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Enhancing the quality of life of underserved households and livelihoods through sustainable energy solutions

Aditya Shankar Dharanii Naveen Khurana Saurabh Harnathka Vikasa Gauatam

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Overview
Introduction Products and Market

Segment Organizational Structure Processes Innovation at Selco Organization Culture Future Plans Recommendations

Structure

Processes

Culture

Introduction
y Solar energy is expensive for rich but cheap for poor y y y y y y

(in comparison to kerosene lamps and dry cell batteries) Founded by Mr. Harish Hande & Neville Williams in 1994 Mission-to see light empower life 170 Employees spread across 21 branches 100,000 + solar home lighting systems in 13 years Awarded Ashden awards(Green Oscars) for Outstanding achievement(2007) and Sustainable energy(2005) For Profit Organization Self sustaining model

Products and Market Segment


y Technology
y Solar Lighting y Solar Thermal(water heaters) y Solar Inverter y Cookstoves

y Customer base (regions)

y Finance
y Affordable credit y Accessible credit

y Services
y Custom system design y Installation & Training on

y Customer s incomes in the financial bracket of `2000`3000pm y Largely rural population without access to grid electricity

proper use y After sales maintenance

Framework- Evolution and Present


Entrepreneurial 1994-1996
Informal Organizational Structure Single Product Personal Reward systems Survival focus Need for leadership

ESC RBO ESC ESC

Collectivity 1996- 2004

Some formal procedures introduced Contribution based reward systems Customized products with added services Growth focus Management style-Direction-setting Need for delegation

ESC SELCO HQ RBO ESC ESC ESC

Formalization 2004-present

Formal procedures and division of labour Multiple products-technology, finance and maintainence Incentive-based reward systems Focus on market expansion Management style-delegation with control

RBO

ESC ESC

RBO: Regional Base Office ESC: Energy Service Centre

Organization Structure - Functional


Managing Director
Chief Financial Officer Manager, Incubation Lab Chief Operating Officer VP, Projects

Inventory

Accounts & Administration

AGM, Operations

Manager, Projects

Manager, Training

Regional Branch Manager 1

.....
Branch Manager

Regional Branch Manager n

Branch Manager

Branch Manager

Organization Structure Analysis


Formalization Specialization Hierarchy of Authority Centralization Professionalism
Very less, processes largely undocumented To great extent, roles defined & specific

Span of control wide at top but very narrow at bottom

Decision making on accounts, administration, inventory and innovation are centralized Top level highly educated, bottom level of less educated rural employed, apprentice model of training

Process
Two Aspects of process
y Sales process y Marketing process

Sales process
Need Analysis Technology Financing Installation & Training After Sales Services
Specific needs analyzed by visiting the customer s place Customized solution presented with estimated cost Products are selected and minimal modifications done Prices fixed for the final product to be provided Facilitation of loans through local banks and partners Fixing of payment systems in case of consumer s inability

On the usage of the systems

Free maintenance service for one year Annual Maintenance Contracts (AMCs)

Marketing Process
y Creating awareness about the solar energy solutions y Earning the people s trust and start selling their product y Social advertisements like demonstrations in schools, hospitals etc y Viral Marketing y Significant portion of their sales target is met by the rural low income population, thus achieving their actual goal

Innovation at Selco
y Ideation from within and y y y y y
Technology
Cost effective design Designs are overdone

outside the organization Concept of Idea Box Evaluation of Ideas Idea Champion -like 3M Limited R&D investment Mentoring Social Entrepreneurs with similar vision

Finance
In non-availability of loans from banks

Marketing
Create awareness about solar energy solutions Customized products

Culture
y Informal Recruitment y Local staff y On job training y High employee retention
20%

Personnel Ratios
Managerial 18% 20% Professional 42% Clerical

y Summer interns from management schools around

the world y Employees are passion driven pay is not the main motivator

Social Impact

 Provided efficient lighting solutions for schools  About 30% reduction in electricity bills  Provided electricity to a village of farmers and daily wage

laborers living without electricity  Created pivotal finance schemes  Arranged for 100% loans to 28 families

Future Plans
y Projects
y In Solar Lighting, Solar

Expansion in new regions


y Many processes still not

energizer, cheap solar cooker, automatic water level controller y Diversify into other energy solutions

y Plans
y Expansion of customer base-

household incomes `1500 y Involving passionate entrepreneur with similar mission and vision

formalized and optimized y About 30% processes are replicable as it is. 40% are context based y Identification of four individuals to replicate Selco Model y Tie ups with partners in Asia, Africa and Latin America

Improvisation in Structure
Full Time Integrator Roles
Lack of horizontal communication
Managing Director

Streamlining of structure
Confusions regarding work allocation

Chief Financial Officer

Manager, Incubation Lab

Chief Operating Officer

VP, Projects

Inventory

Accounts & Administration

AGM, Operations

Manager, Projects

Manager, Training

Program Manager

Regional Branch Manager 1

.....

Regional Branch Manager n

Branch Manager

Branch Manager

Branch Manager

How can SELCO improvise its processes?


y Process formalization and documentation
 Processes are not well understood and documented  Documentation is necessary to avoid confusions

y Community based solar energy initiatives


 Installation of panels home-to-home result in higher

costs  By installing panels on a group basis, the company can cut down costs ,thus lowering the price of offering

Recommendations

International Perspective

Innovation Incentives Reducing Technology Gap

IP Protection

Long Term Research

Management Information System?

Thank You Queries?

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