Innovasi usahawan kecil (Micro entrepreneurship innovation in Malaysia) Presented to KbioCorp workshop on micro-entrepreneurship, Sungai petani, Kedah, Sept 2010
Innovasi usahawan kecil (Micro-entrepreneurship innovation)
1. Innovasi Usahawan Kecil
Mohd. Murray Hunter
University Malaysia Perlis (UniMAP)
Seminar Peluang dan Potensi Industri Biotechnologi dan Produk Berasakan Herba
August 1st 2010
2. Innovation is a key word in management today……..
BUT RARELY ARE WE SHOWED HOW TO APPLY THIS IN AGRICULTURE
5. Tools of Agro-innovation
Commodity Specialised
Traditional Inputs
The Spectrum
Biodynamic of marketing
channels
Organic Traditional Alternative
Low
Pesticide
Channels
Conventional
High Input
Methods Diversity
Inefficient efficient
Mono Multi
Compatible?
Marketable/Regulated?
Non-sustainable sustainable See both in National & Farm Scale
7. Source Explanation Examples
The unexpected
success, failure or
Opportunity is a Construct of Proton’s market share
Apple computer
Success of a revolutionary product or the application of
Rapid decline
technology from one industry to another, sudden or
external occurrence unnoticed demographic changes caused by wars,
Vision insurgencies, migration, etc.
Resources
Platform
An incongruity A change that is already occurring or can be made to occur Sugar free products and sugar
between reality as it within an industry. It may be visible to those inside the replacements due to concern for health
actually is and what industry, often overlooked or taken for granted. Increasing demand for travel and
it ought to be holidays due to increasing incomes and
leisure time Networks
Dream, ego, aspiration, greed,
Having the right Skills
survival, education
Inadequacy of an An improvement in process that makes consumers more Caffeine free products
existing technology Experience
satisfied based on an improvement or change in Microwave ovens
or business process technology. Reference & Benchmark Mobile phones
Changes in industry New ways and means of undertaking business based on Health care industry
or market structure Product/Market
identified opportunities or gradual shifting of the nature of Education industry – private education
the industry. Strategy
Perceptual changes Changes in peoples awareness founded on new knowledge Leisure and exercisea source
Anchoring industry aerobics &
Ability to make linkages values or growing affluence leading to new fashions
and/or gyms
Cognitive, hemispherial & of innovation
and tastes
field Perception
Demographic Gradual shift of demographics in population by age, income Establishment of more retirement homes
changes groups or ethnic groups, etc
New knowledge New knowledge or application of existing theoretical Video and VCD industry
knowledge into an existing industry that can create new Robotics
products not previously in existence Biotechnology
9. Supply Chain Management
Consumer Driven Is a key
Sustainability (spectrum)
Channels
Profitability (social & economic) Methods
Diversity
Personal
Productivity (short & Long Term) Goals &
Inputs Ambitions
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23. The Major Blocks to
Development
• The current “psych” of farmers
• Growing rural unemployment
• Unbalanced affluence (town-rural)
The Probable
Causes
24. Lack of Ideas
Lack of education and skills
Narrow mindset
Feeling of powerlessness – lack
of access to markets
Lack of resources
Lack of will
25. Media Reports The Continuum from media
reports to wisdom in relation
Ideas to availability and usefulness
Availability Increases
Data
Information
Knowledge
Wisdom
Usefulness Increases
26.
27. The Unexpected Success
or Failure, or External
Occurrence
Success of a revolutionary product or the application of
technology from one industry to another,
sudden or unnoticed demographic changes caused by wars,
insurgencies, migration, etc.
30. Retail Concentration
Outlet Type Malaysia Thailand Hong Kong Australia
Hyper & 20% 68% 91% 85%
Supermarkets
(Chain Owned)
Independent 20% 2% 2% 10%
Hyper &
Supermarkets
Wholesale 57% 10% 2% 3%
Trade – Sundry
& convenience
Stores
Other 3% 20% 5% 2%
Convenience
Chains
31. An incongruity between reality as
it actually is and what it ought to be
A change that is already occurring or can
be made to occur within an industry.
It may be visible to those inside the industry,
often overlooked or taken for granted.
32. Toyyibaan & Halal
• This day are (all) things good and pure made
lawful unto you. The food of the people of the
Book is lawful unto you and yours is lawful
unto them. … If anyone rejects Faith,
fruitless is his work, and in the Hereafter he
will be in the ranks of those who have lost
(all spiritual good).
Al-Ma’idah5:5
33. • O you people! Eat of what is on earth,
lawful and good; and do not follow the
footsteps of the evil one, for he is to
you an avowed enemy.
