ICT and Devices in

K-12 Education

Rothin Bhattacharya

Education market in India is estimated to be ~ US$ 135 billion by 2020, of which the e-learning market alone will constitute ~US$ 7 billion

2010

+12%

Supplementary

Mainstream

2020

75-78

14-15

30-31 55-58

Size

USD billion

11

15

Growth

%

▪ Large and fast growing student base

▪ High student accountability

supplemental education

– Poor quality of teaching

– Few good HE institutes -

competition

▪ High private participation in education

+42% p.a.

2020

~7.2

2010

~0.2

Drivers of growth

Indian e-learning market, 2010-2015

$ billion Indian education market, 2010-2015

$ billion

Indian Education market

Content Server

@ School

digischool

Resource Center

Classroom PC Classroom PC

Classroom PC Classroom PC

Classroom PC Classroom PC

Classroom PC Classroom PC

Digital Multmedia

Content

Projector

Interactive White Board

SRS

ICT in schools Speakers

K- 12 ICT Market in India

Total number of classrooms in India- 4 Mn, out of which 0.15Mn is penetrated. 95% is the opportunity which is still not penetrated

Benefits of ICT?

Access to rich content

Multimedia content on various topics by experts helps

better student understanding

Addressing the hard spots in the curriculum

Quality content

The content helps the school’s to address the problems

related to the quality of faculty

Increased retention and student engagement

The multimedia content, virtual labs, simulations help

teachers to make the content more interesting

Key Challenges faced by school ICT players

Content evaluated on quantity rather quality

Schools are not able to differentiate between the products

basis the content and try to go for volume of content rather

than quality

% utilization of the product

Teachers are not familiar with technology and frequent

power cuts become hurdle

Customer try to Marketing objective , rather than academic

Schools are adopting the technology as a ‘me too’ solution

rather than focusing on academic outcomes

National Policy on ICT in School Education (Draft, 2009)

Policy

3 stages of ICT implementation

ICT literacy & competency

ICT related electives

ICT enabled teaching

Computer lab with atleast 10

networked computers

Atleast 1 classroom with

audio visual facilities

Broadband connectivity

Government, Education & ICT

‘Mission in Education through ICT’ - Rs 9000 million

Opening up the education sector for foreign institutions

PPP: To set up 2500 model schools, spending Rs 100 billion

CBSE: Pro-active promotion of use of technology in affiliated schools

NIIT has provided computer-based learning to

over 16,000 government and private schools

across the country cumulatively impacting

lives of more than 10 million kids

ICT – Challenges: Private vs. Public

Private Public

Differentiating offering

Competitive intensity

Content Design: Regional Boards and numerous publishers

Tech. adoption: Lack of quality teachers

Digital Classroom no more a differentiator for schools

B2B2C

B2G2C .

Large upfront investment, low ROIC .

L1 bidding: commoditization & low margins .

Long working capital cycle .

Challenges

• Interactive—Active Learning

• Learning Outcomes-based

• Research Driven,

Learner centered Constructive Learning

• Buildings

• Time-based

• Rigid, Factory-model education

• Rote Learning

• Textbook-driven—passive learning

Digischool In Classroom Interactive Learning – Teacher Supported

Tab

let

bas

ed

p

ers

on

aliz

ed

lear

nin

g

Pe

er

to P

ee

r co

llab

ora

tive

lear

nin

g

Digital interaction goes Mobile

Learning devices changing the learning paradigm

25:1 When resources are constrained Limited to computer Literacy

1 PC Lab Increasing access to devices

Learning across curriculum Computer on wheels: 1 to 1

eLearning in School

Classroom eLearning 2

Dedicated device@ school/home Self-paced learning Max. access to technology

One-to-One eLearning 3

Effective Technology Environment

Enhanced Teaching & Learning

Access to devices

Teacher Administ-ration

Student

One-size-fits-all To 1:1 E-learning The future of personalized learning

• Mobile devices would outship PCs by more than 2 to 1

and generate more revenue than PCs for the first time in

2012.

• 85 billion mobile apps will be downloaded, and mobile

data network spending will exceed fixed data network

spending for the first time

• Mobile devices spending will grow 23%, driving 43% of IT

growth

• Over 700 million smartphones and tablets will ship, a

jump of 34%, nearing 2x PC shipments.

• 1.5 million mobile apps will be available, over 15 times

the number of PC apps

Self learning device revolution

Source: December 2011, IDC #231720, Volume: 1

Internet adoption combined with above device revolution would lead to mobile/tablet based self learning revolution

14

IPTV USB Internet +

Content Dongle Android TV 2 Way Live Learning Content Delivery

On Broadband

Educational

Tablet

Assessments- Outcome based (Both for K-12 and HE)

Professional and Career skill enhancement- HE and CDC

Test Preparation (Both Graduation and Post Graduation)

Content: Static Dynamic Collaborative

Curricular Based Content (K-12) and game based learning

Self learning content on various devices

Form Factors

Conclusion: Is technology the silver bullet for school education in India? Investing in Right quality content for devices

