Ramie (Boehmeria nivea) decortication waste bio-briquette business model canvas

with design thinking approach

Ghifari Rezka Pahlavi, , Dwi Purnomo, , Anas Bunyamin, and , and Asri Peni Wulandari

Citation: AIP Conference Proceedings 1826, 020014 (2017); doi: 10.1063/1.4979230

View online: http://dx.doi.org/10.1063/1.4979230
View Table of Contents: http://aip.scitation.org/toc/apc/1826/1
Published by the American Institute of Physics

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Ramie (Boehmeria Nivea) Decortication Waste Bio-Briquette
Business Model Canvas with Design Thinking Approach
Ghifari Rezka Pahlavi1,a, Dwi Purnomo1,2, Anas Bunyamin2, Asri Peni Wulandari3
1
Department of Agricultural Engineering and Biosystem, Faculty of Agro-industrial Technology, Universitas
Padjadjaran, Indonesia
2
Department of Agro-industrial Technology, Faculty of Agro-industrial Technology, Universitas Padjadjaran,
Indonesia
3
Department of Biology, Faculty of Science and Mathematics, Universitas Padjadjaran, Indonesia
a)
Corresponding author: ghifarirezka@gmail.com

Abstract. Ramie (Boehmeria nivea) is a plant that can produce fibers from its stem but in the production process, it still
produces waste containing high lignin and cellulose. The high content of these substances can be used as bio-briquette raw
material because they can produce carbon and can offer a business opportunity to establish bio-briquette industry. The
purpose of this study is to obtain a ramie decortification waste bio-briquette business model because until now there is no
bio-briquette has been made from ramie decortication waste as its raw material. This research uses descriptive analysis
method with a design thinking approach. The result of this research shows that the business model canvas is designed based
on consumer's experience when interacting with the product via customer journey tool in order to get the business model
in accordance with customer expectations.

INTRODUCTION
Ramie (Boehmeria nivea) refers to a type of plants that produces fiber; the fiber itself is obtainable from its stem;
yet, in the production process, it still produces waste containing 5.95-7.83% of ash contents; 1.88-2.87% of silicate;
30.67-31.08% of lignin; 33.81-35.99% of alpha cellulose; 62.95-63.78% of holocellulose; 17.43-18.14% of pentosan
(Saroso, 1999). According to Prawirohatmojo (2004), any material that contains lignin and cellulose can be used as
bio-briquette raw material because they can produce carbon. This phenomenon can potentially offer a chance to
establish a bio-briquette industry as a spin-off of ramie fiber industry.
A method that can be used to build a business model is business model canvas invented by Osterwalder and Pigneur
in 2010. In designing a business model canvas, it needs an approach as a reference to fill its content because business
model canvas does not only deal with the benefit or profit but also the way an organization creates, delivers and
captures value rationally (Osterwalder and Pigneur, 2010).
An approach that we use for creating new solutions is human centered design via design thinking. According to
Suprobo (2012), Human Centered Design is a process which has a set of techniques to create new solutions. The
implementation of human centered design is design thinking. According Purnomo (2013), Design Thinking is a
mindset of designer to solve the problem with human oriented approach. Design thinking stages, according to Institute
design of Stanford (2010) are defined as empathy, define, ideate, prototype, and test
A research that concerns to waste-to-energy business model research ever done in Sweden by Krister and Joel in
2011. The purpose of their research is to examine the business models used by three different waste-to-energy firms
in Denmark, Norway, and Sweden and to identify the methods used to create, capture, and create value (Krister and
Joel, 2011). Design thinking is used as a energy solution by make a product that easy to use which is a Thermostat by
Nest Labs in 2011. Nest Labs made a smart thermostat that easy to use and has user friendly interface (Kuznetsov,
2016)

Renewable Energy Technology and Innovation for Sustainable Development

AIP Conf. Proc. 1826, 020014-1–020014-8; doi: 10.1063/1.4979230
Published by AIP Publishing. 978-0-7354-1494-5/$30.00

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 2. EXPERIMENTAL SETUP
The research method is analysis descriptive. This research uses design thinking approach (Fig. 1) that is
implemented in all research stages and also empathy map which will then be processed into Customer Journey. After
that, this research will be ideating value proposition of the business model based on Customer Journey

Empathy Define Ideate Prototype Test

•Empathy •Define the •Ideate the •business •Business
process problem positive model Model
•Empathy from points with canvas Canvas
mapping customer gap analysis prototyping testing
journey

FIGURE 1. Research method using Design Thinking Approach

The researcher conducts the empathy process in an existing biobriquette industry in Bantul, Yogyakarta Province
and also interviews the business owner and his employee. The researcher also already carries out an empathy process
by using a product that uses bio-briquette such as shisha, surabi, ratus treatments, aromatherapy, and incense
biobriquette. The result of this empathy process will then proceed through a customer journey. When customer journey
mapping already map, researcher ideate the positive points by using gap analysis. Positive points that already
conducted are going to make as new value propositions for business model canvas. Prototyping business model canvas
with a Focus Group Discussion with another people that already experienced in design thinking process too so they
know how to really understand the empathy. The last method is business model canvas testing. Respondents that test
our product is 3 respondents from diversity customers which are surabi cafe, shisha cafe and community near
biobriquette industry in rural area. Due to limitations of ramie biobriquette prototype then testing was done once.

