Case on Mori Village

Points to Remember:

1. 2012, N Chandrababu Naidu, CM of Andhra Pradesh, after his defeat in 2004 election, did
Pada Yatra--to understand challenges, concerns of rural people. Key observations were:
1. Various govt programs has helped but not to the extent of expectation
2. Villagers want to be empowered
3. Village population are shrinking
4. Focus on only one aspect of village life
In a nutshell, Naidu needs to build prototype that creates value for both
villagers and private enterprise. To do so, he started with Mori village.

2. Introduction to Mori village

1. Population is 8000 and area is 1316 acre

2. Problems faced are:

 Lack of access to health care, sanitation and clean water

 Only 800 toilets thereby open defecation
 Diseases like Malaria and dengue are common
 Lack of education
 Rely on Godman instead of doctor as treatment is expensive
 Lack of good economic opportunity
 Lack of proper irrigation facility
 Lack of labour for agriculture
 Many migrated to other cities and countries but still they faced many
challenges there on account of any sudden economic imbalance.
 Migrant faced molestation in foreign country
 Migration leads to lack of skilled workers in the village

3. Problem with Traditional Aid:

1. Government provide--- Aid -->jobs program, free lunch to children, but it is only helpful
for short run, and hence do not lay the foundation for sustainable development.

2. Funds are not distributed properly, thereby creates local inflation,

3 Lack of economic opportunity for parents to take care of their family members.

4. Traditional aids instils dependence in people.

 5. People asked the government to work in 5 dimensions:

i. Poverty
ii. Social Justice
iii. Farmer welfare
iv. Youth employment
v. Proper governance

6. New approaches designed by the government includes 20 non- negotiable outcomes

(Exhibit 3)
7. Naidu also wants to avoid top down approach

4. Advantages of Villages over cities:

1. 70 percent of population (of 1.31 billion people) lives in rural India.

2. Total Villages: 6.50 lakhs

3. India’s GDP growing at a good rate compared to China

4. Cities are now unable to accommodate enough population

5. Traffic in cities

6. Villagers just need basic tools, eg. Information about Market prices whereas city
dwellers have complex needs

7. Villagers are close to green fields but require basic infrastructure

8. Companies must innovate based on simple approach rather than rely on product
differentiation or cost leadership. As a result, villagers who are typically low
income group will have a better living after getting the products and services
within their purchasing power.

Example:

Instead of Costly ECG machine, General Electric created MAC 400, a low cost
ECG which runs on battery. It is also small and light enough to be portable

5. Reasons for a Smart Village:

“A smart village is a community empowered by digital technologies and open

innovation platforms to access global market”

 Capacity Building
 Transparent information
 Easy to use digital tools
 Smart and lean technology
 Resources to develop entrepreneurial skills
 Direct access to global market
  Internet connectivity
 Community engagement

Six criteria of smart villages are:

 Ecosystem (Use of resources for revenue generation)

 Economic Development platform (allows ext. business access)
 Brand ( village become a brand)
 Community
 Business model
 Sustainable unit

6. Private Sector Opportunity: Concept of Shared Value

 “Shared value is an approach to innovate in which companies look for

ways to grow and sustain their businesses and create societal value by
addressing society’s needs and challenges”
 Shared value creation can benefit both companies and society.
 Following are the important points and examples of shared value creations
 Fair Trade Movement More income to farmer(Cocoa
Farmer in Coted’Ivoire, shared value increased their
income by 300 percent)
 Supporting Suppliers (Thomas Reuters develop monthly
service for farmers for a fee of $5, provides weather and
crop pricing information)
 Microfinance helped a lot to meet financial needs
 There is a need of innovation
 Walmart reducing excess product packaging and
greenhouse gas emissions through redesigning and
rerouting of trucks
 Redesign procurement( Nestle helped secure inputs
thereby helping coffee growers, providing bank loans,
pesticides,etc)
 Creating Distribution Models (Hindustan Unilever direct to
home distribution system, e.g. Project Shakti in India)

7. Importance of Scaling

 Scaling is one of the benefit of shared value approach

 Social enterprise (profit companies) that aim to have a positive impact
on world ,keeping financial results is directly related with successful
scaling.
 Scalability of social and financial benefits are necessary, both for public
and private sector
8. Smart Village Co-Innovation Lab in Mori

 Concept of open innovation

 Companies take external ideas and implement in their developmental
process thereby saving time and money
 Procter & Gamble purchased license of Swiffer Dusters from Unicharm
in Japan
 In Mori, villagers and companies together engage in open innovation,
in order to find out problems and crafts solutions.
 AT & Bosch estd Co-laboratories to work with young companies on
prototype of new ideas. Following are the steps taken:
 Interviewed to identify problems
 Building trust among villagers
 Creating awareness
 State govt. provided fibre optics and small television cum
computer set for each household
 Co invention space was built
 Villagers are invited and their responses are recorded
 Based on first round of response, companies revise
proposed solutions
 IBM proposed soln: (setting up sensors in the soil to
measure soil quality and required needs)
 Ericsson (sensors to measure water flow at the gates and
canals)
 Again revaluation by leaders of 40 nearby villages.
 According to Endeavor, anon profit, entrepreneurs
approach to trade off plays a critical role in their ability
to scale
 Question is what tradeoff necessary for the overall
development (Social and financial)
 In a nutshell, an ideal business model is one which align
financial and social goals as close as possible and that
when trade is required then prioritize financial goals over
social goals to maximize long term sustainability of
business.

9. Measuring and Supporting Success

 State govt. ready to grant $8 billion over next 5 year

 Encourage participation of leaders
 Set up Smart Andhra Pradesh Foundation towards Swarna Andhra
Mission 2029
 Govt made official formalities easy for companies to step in