Al-Baqarah 2:168
34. • From the land that is clean and good,
by the Will of its Cherisher, springs up
produce, (rich) after its kind; but from
the land that is bad, springs up nothing
but that which is niggardly: thus do we
explain the Signs by various (symbols)
to those who are grateful.
Al-A’raf 7:58
35. • O ye who believe! Eat of the good
things that We have provided for you,
and be grateful to God, if it is Him ye
worship.
Al-Baqarah 2:172
36. “He hath subjected to you all
that there is in the heavens
and all that there is in the
earth: All is from Him.
Verily, herein are signs for
those who reflect.”
Al-Jathiyah
45:12
37. The Muslim living as a minority in a
non-Islamic society will have a
number of problems identifying
what items are halal and haram
(forbidden in Islam), without
product certification. For example,
gelatine, lard and tallow can be
either in a halal or non-halal,
depending upon their source and
method of processing. Cross
contamination is a major problem
in stores and particularly
restaurants, where pork is also
served.
43. Haram
(Those things prohibited by Traceable
Allah in the Al Qu’ran)
Sustainable HACCP
environment, community
& business
Supply GMP
Chain
Community
Benefit
Toyyibaan
Non-exploitive
Ethical Healthy
Clean
44. Toyyibaan would also mean that
agriculture must be undertaken
within sustainable practices,
and in business, where things
should be done with good
intentions.
46. Muslim share of population and GDP in major economies
Muslim %
rank Country GDP pop GDP
1 US 12,360 1.0 123.6
2 China 8,859 1.5 132.9
3 Japan 4,018 0.0 1.6
4 India 3,611 13.4 483.9
5 Germany 2,504 3.7 92.6
6 UK 1,830 2.7 49.4
7 France 1,816 7.5 136.2
8 Italy 1,698 1.5 25.5
9 Russia 1,589 12.5 198.6
10 Brazil 1,556 0.1 1.6
11 Canada 1,114 1.9 21.2
12 Mexico 1,067 0.1 1.1
13 Spain 1,029 1.5 15.4
14 Korea, South 965 0.2 1.9
15 Indonesia 866 88.0 761.7
16 Australia 640 1.5 9.6
47. The top Islamic economies
GDP Muslim % share of GDP
rank country country pop % GDP World Islam
1 Indonesia 866 88.0 761.7 1.3 13.9
2 Turkey 572 99.8 570.9 0.9 10.4
3 Iran 562 98.0 550.4 0.9 10.1
4 India 3,611 13.4 483.9 0.8 8.9
5 Pakistan 393 97.0 381.6 0.6 7.0
6 Saudi Arabia 338 100.0 338.0 0.6 6.2
7 Egypt 304 90.0 273.2 0.4 5.0
8 Bangladesh 304 83.0 252.6 0.4 4.6
9 Algeria 233 99.0 230.9 0.4 4.2
10 Russia 1,589 12.5 198.6 0.3 3.6
11 Malaysia 290 55.0 159.6 0.3 2.9
12 Morocco 138 98.7 136.5 0.2 2.5
13 France 1,816 7.5 136.2 0.2 2.5
14 China 8,859 1.5 132.9 0.2 2.4
15 US 12,360 1.0 123.6 0.2 2.3
16 UAE 111 96.0 106.8 0.2 2.0
48.
