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Analyzing Strategy Execution at
    BOP: Drishtee’s case



      Prepared for:                Presented By: Section-B, Group-1
      Prof. Sanjeeva Shivesh                Anshul Gupta
      Faculty Strategy Area, MDI          Hemant Chachadi
                                               Laxmi G
                                             Saurabh Jha
                                            Pallavi Madan
                                             Vishwas Kini
                                             Nikhil Gupta
Presentation Date: 22 AUG 2010
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




                         Analyzing Strategy Execution at BOP: Drishtee’s case           Section-B, Group-1                    2
Innovation Sandbox*




*Taken from the book “Fortune at the Bottom of Pyramid” by C. K. Prahalad

                         Analyzing Strategy Execution at BOP: Drishtee’s case   Section-B, Group-1   3
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


• 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

            Analyzing Strategy Execution at BOP: Drishtee’s case   Section-B, Group-1   5
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.


             Analyzing Strategy Execution at BOP: Drishtee’s case   Section-B, Group-1   6
Drishtee’s Strategy
2/9


  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   7
Drishtee’s Strategy
3/9


  Revenue Model –
  • 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   8
Drishtee’s Strategy
4/9


  Key rules –

  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   9
Drishtee’s Strategy
5/9


  Product Distribution –

  Distribution of any product in rural India is a big
    challenge

  Drishtee includes the local unorganized retail
   stores – “Drishtee rural Retail Points”


              Analyzing Strategy Execution at BOP: Drishtee’s case   Section-B, Group-1   10
Drishtee’s Strategy
6/9


  Drishteehaat –
  an online platform for rural producers to sell
    their products to customers

  • Market information on costs, trading etc.
  • Capacity building
  • Technical support

             Analyzing Strategy Execution at BOP: Drishtee’s case   Section-B, Group-1   11
Drishtee’s Strategy
7/9
      The Company is currently serving 10000 villages with an aim to serve 600000
      villages.
      The structure -




                      Analyzing Strategy Execution at BOP: Drishtee’s case   Section-B, Group-1   12
Drishtee’s Strategy
8/9


  Partners of Drishtee –

  •   Acumen Fund
  •   International Finance Corporation
  •   IFMR Trust had partnered with Drishtee
  •   Nike Foundation



               Analyzing Strategy Execution at BOP: Drishtee’s case   Section-B, Group-1   13
Drishtee’s Strategy
9/9


  Skills –

  • 10+2 or 12th pass
  • Working knowledge of basic computer skills
  • Prior business experience




             Analyzing Strategy Execution at BOP: Drishtee’s case   Section-B, Group-1   14
Eliminate the
1/6
      Strategy Implementation
                            Middle
                             man




      Analyzing Strategy Execution at BOP: Drishtee’s case   Section-B, Group-1   15
2/6
               Strategy Implementation

Drishtee Kiosks – the right to reject the owner, the
 •Drishtee reserves
   – Setting has Kiosk, Rural entrepreneurship
  owner also up a a choice to withdraw.
   – Services Offered through the Kiosks
  •Once Phase Generation/Cash Flow has an
   – Revenue I is completed the owner
  understanding of the business and Drishtee would
  have gained confidence in the owner.
Setting up a kiosk –
• •Details of the loan required to setup the kiosk and
   a comprehensive location/village survey
  the Kiosk owner agreement are worked out.
• After selecting the owner goes through a
   Comprehensive Phase I training program
               Analyzing Strategy Execution at BOP: Drishtee’s case   Section-B, Group-1   16
Strategy Implementation


•Detailed training to the owner

•Hardware deployment details worked out

•The Kiosk service is launched

•Also, Drishtee conducts the promotion program


                          Phase II
             Analyzing Strategy Execution at BOP: Drishtee’s case   Section-B, Group-1   17
3/6
               Strategy Implementation

  What does a kiosk contain?

  •   A computer
  •   Digital camera
  •   Internet connection over phone line, and
  •   A printer

  Investment ~ 1300 USD.
               Analyzing Strategy Execution at BOP: Drishtee’s case   Section-B, Group-1   18
4/6
      Strategy Implementation




      Analyzing Strategy Execution at BOP: Drishtee’s case   Section-B, Group-1   19
5/6
                Strategy Implementation

                                            1.    Products and Services Mix of Drishtee
                                            2.    Government Services
                                            3.    Secondary Healthcare
                                            4.    Employment
                                            5.    Micro Loan
                                            6.    Marketplace
                                            7.    Basic Education

      Drishtee’s                            8.
                                            9.
                                                  Electricity
                                                  Computer Education
      Product Portfolio                     10.
                                            11.
                                                  Spoken English
                                                  Primary Health
                                            12.   Digital Photography
                                            13.   Commodity Market price
                                            14.   Electronic Products
                                            15.   Household Items
                                            16.   Seeds & Fertilizers
                                            17.   Insurance


