Analyzing Strategy Execution at BOP Drishtees case Presented

Analyzing Strategy Execution at BOP: Drishtee’s case Presented By Anshul 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 i. Shakti Rural entrepreneur using Shakti kiosks Hewlett Packard’s photo training The Village Photography Program DICNIC Use of IT for information management at rural level Ag. RIS, The Agricultural Resources Information System AGMARKNET Marketing & Inspection (DMI), Ministry of Agriculture initiative Seed. Net, National initiative for information on quality seeds e. Krishi Market Driven Agricultural Initiative through IT enabled Agri Business Centres 2

Innovation Sandbox* 4 conditions ØWorld-class quality ØA significant price reduction ØScalable ØAffordable *Taken from the book “Fortune at the Bottom of Pyramid” by C. K. Prahalad 3

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 4

Drishtee’s Strategy 1/9 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. 5

2/9 Drishtee’s Strategy The services include: ü e-Governance, Education, ü Health, Insurance and local services. The ICT center (Kiosk) is owned and operated by a local entrepreneur. 6

3/9 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 7

4/9 Drishtee’s Strategy Key rules – ü Demand-driven operations ü Working with the local customs ü Focus on the core mission ü Keep the costs as low as possible ü Low margins and high volumes 8

5/9 Drishtee’s Strategy Product Distribution – Distribution of any product in rural India is a big challenge ü Drishtee includes the local unorganized retail stores – “Drishtee rural Retail Points” 9

6/9 Drishtee’s Strategy Drishteehaat – an online platform for rural producers to sell their products to customers • Market information on costs, trading etc. • Capacity building • Technical support 10

7/9 Drishtee’s Strategy The Company is currently serving 10000 villages with an aim to serve 600000 villages. The structure - 11

8/9 Drishtee’s Strategy Partners of Drishtee – • • Acumen Fund International Finance Corporation IFMR Trust had partnered with Drishtee Nike Foundation 12

9/9 Drishtee’s Strategy Skills – • 10+2 or 12 th pass • Working knowledge of basic computer skills • Prior business experience 13

1/6 Eliminate the Strategy Implementation Middle man 14

2/6 Strategy Implementation Drishtee Kiosks – • Drishtee reserves the right to reject the owner, the – Setting up a Kiosk, Rural entrepreneurship • owner also has a choice to withdraw. Detailed training to the owner – Services Offered through the Kiosks • Hardware deployment details worked out Once Phase I is completed the owner has an – Revenue Generation/Cash Flow understanding of the business and Drishtee would • have gained confidence in the owner. The Kiosk service is launched Setting up a kiosk – Details of the loan required to setup the kiosk and Also, Drishtee conducts the promotion program • • a comprehensive location/village survey the Kiosk owner agreement are worked out. • After selecting the owner goes through a Phase III training program Comprehensive Phase 15

3/6 Strategy Implementation What does a kiosk contain? • • A computer Digital camera Internet connection over phone line, and A printer Investment ~ 1300 USD. 16

4/6 Strategy Implementation 17

5/6 Strategy Implementation Drishtee’s Product Portfolio 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Products and Services Mix of Drishtee Government Services Secondary Healthcare Employment Micro Loan Marketplace Basic Education Electricity Computer Education Spoken English Primary Health Digital Photography Commodity Market price Electronic Products Household Items Seeds & Fertilizers Insurance 18

6/6 Strategy Implementation 19

Learning Ø How to capture opportunities by eliminating the middle man. Ø How can a company do well by doing good Ø Benefits of creating entrepreneurs as business members (in terms of cost efficiencies) Ø How to serve the rural market by creating value 20

Profile of Drishtee Entrepreneurs Poonam Bharadwaj Age: 35 years Qualification: Post graduation Addess: Kharkhauda, Meerut Family Occupation: Heading a School Kiosk Startup Date: January 2008 Mohit Gangwar Age: 24 yrs Qualification: Graduation Address: Bareilly, Uttar Pradesh Family Occupation: Digital Photography Shop Kiosk Startup Date: April 2005 Best Performance: Rs. 17, 000/- in December 2005 21

References • • • Prahalad, C. K. , “Fortune at the Bottom of Pyramid” 2 nd Edition, 2010 http: //www. drishtee. com/cms/ http: //www. youtube. com/watch? v=BZf_xwv. Nv. Mo http: //www. youtube. com/watch? v=j. Yvo. He. Ye 8 fk http: //www. amrresearch. com/Content/View. aspx? Comp. URI=tcm: 7 -43224 http: //omulga. riversstate. org. ng/Netgrowth/ICTWorkshop/Case_Studies. asp? Cate gory. ID=612&Case_Studies. ID=2109249522&Partner. Long=Open. City. Portal&Languag e=English http: //216. 119. 85. 221/artman 2/publish/indian-jobs/article_20878. shtml http: //www. cab. org. in/ICTPortal/Lists/Knowledge%20 Bank/Attachments/55/Drish tee%202006_23_12_2007. pdf http: //www. sksindia. com/index. htm http: //www. echoupal. com/ 22

References • • • http: //www. hllshakti. com/sbcms/temp 1. 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/ 23

Thank You 24