Digitizing Education for Emerging Users

Education for Emerging Users Touching Lives. Changing Worlds.Through Technology

Digitizing

This report is solely for the use of Zinnov client and

Zinnov personnel. No part of it may be circulated,

quoted, or reproduced for distribution outside the

client organization without prior written approval

from Zinnov.

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• Education system world over is going through rapid transformation.

Value derived out of centuries old factory model is being

fundamentally questioned

• India is home to 1/5th of the World’s youth and is in the midst

of a massive education reformation process.

• Digitization of education can enable this disruption and provide a

platform for the next generation workforce and touch a billion lives

• Total addressable market opportunity for digitizing education in

India is USD 3 Billion over next 3 years (Zinnov Estimates)

• Technology companies need to explore innovative business models

and strategic partnerships to tap this opportunity. Winning in India

can open up other market opportunities which are closed for linear

thinkers.

Our world today

Reforming The World is looking at Education

3 For sole use of Zinnov client & personnel only | Source : Wikipedia, US Census Bureau

Why? We live in a flat world and

to open doors to future prosperity Countries need citizens ready for the 21st

century

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“For the first time we are

preparing students for a future

we cannot clearly describe.”

– David Warlick


http://www.flickr.com/photos/kylemay/

http://www.flickr.com/photos/kylemay/498938859/

what is

21st century literacy?

Education that creates effective learners, able

to communicate across …

… culture, time & geographies 5 For sole use of Zinnov client & personnel only |

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Because the world is interconnected and will become more so..

Education that creates

global collaborators

• Radio – 38 years

• Television – 13 years

• The Internet – 4 years

• Apple iPod – 3 years

• Facebook – 2 years

• ???

Years to reach an audience

of 50 Million!!

6 For sole use of Zinnov client & personnel only | Source : United Nations Website

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India is no different from the world

1.21 Billion People 620 Million youth below the age of 25years

India is also critical for 21st century education

Home to 1/5th of the worlds youth population 7 For sole use of Zinnov client & personnel only | Source : Wikipedia page on World Demographics, India Demographics

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India’s literacy rate is ~65%

Government

School Teachers Parents

Children

Number of schools: 1.3

million

Private: 1.05 million

Public: 0.25 million

Pupil-teacher-ratio:

1:32

Average number of

teachers per school:

4.5

Average

Income: ~1000

USD Per Year

Number of enrollments in

schools

Primary : 130 Million

Upper Primary : 54 Million

8 For sole use of Zinnov client & personnel only | Source : District Information System for Education – Flash Statistics 2010

A lot ails education in India


Infrastructure…… 41% of schools do not have a

separate girls toilet.

Still around 10% of schools are single teacher schools.

49% of schools do not have a boundary wall.

30% of schools do not have a proper building.

8% of schools do not have drinking water facility.

Only 17% of schools have computer. 61% of schools don’t have access to

electricity. 10 For sole use of Zinnov client & personnel only | Im

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Source : District Information System for Education – Flash Statistics 2010

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Quality…. Only 39 out of every 100 students reach 10th grade, out

of which only 40% pass.

Dropout rate after elementary education is as high as

44%.

Majority of students have poor and irregular attendance.

Only 55% of students complete their primary education

with more than 60% marks. One out of every three

students in class 5th cannot read or write.

About 45% of teachers teaching in schools in

India are not even graduates. The situation is

worse among schools in rural areas where this

number rises to more than 50% among female

teachers.

11 For sole use of Zinnov client & personnel only | Source : District Information System for Education – Flash Statistics 2010

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He used to go to school

because he GOT AN

ASSURED MEAL

A DAY. The nearest school is

2KM AWAY. He regularly falls sick

as he is ANEMIC.

He aspires to Play

with friends & is

Scared of his

dad


Raghu’s Father

• Earns USD 1 a day doing odd jobs

• Has respiratory illness because of cooking using coal

• Works in the fields

• Earns USD 2 a day

• Habitual drinker

• Relies on Government

Welfare Scheme

Raghu’s Mother

• Graduate and recently completed his B.Ed.

