BY: GLOBAL SCHOLARS TEAM 11. Mmember Bigila2. Niyibizi Jean Claude3. Vinah Solomon Kehind4. Emmanuel Dibango5. Emmanuel Dibango6.ADIA

Photo by Maria Carrasco Rodriguez

Staff Meeting

Final Course ProjectDecember 2016

Africa Platform Management, Strategy & Innovation

RURAL PLATFORM CASE: HELLO TRACTOR.

Current business model

Summary Of Platform Business. Hello tractor is an agricultural technology company that is improving global food and incomesecurity by building a network of 'smart tractor' owners that local farmers can obtain servicesfrom via SMS there by able to cultivate their small farm lands having access to affordable farm machinery services thus increasing their productivity. These smart tractors haveGPS antennas that allow the company to track usage, location, uptake and markettrends.

Hello Tractor business

http://www.fastcoexist.com/3048780/an-affordable-smart-tractor-for-african-farmers-and-their-tiny-farms

A smart tractor tilling a farm in Kaduna northernNigeria

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VARIOUS SIDES OF MARKET FOR HELLO TRACTORThe farmers who hire the tractors to use on their farm lands.The investors / suppliers who buy the tractor And hire to the farmers (tractor owners).Agricultural Engineers who will train owners and farmers on

usage And also service and maintain the tractors.Spare parts manufacturers who will make spare parts to replace

broken ones.GPS service providers who will enable smooth data transmission.App developers.borrowers and also the owners of tractors

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REVENUE MODELS • Transactional revenue model which entails a Company providing a service or product and customers paying for them. This will include: RENTAL FEES, SERVICING AND MAINTENANCE FEES, MATCHING FARMERS AND TRACTOR OWNERS FOR A FEE etc.• Direct sales of tractors and spare parts • Awards and Grants :s from different NGOs especially USAID • Availing data generated for interested parties ( agro-economic researchers) for a fee.Tools used in booking and prepayment which includes SMS, MOBILE MONEY. %Commission made from hires transaction or services subscription fees

ASSET FACILITATIONDoes Hello tractor need to own tractors? YES: For this singular reason, to help in their asset facilitation role. • With their tractors, people who want to own tractor can easily go into agreement with Hello tractor and pay installmentally instead of going through financial institutions who might be skeptical in releasing funds to people that do not have direct connections with. Also these financial institutions charge high interest rates and mostly give short term loans and also They also should to increase their source of revenue.Partnering with Agricultural banks and Agro businesses e.g Sharna farmsAre there strategies the CEO can adopt to shift the platform to an asset facilitation role? Yes, 1. Farmer’s needs; assuring the availability and assuring reliability of tractors in their job performances. 2. Local suppliers: 1.the suppliers should provide the goods (tractors, spare parts for broken tractors) and services (maintenance and trainings about all issues concerning hello tractors).3 .Rental optimization 4 . the power of the communities The farmers in the communities should be organized in cooperatives and forming associations and exchanges to ease asset and efficient asset management. 6. owners of tractors ; the owners have to study location wisely and extension and diffusion of farmlands and farmers in order to address their investments where they can be more profitable. 7. Matchmaking, governance, insurance and good use: network effects result in matching of needs and provided services requires a strong governances that can protect suppliers, farmers (users) and owners.by considering two aspects: a) Financial aspects: platforms governance must ensure the farmers do not lose money when they pay in advance and that they will be compensations to the suppliers for tractors damaged by farmers and those financial aspects may require that hello tractors have insurance in order to support their platform.. b)technical aspects: the appropriate maintenance of tractors will reduce the addition costs for repairs, spare parts and reduce time( downtime hours or days).

TRACTOR OWNERSHIP Tractors could be owned by local investors as well as globally. Globalization of

ownership will mean more tractors available for hire and possible hire purchase.

What needs to be local to an area is the tractor itself and an agricultural engineer to operate it. Globalization of ownership will widen the network of people Hello Tractor provides as a platform.

