collaborate to innovate - transformation series · 2018-11-30 · collaborate to innovate team...
TRANSCRIPT
EDITION VII
COLLABORATE TO INNOVATE
Team Infinity – IIM Raipur Akshay Chaturvedi
Bhavya Chhawchharia
Karan Singh Bhandari
“MSME EXPLORE ”
(Export Promotion and Leveraging
Global Opportunities)
• Lack of Network Neutrality
• Conventional Payment System
• In-Accessibility to Finance
• Lack of Training & Development
• High Logistics Cost
• Lack of Tracking options
• Weak local Supply Chain
• Longed Custom Clearance
• Hectic NOC Clearance
• Lower De-Minimis Limit
• Less Threshold MEIS Benefits
• High Transaction cost
• High cost of technology
• Lack of Awareness
• Excessive Paperwork
• Lack of Consumer protection
CURRENT SCENARIO BENCHMARKING GLOBAL PRACTICES
Consolidated
Export System
Integrated Supply
Chain Ecosystem
MSME friendly
Export policies
Secure Paperless
Trading
Seamless CBT
e-Commerce
Problem at Hand Global
Benchmarking
Infrastructure
Logistics
Policy
Technology
2
INNOVATIVE IDEA
3
POLICY-PLATFORM ECOSYSTEM
Pre-solution steps
• Synergies with numerous
schemes
• Formalization of enterprises
• Organized central database
• Recognizing E-commerce
as an industry
• Network neutrality
Post-solution steps
• Linking Transaction IDs
• EDI at Customs
• Interoperable Tracking
System
• Integrated supply chain
ecosystem
• Policy amendments
MSME Explore Components
• Co-working Spaces
• Comprehensive Service Provider
• Digital Single Window System
Functions
• Collaborative effort between all
ecosystem players
• Moving sector specific MSMEs into
CBT space
Third Party Education Platform Functions
• Spreading Awareness about CBT
• Cluster Education Programmes
• Changing myopic view of technology
• Targeted Capacity Building Programmes
• Connect with multiple international portals
• Training of MSMEs
• Technical Support
• Data sharing
• Collaborations with local associations
Solu
tion
Seamless Integration between all stakeholders and MSMEs
Solution
• MSME Explore
• Third Party education platform
IDEA FLOWMAP INTEGRATED E-COMMERCE
• On-boarding on platform
• Preparation of catalogue
• 24*7 IT support
• Custom and regulatory
clearances
• Financing and taxation
Orders and
transactions from
different sites gets
reflected on the
DSW platform and
payment goes into
a single account
Customer places order any
of the partner websites
DSW Platform tracks
inventory in
warehouse and
generates dispatch
orders
Integrated logistics
through international
3PL partners
4
RECOMMENDED EFFORTS INFRASTRUCTURE, LOGISTICS, POLICY,
TECHNOLOGY
• Public-Private Partnerships for shipping
• Integrated Supply Chain Ecosystem
• Implementing Interoperable Tracking System
• Digital Single Window System for facilitating multiple activities
• Realising information sharing through Data Protection
• Subsidise costs for hardware
• Mandatory electronic signature and authentication through paperless trading
• Recognizing retail e-commerce exports as a industry
• Increasing the MEIS limit
• Allowing FDI in Inventory Based model
• Considering e-BRC equivalent to Transaction ID for foreign exchange
• Linking CSB-V and Transaction ID
• Integrated end-to-end solution for e-payment
• Implementing EDI
• Providing common language
Infrastructure
Policy
Logistics
Efforts
Technology
5
BENEFITS
Cross-Function
Provide Micro-financing
and functional literacy to
MSMEs
Targeted Marketing
51% increase in
Revenue and up-to
80% reduction in
expenses
Digitization
Overcome physical
ques and provide
Interoperable tracking
system
Customer acquisition
Insight based
personalization to
improve customer
experience
Co-working space
Access to digital
assets and
mentorship
Education
Continuous and
Monthly sessions on
CBT e-commerce
Enhanced Quality
Standard
Standardized products
to create brand value
Expand to new
markets
Access to large pool of
global consumers
6
PLAN IMPLEMENTATION FEASIBLE, SUSTAINABLE AND SCALABLE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Total
Phase 2 (2022)
Phase 1 (2020)
30 Lakhs
1.5 Lakhs
10K 2.5 Lakhs
