Balberan, Jan Maxin R.             ITETHIC                                 April 11, 2008

ITC e-Choupal Case Study Guide Questions

1. What is the innovation of the e-Choupal

    

The e-Choupal information centers linked to the internet represent an approach to seamlessly connect subsistence farmers with large firms, current agricultural research, and global markets. The network of these, each operated by a local farmer in each community called the sanchalak, allow for virtual integration of the supply chain and significant efficiencies in the traditional system.

2. Discuss the paradox of Indian Agriculture?

    

Agriculture is economically, nutritionally, and socially vital to India yet the government controls and restrictions the supply of goods to different parts of India. Ironically, they have high production yet because of different factors including the farmers, they still have shortage.

3. Why is soya an important innovation in the Indian oilseed complex?

    

Soya represents an important innovation in the Indian oilseed complex that is resulting in better utilization of scarce resources and greater cropping intensity.

4. Describe the marketing processs before the introduction of e-Choupal.

    

There are three commercial channels for the products: mandis, traders for eventual resale to crushers, and producer-run cooperatives societies for crushing in cooperative mills. The farmers traditionally keep a small amount for personal consumption and get the produce processed in a small-scale job-shop crushing-plant called a ghanti. 

5. Why is the mandi not an optimal procurement channel?

    

Mandi cannot be an optional procurement channel since there is process in inefficiency.

6. What were the advantages of ITC's competitors? How did ITC address them?

    

There is a threat on ITC since most competitors are well experienced. To address this problem, ITC decided to rent and team up with Mandis for Soya supplies. With the strategy, ITC has boosted its growth. 

7. How did ITC "re-engineer as opposed to reconstruct"?

    

ITC sees improvement against the current system and decided to trace the problems by having the advantages and benefits and addressing the problem.

8. How did ITC "address the whole, not just a part"?

    

ITC address the people by Centralizing the distribution of needs of the farmers like capital, raw materials, and marketing the farmers’ products.

9. Was it wise for ITC to install an IT-driven solution where most people would not?

    

Yes because even though the nature of the businesses they serve focus agriculturally, ITC’s service will be more efficient and effective in helping the farmers.

10. Why does the ITC insist that the sanchalaks NOT give up farming?

     

ITC insist that the sanchalaks not giving up in farming because if this happens, the trust and credibility will dramatically drop. The sanchalak works on commission.

11. Why did the samyojaks introduce the ITC to the sanchalaks?

     

The samyojaks are introduced to increase business opportunity with the help they give on business operation.

12. Describe the new ITC value chain. How different is it from the former value chain?

     

The new ITC value chain decreases its processes. From 6 processes, it is now only 5. The new value eliminates the process that may cause inefficiency.

13. What is the social impact of the e-Choupals?

     

e-Choupals has improve not only the agriculture but also way of living of people by money generation on agriculture.

14. Describe Wave 6 of the e-Choupal. Do you think it is feasible?

     

    1. the proper acquisition of crops
    2. preservation of identity through the supply chain
    3. traceability of the supply chain
    4. creation of different institutions
    5. marketing and distribution strategy
    6. other services for the people

Yes because it details out each step and each wave is attainable

15. Can something similar to an e-Choupal be implemented in the Philippines?

     

Yes, first of all, Philippine is an agricultural country that relies on land. The supply chain management will help the growth of the agriculture business not only protecting the rights of small farmers but also ensuring the profitability of every entity in the supply chain.