49. Farmers’ Home Delivery
markets
COOP Market
Gerai Delivery
Many small
suppliers that
are customer
orientated Restaurant & Hotel
Delivery
Diversified Halal Farms
51. Infrastructure Government
Regulation
Positive Inputs Taxes &
Conducive weather Water subsidies
Negative Outputs
Climate Or Sunshine Trade
Floods, droughts, etc Nitrogen Runoffs, wastes,
environment
Agricultural inputs carbon
Research
Weather Fertilizers etc
Rainfall Knowledge
Wind Labour
Sunshine
UV radiation
Temperature Some
Humidity Resource inputs, Production Processes
fertilizers, herbicides,
recycling
insecticides, machinery, back to
Human research capabilities Farm size & layout system
Habitisation
Organisation & methods
Knowledge Suitability of conditions
Suppliers & contractors Pollution (air, land & water) Propagation
Pollution Labour sources
Attitudes and concerns Water resources Cultivation Positive Outputs
(create hinterland where Products
farm part of)
Processing
Physical
Environment Customers
Financing & Marketing
Revenue flow
various kinds of back to
Soil capital
Topography system
Atmosphere
Natural flora & Negative Inputs
fauna habitat Business
Urbanisation Adverse physical
Environment Competition conditions
Low prices Pests & diseases
Markets Changing demand Pollution
Finance patterns Heavy metals
Trade environment
An Agricultural Enterprise as a
System
52. Wild Harvest Linear/Industrial/Chemical
Traditional Farming
Biological Farming
Biodynamic Farming
Natural Farming
Organic Farming
Chemical Free
Reduced Pesticide
Low Input
Sustainable Minimum Till
Green/Biological/Natural Conventional
Minimum interventionalist
High Input Chemical Intensive
53. THE OPERATION OF ORGANIC PHILOSOPHY
(Fundamental Principals and Practices)
Objectives Soil Health & Pest & Disease Weed Eco-system Sustainability
Fertility Management Management Biodiversity
Practices
Crop Rotation Crop Rotation Crop Rotation Crop Rotation Crop Rotation
Green Manure Green Manure Cover Crops Green Manure Green Manure
Animal Cover Crops Intercropping Animal Animal
Manure Manure Manure
Composting Mulching
Cover Crops Cover Crops Cover Crops
Intercropping Flame Control
Mineral Intercropping Intercropping
supplements Crop Diversity Natural
Herbicide Bio-control Farmscape
Natural Bio-control
Fertilizers Farmscape Composting
Natural Integrity
Mulching Pesticides Buffers Mulching
Buffers
Composting Sanitation Buffers
Records Foundations
Tillage Tillage
Certification Site Selection
Intercropping Farmscape
Improvement Conversion
Bio-control Fire
Farmscape Buffers Habitat
Creation
Buffers
Planning
54. Approximate Size of the World Organic Market
2008 (USD Billion) Fruit &
Cosmetics, Vegetables,
6.5, 18% 12.9, 35%
Processed
Foods, 3.9,
11%
Meat and
Beverages, Poultry, 1.5,
3.6, 10% Bread &
Dairy, 3.6, 4%
Grains, 4.5,
12% 10%
58. New Foreign Products
Essential Oil Based
Fungicides/Insecticides
Control Nimgard
+ Kocide
Timorex
0.5 % Timorex 1 %
59. Organic Herbicides
Before
Product Reported Results*
Control O
Round Up 10
Pro[i]
All-Down Range 0.5 – 3.8
Organic[ii]
[i] Registered Trademark of Monsanto.
[ii] http://alldownherbicide.com/ After
60. Inadequacy of an existing
technology or business process
An improvement in process that makes consumers more
satisfied based on an improvement or change in technology.
67. Basic Pattani Bird House Layout
Top View
36 Feet
8 Feet
10 Feet
12 Feet
18 Feet
68. Swiftlet Farming
End View
3 Ft 6 Feet
3 Ft
5 Feet
9 Feet
23 Feet
1 Ft 8 Feet
Side View
9 Feet
23 Feet
14 Feet
Top View (Reinforcements)
By developing novel applications of technology
69. Essential Oil
A volatile oil obtained from a
wide variety of plant, scrub,
and tree species and from
various parts of the plant
anatomy, such as the roots,
rhizomes, wood bark, leaves,
stems, fruit, flowers and seeds.
Usually extracted by hydro or
steam distillation, expression
or effleurage - Hunter 1996
87. Ginger Oil (Zingiber officinale)
citral, beta-sesquiphellandrene, zingeberene,
and gingerols/shogaols
The fresh ginger rhizome is a versatile ingredient of the
far eastern cuisine, and is now commonly used in mos
of the world. Its flavour is lemony-balsamic and its tast
is medium hot.The lemony character of fresh ginger is
due to citral. Major components of the essential oil are
the sesquiterpenes beta-sesquiphellandrene and
zingiberene. The 'sharp' constituents, causing the
burning sensation on the mucous membranes, are
substituted phenols (gingerols/shogaols)
Extraction Method: Steam Distillation
Origin: Indonesia, India, Sri Lanka, China
88. Massoia Bark Oil (Cryptocarya massoy)
C-10 massoia lactone C-12 massoia lactone
Massoia bark has a sweet, coconut-like aroma and is
steam distilled to yield massoia bark oil. The bark is
obtained by cutting the tree at the base, making circular
incisions at one meter intervals, lifting the bark off and
allowing it to dry. Each tree yields on average 65 kg of
air dried bark.
Extraction: hydro-distillation of the bark, heartwood
and fruits of the massoia tree afford pale yellow-
coloured oils in 0.7, 1.2 and 1.0 yields, respectively
Constituents: C-10 massoia lactone, or 5,6-dihydro-6-pentyl-2H-pyran-2-
one, (65-68 %), and the C-12 massoia lactone, or 5,6-dihydro-6-heptyl-2H-
pyran-2-one, (17-28 %), while the major fruit oil constituent is benzyl benzoate
(68%)
Origin: New Guinea and Irian Jaya Highlands
89. Patchouli Oil (Pogostemon cablin)
There are no synthetic
equivalents of the
patchouli scent.
