Grassroot Deployment

ITC eChoupal Experience
By

V V Rajasekhar
ELITEX 2005
New Delhi, 25th 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 .

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. Local Weather.The eChoupal Services  Relevant & Real-time Information • Commodity prices. News  Customised Knowledge • Farm Management. 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 .

Current Network Size State Madhya Pradesh Uttar Pradesh Maharashtra Rajasthan Karnataka Andhra Pradesh Choupals Villages Farmers Choupals 1750 1750 900 500 100 150 5.000 Villages in 15 States by 2010 © 2000-05 ITC Limited .000 3.500.150 31.000 Hubs 43 42 22 15 2 3 127 Adding Six New Choupals Every Day Intend Scaling up to 100.

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 real world problems of the Individual and of the Community © 2000-05 ITC Limited .

Solution : Access to Price Information – Anytime & In the Village © 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 .

Health. eGovernance services © 2000-05 ITC Limited . hence also scaleable  Step 3: Customer responsive IT infrastructure in the villages facilitates access to supplementary Education.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. Employment.

still retains the freedom to go to mandi if he believes he gets better offer there. Knowledge. However.  The Input Transaction • Value through Bundling (Information. at the time of selling. 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 © 2000-05 ITC Limited aggregation and scale efficiencies .ICTs make it possible !  The eChoupal Price Discovery : Farmer @ Receiving End Vs Empowered • 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.

#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 .

Sanchalak • Within walking distance of target farmers Link  Warehousing Hub / Store • Managed by the erstwhile middleman.3 X 3 eChoupal Infrastructure  ICT Kiosk with Internet Access • In the house of one trained farmer. Samyojak • Within tractorable distance of target farmers Link  Collaborative Network of Companies • Orchestrated by ITC • With a Pan-Indian presence Link © 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 © 2000-05 ITC Limited Training .

Taking ICTs & Biz Models to Rural India Power Connectivity © 2000-05 ITC Limited Website .

ITC Limited eChoupal © 2000-05 ITC Limited Sagar Thank You .

© 2000-05 ITC Limited .

© 2000-05 ITC Limited .

Thank You visit www.itcportal.com for more details on ITC eChoupal © 2000-05 ITC Limited .

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