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  • NICT: Diversify or Consolidate ?: Made by

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    Kashif Mohammed
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    This document discusses the strategic dilemma facing NICT, a rural IT services provider and largest franchise operator of Common Service Centers (CSC) kiosks in India, regarding whether to diversify or consolidate its business by accepting or rejecting a Request for Proposal (RFP) from India Post Payments Bank (PBI). Key considerations include the opportunity for national expansion but also risks of overstretching resources and potential loss of stable cash flows. Alternative options are analyzed regarding the advantages and disadvantages of accepting or rejecting the RFP. Financial projections estimate total annual revenue of nearly 3 billion rupees but highlight issues that need resolution regarding the plausible solutions.

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    national Indian Company of IT

    Original Title

    NICT

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    This document discusses the strategic dilemma facing NICT, a rural IT services provider and largest franchise operator of Common Service Centers (CSC) kiosks in India, regarding whether to diversify or consolidate its business by accepting or rejecting a Request for Proposal (RFP) from India Post Payments Bank (PBI). Key considerations include the opportunity for national expansion but also risks of overstretching resources and potential loss of stable cash flows. Alternative options are analyzed regarding the advantages and disadvantages of accepting or rejecting the RFP. Financial projections estimate total annual revenue of nearly 3 billion rupees but highlight issues that need resolution regarding the plausible solutions.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    13 views9 pages

    NICT: Diversify or Consolidate ?: Made by

    Uploaded by

    Kashif Mohammed
    This document discusses the strategic dilemma facing NICT, a rural IT services provider and largest franchise operator of Common Service Centers (CSC) kiosks in India, regarding whether to diversify or consolidate its business by accepting or rejecting a Request for Proposal (RFP) from India Post Payments Bank (PBI). Key considerations include the opportunity for national expansion but also risks of overstretching resources and potential loss of stable cash flows. Alternative options are analyzed regarding the advantages and disadvantages of accepting or rejecting the RFP. Financial projections estimate total annual revenue of nearly 3 billion rupees but highlight issues that need resolution regarding the plausible solutions.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 9

    NICT: Diversify or

    Consolidate ?
    Made by:
    Alok Saurabh- 03
    Awiral Kumar Das - 16
    B. Monika Rao- 17
    Devan Bhalla- 18
    Md. Kashif- 29
    Subashini V.- 46

    Content

    Indore based social enterprise

    Mukesh Hajela, CEO

    Rural IT services Provider

    Service Centre Agent (NeGP)

    Largest CSC franchisee network

    Prior Govt projects experience

    Received India Posts RFP

    Key Concepts

    RBV: evaluates competitive advantage

    CSC kiosks highly valuable

    Rare: No close competitors

    It is easily imitatable

    Not easy to substitutable

    Already exploited by projects

    NICT has Competitive Advantage

    Issues to be addressed

    PBIs RFP offer dilemma

    Opportunity: Boon or bane ?

    SBI/BoI relationship affect

    Accept: Overstretching-Failure-Blacklist

    Reject: Loosing Diversifification/Cash Stability

    Loosing out on VLEs

    Resolving impending business risk

    Possible Alternatives
    Fixed stream of cash-flows
    Opportunity pan-India expansion
    Technology monopoly in Banking

    PBIs substitute network threat


    VLEs leaving NICT possibility
    Annulment from SBI/BoI

    Accepting PBIs
    RFP
    (Advantage)

    Rejecting PBIs
    RFP
    (Disadvantage)

    Accepting PBIs
    RFP
    (Disadvantage)

    Rejecting PBIs
    RFP
    (Advantage)

    Possibility of internal complacency


    Corruption and inefficient possibility
    Introduction of third party

    Stable systems status quo


    Opportunity for new collaqborations
    Relation with PBI maintained

    PROFIT CALCULATION
    Rs(in million)
    Recurring revenue

    2932.152

    One time revenue/20

    46.9955

    Total revenue

    2979.152

    Revenue for NCIT

    744.78

    Profit for NCIT

    744.78

    Revenue for kiosks

    2234.36

    Cost of salary for kiosks

    814.8

    Profit for kiosks

    1419.56

    Profit per kiosk

    0.657

    Plausible solutions issue

    Thank you
    Any questions ?

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