Main Constituents: (-)-patchoulol
(30-40 %). However, it is maintained
that norpatchoulenol, present in only
0.3-0.4 %, is playing a principal part
(-)-patchoulol and in the overall odour picture.
norpatchoulenol
Obtained by steam
distillation under
pressure or CO2-
extraction of the
dried leaves
Patchouli is mostly
grown in Indonesia
90. Pepper Oil (Piper nigrum)
(+)-3-carene piperine
Main Constituents: The pepper seeds
contain avolatile oil and the non-volatile
compound piperine, the latter being
responsible for the burning effect
on the mucous membranes.Also,
cyclic monoterpenes with
-carene as the major component
(around %). Moreover, a number of
hitherto unidentifiedsesquiterpenes probably
contribute to its character.
Extraction: Steam Distillation of the
crushed seeds
Main producer: Sarawak, Malaysia
91. Backhousia citriodora (Lemon
Myrtle)
High Investment to
Expand Industry in
Australia
Strong Demand as an
Ingredient for tea
Good Crop to Grow in Most
Parts of Thailand
CHO
CHO
Citral (geranial 51.43 %
and neral 42.12 % )
92. Eucalyptus citriodora
Good Monsoon Crop
Easy to Cultivate
Oil is a bi-product
Excellent & High
Valued Hard Wood
One year for oil
10 years for timber
Percentage of oil yields
is 0.9 %.
citronellal (88.62%), β-pinena (0.16%),
1, 8-cineol (0.32%), 5-hepten (0.14%),
linalool (0.12%), citronellol (0.52%),
isopulegol (0.33%), 3- cyclohexanol
(3.66%)and β-citronellol (0.52%).
94. Geranium (pelargonium species)
Citronellol, andgeraniol, which occur in different
proportions according to the origin of the oil. Both
Bourbon and North African-types contain unusual
high quantities of (-)-citronellol, isomenthone and
monoterpene formates. However they can be
distinguished by the presence of different
constituents such as guaia-6,9-diene in Bourbon
oil and 10-epi-[gamma]-eudesmol in the African-type
The Chinese oil is similar to Bourbon-type,
having higher content of citronellol (+40%) and
lower content of Iinalool and geraniol (1,3).
Distillation or Potential High Value
solvent Boutique Crop
extraction of the Good for Hilly Terrain
dried leaves
95. Plai oil (Zingiber cassumunar)
Sabinene and terpinen-4-ol
a-terpinene
g-terpinene
Major Constituents: terpinen-4-ol,
a-terpinene, sabinene, g-terpinene,
cis-3-(2',4',5'-trimethoxyphenyl
-4-[(E)-2''',4''',5'''-trimethoxy-styryl]cyclohex-
1-ene, cis-3-(3',4'-dimethoxyphenyl)-4-[(E)-3''',4'''-
dimethoxystyryl]cyclohex-1-ene, cis-3-
(3',4'-dimethoxyphenyl)-4-[(E)-2''',4''',5'''-
trimethoxystyryl]cyclohex-1-ene (3),(E)-4-
(3',4'-dimethoxypheny1)but-3-en-1-ol, E)-4-
(3',4'-dimethoxypheny1)but-3-en-1-yl acetate,
8-(3',4'-dimethoxyphenyl)-2-methoxynaphtho-
1,4- quinone
Extraction Method: Steam
distillation of the rhizomes
96. Cajuput (Gelam) Melaleuca
cajuputi
Local Tree
Number potential Markets
Can Basically Set Price
Easy to Cultivate
97. Persicaria odoratum (Kesum)
New Material
Good Highland Crop
Small Scale High Value
Pests Easily Controlled
Doesn’t need
Registration as an
Aromatic Chemical
98. Changes in industry or market structure
New ways and means of undertaking business based on identified
opportunities or gradual shifting of the nature of the industry.