RESULTS AND DISCUSSION

Defining
Based on customer journey mapping, the researcher defines the problems found in the existing biobriquette
products; namely 1) packaging that easily degrades the biobriquette quality, and it is also vulnerable to damage, less
informative packaging; 2) slow respond ordering, lack of after-sales services; 3) Consumers are still worried about the
biobriquette safety; it is still difficult to use bio-briquette; 4) The late distribution to end user; 5) bio-briquette quality
still does not match with customer preference, the absence of a specification bio-briquette that makes the consumers
doubt the quality, the size of biobriquette makes consumer difficult to use it.

Ideating
Based on the results of the gap analysis above, it shows that the obtained positive points are based on the negative
points or on the gap of the customer journey. The results of value proposition are derived from the phase of the gap
analysis shows that 1) The durable, impressive, and informative packaging that has ability to preserve the bio-briquette
quality; 2) The existence of after-sales service that is easy and responsive; 3) tested bio-briquette and has a clear
specification; 4) the fast distribution to end users.

Prototyping
A business model, according to Osterwalder (2010), requires participants who have multi backgrounds so when
creating a Business Model Canvas, the diversity of perspectives is expected to be obvious. Diverse perspectives is
needed when individual establishes the business model canvas containing rich contents. When business model canvas
is ideating, participants who join this stage are from diverse backgrounds, begin from Biology undergraduate students

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who have studied the composition of bio-briquette and also with agricultural engineering undergraduate students that
have been in the process of empathy with the background of the bio-briquette production, institutional and financial
system. Here are the results of the ideation stage.

Ramie Waste Bio-Briquette Empathy Map

Packaging Slow
Packaging that
vulnerable to responding
easily degrades
damage ordering
the bio-
briquette
bio-briquette quality
still does not match Think and Feel? Less smoke
with customer
preference Hear? See? Late distribution
to end user
Consumer are still
worried about the
bio-briquette safety Say and Do? Durable ignited
bio-briquette
It is still
Lack of after-
difficult to use
sales services
bio-briquette

PAIN Bio-briquette Lack of after sales It is still difficult to GAIN

specification still services use bio-briquette
Slow respond does not match with Durable
Late distribution to Packaging easily
ordering customer preference end user ignited bio- Less smoke
degrades the bio-
Customer are still worried about the Packaging vulnerable briquette quality briquette
bio-briquette safety to damage

FIGURE 2. Ramie Waste Bio-briquette Empathy Map

Customer Segments

Customer segment of bio-briquette is divided into three segments based on their class, there are:
1. Low Class Segments: Employees and the community around bio-briquette industry who buy stoves and bio-
briquette will have installment facility and they can purchase with more affordable price than the market. Total
of pesantren (boarding school), based on Indonesia Ministry of Religious in 2012, are 27.230 with a total
3.759. 198 students and this becomes a huge market potential.
2. Medium Class Segments: In the medium class segment, our target is fritters Small and Medium Industry.
Markets have been selected as the customers because their cooking process by frying their products and also
demand presence that wants to try the product which is Sumedang fried tofu store
3. High Class Segments: In this segment, based on the results of empathy via customer journey and interviews.
This segment has been very concerned about the quality of products using bio-briquette. In shisha cafes target
consumers, they tend to be willing to pay more for the quality of bio-briquette which has export quality. Bio-
briquette used by shisha cafe currently around Rp. 22.000 per pack with a net weight 1 kg. They order every
two weeks as 25 kg per orders.

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 Ramie Waste Bio-Briquette Customer Journey
Ordering Bio-briquette Bio-briquette arrive Using bio-briquette After using bio-briquette

Less
smoke

Durable
ignited bio-
briquette

Slow respond Late It is still difficult Consumers are

bio-briquette still worried
ordering distribution specification still to use bio-
to end user does not match briquette about the bio-
with customer briquette safety Lack of after
preference sales services
Packaging
vulnerable Packaging
to damage easily
degrades the
bio-briquette
quality

FIGURE 3. Ramie Waste Bio-briquette Customer Journey Mapping

But for surabi cafe, the price per kg of bio-briquette is far cheaper than shisha which is Rp.8.000 / kg. They order
250 kg per 2 weeks. In terms of the product, it does not need to have the export quality, but they still consider the
quality consistency because bio-briquette currently used in ordering sometimes ruined and also its packaging is
damaged.

