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 StrategyThe 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

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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 program

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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.

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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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