120. Aveda The Body Shop Thursday Sureco Hain Celestial
Plantation Group
Est. Sales USD120million USD1.5Billion USD85Million USD40Mil[iv] USD738Mil[v]
(1996)[i] (2006)[ii] (2006)[iii] (2006)
USD619mil (2006)
Location USA UK Australia Malaysia USA
Established 1978 1976 1976 1999 1926
Products Personal Care Personal Care Personal Care Herbs Organic food
and cosmetics
Basic Philosophy To sustain the Social Natural tea Halal & Free of artificial
environment and humanitarianism tree Toyyibaan ingredients,
give back to activism on many products/natur Kosher foods
communities issues al medicines
Ethics Yes
Green Yes Yes Yes
Natural Yes Yes Yes Yes
Organic Yes Yes Yes
Community Yes Yes Yes
Cultural
Religious/Spiritual Yes Yes
Mode of Distribution Direct Retail and e- Direct and Direct General
Marketing/Salon Commerce through Marketing distribution
distributors
Owner Estée Lauder Loreal Chris Dean & Private Listed company
Companies Inc. Family Ownership
121. Actualisation Fulfillment: (dreams)
(The Artist)
Study after retirement
Self-fulfillment
Fresh vegetables (Organic)
Books
Fine Dining & Processed Foods Aromatherapy products
Luxury cars
Esteem Nutraceuticals & herbs
Travel & Vacations (The Executive)
Achievement, Fine Fragrances
prestige,fulfillment
Car Air Fresheners Responsibility: (hope)
Fashion Clothes (e.g.
Social (Worker) Jeans)
Chewing Gum Family, relationships,
workgroups
Community: (acceptance)
Most
Water Household
Safety (The Farmer)
Purifiers Cleaning
Home, Security and stability
Necessities: based on what is good (existence) Products
Fresh
Soap Vegetables
Physiological (The Hunter) Rice
Basic Biological Needs – Food, water, air
Staples: based on survival (fear)
132. Coronary artery obstruction.
Nearly 90%.
Caused by fat
Accumulate
on artery walls.
Until the tube
constricted
blood.
Hard and
narrow.
133.
134.
135. New knowledge
New knowledge or application of existing theoretical knowledge
into an existing industry that can create new products not previously in existence
149. Colostrum
To Achieve Excellence in Passive Immunity Transfer:
By providing an all natural premier milk extract
with a guaranteed minimum level of
40% Immunoglobulin and antibody level derived from bovine
& goat milk.
150. Colostrum or Mother‟s Milk
is the original and ultimate nutritional
supplement. It is a unique natural secretion
produced at the beginning of lactation
designed by Nature to promote strength and
good health.
151. Colostrum has been called life‟s first food.
Each drop of Colostrum contains the promise
of life: immunoglobulins, antibodies,
growth factors, vitamins, minerals, enzymes,
amino acids, and other substances designed
to „prime‟ the body to face a lifetime of
invasion by various microorganisms and
environmental toxins. (Colostrum is considered
to be nature‟s most perfect disease fighter).
Shape of Antibody
152. Inside the intestinal tract the antibodies from
Premier Milk prevent the toxins from attaching to
the intestinal wall and multiplying. In effect
shielding the body from toxins.
153. Premier Milk Extract – Photographic Evidence
Ordinarily With Premier Milk
The „control‟ cells. The hundreds of At normal Premier Milk doses
little black dots are E. coli bacteria there are practically no E. coli
attaching to the cell walls. attaching to the cell walls.
ETEC strain H10407 adhering to differentiated Caco-2 Inhibition of adherence of H10407 to Caco-2 cell line
cell line (colon carcinoma). in the presence of 500μg/ml hyperimmune
colostrum.
(Photos from approx. 40x magnification, Phase-contrast, Giemsa stain)
158. Farming is less about cost advantage as it is about product
What is the Halal hub about?
What is the organic market about?
What is the herb market about?
159. Paradigm adoption is more powerful than subsidy adoption
Making the wrong decisions
can bring potential market isolation
162. Maximises benefits of large local
biodiversity
Competitive Advantage Through
Differentiation
Local culture is utilised as
branding
Maximises Benefit from Location
as a marketing advantage
Relatively low competitive market
Southern Thailand segment
Malaysia
Brunei
Indonesia
188. A Roadmap from today
Skills (how to make), place to
Look for Resources make, finance
Determine whether there is a market
and how much competition there is.
Screen the Idea for opportunity Determine if the product can be
made.
Decide on what product each group
would want to be involved in and
match this with an expert person and
Create Ideas some students.
189. K-OTOP Model
Network University Training
• Students
R&D Funding Through
Cluster Initial Grant • Farmers
Prospectus
• UNDP
Umbrella Brand (Direct Marketing Company)
•Prospectus
• Zakat Entrepre-
• VC neurship
Application of
University R&D
Health Graduates Under
Beverages University Nutraceuticals
Supervision
Herbs &
•
CosmeticsDrive Marketing Others
• Product Development
Organic Farming
Govt. • Business Operations
Support Integrated Farming