GLOBAL INVESTORS Hello tractor is a US based company operating in Nigeria. The founder saw a need to tap into the

Agricultural sector in a nation where Oil is the major source of revenue and yet poverty and food shortage abound due to its large population. Nigeria has vast fertile uncultivated lands with a very wide range of commercial and food crops yet food production is at its barest minimum. There is a huge untapped market in mechanized farming in the host country. Labor also abounds and the Chinese, Indians, Israelis are coming to establish agro businesses and farms so should the rest of the world.

1.be more competitive 2. build the value of your brand 3. establish new partnerships and relationships 4. Marketing: participation and networking in international agriculture exhibitions and advertisement via different social media , newspapers, radio, Facebook, televisions etc. 5. management and effectiveness of communication of platform i.e. using channels for finding buyers outside of Africa to invest in tractors used in Africa( social entrepreneur finding agencies ,organizations that are already to invest in Africa ,development agencies invigorating the agriculture value chain especially shareholders for Africa development Bank, world bank, producers and traders of Africa agriculture products.

TARGET MARKET •Transaction is completed on this platform when a Tractor is hired and it cultivates a farmland there fore. the farmers role here cannot be over emphasized. . Farmers Unions/ associations/ cooperatives should be the target market because they can easily facilitate loans to prospective tractor owners. . agriculture financial institution based •They can also purchase the tractors and hire them to the farmers to farm."Investors can be made to feel at ease by proving the sustainability and reliability of this business on the long term". The remote tracking and usage monitoring avail at allows tractor owner to know the state of his tractor at all times.

Tapping into the Gold mineWith millions of Africans in diaspora trying to get a better life for themselves and their families back home, its no surprise that billions of dollars is remitted back to the continent yearly. With more awareness campaigns and aggressive marketing, Hello Tractor can get the natives in diaspora to invest in the tractors ( BUY ) that can be used to till family farm lands back home, hire to neighboring farmlands thus increasing food production and incomes.

INVESTMENT, SECURING To secure this investment, they will need reliability (real data of farmlands and farmers in network and also reliable team on the ground where they have their farmer’s networks).Financial prevision : realistic costs and schedule estimation ,

legislation: good and transparent legislations play a big role in protecting the foreign investments; fair, transparent judiciary that respect international commercial laws, insurance protection , stability of local currency , mobility of funds, sound banking system and some local of government guarantees or protections.CONFLICTS AND RESOLUTION  types of conflicts which are more likely to arise 1. for financial issues 2. For technical or logistics issues( delay in spare parts replenishment, poor maintenance , unexpected breakdowns of tractors during leased periods), 3. For bad behaviors for one or more people or one party, damaged of goods or properties, for injuries to people must be avoided. 4. low productivity levels and, hence, low financial margins 5. Poor transport infrastructure to access requesters 6. Lack of maintenance or mechanic personnel for owners 7. Language conflicts or barriers to understanding as most famers in the rural areas are illiterates 8. MismatchRESOLUTION: those conflicts can easily resolve through Seeking arbitration and or international arbitrations can be needed, Seek mediation and also Apply rationality

FINALLY, HOW SHOW VALUE BE DIVIDE THE VALUE AND BETWEEN WHOM?

BUSINESS MAP ( VALUE CHAIN)

Conclusion The network effect relies on the users of the tractors ( farmers). When improvement in yeild with minimal labour and cost, they will recommended this affordable technology to other farmers.• Due to is transactional nature conflict will surely arise on this platform e.g who repair the damaged tractor or a part while being worked on a farm?, whose percentage of profit should be higher?, delay in getting a tractor delivered because its in use elsewhere, no completion of the job due to technical issues who pays for the extra hours?• A good governance system put in place will help resolve these conflicts.• Rule of conduct should be adapted for both supplier of tractors and farmer. E.g fixed charge rates for all regions across the country.• Incentives shloud be given for good behavior e.g extra hours for the farmer who pays and uses tractor services regularly, professional advice to increase yeilds.

THANK YOU SO MUCH !!!!!!!!!