Esoko is a technology company that provides mobile and web solutions to enable businesses to communicate and transact more effectively with rural communities. Their solutions include pushing and pulling agricultural content via SMS and apps, facilitating bids and offers between farmers and buyers, and developing an e-commerce platform for farmers and enterprises. Esoko operates in 10 countries using subsidiaries, resellers, and partner deployments. Their business model involves collecting and analyzing customer data to provide insights, while generating revenue through fees and commissions on transactions completed through their platform. They aim to both defend their existing business against disruption through new offerings, while also driving growth by expanding into new markets and services.

1. Innovative ICT4D Business Models
Hillary Miller-Wise
CEO, Esoko

2. • Introduction to Esoko
• Business model definition
• Business model innovation
– Examples of business model innovation in developed markets
– Drivers of business model innovation
– ICTD examples of business model innovation: Zoona and Esoko
– Some advice
• Discussion
Overview

3. Introduction to Esoko (1/2)
Push/Pull content
such as market prices,
weather and ag tips
Collect and analyze
data from field via
customizable Android
app and deployment
Insights
Esoko is a technology company that enables businesses to communicate
and transact more effectively with the bottom of the pyramid. We do this
through simple but powerful mobile and web solutions.
Bids & offers – a
matchmaking service
for farmers and buyers
M-commerce solution
for farmers and
enterprises (Q4 FY16)
Targeted marketing –
B2C and B2B
Channels: SMS, USSD, IVR, voice messaging, call center, Android apps
Promotion Trade

4. Introduction to Esoko (2/2)
• Private, for-profit company
• Established in 2008
• Currently in 10 countries
– Four additional countries by
the end of FY16
• 3 go-to-market strategies
– Subsidiaries
– Resellers
– Partner deployments

5. Operating model
Value proposition
What is a business model?
Two main components: value proposition and operating model
Business ModelBusiness Model
Target
segments
Target
segments
Product
offering
Product
offering
Revenue
model
Revenue
model
Value chainValue chain Cost modelCost model OrganizationOrganization
Source: “Business Model Innovation”, BCG, Dec. 2009

6. Examples of business model innovation
Operating model
Value proposition
Business ModelBusiness Model
Target
segments
Target
segments
Product
offering
Product
offering
Revenue
model
Revenue
model
Value chainValue chain Cost modelCost model OrganizationOrganization
The Power
of Free
Acceleration
Low Cost
Source: “Business Model Innovation”, BCG, Dec. 2009

7. Difference between business model innovation and others
Radical not incremental
• Unlike other types of innovation, changes to the business model require
significant changes to multiple components of the value proposition and/or
operating model.
• Therefore, business model innovation will likely be radical.
– Most innovation is incremental, such as product innovation, where technology
enhancements are routinely included in product updates as a way of increasing
performance or reducing costs
Sources: http://www.innovation-management.org/business-model-innovation.html
https://hbr.org/2013/12/the-three-most-innovative-companies-of-2013/
More than half of the relatively recent companies that made it onto the Fortune 500 before their
25th birthday were business model innovators.
It’s easy to get captivated by shiny technology or compelling marketing, but if you really want to
identify tomorrow’s giants, pay the most attention to innovators that have figured out how to
create, capture, or deliver value in unique ways.
HBR.org
More than half of the relatively recent companies that made it onto the Fortune 500 before their
25th birthday were business model innovators.
It’s easy to get captivated by shiny technology or compelling marketing, but if you really want to
identify tomorrow’s giants, pay the most attention to innovators that have figured out how to
create, capture, or deliver value in unique ways.
HBR.org

8. Drivers and focus of business model innovation
A conceptual framework
Re-inventors
Business model is deteriorating slowly
and growth prospects are uncertain.
Company must reinvent its customer-
value proposition and realign its
operations to profitably deliver on the
new superior offering.
Mavericks
Innovate to scale up potentially more
successful core business. Mavericks—
either startups or insurgent established
companies—employ their core
advantage to revolutionize their
industry and set new standards.
Adapters
Current core business, even if
reinvented, is unlikely to combat
fundamental disruption. Adapters
explore adjacent businesses or
markets, in some cases exiting their
core business entirely.
Adventurers
Aggressively expands the footprint of a
business by exploring or venturing into
new or adjacent territories
Driver
Focus
Defend against decline or disruption Aspire for break-out growth
Transform
the core
Expand into
non-core
Source: “Driving Growth with Business Model Innovation” bcg.perpectives, Oct. 8, 2014

9. Drivers and focus of business model innovation
Two ICT4D Examples: Zoona and Esoko
Driver
Focus
Defend against decline or disruption Aspire for break-out growth
Transform
the core
Expand into
non-core
Source: “Driving Growth with Business Model Innovation” bcg.perpectives, Oct. 8, 2014
Re-inventors Mavericks
Adapters Adventurers