Content on devices which can provide Access, Equity and Quality to

student

Teacher training on technology

Training teachers on technology would enable growth and adoption of

technology

Learning outcomes for students

Effectiveness through Measurable learning outcomes needs to be

derived

With the right content and making technology simple can help making school education in India achieve global standards

Thank You

Overview of the Indian Education Sector

Education Sector in

India

K-12

Schooling

Higher &

Professional

Education

Vocational

Training

Coaching/

Tutoring

Educational

Services

USD 20 Bn

Market Size

(2008): USD

50.1 Bn

USD 20 Bn* USD 6.4 Bn USD 1.9 Bn USD 1.5 Bn

CAGR: 14%

40% 0.6% 12.6% 3.8% 3%

14% 12% 15% 18% 25%

Segment

Pie

CAGR

Regulated – School Fees Unregulated

Preschools

USD 0.3 Bn

40%

36%

Market

Size

►KG to 12

►Engineering

►MBA

►Medical

►Sector specific

►Industrial training

► Out of class

tutoring for K12

► Test Preparation

►ICT & Multimedia

►Books

► Skill development

► Preschool/

Playschools

► Millennium

► Zee Group

► DPS

► GEMS

Key

Players ► Manipal

► Amity

► Symbiosis

► NIIT

► Aptech

► IIHT

► Jetking

► HCL

► FIITJEE

► Bansal

► Mahesh Tut.

► Educomp

► HCL

► Teach Next

► Edurite

► Kidzee

► Mothers

Pride

► Shemrock

Source – Ernst & Young

Six primary themes of Indian education market

Vocational

skills

Theme 3:

University or

chain of colleges

▪ Second largest

segment

▪ Growth, partly

due to ease of

entry in same

states

▪ Highly regulated,

with uncertainties

Theme 5:

Vocational skills

▪ Small but growing

rapidly

▪ Significant

industry and

government push

▪ Emerging large

scale for-profit

plays

▪ Not much

regulation (though

certification may

start)

Theme 1: Pre-

schools and play

schools

▪ Small though

growing rapidly

▪ A couple of large

chains with highly

fragmented and

local competition

after that

▪ Branding

becoming

increasingly

relevant

Theme 4: A range of services in K-12 and higher ed

▪ Maximum new player activity

▪ Maximum recent for-profit and investor activity

▪ Low entry barriers; however, large scale profitable play needs careful

choice of segments and appropriate business model

Limited (counted

above)

Limited (largely supporting in nature)

Primary and upper primary Pre-primary

Secondary Tertiary/Higher

Standards 1-8 Standards 9-12 Under-grad, PG,

Ph.D., etc.

2-5 years 5-13 years 13-17 years 17-25 years 15-25 (and beyond)

Theme 2: Running a chain of schools

▪ Largest segment currently

▪ Rapid growth, though significant variation across

segments

▪ Several new forms of competition

▪ Regulated though reasonably clear and stable

regulations

Theme 6: technology – led interventions

▪ Minimum investment required for the launch of technology related offerings

▪ Increased reach and relevance across a wide range of students

Indian Education market

ICT – Offering & Challenges: Private vs. Public

Private Schools Public Schools

Offering

Multimedia content to supplement learning,

augmented by central computers/ server and

digital display infrastructure in classrooms as

well as maintenance services

IT Hardware for a computer lab along with educational

software/ content loaded as well as maintenance and

training

Business

Economics

The upfront capex is high and incurred by us

Certain amount is charged per month per

student

Capital cost is recovered in a little over a year

The upfront capex is to the tune of INR 3Lakh (~30%

of contract value) for setting up a lab excluding the

recurring running and maintenance costs

ICT payments are cleared on quarterly basis

throughout the duration of the contract at a pre-

determined contract value (per school per year)

Highlights

Highly underpenetrated market offering

tremendous growth potential

Existing model set to witness high growth due to

high return without any investment for schools

Annuity model, with schools tied in by long term

contracts

Govt. to increase spends (allocation for SSA increased

4x in 11th plan)

Annuity model, with schools tied in for long term

contracts

Challenges

With duplication of content, differentiating our

offering is a challenge

Competitive intensity is increasing with more

players from related segments are entering

Regional Boards and numerous publishers make

designing the content a problem

Lack of quality teachers make technology

adoption a major hurdle

With increasing penetration, Digital classroom is

no more a differentiator for schools

It is still B2B2C

Large upfront investment, low ROIC

L1 bidding leading to commoditization & low margins

Long working capital cycle associated with

government projects

It is B2G2C

Government, Education & ICT

Provision for the scheme ‘Mission in Education through ICT’ has been substantially increased

to Rs 9000 million

Possibility of opening up the education sector for foreign, private institutions

Government to focus on PPP models in the education sector across K12 education, higher

education and vocational training

Roping in the Private sector for setting up 2500 model schools, thereby spending Rs 100

billion through PPP models

CBSE has been pro-actively promoting the use of technology in schools affiliated to it

Few key initiatives

Results on the Net

Online Admission Counselling

Distance Education

Online NCERT Textbooks for Classes I to XII