Forbes Technosys Limited (A): Bill Payment Kiosk Business

Singh, Davinder;  Sahu, Anuj . "Forbes Technosys Limited (A): Bill Payment Kiosk Business", 2017
Issues: business model, mobile, billing
Disciplines:  General Management/Strategy
Industries: Other Services
Setting: India, Medium, 2010
Length: 9 pages (7 pages of text)
Intended Audience: MBA/Postgraduate
Publication Date: December 19, 2016

In May 2010, Forbes Technosys Limited (FTL) was not doing well. After more than a year, the company’s bill payment kiosk business was losing money and no longer seemed viable. The time had come to re-evaluate all aspects of this business line and make decisions regarding FTL’s future course of action. Accordingly, FTL’s chief executive officer proposed an idea regarding prepaid mobile recharges using the existing bill payment kiosks, along with a new technology platform for this purpose. He hoped that handheld terminals could be used by retail-level franchisees to sell recharges to prepaid mobile users. Essentially, FTL had three options: should the company persist with or pivot the service provider business model, or “perish” the complete solution provider idea entirely and revert to being a product manufacturer? Whichever strategy FTL chose, it would have to limit and balance both operating and capital expenses.

Learning Objective:
This case can be used during a course on strategic innovation management, which is usually scheduled in the second half of an MBA/postgraduate program or executive MBA program. It can be used to teach students about the following concepts:
  • Making strategic choices about business models, especially the choice between being a service provider and a product manufacturer while pursuing innovation
  • Making decisions as to whether to persist, pivot, or perish in a particular business model while pursuing new business opportunities