Transcript Document
Grassroot Deployment
ITC eChoupal Experience By V V Rajasekhar ELITEX 2005 New Delhi, 25 th April 2005 © 2000-05 ITC Limited
My Presentation Scope
While the canvas for discussion is very broad, I will limit myself to share with you few principles of eChoupal that enabled its deployment at grassroot to become • Sustainable • Scalable © 2000-05 ITC Limited
ITC eChoupal
A Quick Look © 2000-05 ITC Limited
The eChoupal Services
Relevant & Real-time Information • Commodity prices, Local Weather, News Customised Knowledge • Farm Management, Risk Management Supply Chain for Farm Inputs • Screened for Quality, Demand Aggregation for Competitive Prices & Efficient Logistics Direct Marketing Channel for Farm Produce • Lower Transaction Costs, Better Value through Traceability © 2000-05 ITC Limited
Other Services through eChoupal
Distribution of Products and Services to Rural Markets Micro marketing • Product/Services Demos • Marketing and Brand Building activities Pilots • Bhoomi • eHealth with Private Health Service Providers • eEducation • Rural BPO © 2000-05 ITC Limited
State
Madhya Pradesh Uttar Pradesh Maharashtra Rajasthan Karnataka Andhra Pradesh
Choupals Villages Farmers
Current Network Size
Choupals
1750 1750 900 500 100 150
5,150 31,000 3,500,000 Hubs
43 42 22 15 2 3
127
Adding Six New Choupals Every Day Intend Scaling up to 100,000 Villages in 15 States by 2010 © 2000-05 ITC Limited
Deployment Principles
© 2000-05 ITC Limited
#1 Co Creation
End-to-end solution is designed collaboratively • Identify major problems and • solve them with efficiency and transparency When we started, it was with a FMCG approach, with reliance on • Market Research • Focus Groups … and then the approach quickly changed to ‘Prototypes’ to enable experience and obtain feedback • An iterative approach to build models to solve the
problems
of the Individual and of the Community
real world
© 2000-05 ITC Limited
Solution : Access to Price Information Village – Anytime & In the
© 2000-05 ITC Limited
Solution : Transparency and Accuracy in Weighment
© 2000-05 ITC Limited
Solution : Modern Methods for Quality Assessment
© 2000-05 ITC Limited
#2 Must have a well thought out Business Model
Who Pays ?
Who Runs ?
Who Monitors Quality?
What are the Value Propositions to the Stake Holders ?
© 2000-05 ITC Limited
The ITC eChoupal Proposition
Step 1: Leveraging ICTs for empowered access to markets (inputs & outputs) Step 2: Economic viability of IT infrastructure investments is justified through Win-Win business models, hence also scaleable Step 3: Customer responsive IT infrastructure in the villages facilitates access to supplementary Education, Health, Employment, eGovernance services © 2000-05 ITC Limited
ICTs make it possible !
The eChoupal Price Discovery End Vs Empowered : Farmer @ Receiving • Value through Unbundling what was bundled together earlier (Information & Transaction) – Unbundles – Price information is now available at the door step without a necessity to go to mandi – Has an option to fix price at the village itself. However, at the time of selling, still retains the freedom to go to mandi if he believes he gets better offer there.
The Input Transaction • Value through Bundling (Information, Knowledge, Transaction) what was available unbundled earlier – Bundles – Information on Weather and Best Practices from the website – Knowledge of ‘what to do’ from the Experts – Efficient supply platform for inputs purchase that enables aggregation and scale efficiencies
#3 The Orchestrator
Who Orchestrates the multiple entities?
• The scale and complexity inherent makes it a high maintenance network The Orchestrator has to ensure • There is a ‘Big Picture’ to what is initiated • ‘Changing Needs’ are tracked and are efficiently responded • ‘Continuous Innovation’ of the business model is ensured for its long term relevance © 2000-05 ITC Limited
#4 The Infrastructure
Must have Three Tiers • Local part for Responsiveness • Regional level for Controlling • Apex element for Resources Allocation © 2000-05 ITC Limited
3 X 3 eChoupal Infrastructure
ICT Kiosk with Internet Access • In the house of one trained farmer,
Sanchalak
• Within walking distance of target farmers
Warehousing Hub / Store • Managed by the erstwhile middleman,
Samyojak
• Within tractorable distance of target farmers
Collaborative Network of Companies • Orchestrated by
ITC
• With a Pan-Indian presence
© 2000-05 ITC Limited
#5 Capability Building
Build Customer Orientation right across the Chain • “Customer is
the
reason” … and also the necessary Functional and Process skills • Working Capital • Demand Creation / assessment … along with the Soft Skills • Feedback • Quality / Customer Service © 2000-05 ITC Limited
Taking ICTs & Biz Models to Rural India
Training © 2000-05 ITC Limited
Taking ICTs & Biz Models to Rural India
Power Connectivity Website © 2000-05 ITC Limited
ITC Limited
eChoupal Sagar
Thank You
© 2000-05 ITC Limited
© 2000-05 ITC Limited
© 2000-05 ITC Limited
Thank You
visit www.itcportal.com
for more details on ITC eChoupal © 2000-05 ITC Limited