• Takes all classes for students from 1st grade to 8th grade

Spends 50% of his time managing school admin

Raghu’s Teacher

He isn’t educated but understands that education

could help his son.

She isn’t educated but wants her son to go to

school. Her daughter as well.

He wishes he had support, and the right teaching aids.


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Raghu Dropped out of School...

• His classes were BORING.

• He did not learn much.

• Working earns him USD 1 a day.

• He misses his friends…but USD 1 a day is

a lot of money for his family.


Had Raghu continued his EDUCATION and got

QUALITY EDUCATION his LIFE COULD BE A LOT

DIFFERENT

5th Grade

Drop Out Graduate

USD 1/day

10th Grade

Drop Out

USD 3/day USD 10/day 15 For sole use of Zinnov client & personnel only | Source : Zinnov Analysis

All is not Lost....India is reforming

Education!

• Right to education: Children are legally entitled to free and

compulsory elementary education under

The Right to Education Act, 2009 (RTE)

• Student Pupil Ratio is Approaching

1:30

• Post Graduate Qualification

amongst teachers is touching

20% 16 For sole use of Zinnov client & personnel only | Source : District Information System for Education – Flash Statistics 2010

Enrollment in Primary Education is

touching 99% Rural Household expenditure on

education is up 79% in last 6 years

Urban Household expenditure on

education is up 98% in last 6 years

17 For sole use of Zinnov client & personnel only | Source : Government Report on Domestic Household Expenditure 2010, DISE Flash Statistics

Education in India Today

Factory Production Line..

• Students split by Age Groups • Pass out in Batches

• Study Specialized Subjects

• Have a fixed

curriculum and

speed of

learning 18 For sole use of Zinnov client & personnel only |

Children need personalized Learning


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Apprenticeship model

Standard Curriculum

Personalised Learning

Key Trends in Education Point

towards us going back to personalized

learning

Just in case

Just for me

Just for me


Digital

technologies can

revolutionize how

Education content are

made, distributed,

and used in India


India has started to embrace

digital tools

India has 800

Million+ mobile users

85 Million Internet

Users

100 Million+ TV

Household

2 Million Developers

22 For sole use of Zinnov client & personnel only | Source : TRAI, Economic Times, BCG Report,

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There is an opportunity to digitize education

and provide…

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and Social networking

Powered by

Collaboration

..customized learning experience


“ Education is an important element to inclusive growth and

technology is an accelerator to this process ”

- Aravind Sitaraman , President, Inclusive Growth , Cisco

Global competitors like Cisco have already started

to work towards this opportunity…

Technology

Cisco has developed CEED, a platform solution exclusively developed for remote education

delivery , through multimedia content & virtual classrooms

Model Partnership Model : Cisco partners with Government ( on a public private partnership model )

and emerging education entrepreneurs ( On revenue share model ). Cisco delivers the platform,

partner delivers the content

Recent Successes Partnership with Lakshya Networks, in Madhya Pradesh, for delivering after school tuitions in 7

villages

Partnership with Everonn in Raichur & Karnataka Government in Shimoga to deliver distance

learning courses.

The way forward

Cisco’s long term vision is to turn rural India into a $1 Billion market, for education, healthcare

and citizen services.

24 For sole use of Zinnov client & personnel only | Source : Cisco Website

Technology

Touchscreen tablet computing device with Wi-Fi connectivity. Pre-integrated content according

to subscription /category

Model

Partners with established supplementary education providers to digitize & deliver their content

on iProf tablet. Wifi enables, video conferencing enabled classroom sessions

Recent Successes Partnership with IGNOU, India’s largest distance education body to conduct diploma programs

for 75 courses.

Partnership with Kaplan Ventures and Brilliant Tutorials to deliver Test Preparation courses on

iProf device

The way forward

iProf currently has about 20 iZones ( learning centers ) which it plans to expand to about 100 by

the end of 2011. It already has a funding of USD 5 Millions from Norwest & IDG Ventures.


“ iProf addresses three major limitations that plagues e-learning

: computer penetration, content piracy and widespread reach ”

- Sanjay Purohit , Founder, iProf

Along with homegrown ventures like iProf…

Source : iProf Website & Press Release

And the Opportunity could be as large…

…As USD 3 Billion in next 3 years!