Customer Relationship

Maintaining relationships with consumers through Customer Relationship Management. Customer Relationship
Management (CRM) is a business strategy to improve profitability, revenue and customer satisfaction by managing
customer segmentation, how to treat a customer, and implementing customer-centric processes (Buttle, 2009).
According to Sheth (2002), there are three types of CRM program, namely continuity marketing, one to one marketing
and partnering program.
Continuity marketing program is an example of the mass market that it may be considered as an appreciation for
the loyalty of customers such as discounts or points that can be exchanged for items. For the customer distributor or a
larger scale, continuity marketing is implemented with the extra sustainable program such as planning raw material
composition together (Ahmad, 2013). Therefore, we create after-sales center based on electronic media such as e-
mail, Call Center (phone and SMS) or Facebook page.
This service center that is needed for bio-briquette is important for the service sustainability. Besides continuity
marketing program, there is also one to one marketing personal relationships Personal Service. This dedicated service
represents the deepest and most intimate type of relationship and normally develops over a long period of time
(Osterwalder, 2010)

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 Key Partners Key Activities Value Propositions Costumer Relationship Costumer Segments
Research and Customization Bio- Aftersales Local
Research Producing Promotion
University Development briquette Specification Center Communities Bio-
Institutions Briquette
Products based on agreement around briquette
Bio-briquette Briquette Call Center Briquette Employees
Entrepreneur Distributor Branding Networking Durable and information
Industry
Alliance Pack
Customer Loyalty
Production Machineries Aftersales Appreciation Briquette
Pesantren
Manufacturer Service Fast and Easy Services Distributor
Personal Service Low class segments
Ramie Social Benefit and Value
Communities
Farmers Chain
Key Resources Channels Fritters Small
and Medium
Mass Media Government Production Production Website Social Media Industries
Team Machineries

Research Women Medium class segments

Biomass Stove Distributor Agent
Results Group in
Manufacturer Rural
Customer Traditional
Marketing Direct Selling Logistic Agent Food Café
Service Shisha Café
Admin Team and
Restaurants
Ramie Decortication Waste
High class segments

Cost Structure Revenue Streams

Distribution Marketing Customer Support
Production Cost Industry Visit Bio-briquette Biomass
Cost Cost Cost
Stove Package Selling
Research and Salaries and Networking
Branding Cost Bio-briquette Appropriate Products
Development Cost Wages Cost
Selling Training

FIGURE 4. Ramie (Boehmeria nivea) Decortication Waste Bio-Briquette Business Model Canvas with Design Thinking
Approach

Channels

The website is used as a channel because it can boost consumer trust to conduct online transactions (Pratiwi, 2013).
Social media can be used as a tool to interact with customers and potential customers. Website and social media are
also used as the tools to increase brand awareness and brand image. Brand awareness, brand image, and media
communication can influence the customer decision to buy a product (Suciningtyas, 2012).
Delivery of products performed in three ways: through direct sales, through the intermediary logistics agent or
distributor. Direct selling is intended for consumers who live near to its industry such as employees and communities
around bio-briquette industry or customers. Also, it can be used by individual who have already had an agreement
with the company. Logistic agent is used for customers who purchase the product either retail or wholesale, but their
location is far from the industry. Meanwhile, through distributors is for customers who want to buy the product by
retail and live far away from the bio-briquette industry.

Value Proposition

A former study using a gap analysis has been done with the purpose to get proposition value. Based on the
interviews and customers' journey, two users of bio-briquette which are shisha cafe and traditional food cafe owners
want their products to be safe, so bio-briquette with the trusted quality is necessary so that their customers do not have
to worry about the offered products.
Based on the results of the customer journey, bio-briquette specifications in terms of size, composition and physical
quality, does not fulfil the expectation; therefore, it creates a choice in ordering with bio-briquette specifications
customization in an agreement that has been made between customers and industrial bio-briquette, it is the same as

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that of conducted by bio-briquette coconut shell industry that has already exists in Bantul which is Briq.co, and it is
proven to work.
Besides the bio-briquette, packaging also is highlighted by consumers. Based on the results of the customer
journey, a few points regarding the packaging needed to be improved is the resilience of the packaging quality,
presentation of information, and packaging design. Thus, the packaging made by Bio-briquette need to meet these
criteria. Ramie bio-briquette packaging before being put into cartons or cardboard will be wrapped in plastic to prevent
moisture. Because according to consumer, the moist bio-briquette will reduce its quality, in addition because it is
easily destroyed, bio-briquette will be difficult to be ignited.
Presenting information on bio-briquette such as product specifications (volatile matter content, ash content, caloric
value and a fixed carbon) is needed because their products has direct contact with these bio-briquette so there is
concern that they may harm consumers. But unfortunately, from 5 entrepreneurs who use the bio-briquette (shisha
cafe, surabi cafe, ratus treatments, aromatherapy and incense) only bio-briquette of shisha cafe packaging that
potentially provides information about it (specifications and net weight of the product) and the rest still do not know
exactly about the specifications of bio-briquette they use.

