Programon

Educational Entrepreneurship

Dr. Rajiv Tandon

New Delhi

August 7, 2010

AgendaI. Introduction

• Personal Background

• Global Initiatives in Education Reform

• Scene in India– Core Elements of Opportunity

– Employability Model

– Myriads of Opportunities

• Themes

• Areas

• My Personal Vision– Some Pilots

• Why Entrepreneurship?

II. Entrepreneurial Journey

• Theory of Entrepreneurship– Myths and Facts

– Managing the Environment

– Process of Success Creation

– Key Competencies

• Entrepreneurial Alternatives

• Entrepreneurial Themes

• Who am I?

• My “Preliminary” Plan

Personal Background: Technology Based Opportunities in Education-Training

Year Corporation Enduring Impact

1971-1986 National Car Start & build

1987-2001 University Entrepreneur

1971-1992Control Data Corp

Androgogy

1995-Institute for Advanced Technology Interactivity for Learning

1997-2001 LearningByteLower Cost,SCO

2001- AdayanaScaleVerticals Market focus

2010- Parijaath

ScaleCostEmployability

Global Initiative in Ed Reform

Technology in Classroom: InnovationsLevel Focus Features Examples

Initial Trends

Emerging Trends

U 2.0 Student CentricLower cost and Higher Quality

Western Gov UAshford UUN Open UAcademic Earth

DistanceTimeTravelEmerging examples

Crack ParadoxAssessment based creditsFreeInnovation

Peer Interaction Peer2peer Social Interaction Social Networking

Content IPMITAcademic Earth

Scarcity IP protectionProprietary

Open contentfrom top schoolsAbundant- Free

Customized learning/degree

WGUL.A. CollegeChancellor U

Parochial

Competency-basedMass customizationNovel degreesInter-disciplinary

Skills within Education

Career EducationDeVry, UTI

K12School Specialty

Professional DegreesSkills are for VotechK-12

Skills are essential for employability

Industry Academia connection

GMU Trade Schools Mandatory

66

Technology in Classroom: Trends

Technology is transforming education

• Stable and emerging technologies can:

• Provide Scalability

• Mitigate cost

• Support learning, not the other way around

• Design and facilitate versatility

• Not drastically alter proven instructional methods

• Provide Collaboration between Students and instructors

• Accommodate the needs and preferences of each

• Move from any to all parts of the globe

7

Technologies: for Learning

Learning Content Management Systems

OutStart

Blackboard

MobileLearning

Apple

VCom3DBlackberry

SocialNetworking

mZinga

Ning

Learning Management Systems

Plateau

Learn.com

SumTotal

Meridian

Saba

SynchronousTechnologies

Adobe

Nacon

eSkillz

WebEx

Gaming &Simulation

Realmware

Vcom3D

8 8

Global Opportunities Phenomenal Growth Continues: Global Students (UNESCO),

1970:29 M

2007:153 M while population grew: 200%

“Students online performed better than those receiving face-to-face instruction.” Barbara Means, SRI International for the Department of Education Research from 1996 to 2008

Disruptive Climate: Internet disrupts anything where the core product can be reduced to 1 and 0’s. Education is a perfect spot for creative destruction.

Breakthrough: The game changing breakthroughs will come from China or India. In the case of education it is likely to be India because of its youth density.

99

Scene in India:

Population 1.2 B (<25 yrs: 540 M, increasing) Economic growth of 8-10% p.a. is scraping the bottom for employable youth Government Expenditure on Education: 11th Plan (2007-12) $54 B +400% % of GDP: 11th Plan 6% vs. 3.5% Higher Education: 30%, X8 over 10th plan Colleges: 20,677 Universities: 431 Enrollment: 14 M Graduation: 3.5M/year Gross Enrollment Ratio: 11% (vs. World 23.2%, Developed Countries 54.6%) India 75: Goal by 2022 (75th anniversary of independence)

GER Plan: 21% 1.4 B Workforce, 400 M Graduates

Need for Funding in Higher Education: $50 B, Un-allocated $44 B Present Employment Rate of Graduates: Technical: 25%, Non-tech: 10% Overseas expenditure of Indian Students: $7 B /year 2022: Youth Surplus 56 M, World Deficit 46 M

1010

Opportunity:Scalable, Employability, Almost Free

Employability: Learning is for earning Skills within Education Global Benchmarking Localization for India

Price: Indian affordability Demanding Conditions

Technology : Scale: Solves the Paradox : Higher quality and lower cost Appropriate: Leapfrog Breakthrough: Nano

Focus:

