Bio-fuel
Cattle feeds
Paper
Utilisation of wastes
Production of herbs and spices
Other diversification
Opportunities are a product of our mind and these visions can become the design of our
future with skilful and creative utilisation of scattered existing and forgotten resources to
create great unimagined synergies. This is the true power of creativity that God has
given humankind.
Al ‘Anabut (29:7)
Those who believe and work righteous deeds- from them shall We blot out all evil (that may be) in them, and We shall reward them according to
the best of their deeds.
Terima Kasih