Based on the results of the customer journey also, the easy-fast service is desirable and preferred by consumers.
Therefore, the sales and after-sales services are considered as the value so that consumers can interact with us. Services
performed by utilizing the technology on various platforms include Facebook page, email and call center (phone and
SMS).
Besides in terms of product, a value of this business is the social benefit and value chain perceived from upstream
to downstream, this happens because bio-briquette ramie uses Fruters Model (Purnomo, 2014) that connect the
stakeholders such as farmers, universities, government, community, businesses and communities from upstream to
downstream. This model has been proven successfully to be applied in SMEs

Key Activities

The key activities conducted by the company that are used to keep the continuity and sustainability cover the
production of bio-briquette, networking, after sales service, research and development of products, and branding.

Key Resources

The main resource required to perform the activities above consists of ramie decortication waste which is the raw
material obtained from bio-briquette itself. The production team consists of a trained mother living near to the bio-
briquette industrial area and production machinery so that the key activities can produce the bio-briquette well. The
research results of the key partners such as research institution and universities are the other key resources so that the
company is able to create products that have already been tested. The marketing team and customer service
administrator are in charge of executing, retaining customers and increasing sales.

Key Partners

A key partner in this business pentahelix models uses the concept in the process of social innovation and
collaboration between sectors comprising academicians / universities, businesses, community, government and media.
Academics from universities are in charge of being partners in research and developing the products, businessman
like Briq.co producer of bio-briquette production machinery, bio-briquette entrepreneur’s alliance as a place for
networking, share experiences and connections between all the bio-briquette businessman. There is also a distributor
serving as the sender of bio-briquette to the retailer or seller who need that but still in small scale. Society or
community consisting of farmers serve as suppliers of ramie waste. Local government also helps the company,
functioning as a key partner of bio-briquette, to be policy makers and regulatory determinant in the future. The last,
the mass media are used as the tool to communicate with customers in order to execute, maintain, and increase the
number of customers in the future.

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 Cost Structure

Capital of this business are the production cost that is obtainable from production houses and cultivating land.
Distribution costs refers to the cost that is spent to ship the product to customer and delivery of raw materials to the
plant site. Research and development costs are needed to improve the quality of products and services. Salaries and
wages of employees range from upstream to downstream. Marketing costs include market research, market
development planning short-term and long-term. customer service cost is used to retain consumers in order they
continue using bio-briquette and branding cost is used to influence customer to buy our product and make them aware
of us.

Revenue Streams

Income of the business Bio-briquette Ramie are obtained from the bio-briquette and stove selling. Both of them
are sold in the form of packet in order the consumers can directly use it, especially for those who want to start using
bio-briquette at their homes. With the after sales service, the customer who has purchased a package biomass stoves
can subscribe to purchase bio-briquette periodically so that customers continue using bio-briquette by an agreement
that has been made by customer and biobriquette industry.
By booking bio-briquette on a larger scale, consumers can order the bio-briquette based on the agreed
specifications either in its composition percentage, packaging, pricing and also its delivery system as illustrated in the
research conducted in the existing biobriquette business in Bantul, DI Yogyakarta (Briq.co). Apart from the product
sales, this business model revenues are obtained from industry visits and training in making appropriate products such
as this bio-briquette.

Testing

Packaging and bio-briquette prototype, which have been made previously, are then implemented in September
2016 to bio-briquette users who become the respondents of this research. The results of this research are listed in table
1.

TABLE 1. Successful Use Parameters of Ramie Bio-briquette to Respondents

Change
1. Packaging prototype design is attractive 1.
2. Informative packaging that contains its
specification such as ash content, caloric value,
volatile matter content, water content, carbon 2.
content and the net weight of bio-briquette
3. The size of bio-briquette that fits consumers' needs 3.
4. Consumers trust in the quality of the product
based on information on its packaging
5. Consumers are interested in trying customization
bio-briquette order system
Deficiency
The amount of biobriquette prototype is
limited, making it difficult to reach another user
to try products quality
Biobriquette prototype is still slightly crumbly
than the previous bio-briquette consumer used
There is a characteristic that still unmet bio-
briquette standardization

CONCLUSION
This bio-briquette Business model idea can be run even with its limitation due to limited availability of bio-
briquette prototypes. Nonetheless, the results of this experiment could be applied on other limited users who have the
same resources.

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 ACKNOWLEDGEMENT
This research is conducted at the Department of Agro-industrial Technology Faculty of Agro-industrial
Technology, Universitas Padjadjaran and Financed by LPDP (Lembaga Penyedia Dana Pendidikan).

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