Analyzing Strategy Execution at BOP: Drishtee’s case Presented By Anshul Gupta.
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Transcript of Analyzing Strategy Execution at BOP: Drishtee’s case Presented By Anshul Gupta.
Analyzing Strategy Execution at BOP: Drishtee’s case
Presented ByAnshul Gupta
List of popular projects working in rural India
Company Business Model
Drishtee Use of kiosk-based platform to deliver services
SKS Microfinance Use of for-profit model of microfinance
ITC’s e-Choupal Virtual clustering of all the value chain participants
Hindustan Lever’s iShakti Rural entrepreneur using Shakti kiosks
Hewlett Packard’s photo training The Village Photography Program
DICNIC Use of IT for information management at rural level
AgRIS, The Agricultural Resources Information System
AGMARKNET Marketing & Inspection (DMI), Ministry of Agriculture initiative
SeedNet, National initiative for information on quality seeds
eKrishi Market Driven Agricultural Initiative through IT enabled Agri
Business Centres
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Innovation Sandbox*
*Taken from the book “Fortune at the Bottom of Pyramid” by C. K. Prahalad
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World-class qualityA significant price reductionScalableAffordable
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About Drishtee
• Founded by: Satyan Mishra, Nitin Gachhayat, and Shailesh Thakur
• Started in the year 2000 in Dhar (Madhya Pradesh, India)
• Over the years, Drishtee has facilitated and supported a network of over 14,000 rural enterprises
• Through this low cost, direct delivery rural supply chain network
• This is a fastest growing such network
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Drishtee’s Strategy
Mission:“To make marginal communities more efficient,
self-sufficient, and equitable”
Drishtee is a Network Orchestrator for delivering fee based services to the rural population through ICT Kiosks.
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Drishtee’s Strategy
The services include:
e-Governance, Education, Health, Insurance and local services.
The ICT center (Kiosk) is owned and operated by a local entrepreneur.
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Drishtee’s Strategy
Revenue Model –• Upfront franchise fees• Profit margins on the services
Cost Model – • Selection and training of local entrepreneurs • Web based tools for BPO operations
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Drishtee’s Strategy
Key rules –
Demand-driven operationsWorking with the local customsFocus on the core missionKeep the costs as low as possibleLow margins and high volumes
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Product Distribution –
Distribution of any product in rural India is a big challenge
Drishtee includes the local unorganized retail stores – “Drishtee rural Retail Points”
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Drishtee’s Strategy5/9
Drishteehaat –an online platform for rural producers to sell
their products to customers
• Market information on costs, trading etc.• Capacity building• Technical support
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Drishtee’s Strategy6/9
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Drishtee’s Strategy
The Company is currently serving 10000 villages with an aim to serve 600000 villages. The structure -
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Partners of Drishtee –
• Acumen Fund• International Finance Corporation • IFMR Trust had partnered with Drishtee • Nike Foundation
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Drishtee’s Strategy8/9
Skills –
• 10+2 or 12th pass• Working knowledge of basic computer skills• Prior business experience
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Drishtee’s Strategy9/9
Strategy Implementation
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Eliminate the Middle
man
Eliminate the Middle
man1/6
Drishtee Kiosks –– Setting up a Kiosk, Rural entrepreneurship– Services Offered through the Kiosks– Revenue Generation/Cash Flow
Setting up a kiosk –• a comprehensive location/village survey• After selecting the owner goes through a
Comprehensive Phase I training program15
Strategy Implementation
•Drishtee reserves the right to reject the owner, the owner also has a choice to withdraw.
•Once Phase I is completed the owner has an understanding of the business and Drishtee would have gained confidence in the owner.
•Details of the loan required to setup the kiosk and the Kiosk owner agreement are worked out.
•Detailed training to the owner
•Hardware deployment details worked out •The Kiosk service is launched
•Also, Drishtee conducts the promotion program
Phase II
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What does a kiosk contain?
• A computer• Digital camera• Internet connection over phone line, and• A printer
Investment ~ 1300 USD.16
Strategy Implementation3/6
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Strategy Implementation4/6
1. Products and Services Mix of Drishtee2. Government Services 3. Secondary Healthcare4. Employment5. Micro Loan6. Marketplace7. Basic Education8. Electricity9. Computer Education10. Spoken English11. Primary Health12. Digital Photography13. Commodity Market price14. Electronic Products15. Household Items16. Seeds & Fertilizers17. Insurance
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Drishtee’s Product Portfolio
Strategy Implementation5/6
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Strategy Implementation6/6
Learning
How to capture opportunities by eliminating the middle man.
How can a company do well by doing good Benefits of creating entrepreneurs as business
members (in terms of cost efficiencies) How to serve the rural market by creating value
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Profile of Drishtee Entrepreneurs
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Poonam BharadwajAge:35 yearsQualification:Post graduationAddess: Kharkhauda, MeerutFamily Occupation: Heading a SchoolKiosk Startup Date: January 2008
Mohit Gangwar Age: 24yrsQualification: GraduationAddress: Bareilly, Uttar PradeshFamily Occupation: Digital Photography ShopKiosk Startup Date: April 2005Best Performance: Rs. 17,000/- in December 2005
References
• Prahalad, C. K., “Fortune at the Bottom of Pyramid” 2nd Edition, 2010• http://www.drishtee.com/cms/ • http://www.youtube.com/watch?v=BZf_xwvNvMo• http://www.youtube.com/watch?v=jYvoHeYe8fk• http://www.amrresearch.com/Content/View.aspx?CompURI=tcm:7-43224 • http://omulga.riversstate.org.ng/Netgrowth/ICTWorkshop/Case_Studies.asp?Cate
goryID=612&Case_StudiesID=2109249522&PartnerLong=OpenCityPortal&Language=English
• http://216.119.85.221/artman2/publish/indian-jobs/article_20878.shtml• http://www.cab.org.in/ICTPortal/Lists/Knowledge%20Bank/Attachments/55/Drish
tee%202006_23_12_2007.pdf• http://www.sksindia.com/index.htm• http://www.echoupal.com/
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References• http://www.hllshakti.com/sbcms/temp1.asp?pid=46802251• http://www.kupnet.org/i-community/village-photographers/• http://disnic.gov.in/concept&approach.htm• http://www.agricoop.nic.in/• http://agris.nic.in/agrisintro.htm• http://www.agmarknet.nic.in/• http://www.seednet.gov.in/• http://www.videosewa.org/index.htm• http://www.e-krishi.org/• http://www.agricoop.nic.in/
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Thank You
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