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Analyzing Strategy Execution at BOP: Drishtee’scase
Drishtee is a network of over 14,000 rural enterprises that delivers services through ICT kiosks owned and operated by local entrepreneurs. The kiosks provide e-governance, education, health, insurance, and other local services. Drishtee aims to eliminate the middleman and empower marginal communities by creating rural jobs and entrepreneurs. Services are offered on a demand-driven, low-cost basis to serve rural populations across India.
Analyzing Strategy Execution at BOP: Drishtee’scase
- 1. Analyzing Strategy Executionat BOP: Drishtee’s case Presented By: Section-B, Group-1 Anshul Gupta Hemant Chachadi Laxmi G Saurabh Jha Pallavi Madan Vishwas Kini Nikhil Gupta Presentation Date : 22 AUG 2010
- 2. List of popularprojects working in rural India Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 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
- 3. Innovation Sandbox **Taken from the book “Fortune at the Bottom of Pyramid” by C. K. Prahalad 4 conditions World-class quality A significant price reduction Scalable Affordable Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1
- 4. About Drishtee Foundedby: 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 Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1
- 5. 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. Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 1/9
- 6. 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. Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 2/9
- 7. Drishtee’s Strategy RevenueModel – Upfront franchise fees Profit margins on the services Cost Model – Selection and training of local entrepreneurs Web based tools for BPO operations Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 3/9
- 8. Drishtee’s Strategy Keyrules – Demand-driven operations Working with the local customs Focus on the core mission Keep the costs as low as possible Low margins and high volumes Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 4/9
- 9. Product Distribution –Distribution of any product in rural India is a big challenge Drishtee includes the local unorganized retail stores – “Drishtee rural Retail Points” Drishtee’s Strategy 5/9 Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1
- 10. Drishteehaat – anonline platform for rural producers to sell their products to customers Market information on costs, trading etc. Capacity building Technical support Drishtee’s Strategy 6/9 Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1
- 11. Drishtee’s Strategy TheCompany is currently serving 10000 villages with an aim to serve 600000 villages. The structure - 7/9 Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1
- 12. Partners of Drishtee – Acumen Fund International Finance Corporation IFMR Trust had partnered with Drishtee Nike Foundation Drishtee’s Strategy 8/9 Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1
- 13. Skills –10+2 or 12 th pass Working knowledge of basic computer skills Prior business experience Drishtee’s Strategy 9/9 Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1
- 14. Strategy Implementation Eliminatethe Middle man 1/6 Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1
- 15. 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 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 2/6 Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1
- 16. What does akiosk contain? A computer Digital camera Internet connection over phone line, and A printer Investment ~ 1300 USD. Strategy Implementation 3/6 Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1
- 17. Strategy Implementation 4/6Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1
- 18. Products and ServicesMix 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 Strategy Implementation Drishtee’s Product Portfolio 5/6 Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1
- 19. Strategy Implementation 6/6Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1
- 20. Learning How tocapture 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 Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1
- 21. Profile of DrishteeEntrepreneurs Poonam Bharadwaj Age :35 years Qualification: Post graduation Addess: Kharkhauda, Meerut Family Occupation: Heading a School Kiosk Startup Date: January 2008 Mohit Gangwar Age: 24yrs Qualification: Graduation Address: Bareilly, Uttar Pradesh Family Occupation: Digital Photography Shop Kiosk Startup Date: April 2005 Best Performance: Rs. 17,000/- in December 2005 Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1
- 22. 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_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?CategoryID=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/Drishtee%202006_23_12_2007.pdf http://www.sksindia.com/index.htm http://www.echoupal.com/ Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1
- 23. 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/ Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1
- 24. Thank You Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1
Editor's Notes
- #4 The innovation must result in a product or service of world-class quality. The innovation must achieve a significant price reduction — at least 90 percent off the cost of a comparable product or service in the West. The innovation must be scalable: It must be able to be produced, marketed, and used in many locales and circumstances. The innovation must be affordable at the bottom of the economic pyramid, reaching people with the lowest levels of income in any given society.
- #8 Drishtee earns its revenues from the upfront franchise fees it receives from the entrepreneurs. For hardware installation etc. It also earns Profit margins on the services it provides to the end consumer. Cost Model – The major costs are incurred in selection, and training of local entrepreneurs and web-based tools for BPO operations etc.
- #10 Drishtee includes the local unorganized retail stores in its franchisee model under Drishtee rural Retail Points. These franchisees help Drishtee to provide people with good quality products.
- #11 This initiative also provides the producers with market information on costs, trading etc. and capacity building and technical support to produce high quality products.
- #12 Drishtee also has a different form of structure – by offering franchisee. Drishtee provides extensive training for entrepreneurship, marketing skills, clear and simple service delivery manuals and continuing professional advice to support your business
- #13 Acumen Fund – It is one of the leading investors in Drishtee. With Acumen Fund's investment, Drishtee is expanding its entrepreneur programmes to include a variety of health related services. International Finance Corporation - Its Grassroots Business Initiative (GBI) has provided Drishtee with grant funding to reinforce and scale up its network of entrepreneurs. IFMR Trust had partnered with Drishtee Foundation to pilot a kiosk based individual lending model for financial services delivery through entrepreneur owned kiosks. Nike Foundation is supporting Drishtee to enable women entrepreneurs in rural India. This partnership has helped increase the percentage of women entrepreneurs from 10% to 30%
- #14 There are two types of skills required by the Drishtee team. One is the team which sits in the corporate office and does the managerial work. Another team is the field team. The general qualification required for the field team or franchisee partners are following:
- #15 Drishtee is primarily an Information Communication Technologies (ICT) Company. Traditionally the Rural Consumers are connected to the market through the Middlemen, As each middle man is different the information available to the rural masses is not guaranteed of consistency or always of high quality, chances of distortion of information, corruption etc are high, to sum it up the present system does not offer the most efficient services to the consumers.
- #16 Drishtee does a comprehensive location/village survey, i.e. the village where a kiosk is to be set up is choosen, then it conducts a launch program at Panchayat/Group meetings. It selects the owner of the kiosk from a number of applicants.
- #17 The system is basically connected to drishtee’s Intranet.