Analyzing Strategy Execution at BOP: Drishtee’s case Presented By Anshul Gupta

List of popular projects working in rural India CompanyBusiness 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 2

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 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 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 1/9

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. 6 2/9

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 3/9

Drishtee’s Strategy 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 8 4/9

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

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

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

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

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

Strategy Implementation 14 Eliminate the Middle man 1/6

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 15 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

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

17 Strategy Implementation 4/6

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 18 Drishtee’s Product Portfolio Strategy Implementation 5/6

19 Strategy Implementation 6/6

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 20

Profile of Drishtee Entrepreneurs 21 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” 2 nd Edition, goryID=612&Case_StudiesID= &PartnerLong=OpenCityPortal&Languag e=English goryID=612&Case_StudiesID= &PartnerLong=OpenCityPortal&Languag e=English ee%202006_23_12_2007.pdf ee%202006_23_12_2007.pdf

References

Thank You 24