Govt. Spend- All

USD 30 Billion*

Private Spend- Formal Education

USD 40 Billion*

Private Spend- Informal

USD 12 Billion*

USD 3 Billion USD 8 Billion USD 2.5 Billion

400 Million 1.5 Billion ~1 Billion

10 % 20 % 20%

13 % 20% 30%

Total Spend on Education

USD 82 Billion*

Content Authoring & Creation

( USD 2.4 Billions )

Content Delivery

( USD 500 Millions )

Content Management

( USD 100 Million )

Total Digitization Opportunity

USD ~3 Billion

Relevant Spend

Digitization Filter – Next 3 years

26 For sole use of Zinnov client & personnel only | Source : National Budget , Household Expenditure Report , Secondary Research. *Estimated for year 2012

27

Technology companies can enable the entire…

…Digitization Ecosystem

Content

Creation Content

Delivery

Content

Mgmt.

NCERT

Universities

Publishers

Schools

Education

Boards

Govt.

Vocational

Institutes

Private

Org.

Vocational

Institutes

Universities

For sole use of Zinnov client & personnel only |

Micro Entrepreneurship Promotion

Initiative : Promote small entrepreneurs ,

education startups

Model : Free/ Subsidized Software, Charge on

Content delivered

Revenue Share Partnerships

Initiative : Help existing players with content

creation, delivery & management

Model : Revenue share / Fixed charge per user

Social Tie Ins

Initiative : Partner with NGO’s & Not-for Profit

organizations

Model : Subsidized software, promotion of

partner startups / companies

Government Partnerships

Initiative : Partner with key Govt. Agencies and

Schemes

Model : End to End solution delivery

Top Line Growth

Brand Recognition

Early Mover’s

Advantage

Sustainable Market

Education focused tech companies can use several

enablement models to realize this opportunity…


Conceptual

Zinnov can help define and execute the

transformation vision..

Evangelism

Enablement

Sustained Monetization

Zinnov Services


• Map the eco-system linkages in

education value chain.

• Define Education Vertical Specific

Evangelism Programs

• Program Manage Education

Evangelism Efforts

• Customer Insights, user persona and use case

definition.

• Market sizing, Segmentation and Go-to-

Market Strategy development for Micro

segments

• Partner Selection and Alliance formulation

• Identifying disruptive business model and

validation

• Partner/ Anchor Customer Identification

and Establishment of Connects.

Growth Strategy Definition & Business Planning

Customer Insights

Partnerships & Alliances

People Strategy

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Thank You

Zinnov Management Consulting

Total Opportunity ($ 3 Billion)

K-12 Education ($ 1.65 Billion)

Creation ( 85%)

Delivery ( 10%)

Management (5%)

Higher Education ($ 1 Billion)

Creation ( 70%)

Delivery ( 25%)

Management (5%)

Vocational & Other ($ 400 Billion)

Creation ( 55%)

Delivery ( 30%)

Management (10%)

Content Authoring & Creation

( USD 2.4 Billions )

Content Delivery ( USD 500 Millions )

Content Management & Analytics

( USD 100 Million )

Government Private Sector/ Schools

Teachers Parents

1 2

4 3

1. Infrastructure 43.8% 2. Social Schemes 10.98% 3. Salary 19.37% 4. Management 2.67% 5. Trainings 3.60% 6. Text Books 4.58% 7. Innovation 1% 8. Other Activities 14%

1. Infrastructure 45% 2. Salary 30% 3. Management, Administration &

Marketing 5% 4. Content Development / Books 7.5% 5. Trainings 5% 6. Innovation 5% 7. Extra-curricular 2.5%

1. Trainings & Self Development 70% 2. Content Development for Self-use 10% 3. Books 20%

1. School Fees 50% 2. Uniforms 2.5% 3. Transportation 10% 4. Books 5% 5. Tuitions 30% 6. Others ( E.g. Internet ) 1% 7. Extra-curricular 2.5%

India Education

Spend

Prospective Area for Digitization