Analyzing Strategy Execution at BOP: Drishtee’s case

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

2. List of popular projects working in rural India

3. Innovation Sandbox* • 4 conditions • World-class quality • A significant price reduction • Scalable • Affordable *Taken from the book “Fortune at the Bottom of Pyramid” by C. K. Prahalad

4. About Drishtee • Founded by:  SatyanMishra, NitinGachhayat, and ShaileshThakur • 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

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.

6. Drishtee’sStrategy 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.

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

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

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”

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

11. Drishtee’s Strategy 7/9 The Company is currently serving 10000 villages with an aim to serve 600000 villages. The structure -

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

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

14. Eliminate the Middle man Strategy Implementation 1/6

15. Strategy Implementation 2/6 • 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 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 Phase II

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

17. Strategy Implementation 4/6

18. Strategy Implementation 5/6 • Products and Services Mix 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 Drishtee’s Product Portfolio

19. Strategy Implementation 6/6

20. 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

21. Profile of Drishtee Entrepreneurs Poonam Bharadwaj Age: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

22. 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/

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/

24. Thank You 