1 Lakh
70 Lakhs
10 Lakhs
1 Lakh
10 Lakhs
B2C MSME Size and Phase Wise Onboarding Target
2.74 Lakhs
4.93 Lakhs
=
=
Target early majority
• First 16% : INR 100000 direct benefit
• Next 34%: INR 50000 direct benefit
B2C Transformation Incentive
Co-working Spaces to be Opened at
Various MSME Cluster Locations
(Phase I)
Total Clusters : 7157
Micro-Clusters : 6000
Industrial clusters :
1157
Phase I – 2465
Phase II – 4692
North
Haryana - 272
UP - 144
Other - 55
West
Maharashtra - 176
Gujarat - 88
Rajasthan - 136
Other - 41
North-East
Assam - 128
Arunachal Pradesh - 72
Other - 28
East
West Bengal - 168
Orissa - 67
Other – 49
South
Tamil Nadu - 504
Karnataka- 128
Kerala - 176
Other - 33
Central
MP - 120
Chhattisgarh - 45
Other - 35 No. of Co-working
Spaces to be opened
phase wise
7
RESEARCH - SCENARIO INCREASING GROSS MERCHANDISE VALUE IN B2C
8
Transition from Traditional MSMEs Domestic E-commerce CBT E-commerce
$ 500 mn
Existing CBT revenue in B2C
exports category = US $ 500 mn
Increased CBT Revenue Target
Phase I (2020) = US $ 2 bn
Phase 2 (2022) = US $ 5 bn
Increased competitiveness due to Cost saving
• Marketing Costs: 40%
• Operational efficiency: 15%
• Provision for returned goods : 8%
$ 869.4 mn
$ 1738.8 mn
Multi-channel Sales due to
DSW platform
100% increase in sales due
to multi-platform visibility
(ebay, Alibaba & Amazon)
$ 3.5 bn
Policy Interventions
• MEIS categories expansion: 16%
• De minimis limits: 27%
• FDI regulations: 37%
Entry into new categories and
markets
• Contemporary products
• Expansion trough Blue-
Ocean Strategy
• Perception improvements
$ 5.17 bn
45 % – 50 %
9
“TWIN-PRONGED” MARKETING INITIATIVES
Integrated Marketing Communication Country specific targeting
Potential new targets by developing
contemporary products
Clothing and Footwear
Consumer Electronics
Health and Beauty
Jewellery
Sports goods
Grocery
Home accessories
Russia
Mexico
Brazil
Thailand
Turkey
South Africa
China
Joint programmes by
private and
government sector
Multi-dimensional
gateway for facilitating
MSMEs of all BRICS
countries Memberships with
International
Associations
Setting up exclusive
stores for products of
India MSMEs in local and
global airports
Pooled Marketing and
selling of sector specific
MSMEs
Agreement with
Diplomats for mutually
promoting MSMEs
EDUCATING THE MSMEs
Alibaba, E-bay and Amazon ---- > knowledge partners
International and Minimum threshold quality standards
Handling e-Commerce tools and technology
Export Policies, Procedure, Incentives and Benefits
Safe and Secure Online Payments
Risk and Fraud management with PayPal
Experience on Multi-channel selling - Online & Mobile
E-Commerce Marketing and Social Media Marketing
Geography
Geographical Cluster level
Pan India
Education Mode
Offline & Online
Online
Frequency
Periodic (Once in a month)
Continuous (24*7)
Attend
Present
Networking
Co-teach
Take-Over
Third Party Education Platform Train the Trainer
Transforming
Periodic Third
Party Education to
Continuous self
education
10
BUDGETS
11
Total Expenses
Total Cost = ₹ 9668.35 Cr.
IT and Infrastructure Development Cost Marketing Expenditure
Subsidy Cost
Particulars Amount (in Cr.)
Co-working space set-up cost 5,725.60
Comprehensive service provider set-up
cost
(PPP model 40% of the initial cost to be
born by govt.) 1,080.00
Digital Singal Window Platform Dev.
Cost 205.30
Education platform Dev. Cost 108.90
EDI at custom 389.50
Total 7,509.30
Particulars Amount (in Cr.)
Newspaper Ads 75.00
Campaigns 60.00
Radio Ads 10.00
Trade shows and events 160.00
Digital Marketing 100.00
Total 405.00
Particulars Amount (in Cr.)
IT infra subsidy scheme (Capital
Investment) Phase I 438.40
IT infra subsidy scheme (Capital
Investment) Phase II 465.80
Interest subsidy on working capital
loan (3% interest upto 30 lakhs for 5
years) 849.85
Total 1,754.05
Particulars Amount (in Cr.)
IT and Infrastructure Development
Cost 7,509.30
Subsidy Cost 1,754.05
Marketing Budget 405.00
Total 9,668.35
12
Thank you! It always seems impossible until
it is done – Nelson Mandela
Q & A