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Agriculture is vital to India. Green revolution has increased India's agricultural productivity. ITC is one of India's leading private companies. The company initiated an e-Choupal places computers with internet access. effort that

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E-Choupal serves as both a social gathering place and an e-commerce hub. This case shows the key role of IT provided by a corporation but used by local farmers.

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Lack of access to modern resources led to under-trained workplace.€ Rural India is a difficult business location. Serves a dual agenda ¾ Bridging rural isolation ¾ Creating large profit opportunity for the € € organisation .

sends to processing center weighs electronically . € € € . At harvest time. The farmers can use the computers to access daily closing prices on local mandis. fertilizers and other products.assesses quality . ITC buys the crop .pays the farmers. They use e-Choupal to order seed.€ ITC made significant investments to create and maintain its own IT network in rural India.

€ € € More control over farmers choices Higher profit margin on their crops Access to information that improves their productivity Increases trust and fairness € .

€ Refers to the class of crops from which edible oils are extracted Classified into: ¾ Traditional oils ¾ Non-traditional oils € ‡ Soy represented an important innovation in Indian oilseed complex ‡ Dominated by small farmers .

Traders.Adatiyas(pukka & kuccha) € Lack of competition made CA wealthy.P mandis serve 700 sq kilometers. € Mandi conducted by commission agents. € . mandis & cooperatives society. € GHANI € IN M.

Inbound Display & Inspection Bagging Auction & Weighing Payment Outbound logistic Logistics .

No incentive to farmers to invest in better seed Cost of bagging and weighing. Loss of spilled produce Lack of information regarding price and right time.€ € € € € € € € Cost of overnight stay Crops being negatively affected by the weather. Inspection process is unscientific. Trading companies like ITC had no direct contact with farmers. .

Avoids ´re-inventing the wheelµ.and also marketing channel.Intimate knowledge of the farmer and village dynamics allow him to accurately access and manage risk 2.seed. 2.engineer.pesticides.fertilizer. Not just one part: The village traders services the spectrum needs of the farmers from a centralized cash provider.€ Re. Not reconstruct: 1. € .Reduces the transaction costs. Benefits: 1.Recriuts and engages members of the rural landscape Address the whole part.

Commitment to address the whole system. misappropriation. or misuse has been reported in any of the 2000 e ²choupals. .thus allowing the farmer an empowered choice of where and when to sell his crop. not just a part of the system.Previously the farmers were binded to an agent but echoupal was seen as the medium of delivering critical information . 2.€ An IT-Driven Solution: IT is 20% of all the effort of ITC·s E-choupal business model and also are equally crucial. The manifestation of the integrity of the expensive IT infrastructure did not report a single case of theft. The two goals envisioned are: 1.

Break community based business models € Threat of unionization and rent extraction by sanchalaks and ITC·s partners € Speed of expansion create real threats to efficient management € Managing bureaucracy under the Agricultural Produce Marketing Act. € .

Trust 2.€ € € € € Serve as both social gathering and place of exchange of information and an e-commerce hub Sanchalaks(co coordinator) and Samyogak(collaborator) By passes the agent controlled mandis Today the network reaches more than farmers in nearly 11000 villages through 2000 e-choupals and the network is expanding rapidly The critical element of the e-choupal system: 1.Sanchalak a trained approachable interface between the illiterate farmers and other villagers 4.ITC need not invest in building and securing the physical infrastructure 3.Leverage as a profit making power for small entepreneurs .

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Pricing Inbound Logistic Inspection & Grading Weighing & Payment Hub Logistics 1. Weighing and Payment 4. Pricing 2. Inspection and Grading 3. Hub Logistics .

Information on seeds. Electronic weighing provides accuracy. Helps to determine the optimum time of sales.€ € € € € € € € Access to complete agricultural information. No cost of transportation instead reimbursement for the transport at procurement hub. Daily access to prices at several nearby mandis. fertilizers and advance farming techniques. Access to external pricing source such as Chicago Board of Trade. . Low cost consumer products.

Reduced transportation cost almost half of what ITC used to pay to the agents.5 to 3 % . ( Agents ± 2. Managed risk through stronger information system.5% ). product quality. Bottom up information on pricing. .€ € € € € € Less commission paid to the sanchalaks as compare to the agents at the mandis. Sanchalaks ± 0. Help attain long term supplier relationship with farmers. Improved quality through reward system. soil condition and expected yield.

2.ITC¶s E-Choupal model identifies three sources of value for the Company that can help to scale the model 1. Crop Specific Intervention Low-Cost Last Mile Intelligent First Mile . 3.

€ Insurance and Risk Management Services. € Loans to Sanchalaks. € Capturing Credit History € Transaction & Administration Cost ITC Plans to partner with ICICI Bank to desing following products for rural India. € Direct loans to farmers based on Sanchalaks recommendation. € . € No cash loan for farm inputs.Failure of Integrated Rural Development program (IRDP) Through E-Choupal ITC partnership with financial institution to capture needed information and offer new product.

€ Overcoming Power Constraints Transportation Telecom Infrastructure Customer Base € € € .

€ € € € Technical Architecture Application Architecture Information Architecture Organization Architecture ¾ Training ¾ System Support .

Youngsters use to research latest movies. For other activities like: Children use computers for schoolwork and games.Location/Buyer wise prices offered. fertilizers. Best practices in farming( generic as well as specific). cell phone models and cricket news.€  Helps enhance farm productivity by: Disseminating latest information on district level weather forecasts in short & medium terms. International market prices . Helps improve price realization by: Making available data on markets viz. Supply of quality inputs(seed.   €   €   . pesticides) in village itself.

They include: € Commission Agents € Mandi laborers € Bazaars near the mandi € Some mandi operations € Competing processors .Some of the people have suffered loss of revenue.

5. Sanchalaks unionize and extract unwarranted demands. 3. Threat of Execution management. 4. 2.1. Radical shifts in computing access. 6. Faster and more Responsive customer service. Relationship with samyojaks is getting uneasy thus indirectly helping competitors. . Stratification of societies leading to inadequate availability of technology.

Sourcing IT-enabled services from rural place e.tourism. Shrimps.g.g. € Wave 2.g. Coffee.Eco.Introduction of Multiple Buyers and Sellers. € Wave 3. € Wave 5. . e. traditional Crafts. € Wave 4.Concept of Traceability that will allow to address food safety.Telemedicine.There is a threat of elimination of ITC·s Competitive advantage therefore they are coming up with several new ideas.Elaboration of Rural Marketing and Distribution Strategy.Identity Preservation. e. Wheat Procurement. e. € Wave 6.g.

€ The fairness with which both farmers and local partners are treated. € Company·s commitment to transparency. € . € ITC·s efforts to retain many aspects of existing production system including the local partners.ITC·s extensive knowledge of agriculture.

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