Employability Model

Central

SELECTION

GENERAL

LEARNING

INTERVENTION SORTING

SPECIFIC

LEARNING

INTERVENTION PLACEMENT

1 2 3 4 5 PULL

Threshold assessment

Pre-assessment aptitudePsychometric, domain knowledgewith authentication

Interview

Foundation Skills

Domain Skills

Work Specific Skills

Post-Assessment Induction training Placement

PUSH

CORPORATION

LocalWebworldKiosks

RegionalII tier Univ.Directway

LocalRegionalCentral

Central Authentication

INSTITUTION

12 12

Myriad of Opportunities-1Every Stage of Employability Process

Assessment Interests/Aptitudes lead to Job Fit Very low cost per person Validity

Counseling Without counselors

Foundation skills Scalable Modular Content

Domain specific Certification Industry 101 Industry linked certification Modularity Extendable Advanced Methods

Induction Program

Placement

Repair programs

Solutions to specific situations

Myriad of Opportunities-2Areas of Entrepreneurial Potential

• Educational-Training Institutions• e-Learning

– MNC’s– Corporate, Associations, Government– Localization of Global Modules– Outsourcing of e-Learning development

• Consulting and Research• Curricula

– Design– Development

• B to C– Tutoring– Library Development

• Vocational Training• Technology & Tools

– LMS, LCMS– Gap Technologies

• UN Agencies– Diversity of language, culture & demanding infrastructure– Meet needs of other emerging and developed countries

Vision:India: Centre of Education-Training Transformation

Passion

Tested: Methodology

Experience:Leading &

Emerging

Technologies

Experience: Scale

Experience:Development

Experience:Global

Implementation

Entrepreneurship:Teaching &

Practice

India –Center for

Transformational

Practice

Vision

India presents a unique situation of diversity of language, culture, scale and demanding infrastructure.

Solution developed here will be robust and ready to meet the needs of many other emerging and developed countries.

-Disruptive Technologies

- Emerging global best practices

- Indian affordability & demanding conditions

• The Parijaath Flowers: Nyctanthes arbor-tristis, from the wish-granting tree which perfumes the entire universe.

Pilot 1: Employability

WorkSkills Program:

Bridging the gap

Studentsdesperately search for a

job with their

learning

Employers searching for

employable person

Learning is for earning. Employability is the goal.

WSP Program is a short-term 150 Hours course that

transforms graduates into ‘right candidates’.

Baselining

Courses

Exam 1

Domain Courses

Advanced Courses

Exam 2

Certification

Pilot 2: Certificate Programs

Enrolment

Inducement

WorkSkills Program (WSP)

Certification Program (CeP)

18 18

Pilot 3: Action Learning College• Premiere Institute for personnel in Education-Training Industry

• Certificate Curricula:

– Foundation Skills for Life:

– Foundation Courses (BET)• Business curricula: Business models, Global benchmarking

• Education curricula: Emerging Concepts in Education/Training, Content modularity, Delivery methods, Curricula design/new curricula

• Technology curricula: Trends in technology

• Outcomes: – Teachers:

– Service Providers (Trainers, Facilitators, Counselors)

– Specialists

– Curricula Specialist:

– Entrepreneur:

– Others:

MS in Learning Facilitation & Management

Discussion

• There are generations of children whose very lives will be transformed by the moves and actions we take today..

…. and tomorrow

…. and the next day

• Importance of spirit of enterprise and Entrepreneurship for nation, society and you

Our Vantage Point

"There is nothing more powerful than an idea whose time has come.”

Victor Hugo

Everything you Wanted to know about…1. Entrepreneurs are born, not made (T)(F)

2. Entrepreneurship is an are and cannot be taught (T)(F)

3. Entrepreneurs are gamblers. You have to be lucky to succeed (T)(F)

4. Entrepreneurs are independent, loners (T)(F)

5. Starting your own company is risky, hazardous that often ends in failure (T)(F)

6. The key to success is (a) Money, (b) Person, (c) Idea (d) Fit (T)(F)

7. Entrepreneurship is for the young and energetic (T)(F)

8. Entrepreneurs are driven by the desire to make $$$$ (T)(F)

9. Entrepreneurial small companies outperform Fortune 500 (T)(F)

10. Immigrants make a higher percentage of entrepreneurs (T)(F) (T)(F)

11. Entrepreneurship is an unique US phenomenon (T)(F)

12. India is one of the best places for entrepreneurship

The Premise

• Hyper-change

• Status Quo and its implications

• Non-stop Innovation

• Lessons from Recent Innovators

• Is an entirely different model required to lead businesses in the future?

