Analyzing Strategy Execution at BOP: Drishtee’scase

Analyzing Strategy Execution at BOP: Drishtee’s case

Presented By: Section-B, Group-1Anshul Gupta

Hemant ChachadiLaxmi G

Saurabh JhaPallavi MadanVishwas KiniNikhil Gupta

Presentation Date: 22 AUG 2010

Prepared for:Prof. Sanjeeva Shivesh

Faculty Strategy Area, MDI

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

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

Innovation Sandbox*

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


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4 conditions

World-class qualityA significant price reductionScalableAffordable

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

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


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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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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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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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


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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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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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Skills –

• 10+2 or 12th pass

• Working knowledge of basic computer skills

• Prior business experience

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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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•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.

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•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


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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1. Products and Services Mix of Drishtee

2. Government Services

3. Secondary Healthcare

4. Employment

5. Micro Loan

6. Marketplace

7. Basic Education

8. Electricity

9. Computer Education

10. Spoken English

11. Primary Health

12. Digital Photography

13. Commodity Market price

14. Electronic Products

15. Household Items

16. Seeds & Fertilizers

17. Insurance

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Drishtee’s

Product Portfolio



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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


Profile of Drishtee Entrepreneurs

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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


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?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/


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 Bank/Attachments/55/Drishtee 2006_23_12_2007.pdf

http://www.cab.org.in/ICTPortal/Lists/Knowledge Bank/Attachments/55/Drishtee 2006_23_12_2007.pdf

http://www.sksindia.com/index.htm

http://www.echoupal.com/

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/


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/

Thank You


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