10. Zoona
Maverick: Aspire to break-out growth by transforming the core
• Digitizing payments and communication to rural cotton
farmers for cotton supplier
• Electronic vouchers for WFP subsidies
• Payment collection for Zambian Breweries micro beverage
distributors
• Partnership with Airtel
• Mobile money transfer business
00
22
33
11
Target Offer VC
B2B
Pymt
Comms
Mom-
and-Pop
B2G Pymt
B2B -
- -
B2C - Franchise
Source: “Zoona: A case study on third party innovation in digital finance”, FSD Zambia,
Aug. 2015

11. Esoko
1. Re-inventor: Defend against decline/disruption by transforming the core
2. Adventurer: Aspire to break-out growth by expanding into non-core
• Market prices for farmers
• Broader content for farmers
• Subscriptions model for enterprise
customers
• Resellers
• Communications and transactions
00
11
11
33
22
Target Offer Rev VC
B2C
Content
Commun-
ication
Fees
Rev share
Direct
-
Content
Comms+
- -
B2B2C -
Fees
Rev share
Subs
-
- -
Direct
Resellers
-
Content
Comms
E-commerce
Fees
Rev share
Subs
Commission
-

12. Business model innovation
Tips
Existing businesses:
1. Separate the new unit from the rest as much as possible
2. Bring in fresh talent from outside
3. Consider a different brand identity
4. Create new key success indicators
5. Beware of portfolio bloat, hammer effect, ideation overload
Start-ups:
1. Beware of portfolio bloat, hammer effect, ideation overload
2. Choose one business model and stick with it…for a while
“It's all about experimenting to find product-market fit,
recognizing it once you have it (which we took way too
long to do), and then focusing on it to scale but culling
the noise.”
Mike Quinn, CEO Zoona
“It's all about experimenting to find product-market fit,
recognizing it once you have it (which we took way too
long to do), and then focusing on it to scale but culling
the noise.”
Mike Quinn, CEO Zoona

13. Thank You

14. Back Up

15. Software Business Models
In choosing a business model, many companies start with tech alignment…
Managed Services
Hosted delivery
Offline purchase and support
High price, low volume
On Demand Business
SaaS delivery
Online purchase and support
Low price, high volume
Enterprise Solutions
Custom software delivery
Offline purchase and support
High price, low volume
Retail Publisher
Packaged software delivery
Online and offline purchase and
support
Low price, high volume
Online
Offline
Extensive
services
Minimal
services
Source: Adapted from “The SAAS-Hybrid Question” by Joel York, Feb. 3, 2009

16. Software Business Models
…but the right place to start is with customer alignment
Managed Services
Modest competitive advantage
Tight custom integration
Modest internal IT capability
High expense budget
On Demand Business
Low competitive advantage
Loose integration
Low internal IT capability
Low expense budget
Enterprise Solutions
High competitive advantage
Tight custom integration
High internal IT capability
High expense budget
Retail Publisher
Low competitive advantage
Loose integration
Modest IT capability
Low expense budget
Online
Offline
Services
value
Product
value
Source: Adapted from “The SAAS-Hybrid Question” by Joel York, Feb. 3, 2009

17. Example of a SaaS Business Model Canvas

18. SaaS Sales Models
Model Sales Marketing Support Examples
Self-service Very limited Full responsibility for
creating awareness,
educational content and
automation capable of
driving business through
entire purchase process
from awareness to close
Provides automation and
tools for easy on-boarding,
plus templates and content
that allow customers to
resolve any issues they
encounter on their own
Transactional Inside sales reps supported
by online content and
automation, tools, training,
incentives and metrics that
enable high efficiency and
many transactions per rep
Feeds highly qualified leads
to the sales team to build
pipeline and improves
efficiency by removing
roadblocks through content
and automation that drive
complexity out of the
purchase
Inside support reps that
meet range of SLAs from
with tools, training and
metrics that enable high
efficiency and many
transactions per rep,
complemented by
customer self-service tools,
templates and content
Enterprise Territory sales reps focused
on a narrow set of target
prospects directly
supported by product
marketing and sales
engineering resources at a
deal level
High-end marketing that
facilitates brand awareness,
education, relationship
building and trust,
complemented by direct
support of the sales team,
detailed sales tools such as
product roadmaps, ROI
calculators, etc.
High touch support up to
onsite issue resolution
complemented by
educational tools and
training tailored to the
specific needs of individual
customers
Source: Adapted from “SaaS Start-Up Strategy” by Joel York, Nov. 10, 2010