Managing Entrepreneurial Environment

Needs Transformational Leadership– Vision

– Bold Plans

– Decisive

– Prudent Risk Taking

– Plans into Action

– Hardball Decisions

– Substance vs. Style

– Focus on Results

Entrepreneurial Dream

“Dream is not what you see in sleep, Dream is the thing which does not let you sleep”

A.P.J. Abdul Kalam.

Process of Success Creation

STEP PROBABILITY

1. Person with an idea 1 %

2. Opportunity 5 %

Hurdle 1: Attract Talent

3. Founding Team 10 %

4. Venture Plans 15 %

Hurdle 2: Fatal Flaws?

5. Funding 25 %

Hurdle 3: Initial Sales

6. Beginning Sales 40 %

7. Sales Growth 60 %

Hurdle 4: Transition

8. Initial Success

Entrepreneurial: Key Competencies

I.

OPPORTUNITY

III.

PLANS

& STRATEGY

IV.

RESOURCES

II.

INDIVIDUAL

& TEAM

Growth: Evolution/ Revolution

Entrepreneur, Manager, Inventor

Inventor Entrepreneur

Bureaucrat Manager

Management Skills

Cre

ativ

ity

Similarities to Traditional Management

• Core Skills

• Desired Behavior

• Situational Leadership:

• Achieve specific results:

– Quantitative

– Qualitative

The Difference

• Traditional Management:

– I’ll believe it when I see it.

• Entrepreneurial Management:

– I’ll see it when I believe it.

Entrepreneur: The Leader

• Leadership:

– Doing the right thing

– Effectiveness

• Manager:

– Doing things right

– Efficiency

Insights

• Success :

– Doing a little bit better in a number of things

• Failure :

– Doing any one of a number of things poorly

• Process of Success Creation :

– One by one reduction of areas of risk

Definition(s): Entrepreneur• Wide range of meanings: From High aptitude who pioneers change to anyone who works for

himself, any small business owner

• Origin: French: entreprendre “to undertake”

• Common usage: Anyone who starts a business

• Common Definition: Someone who assumes the financial risk of the initiation, operation and management of a business venture.

• Procedural: An innovator of business enterprise who recognizes opportunities to introduce a new product, a new process or an improved organization, and who raises the necessary money, assembles the factors for production and organizes an operation to exploit the opportunity.

• Joseph Schumpeter: placed an emphasis on Innovation with New Products, New production methods, New Markets, New Forms of Organization

• Our Working Definition (Jeffery Timmons): “Entrepreneurship is the ability to create and build something from practically nothing. It is initiating doing, achieving, and building an enterprise …, sensing an opportunity …and the ability to build a founding team to complement your own skills and talents. It the know-how to find, marshal and control resources. …it is a willingness to take calculated risks, both personal and financial, and then do everything possible to get the odds in your favor.”

Knowledge Elements for an Entrepreneur**Scope

I. Academic Foundation• Business Knowledge

– Management– Sales/ Marketing– Operations– Finance/ Accounting

• Entrepreneurial Process– Team Issues– Opportunity Recognition & Evaluation– Resources: Sources & Acquisition– Plans

