G.S. Vidyashankar and L. Prakash Sai13th UNESCO-APEID International ConferenceIndian Institute of Technology Madras, INDIA([email protected], [email protected])
ICT-based Education in Schools:Emerging Business Models in India
11/16/2009 1
Presentation Layout
Indian Diversity
Government Initiatives & Policies
Indian Education Sector
Emerging Business Models
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Economic Diversity
Urban-Rural Diversity
Terrestrial – Rural Schools reach
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India: Diversity & Challenges
Government Initiatives: Initiatives & Policies …
Before 1980s 1985-89 1990-94
First EVS EM Computers acquired by Indian Government
1976: National Informatics Center (NIC) established with the help of UNDP
Emergence of IT Services’ Business (export-oriented)
1961: NCERT created1962: UNESCO establishes Asian Regional Center for Education Planners and Administrators1969: Institution comes under Indian Govt. 1979: Rechristened as NIEPA
1984: 1st phase of Telecom reform. Private manufacturing of customer premise equipment given go ahead
VSAT links regulated
1986-87: 3 wide-area networks embarked upon – districts reached out even before internet technology
Pilot for Computer Literacy Awareness in Secondary School (CLASS)
VSAT technology for education
Govt. initiatives for establishing IT Labs in schools
1991: Sweeping economic reforms and 2nd phase of Telecom reform – De-licensing manufacture of telecom equipments
1993: Companies can own VSAT links
1994: National Telecom Policy – Private firms given licenses for basic telephony
1992: Education Policy factors in technology to improve quality of education1993: Supreme Court ruling - right to education1994: DISE from NIEPA – School information system launchedPvt. firms like Educomp, NIIT started.
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Government Initiatives: Initiatives & Policies
1995-99 2000-04 2005 - Onwards
1998: National Taskforce for IT and software development setup to formulate long-term National IT policy
1999: 3rd phase of telecom reform (full competition; revenue sharing regime)
Creation of Software Technology Parks
More Private players through government contractsIT Labs and IT Content development2000: Everonn a private pure-play education player established2002: Compulsory education up to age of 14 (amendment of constitution)
2000: Info Tech Act (digital signatures; hacking addressed)
Cyber appellate tribunal established 2004: Broadband policy Taskforce for HR development in IT
set for India’s competitive advantage
2002: CLASS revived to become “ICT@Schools”PPP market expansion into new segments(multi-media content)2004: Education satellite EDUSAT launched2004: Computers enter curriculum
Focus areas of five-year plans : Access, IT infrastructure, quality of education and training
Connectivity in Government Schools 2004 -05: IIT run virtual classroom NCERT : Online text books 2006-07: Online tutoring, pre-school
chains, coaching-classes chains NIC driven online portals Special Education Zones Private Education Players expanding
operations globally besides setting up pre-schools , schools and HEIs in their own brand.
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Indian Education Sector: Fact Sheet
Government Spend on Education
• $30 bn; which is 3.7% of GDP
• Centre’s budgetary allocation up 6x in the 11th five-year plan
• Over 90% spent on K12
Private Spend on Education
• 5% of average household income
• 8% CAGR over FY08-20E
Network and Regulatory Framework
• 1.2 million schools, of which 75,000 (7%) are private
• K12 and HEIs required to be run as not-for-profit institutes
• 100% foreign investment is allowed in education sector
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Indian Education Sector: Market Numbers
0
10,000
20,000
30,000
40,000
K12 Higher Education
Formal IES: Market Size US$ m
2008E
2012E
02000400060008000
1000012000
Non-Formal IES: Market Size US$ m
2008E
2012E
ICT in govt schools0.89%
Coaching classes63.30%
Preschool2.97%
Books17.31%
Multimedia in private schools0.69%
Vocational training14.84%
Non-Formal IES
Pre-School Kidzee ($5.44 m) Eurokids ($5.16m)
Multi-media in Schools
Educomp($59.60m)
Everonn($19.41m)
Coaching Classes
FIITJEE ($25.81m) T.I.M.E ($21.51m)
Career Launcher($19.35m)
Vocational Training
NIIT ($94.38m)Listed
Aptech($21.40m)
Veta ($17.20m)
Books Market NavNeet ($88.41m)
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WIPRO – Azim Premji Foundation
Public Private Partnerships (Examples)
CAL: 16,000+ schools in 13 states
350 schools of their own
Plans to start a private university
Major Initiatives:
Assessment-led reforms
Teacher Preparation Education
Management Educational
Technology Research Migrant Labor
Children’s Education
CII - SHIKSHA
Empower Teaching with productivity tools and transform Learning with e-tools and technologies
Reached out to 12 statesE-learning thru Open Source
Repository of educational content and applications
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Indian Education Sector: Profile of Top 3 Firms
FIRM
FACTOR Educomp Everonn NIIT
Scope Full-service education provider Full-service education provider
Strong training focus
Strategic Control Innovative School structures, Scale
Technology Strong on CapitalPartnership
Geography India, Middle East, USA India India, China, Europe, USA
Revenue Models Fee-for ServiceAnnuity Business
RentalsFee-for Service
Fee-for Service
Engagement Models Management ContractJV Model
Franchisee ModelBOOT Model
BOOT ModelFranchisee Model
Retail ModelPartnership Model
BOOT ModelFranchisee ModelPartnership Model
JV Model
Revenue USD 59.60m USD 19.41m USD 94.38m
CAGR % (2008-11E) 64% 44% 11%
EBITDA % 44.50% 37.50% 10.30%
PAT (margin) % 24.70% 14.80% 7.50%
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Replicate ProvenBiz Model
Manage ForProfitability
TestBiz Model
Seed GrowthOptions
Project Mgmnt.,Human Resources
and Financing
Technology Mgmnt.,Supply Chain Mgmt.
and Acquisitions
BOOT Model,Govt. Tenders
Manage IT Labs(Schools)
InternationalOperations
PLATFORM OF CAPABILITIES
Market
Expansion;
Business
Services
Government
ContractsIT education
(Programming
Languages)IT labs
(Infrastructure)
Content
Development;
Coaching
Classes;
Vocational
Training
Knowledge
Resources;
e-Learning
Corporate &
Retail Services;
Global Reach
Business Model Evolution
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Middle East
Asia-Pacific, USA
Retail Outlets
Franchisees /Biz Associates
e-Learning
Competitive Exams,Placement Segments
Home Makers,Unemployed Youth
Private Tutors
R&D(Pedagogy)
Business Services
Content Development
Own-BrandSchools
(A)Synchronous Learning
Supply Chain(of Schools/Colleges)
KnowledgeProcess Outsourcing
NEWBUSINESS
NEWCHANNELS
Mobile Learning
Vocational Training
Growth Opportunities
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Breaking down classroom silos – Anywhere and anytime learningCollaborative learning among studentsLearning agents facilitated through seamless integration
FDI Policy places regulatory impedimentsMHRD working on liberalizing norms to attract foreign universitiesSpecial Education Zones setup in select states of India
Private Education Players going globalNeed to test the successful business models in the global market Need to acquire competencies to meet global standards
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“Democratizing Classrooms”
Policy Planners
Private Players
Points to Ponder
Don't limit a child to your own learning, for he was born in another time.
- Anonymous
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G.S. Vidyashankar and L. Prakash SaiIndian Institute of Technology Madras, Chennai INDIA
