Ubudiyyah Business Model (UBM)

د�ون د� ع� ي� ل � ي ل��ل ي� ل��ن يوٱل � ي ل� ع ٱ د� ع� ي� ي� ي�ا يو

the UBM basis

د�ون د� ع� ي� ل � ي ل��ل ي� ل��ن يوٱل � ي ل� ع ٱ د� ع� ي� ي� ي�ا يو( ۵۷ -ذاريات �ل )

And I (Allâh) created not the jinn and mankind except for (My continuous)

“Ubudiyyah” (worship/servitude)

• We have been created for “Ubudiyyah” alone! • Therefore all ja’iz (lawful in shari’ah) human activities

must come under the scope of “Ubudiyyah”• Business is ja’iz, so it can and should be “Ubudiyyah”

conditionally

Ubudiyyah: Allah’s obedience/servitude, out of His love/reverence

The system of “Ubudiyyah” in all aspects of life is called

DEEN

CONCEPT DERIVED FROM THE AAYAH

All our activities including business can and

should be part of our life of “Ubudiyyah”, thereby

securing Allah’s pleasure and His reward in Akhirah

APPLICATION

Purpose of Life

Ubudiyyah (Allah’s obedience)

Object of Life

Ridha’Allah (Allah’s pleasure)

ینفع من خ�یرالناسالناس

The best of Mankind

are those who benefit Mankind

( �مال � (کنز

Allah ta’ala has engineered our worldly existence as one of interdependence consisting of:

• Mu’amlat: The outward form of transactions involving exchange of tangible goods and services.

• Akhlaq/Adab: The inward character, morals, attitudes and general excellence in personal interaction with other human beings.

• Every transaction/interaction is a test and a step closer to Jannah or Jahannam

CONCEPT DERIVED FROM THE HADITH

The best of mankind in business:

The most beneficial to mankind in:

Mu’amlat and Akhlaq as per Shari’ah and Sunnah

APPLICATION

To facilitate humanity in conducting all of its business activities on the basis of

Ubudiyyah with

Shari’ah and Akhlaq

From Shar’ee compliance to Ubudiyyah excellence

Ubudiyyah Business Model

UBMemerging from

Al-Khair

History of UBM

Al-Khair VisionTo transform

Perceptions, Objectives , Practicesof business

from a Material Base to Ubudiyyah Base

MissionTo establish and sustain a business organization

based on Islamic and Professional Excellence

Core Sifaat (values) of Al-Khair Culture

– Islamic Excellence

– Professional Excellence

– Benevolence

MissionTo establish and sustain a business organization

based on Islamic and Professional excellence

Q: What is Islamic and Professional Excellence? A: R&D required!

Emergence of UBM from an Al-Khair R&D Initiative

Goal Statement:To initiate an R&D project for developing a business model based on Islamic and professional excellence by March 31st, 2012.

Expected Outcomes:The business model should serve as a road map for AK and other businesses desirous of building their organizations on Islamic and professional excellence.

Al-Khair Organization Goal #4

Sets overall maqasid (objectives) of UBMOversees agenda and progress of jama’at

General administration of UBM

Idari Jama’t

Planning/Management

Human Development Services (HR)

Finance/Regulatory

Supply Chain

Marketing/Sales

Information Technology

Research Methodology and sources should be fair, ethical and Shari’ah Compliant Information should not be stolen etc. (Industrial Espionage)Unique Selling Proposition (USP) should be factualUSP should be weighted fairly (Implied warranty; cream with aloe vera and honey)Markets which use the product for non-shari’ah compliant activities should not be targeted (working women for perfumes)Positioning should be factual (Water positioned as pure, should be pure as against Soft Drink’s false appeal)Positioning should not promote inappropriate values (To be respected more, buy a 4X4!)Packaging budget should also be in accordance with the product value/utility of packaging

Do’s and Don’ts of Marketing Process

EXAMPLE OF UBM JAMA’AAT’S WORK

S. No. Checklist Questions I / S Page Reference

Explanation / Questions

1 SOURCES OF FINANCE 1.1 General

1.1.1 Saadgi (simplicity) I 33 Has the business’ expenditure budgets been made in a manner which reflects simplicity and avoidance of Israaf?

1.1.2 Qinaat (contentment) I 34 Has the size of business and it’s operations been planned in a manner which is in accordance with the sources of finances available to the owner(s) and is enough to fulfill the needs and requirements of the owner(s). and ensures that undue capital injection (equity/debt) is avoided?

1.1.3 What was the source of initial seed capital: whether it was halaal or not? I

1.1.4 Is the Business model halaal (product, service, delivery)? S

1.1.5 Are the customers of the business engaged in Halaal business or not S This may not apply in some categories of business such as retail where it is not possible to verify the compliance status of the customer

1.1.6 Is the source of funding Halaal or not? S 34

1.2 Musharika 1.2.1 Is the contract available or not? S 37 The form of musharika

agreement should be defined: for eg. Joint ownership or Joint venture

EXAMPLE OF FINANCE JAMA’T CHECKLIST

UBM Ijtima’at

Ijtima’ agenda

1. Presentations from every Jamat including:

a) Overview of completed workb) Issues and challengesc) Interactive discussions

2. Each Jama’t regroups for further brainstorming

3. Each Jama’t presents and discusses future plans

UBM Quarterly Ijtima’at

• Completion/Review of 1st stage of implementation documents

• Implementation of pilot projects’ 1st stage

• Monitor, assess, improve. Process to continue until completion of pilot projects

• Present to public: July 1, 2013 In sha Allah

COMPLETION OF UBM ROAD MAPPRESENT TO PUBLIC

العالمین رب لللہ الحمد عن دعوانا آاخر واجمعین واصحابہ آالہ و رسولہ علی والسلام والصلاۃ

Ubudiyyah WaqfObjectives and Strategies for

UbudiyyahWaqf

Highest Level Objective (HLO):Pleasure of Allah SWT

HLO – 1:The UW wants to see Muslims as the embodiment of

Ubudiyyah in all aspects of life

HLO – 2:To revive the letter and spirit of Ubudiyyah in

Mu’amalaat

HLO – 3:Undertake fikr and amal to transform business activities

from a material-base to an Ubudiyyah-base

1. Tahqeeq• Developing means and methods for establishing

Ubudiyyah Sifaat and Bi’ah (culture/environment) in individuals and organizations

• Transformation of organizational functions (Finance, IT, Marketing and Sales, Supply Chain etc.) from material-base to an Ubudiyyah-base, based on Islamic and professional excellence

• Develop standards for compliance, certification and accreditation

• Develop strategies for handling change management in the organization and to create culture based on Islamic and Professional excellence

• Develop publications based on the tahqeeq

HLO - 3 will be achieved, insha Allah through

2. Taleem o TarbiyahDevelop a framework of Taleem and Tarbiyyah

consisting of the following:• Materials• Pedagogy• Faculty / Trainer / Implementation consultant /

Auditor development• Collaboration and development with institutions

for delivery

HLO - 3 will be achieved, insha Allah through

3. Tanfeeth, Muraqabah and Muhasabah

• Tanfeeth (Inspire, Guide, Enable, Empower)

• Muraqabah and Muhasabah

HLO - 3 will be achieved, insha Allah through