Beginning in , ITC set up a network of ICT kiosks around the country, called e-Choupal (an open meeting place in a village). IT for Change Case Study. ITC has a diversified presence in Cigarettes, Hotels, Paperboards of rural value systems that not a single case of theft, misappropriation. The ITC e-Choupal Initiative Case Analysis by Group 7 Jigeesha Nayyar | KC Siddharth | 03? Kunjal Kaw | Mohit Sadhwani | Naman Misra |
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The business model The model is centered on a network of e-Choupals that serve both as a social gathering place for exchange of information and an e-commerce hub.
The intermediaries were not removed from echopual value-chain, instead they were made as samyojaks coordinators who assist ITC in setting up new e-choupals.
Large international companies had better margin-to-risk ratios because of wider options for risk management and arbitrage. Goals stidy Two goals were envisioned for information technology in the e-Choupal process.
Yet most Indian farmers have remained quite poor. Web-enabled real time data on crop prices provide the farmer with the market prices for their produce. ITC also incorporated a local commission agent, known as the samyojak collaboratorinto the system as the provider of logistical support.
ITC gains as intermediaries are removed, and transportation costs decrease. Jump to Main Navigation.
As a communication mechanism, this goal is related to the commitment to address the whole system, not just a part of the system. The e-Choupal model has shown that a large corporation can combine a social mission and an ambitious commercial venture; that it can play a major role in rationalising markets and increasing the efficiency of an agricultural system, and do so in ways that benefit farmers and rural communities as well as company shareholders.
Website optimised for IE 7. The Chairman of ITC challenged IBD to use information technology to change the rules of the game and create a competitive business that did not need a large asset base. Jump to Sub Navigation. Today its network reaches more than a million farmers.
Case Studies – ITC eChoupal
The causes include remnants of scarcity-era regulation and an stidy system based on small, inefficient landholdings. ITC also uses e-Choupal as a medium to advertise consumer products.
Farmers using e-Choupal on an average receive 2. Industry background Spurred by India’s need to generate foreign exchange, ITC’s International Business Division IBD was created in as an agri-trading company aiming to “offer the world the best of India’s produce”. The effort placed computers with Internet access in rural farming villages. The model is centered on a network of e-Choupals that serve both as a social gathering place for exchange of information and an e-commerce hub.
The e-Choupals are operated by a sanchalak operatorwho also doubles up as an ITC salesman. Today, IBD is over Rs crore company that trades in commodities such as feed ingredients, food-grains, coffee, black pepper, edible nuts, marine products, and processed fruits. The agricultural system has also traditionally been unfair to cade producers.
It is a manifestation of the integrity of rural value systems that not a single case of theft, misappropriation, or misuse has been reported among the thousands of e-Choupals. What began as an effort to re-engineer the procurement process for soy, tobacco, wheat, shrimp, and other cropping systems in rural India has also created a highly profitable distribution and product design channel for the Company.
ITC’s example also shows the key role of information technology – in this case provided and maintained by a corporation, but used stdy local farmers – in helping to bring about transparency, to increase access to information, and to catalyse rural transformation, while enabling efficiencies and low cost distribution that make the system profitable and sustainable. Copyright The DeSai Group. This can be exchanged for other ITC products.
The e-Choupal also provides other information to the farmer, including crop-prices, weather and knowledge on scientific farming techniques.
Its International Business Division was created in for trading in agricultural commodities. Agriculture is vital to India.
Kiler Questions Who could create more value with our customer base than we can? How do we know when we achieve our goals?
A local farmer edhoupal as a sanchalak coordinator runs the village e-Choupal, and the computer usually is located in the sanchalak’s home.
It produces 23 per cent of the GDP, echouapl a billion people, and employs 66 per cent of the workforce. Select Year Bythe opening up of the Indian market had brought in international competition.