II. Domain • Knowledge/Experience

– Customers– Personnel– Key Players

• Critical Gaps• Opportunity Specific Knowledge/Information

III. Personal/ Team Experience• Domain Specific Knowledge/Experience• Coverage of Gaps

– Research Based– Innovative Solutions

Entrepreneurial Alternatives

• HPV

• IRB

• Consulting

• Buy existing company

• Franchisee

• Team Member in new Venture

• Intrapreneur

• Social Entrepreneur

• Services Provider

Domain

• Education/Training

• Finance/Financial Services

• Food & Beverage/Restaurant/Retail

• Health/Medical Services/Med Tech

• IT/Technology

• Internet Related/.com/SAS

• Music /Art/Non-Profit

Franchisor

• Plus– Less Capital

– Rapid Expansion

– Local Strength

• Minus– Long Term Strategy*

– Lack of Control

– Expensive Buy back

* Strategy Alternatives

• Children of Franchisees

• Limited term Franchise

• Own Location

Franchisee• Plus

– Lower Risk

– Fast Build Up

– Known Costs

– Known Formula/Process*

– Spread Cost of Advertising

• Minus– Control over all aspects

– High risk (if new Franchisor)*

– National vs. Local Advertising

* Know the company

Entrepreneurial Alternatives -2

• Participate in an new Venture

• Intrapreneur

• Social Entrepreneur

• Services to an Entrepreneur– Legal

– Accounting

– Consulting

– Investor

– Other

Entrepreneurial Themes• Dedication

– Give up wholly towards a goal or purpose

• Focus– Knows what the central point of attention should be

• Profit Orientation

– Thinks constantly about the benefits of the transaction

• Ego Drive– Craves a significant definition of oneself

• Urgency– Impatient. Do it now

• Courage– Increases determination in the face of resistance

Entrepreneurial Themes-2• Activator

– Can make it happen

• Opportunity– Sees Opportunities where others see blocks

• Creativity– Develops Ideas

• Expertise Orientation– Recognizes needs for people with expertise

• Individual Perception– Can recognize strengths of other individuals

• Team– Get the right people and get them to help you

Thematic Differences

• Successful vs Failed Entrepreneurs

– Little Difference in Themes• Jumped in vs On the side lines

• Entrepreneurs vs Rest

– Differences in Themes

Common Pitfalls• Unplanned Approach to Team formation

– Balance

– Complement Each Other

– Fill Gaps

– Risk Orientation

– Appropriate Themes

– Chemistry

• Leaderless Democracy

• Unaware of Weakness(es)

• Unresolved Contributed Performance

• Tax Consequences

Common Pitfalls- 2• Unresolved Resolution of Dispute Process

• Incomplete Legal Work

– Buy/Sell

– Partnership Agreement

– Non-Compete

– Earn Out Contracts

– Stock Vesting Agreement

– “No fault Divorce”

• No Transition Plans

• Full Time vs Part Time/ Trial

Adaptor-Innovator

• All People are Creative

• Creative Style is independent of Cognitive Level

• Styles are quite Different

• No one Style is better than another

• Each Style has its Advantages and Disadvantages

CharacteristicsAdaptors

• Problems– Accept as defined

– With generally agreed constraints

– Focus on early resolution

• Limit disruption

• Immediate efficiency

• Solution Generation– Few

– Incremental

• Relevant and acceptable

– Aim: Do things better

Innovators• Problems

– Reject general perception

– Redefine them

– View hard to get accross

– Not concerned about efficiency

• Rattle

• Looking for LT gain

• Solution Generation– Numerous

– Seminal

• Unconcerned re: acceptance

– Aim: Do things differently

Characteristics -2Adaptors

• Policies– Prefer

• Well established

• Structured situations

– Incorporate new data or events

• Into existing structure/policies

• Organizational Fit– Essential for Ongoing functions

– Under unexpected change

• Difficulty with moving out of established role

Innovators• Policies

– Prefer

• Unstructured

– Incorporate new data or events

• To set new structures/policies

• Accept greater attendant risk

• Organizational Fit– Essential during change/crisis

– Under Ongoing org demands

• Difficulty in applying themselves

Adaptor-Innovator (contd.)• Both have capacity to solve problems

• Capable of generating original, creative solutions

• But reflect very different approaches

• Collaboration

• Do not readily get along

• Especially extreme scores (Over 1 std.dev. (15))

• Adaptors (see Innovators):

• Unsound, impractical, risky, abrasive, threatening, creating dissonance

• Innovators (see Adaptors):

• Conforming, safe, predictable, inflexible, wedded to the system, intolerant of ambiguity

• Creative Styles

• Adaptive (> B8)

• Bridger (B8 to A8) can form consensus

• Innovative (> A8)

When Persuading Adaptors

• Give details

• Show how the idea builds upon existing structure

• Be well-organized give precise, concise presentation

• Provide checkpoints, evaluation plans

• Gradual/ incremental approach to implementation

• Provide advance information ~ don’t “spring” ideas

• Do your homework, make clear your preparation

• Emphasize orderliness, efficiency, and “fitting in”

When Persuading Innovators• Give the “big picture”

• Show new directions and benefits

• Identify opportunities, , novelty, cutting edge

• Identify future trends/directions

• Provide broad structure, emphasize action possibilities

• Recognize “breakthrough” aspects

• Provide opportunities for continued idea generation

• Relate idea to emerging unique and exciting issues

Communications 101

• Speak the language of the other person

• Impact on

– Communications

– Negotiations

– Conflict Management

– Responding to difficult questions

My “Preliminary” Idea

Getting Started– Sit in a group– Each person gets 1-2 minutes to address “Why I

want to be an Edu-Entrepreneur”? What is my idea?• Domain

• Type of Company

• Distribution

• Team

Etiquette– Listen, ask questions vs. giving advice or “the

answer”– Speak only if you wish; you may pass anytime