               Analyzing Strategy Execution at BOP: Drishtee’s case   Section-B, Group-1   20
6/6
      Strategy Implementation




      Analyzing Strategy Execution at BOP: Drishtee’s case   Section-B, Group-1   21
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



            Analyzing Strategy Execution at BOP: Drishtee’s case   Section-B, Group-1   22
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: 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   23
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&Languag
    e=English
•   http://216.119.85.221/artman2/publish/indian-jobs/article_20878.shtml
•   http://www.cab.org.in/ICTPortal/Lists/Knowledge%20Bank/Attachments/55/Drisht
    ee%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   24
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   25
Thank You 




          Analyzing Strategy Execution at BOP: Drishtee’s case   Section-B, Group-1   26

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Analyzing Strategy Execution at BOP: Drishtee’scase

  • 1. Analyzing Strategy Execution at BOP: Drishtee’s case Prepared for: Presented By: Section-B, Group-1 Prof. Sanjeeva Shivesh Anshul Gupta Faculty Strategy Area, MDI Hemant Chachadi Laxmi G Saurabh Jha Pallavi Madan Vishwas Kini Nikhil Gupta Presentation Date: 22 AUG 2010
  • 2. 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 Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 2
  • 3. Innovation Sandbox* *Taken from the book “Fortune at the Bottom of Pyramid” by C. K. Prahalad Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 3
  • 4. 4 conditions World-class quality A significant price reduction Scalable Affordable Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 4
  • 5. 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 Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 5
  • 6. 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. Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 6
  • 7. Drishtee’s Strategy 2/9 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 7
  • 8. Drishtee’s Strategy 3/9 Revenue Model – • 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 8
  • 9. Drishtee’s Strategy 4/9 Key rules – 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 9
  • 10. Drishtee’s Strategy 5/9 Product Distribution – Distribution of any product in rural India is a big challenge Drishtee includes the local unorganized retail stores – “Drishtee rural Retail Points” Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 10
  • 11. Drishtee’s Strategy 6/9 Drishteehaat – an online platform for rural producers to sell their products to customers • Market information on costs, trading etc. • Capacity building • Technical support Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 11
  • 12. Drishtee’s Strategy 7/9 The Company is currently serving 10000 villages with an aim to serve 600000 villages. The structure - Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 12
  • 13. Drishtee’s Strategy 8/9 Partners of Drishtee – • Acumen Fund • International Finance Corporation • IFMR Trust had partnered with Drishtee • Nike Foundation Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 13
  • 14. Drishtee’s Strategy 9/9 Skills – • 10+2 or 12th pass • Working knowledge of basic computer skills • Prior business experience Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 14
  • 15. Eliminate the 1/6 Strategy Implementation Middle man Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 15
  • 16. 2/6 Strategy Implementation Drishtee Kiosks – the right to reject the owner, the •Drishtee reserves – Setting has Kiosk, Rural entrepreneurship owner also up a a choice to withdraw. – Services Offered through the Kiosks •Once Phase Generation/Cash Flow has an – Revenue I is completed the owner understanding of the business and Drishtee would have gained confidence in the owner. Setting up a kiosk – • •Details of the loan required to setup the kiosk and a comprehensive location/village survey the Kiosk owner agreement are worked out. • After selecting the owner goes through a Comprehensive Phase I training program Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 16
  • 17. Strategy Implementation •Detailed training to the owner •Hardware deployment details worked out •The Kiosk service is launched •Also, Drishtee conducts the promotion program Phase II Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 17
  • 18. 3/6 Strategy Implementation What does a kiosk contain? • A computer • Digital camera • Internet connection over phone line, and • A printer Investment ~ 1300 USD. Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 18
  • 19. 4/6 Strategy Implementation Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 19
  • 20. 5/6 Strategy Implementation 1. Products and Services Mix of Drishtee 2. Government Services 3. Secondary Healthcare 4. Employment 5. Micro Loan 6. Marketplace 7. Basic Education Drishtee’s 8. 9. Electricity Computer Education Product Portfolio 10. 11. Spoken English Primary Health 12. Digital Photography 13. Commodity Market price 14. Electronic Products 15. Household Items 16. Seeds & Fertilizers 17. Insurance Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 20
  • 21. 6/6 Strategy Implementation Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 21
  • 22. 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 Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 22
  • 23. 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: 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 23
  • 24. 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&Languag e=English • http://216.119.85.221/artman2/publish/indian-jobs/article_20878.shtml • http://www.cab.org.in/ICTPortal/Lists/Knowledge%20Bank/Attachments/55/Drisht ee%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 24
  • 25. 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 25
  • 26. Thank You  Analyzing Strategy Execution at BOP: Drishtee’s case Section-B, Group-1 26